Bali Villa Sale Guide

Foreigner Friendly

Hak Sewa / Leasehold

Leasehold ownership title which grants the right to occupy someone else's property (land or villa) for a fixed duration. Foreigners can legally own a property with this title for up to 30 years and may extend for 20 more years, but in practice it is the agreement between the buyer and the seller that determines the lease duration.

Indonesian Only

Hak Milik / Freehold

Freehold ownership title which grants permanent ownership of a property. Hak Milik is registered in the Land Office under the owner's name, with every ownership transfer and title conversion recorded in the certificate itself as well as the Land Office. Only Indonesian citizens are allowed to hold this title.

Limited Use

Hak Pakai

Similar to Hak Sewa, but involves the conversion of the Hak Milik into Hak Pakai in the Land Office which will cost more time and money. Hak Pakai is less used than Hak Sewa due to other factors including Hak Pakai properties may only be used for private residence.

Corporate

Hak Guna Bangunan

Title reserved for commercial purposes, converted from Hak Milik, and the ownership is transferred to either an Indonesian-owned or foreign-owned company (PT, PMA). Using this title is the most secure approach to owning a property for foreigners and grants the ability to acquire freehold properties. An HGB is valid for up to 70 years, and comprises 30 years of initial validity + 20 years of extension + 20 years of renewal.

Leasehold / Hak Sewa Process

1. 1Agree with the price & Condition
2. 2Draft & Sign MoU
3. 3Deposit Payment
4. 4Notary's Due Diligence
5. 5Sign a Lease Agreement
6. 6Finalize lease and taxes payment as per the agreement

Freehold / Hak Milik / HGB / Hak Pakai Process

1. 1Agree with the price
2. 2Draft MoU/PPJB
3. 3Sign MoU/PPJB
4. 4Deposit Payment
5. 5Due Diligence
6. 6Finalize payment and tax
7. 7Sign AJB
8. 8Title Deed Transfer