Can Foreigners Buy Land or a Villa in Bali?

Not as freehold. Article 21 of the Basic Agrarian Law (Law 5/1960) says only Indonesian citizens can hold hak milik, full ownership of land. A foreigner with valid immigration documents may own one house under hak pakai (right of use) or one apartment unit, above a government-set minimum price. In Bali that floor is Rp5 billion (about US$300,000) for a landed house and Rp2 billion for an apartment. The rules below were checked in October 2026 against the regulations and official reporting.

The legal basis

• Law 5/1960 (Basic Agrarian Law). Article 21: freehold is for Indonesian citizens only. Article 26(2): any sale, gift or other act intended to transfer freehold to a foreigner, directly or indirectly, is void by law. The land falls to the state and money already paid cannot be reclaimed.
• Government Regulation (PP) 18/2021 on management rights, land rights, strata units and land registration. A foreigner with immigration documents may own a landed house on right-of-use land, or a right of use granted over someone else's freehold under a deed made before a land deed official (PPAT), as well as a strata-title apartment.
• ATR/BPN Ministerial Regulation 18/2021: one plot per person or family, no larger than 2,000 m², for residential use only, not business.
• ATR/BPN Ministerial Decree 1241/SK-HK.02/IX/2022: minimum prices by province. Bali: Rp5 billion for a landed house and Rp2 billion for an apartment unit.

How long does a right of use last?

A right of use over state land is granted for up to 30 years, extendable by up to 20 years, then renewable for up to 30 years. That is 80 years at most. If the house sits on an Indonesian's freehold, the term follows the agreement with the landowner. The right can be inherited, but a foreign heir must also meet the immigration requirements. If the owner or heir no longer qualifies, the right must be released or transferred to someone who does. Ask your notary/PPAT about the deadline and procedure before you buy.

What is a nominee, and why is it dangerous?

In a nominee arrangement, land is bought in an Indonesian's name while the money and control stay with the foreigner, usually tied together with a name-borrowing agreement, power of attorney or loan agreement. Such deals are still widely offered in Bali, and Kompas (April 2026) described them as a common workaround. The problem is Article 26(2) above: an agreement meant to transfer freehold to a foreigner indirectly is void by law. In practice:

• On the certificate, the legal owner is the Indonesian nominee. If that person dies, divorces, falls into debt or changes their mind, you have little to stand on.
• A court can declare the name-borrowing agreement void, and the money you paid cannot be reclaimed.
• The Bali provincial government now targets nominees specifically. Bali Regional Regulation No. 4 of 2026 on controlling the conversion of productive land, signed on 24 February 2026, also allows sanctions on intermediaries and facilitators of nominee deals, according to news reports.

The 2025-2026 illegal villa crackdown

On 12 September 2026, Bali Governor Wayan Koster personally led the demolition of a villa inside the Pejarakan village social forestry area in Gerokgak, Buleleng (ANTARA). The villa was not in the approved forestry management plan, had no building approval (PBG) or groundwater permit, and its owner had ignored three written warnings. The governor said there were signs of foreign investors using local names. The province has also said it will act against villas and homestays rented out through digital platforms without permits or tax payments. For buyers, a "cheap" villa in a rice field, forest or beach setback zone can be torn down regardless of what was paid.

What about leasehold?

Many Bali villas are sold to foreigners as leasehold, a lease on the land and building for 20 to 30 years. That is a valid lease contract, but what you hold is a lease, not a land right. Points people often miss:

• Check the original certificate at the land office (BPN) and make sure the name on it matches the lessor.
• Check the spatial zoning. Green-zone land and protected rice fields cannot be built on.
• Make sure the building has a PBG. Renting it to guests needs an accommodation business licence through the OSS system and regional tax registration.
• You cannot run a villa rental business on a tourist visa. See what a tourist visa does and does not allow.
• Use a notary/PPAT you choose yourself, not one supplied by the selling agent.

Other legal routes

A foreigner who wants to run an accommodation business can set up a foreign investment company (PT PMA). A PT PMA can hold a right to build (HGB) for its business, subject to minimum capital and business-line rules set by the Investment Ministry/BKPM, which do change. Check the current requirements on OSS. A foreigner married to an Indonesian with a prenuptial or postnuptial property separation agreement is in a different position; ask a notary.

Quick FAQ

• Can I buy a house on a tourist visa? ATR/BPN Regulation 18/2021 lists immigration documents as a visa, passport or stay permit. In practice notaries and banks often ask for a KITAS/KITAP, so ask early.
• Can I buy a Rp3 billion house in Bali? Not a landed house, since the floor is Rp5 billion. An apartment, yes, since the floor is Rp2 billion.
• Can I buy an empty plot and build? Right of use for foreigners is meant for a residence, and the result still has to meet the price, size and permit rules.
• Who can confirm a plot's status? The local regency or city land office (BPN), by checking the certificate.

One habit that saves many buyers: get a copy of the certificate and the PBG number before paying any deposit, then verify both yourself at the BPN and the regency permit office. Other rules that apply to visitors are in our summary of rules for tourists in Bali.