Bali real estate glossary

A long-term land lease with the right to build, rent out and assign — the only format in which a foreigner personally holds a villa in Bali.

Full ownership title to land, available to Indonesian citizens only; the SHM certificate is where every plot check begins.

A state 'right of use' title that a foreigner with a residence permit can register in their own name; rare in practice because of price thresholds and status requirements.

A 'right to build' title held by an Indonesian company, including a foreign-owned PT PMA; for a foreigner it is reachable only through a legal entity.

An Indonesian limited company with foreign capital — the only legal-entity form for a foreigner; since May 2026 Bali no longer registers it under 18 KBLI codes, including real estate.

Registering land in an Indonesian citizen's name 'on behalf of' a foreigner; void by law and, since 2026, punishable under Bali Perda No. 4/2026.

The clause that gives the lessee the next lease term; it protects you only if it fixes the owner's obligation, the timing and the price (or formula) — not 'by mutual agreement'.

The pricing mechanism for the third leasehold step: the district's average land-rent rate from three sources, recalculated every two years — the price arrives as an invoice, not a negotiation.

Selling a leasehold villa means transferring the lease rights to a new lessee for the remaining term; done through a notary, priced by the years left.

Indonesia's foundational land law: defines the land rights (Hak Milik, HGB, Hak Pakai, Hak Sewa) and bars foreigners from freehold.

Indonesia's Dutch-derived Civil Code; governs contracts, leases, the evidentiary weight of documents and liability for non-performance.

How DOMA works since 2026: the land lease is in the investor's name, the construction budget goes to the contractor, DOMA coordinates and supervises under a separate agreement — three documents instead of one.

The state's confirmation that the intended use of a specific plot matches the spatial plan; the mandatory first step before a PBG building permit.

The long-term spatial development plan of Bali province and each regency; sets the big zones — tourism, housing, farmland, protected areas.

District-level zoning detail: specific functions, density, height and setbacks per block; the basis for automatic KKPR.

A table in the RDTR that gives, for each zone and each activity (by KBLI), one letter: I — permitted, T — limited, B — conditional, X — prohibited.

The residential zone on Bali's maps; villas can be built, and legally rented only if the KKPR confirms a commercial KBLI code (55193) at those coordinates.

The tourism zone on Bali's maps — hotels and accommodation are the permitted function, yet a KKPR can still be refused on the other three tests: intensity, setbacks, infrastructure.

Agricultural zone and protected rice fields; a villa here is not 'cheap with a view' but, since 2026, a criminal offence under Bali Perda No. 4/2026.

A status for land permanently reserved for food production under Law 41/2009; conversion to development is prohibited — in Bali, with criminal liability.

A satellite-based register of active rice fields approved by the ATR/BPN ministry; a plot in the LSD will not get land-use confirmation for development.

Mandatory distances from a river, cliff edge, shoreline, road and temple within which nothing may be built; on canyon-view plots they eat a visible share of the area.

Regional laws of Bali province (Perda) and regulations of the governor (Pergub) and regency heads (Perbup); these introduced the RTRW, the rice-field conversion ban and nominee liability.

The national land agency that keeps the register of certificates and encumbrances; an official extract is obtained only by a notary, the Sentuh Tanahku app is for first screening.

The unit of land area in Bali: 1 are = 100 m²; land prices and leases are quoted per are per year or per are outright.

Approval of a specific building to a specific design — with its function (residential or commercial), area and storeys; issued before construction via SIMBG, replaced the IMB in 2021.

The certificate that the completed building matches the PBG and the codes and is fit for use; issued after construction and required for legal rental and handover.

The building permit in force until 2021; replaced by the PBG, but buildings older than five years still carry an IMB in their files.

The single number every business receives in the OSS system; for renting a villa the operator must hold it with the right KBLI code, for vetting a developer — its legal entity must.

Indonesia's standard classification of business activities; for villas the key codes are 55193 (tourist villa) and 68111 (real estate), the latter closed to new PT PMAs in Bali since May 2026.

The government's online licensing portal that issues NIBs, KKPRs and licences under a risk-based approach; also where any developer or management company is verified.

Three tiers of environmental approval by project scale: an SPPL statement for small villas, UKL-UPL for mid-size complexes, AMDAL for large ones; one of them is required before the PBG.

The state online register through which PBGs and SLFs are applied for and issued; a permit number is verified there, not by a stamp on paper.

The permit for a well and groundwater extraction, mandatory for commercial properties; Bali's deadline to legalise wells was 31 March 2026, with fines after.

The regional water company; in Gianyar it is PDAM Tirta Sanjiwani. Connections are not universal and pressure fluctuates, so villas keep a storage tank and often a well.

The regency taxpayer number for paying the local guest-accommodation tax (10% of the room charge); part of the legal-rental package alongside NIB, KBLI, PBG and SLF.

The set of documents without which a villa is removed from Airbnb and Booking: NIB with KBLI 55193, commercial KKPR/PBG, SLF, NPWPD; for a foreign individual it is usually provided by a licensed operator.

Checking the property, the seller and the deal before money moves: land and certificate, zoning, permits, legal entity, contract, payment structure; 2–4 weeks and $1,000–2,500 with an independent lawyer.

A notary authenticates contracts; a PPAT is the official empowered to draw up land deeds and register them at BPN; usually one person in two roles, without whom a land deal lacks full force.

Four document forms with different weight in court: a notarial deed, legalisation of signatures before a notary, registration of an already-signed document, and a plain private contract.

