What You Should Consider Before Buying Property in Bali

Bali has long been seen as a tropical paradise, not just for tourists, but also for property investors and digital nomads seeking a slice of island life. From luxurious beachfront villas to quiet jungle retreats in Ubud, owning property in Bali sounds like a dream. But before making any decisions, there are several crucial things you need to consider.

1. Understand Ownership Laws

Foreigners are not allowed to own land directly in Indonesia. Instead, you can purchase property through alternative legal structures such as:

Leasehold (Hak Sewa): You lease the land for a set period, typically 25–30 years, with an option to extend.

Right of Use (Hak Pakai): A legal title allowing foreigners to use the land under certain conditions.

Nominee Ownership: Buying under an Indonesian citizen’s name is risky and not recommended, as it offers no real protection under the law.

Before committing, always consult a reputable legal advisor who specializes in Indonesian property law.

2. Check the Land Status and Permits

Not all land in Bali is eligible for residential or commercial use. Some are designated for agricultural purposes, and building on them could result in fines or demolition.

Make sure the property has the correct permits:

IMB (Building Permit) or PBG (Building Approval) for newer regulations

Zoning confirmation (for tourism, residential, or commercial use)

3. Work with Trusted Local Partners

Whether it’s an agent, lawyer, or notary, having reliable local professionals is essential. Scams and unclear land titles are still common issues. Verify all documents independently and ensure all agreements are translated into English and Indonesian.

4. Consider Infrastructure and Access

Some of Bali’s most beautiful properties are in remote areas but they might lack stable electricity, road access, or water supply. Before buying, check the infrastructure quality and accessibility, especially if you plan to use the property for rentals or long-term living.

5. Think About ROI and the Rental Market

If you’re buying for investment, analyze the rental demand in the area. Places like Canggu, Seminyak, and Uluwatu attract short-term holiday renters, while Ubud appeals to long-term stays. Understand local competition, management fees, and seasonal fluctuations before you expect profits.

6. Be Aware of Environmental and Cultural Regulations

Bali has strict environmental and cultural preservation rules. Avoid developments that harm rice fields, temples, or sacred sites. Aligning your project with local customs not only prevents conflict but also shows respect for Balinese culture.

7. Factor in Maintenance and Taxes

Owning property in a tropical climate means higher maintenance costs think humidity damage, pests, and mold. You’ll also need to budget for annual land and building taxes, as well as any local fees for foreigners operating rental businesses.

So, buying property in Bali can be a rewarding investment and lifestyle choice if done carefully. Take your time to research, verify, and seek professional guidance at every step. With the right due diligence, your Bali property dream can become a secure and profitable reality.