Can Foreigners Still Buy Property in Bali in 2026?
New Rules, Ownership Options & What Buyers Need to Know
Updated: August 2026
Yes, foreigners can still buy certain types of property in Bali in 2026...
However, Indonesian law does not give foreign individuals the same property rights as Indonesian citizens, and recent changes to foreign-investment business licensing in Bali make it more important than ever to understand the difference between owning property and operating a property-related business.
For foreign buyers, the right ownership structure, property type, land title, permits and due diligence all matter.
This guide explains what foreigners can legally own in Bali, what the 2026 regulatory changes actually mean, and what buyers should check before committing to a property.
Important: Indonesian property law and licensing rules can be complex and change over time. This article is intended as general information, not legal or tax advice. Buyers should obtain independent Indonesian legal and tax advice before completing a transaction.
Can foreigners still buy property in Bali in 2026?
Yes. Foreigners can still acquire certain residential property rights in Indonesia, including in Bali, provided they meet the applicable legal requirements.
Under Government Regulation No. 18 of 2021, foreigners with the required immigration documentation can own certain residential property in Indonesia. The regulations provide for foreign ownership of qualifying landed houses and apartment units under specified forms of land or property rights.
However, “foreigners can buy property in Bali” does not mean foreigners can simply buy any villa or piece of land in the same way an Indonesian citizen can.
The property’s legal structure matters.
What changed for foreign investors in Bali in 2026?
In 2026, Bali introduced a significant restriction on new foreign-investment business licences (PT PMA) across 18 business categories.
The restriction has affected activities including owned or leased real estate, accommodation, rentals and other businesses considered closely connected with local MSMEs. Bali officials said access to the relevant categories in the Online Single Submission (OSS) system had been closed to new foreign investors since the third week of May 2026.
This is an important development for property investors — but it should not be confused with a blanket ban on foreigners purchasing residential property.
Property ownership and property business are not the same thing.
A foreign individual purchasing a qualifying residence is a different legal question from a foreign-owned company establishing or expanding a property-related business.
For this reason, buyers should not assume that a headline such as “Bali bans foreign property investment” means foreigners can no longer purchase property.
The actual legal structure and intended use of the property need to be examined.
Can foreigners own land in Bali?
Foreigners generally cannot hold Hak Milik (freehold land title) in their own name.
Hak Milik is the strongest form of land ownership under Indonesian law and is generally reserved for Indonesian citizens.
Foreign buyers therefore need to understand the difference between:
- Hak Milik — commonly referred to as freehold
- Hak Pakai — right of use
- Hak Guna Bangunan (HGB) — right to build
- Leasehold arrangements
- Ownership of a qualifying residential unit
A foreigner’s legal right to occupy or own a property depends on the structure used and the applicable regulations.
A foreigner should never assume that a property advertised as “freehold for foreigners” is legally equivalent to an Indonesian citizen holding Hak Milik.
Can foreigners own a villa in Bali?
Yes, but the legal structure is critical.
A foreign buyer may be able to acquire a qualifying residential property under the forms of ownership permitted by Indonesian law, while other villa arrangements may involve leasehold rights or a different legal structure.
Government Regulation No. 18/2021 specifically provides for qualifying foreign-owned residential property, including certain landed houses held under Hak Pakai arrangements.
The question therefore isn’t simply:
“Can a foreigner buy a villa?”
It is:
“What legal right is the foreigner actually acquiring, and does that structure comply with Indonesian law?”
That distinction can be worth hundreds of thousands of dollars.
Can foreigners buy an apartment in Bali?
Foreigners can own qualifying apartment units (rumah susun) subject to Indonesian regulations and the applicable eligibility requirements.
Government Regulation No. 18/2021 provides for foreign ownership of qualifying apartment units built on specified categories of land.
However, buyers should verify the project’s legal status, title structure, developer documentation and the buyer’s eligibility before paying a deposit.
What is Hak Pakai?
Hak Pakai is a right to use land rather than the same form of ownership as Hak Milik.
It is one of the legal structures through which qualifying foreigners can hold residential property rights in Indonesia.
Government Regulation No. 18/2021 specifically allows qualifying foreign residential ownership through houses on Hak Pakai land, including certain arrangements involving Hak Pakai over Hak Milik land.
Because the exact duration, renewal rights and underlying land structure matter, buyers should have the documents reviewed by an independent Indonesian property lawyer before signing.
What is leasehold property in Bali?
Leasehold property gives the buyer contractual rights to use a property for an agreed period rather than permanent freehold ownership of the underlying land.
Leasehold is widely used in Bali property transactions and can be attractive because it may require less upfront capital than some ownership structures.
But leasehold is not the same as owning the land.