The binding agreement between buyer and developer on the future handover: price, stage-based payment schedule, specification, completion date, penalty and what happens if unfinished.

A structure where each instalment is paid only for a completed construction stage accepted by act; in DOMA projects — 30% at start, 30% after foundation, 30% after structure, 10% at handover.

The document by which the villa is handed to the owner after the final inspection; it starts the warranty periods, triggers the last 10% and the launch of rental.

Holding money or documents with a neutral party until conditions are met: land money in escrow until the lease is registered, the certificate and owner's consents on deposit with the notary.

The legal term for breaching a contract — delay, partial or defective performance; unlike force majeure it gives a right to penalty, damages and termination.

Under Law UU 7/2011 payments within Indonesia are made in rupiah; the contract price may be in dollars, but the transfer reaches the developer's account in IDR at a fixed rate.

A one-off buyer's tax of up to 5% of the tax base on acquiring title to land or a building; not charged on a plain individual leasehold, but arises with Hak Pakai, HGB and inherited title.

VAT of 11–12% applies when buying a new building from a VAT-registered developer; the PMK 90/2025 incentive covers 100% of VAT on the first IDR 2 billion for homes up to IDR 5 billion, but leasehold and PT PMA purchases do not qualify.

The regional tax on land and buildings assessed on the NJOP cadastral value; for an Ubud villa roughly IDR 500,000–3,000,000 a year, payable by the landowner but usually passed to the lessee by contract.

Indonesia's tax on rental income: 10% of gross rent for tax residents (PPh 4(2)) and 20% withholding for non-residents (PPh 26), reduced under a double-tax treaty.

Indonesia's new unified tax-office system launched in 2025; it automatically reconciles payments, income, assets and platform data — under-declared deal prices and 'grey' rental income surface immediately.

The treaty between Indonesia and your country that reduces withholding on rent and lets you credit Indonesian tax at home; Indonesia has DTAs with Australia, the UK, most EU states, Russia and Kazakhstan among others.

Indonesia's taxpayer number; a non-resident foreigner can do without it (20% withholding as non-resident), but incentives, Hak Pakai and the resident rate require one.

The average price of a sold night: accommodation revenue divided by nights sold; for a two-bedroom Ubud villa — $165 per the DUVI index (Q3 2026).

ADR × occupancy — what each calendar night earns on average, empty ones included; per DUVI, $104/night for the Ubud market and $144 for villas under DOMA-partner management.

The share of sold nights out of calendar nights; Bali averages 60–65% for active villas, about 37% across all Ubud listings, and 87% for delivered DOMA-partner villas under management (Green Harmony: 88.2% Jan–Sept 2025).

The owner's annual income after platform and management fees, running costs and taxes, divided by the villa price; a realistic range for a managed Bali villa is 10–15%, the actual figure for delivered DOMA-partner villas is 12.8%.

The operator that rents the villa, services guests and the property, handles licences and taxes and pays the owner monthly for a 15–25% fee on revenue; for a foreigner on a leasehold it is also the legal wrapper for renting.

Airbnb, Booking.com and other online agencies that bring most guests; since 2026 they remove properties without an NIB, KBLI and NKU from Indonesia's tourism-ministry lists.

DOMA's quarterly index of Ubud's two-bedroom villa market: entry price, ADR, RevPAR, occupancy, net yield, supply; open methodology and data from 20 sources (CC BY 4.0).

Letting the villa for a month or longer to nomads and winter residents: lower nightly rate but higher occupancy, less wear and less operations; a hybrid of nightly in season and long stay off-season usually beats either pure strategy.

All annual costs the owner bears regardless of occupancy: staff, electricity and water, pool and garden, PBB and lease taxes, insurance, repair reserve, management fee; for a two-bedroom Ubud villa — $7,500–13,000 a year.

The three stages paid for against acts: foundation (with columns and pool shell), structure (load-bearing, roof, walls), finishing (glazing, finishes); contractual build time for a 72 m² villa — 10 months.

Checking the finished villa before signing the handover act: structure, utilities, finishes, furniture against specification, documents; issues go on a snag list with deadlines to fix.

The builder's or contractor's warranty under the contract: in DOMA projects — 5 years structure, 2 years utilities, 1 year finishes and equipment; counted from the BAST.

The decision of six Bali regencies from 2026 to suspend new permits for hotels, villas and restaurants in overheated zones; there is no island-wide ban, the south was not halted, and each plot is checked individually.

Bali's building-height limit of 15 metres (colloquially 'no taller than a coconut palm'), fixed in the provincial RTRW; no issue for two-storey villas, a stop factor for 'five-storey apartments'.

Indonesia's temporary (KITAS, 1–2 years) and permanent (KITAP, 5 years) residence permits; buying a villa does not grant residence by itself — grounds are work, investment via a company, family, retirement or special visas.

Indonesia's long-term residence for investors: $350k in government bonds/shares/deposit for 5 years or $700k for 10 years for individual investors; an apartment from $1 million is the property route; a single $139k villa does not qualify.

A 5- or 10-year long-stay visa for those who prove funds — a deposit of about IDR 2 billion (~$125k) in an Indonesian state bank or property ownership of that value; no right to work.

A 30-day visa on arrival with one extension (IDR 500,000), obtainable online as an e-VOA; entry in 2026 also requires an e-Arrival Card, an electronic customs declaration and the Love Bali levy of IDR 150,000.