Before purchasing a Bali leasehold property, buyers should establish:
- The exact lease duration
- Start and expiry dates
- Renewal rights
- Renewal pricing
- Who owns the underlying land
- Whether the lease can be transferred or assigned
- What happens if the property is sold
- Construction and renovation rights
- Maintenance obligations
- Tax responsibilities
- What happens at lease expiry
- Whether the intended rental or commercial use is legally permitted
A cheap leasehold is not necessarily a good investment if the legal agreement is weak.
Can foreigners buy freehold property in Bali?
Foreign individuals generally cannot hold Hak Milik land title in their own name.
This is one of the most important points for foreign buyers to understand.
If a property is advertised to a foreigner as “freehold,” the buyer should ask exactly what legal right is being transferred and whose name will appear on the relevant land title.
Any proposed nominee arrangement should be treated with extreme caution and independently reviewed by an Indonesian lawyer.
A structure that appears simple at the sales stage can create significant legal and financial risks later.
Can foreigners buy property through a PT PMA?
A PT PMA is a foreign-investment company, and its ability to conduct a particular business activity depends on the applicable investment and licensing rules.
This distinction is especially important in 2026.
Bali has restricted new PT PMA licensing in 18 business categories, including certain real-estate activities.
Therefore, a foreign buyer should not assume that creating a PT PMA automatically provides a legal route to acquire or commercially operate any property in Bali.
The company’s KBLI activities, OSS status, intended use of the property and applicable investment rules all need to be checked.
Can foreigners rent out a Bali property?
Potentially, but owning a property and legally operating it as a rental business are separate issues.
This distinction has become even more important in 2026 because Bali has tightened foreign-investment licensing in several business categories connected to accommodation and real estate activities.
A buyer considering a Bali villa as an investment should therefore investigate not only:
“Can I acquire this property?”
but also:
“Can I legally operate the property in the way I intend?”
For example, a property intended as a personal residence is a different proposition from a property intended to operate as a commercial short-term rental.
The applicable zoning, building approvals, business licences, tax obligations and operating structure should be independently verified.
How much property can a foreigner own in Indonesia?
Indonesian regulations place conditions on foreign residential ownership.
Government Regulation No. 18/2021 provides, among other limitations, that foreign ownership of landed residential property is generally limited to one plot per person or family and/or land of no more than 2,000 m², subject to the applicable rules and possible exceptions with ministerial approval.
This means buyers should not rely solely on a property agent’s statement that a particular structure is permissible.
The actual title, property type, buyer’s immigration status and applicable regulations should be checked.
What documents should a foreign buyer check before buying property in Bali?
Before paying a substantial deposit, a buyer should conduct independent due diligence.
At minimum, consider checking:
1. Land title
Verify the underlying certificate and its registered owner.
2. Seller’s authority
Confirm that the person or company selling the property has the legal authority to do so.
3. Encumbrances
Check for mortgages, liens, disputes or other claims over the property.
4. Zoning
Confirm that the property’s location and intended use comply with applicable spatial-planning rules.
5. Building approvals
Verify relevant building documentation and approvals.
6. Lease documentation
For leasehold property, review the complete lease agreement, expiry date, renewal provisions and transfer rights.
7. Business licences
If the property is intended for commercial use, verify the applicable business and operating licences.
8. Tax obligations
Confirm applicable purchase, ownership, transfer and operating taxes.
9. Developer or seller history
For new developments, investigate the developer’s corporate entity, previous projects and delivery record.
10. Contract terms
Never rely solely on marketing material. Have the actual transaction documents independently reviewed before signing.
What should foreigners look for when buying Bali property in 2026?
The most important question is no longer simply:
“Is this property a good deal?”
It is:
“Is this property legally structured, properly documented and suitable for the way I intend to use it?”
A property can look attractive on paper while carrying substantial legal, licensing, zoning or lease-expiry risks.
For foreign buyers, a good investment should make sense from both a financial and legal perspective.
Is Bali still a good place to buy property in 2026?
Bali remains an attractive property market, but buyers need to be more selective.
The island continues to attract international residents, tourists, investors and property buyers, while the regulatory environment is becoming more sophisticated and enforcement is increasing.
The 2026 restrictions on certain foreign-investment business activities demonstrate why buyers should not rely on old advice or outdated property structures.
For investors, the strongest opportunities may not necessarily be the cheapest properties.
Instead, buyers should focus on:
- Clear legal structures
- Verifiable ownership
- Appropriate zoning
- Proper documentation
- Realistic rental assumptions
- Sustainable operating costs
- Strong locations
- Transparent contracts
- Professional due diligence
The best Bali property investment is not simply the property with the highest advertised return. It is the property where the legal structure, location, economics and intended use all make sense together.
Are there any 2026 property tax incentives?
Yes. Indonesia introduced a 2026 government-borne VAT incentive for qualifying landed houses and residential apartment units.
Under Minister of Finance Regulation No. 90 of 2025, the government-borne VAT can cover 100% of the VAT on the taxable sale portion up to Rp2 billion, for qualifying residential properties with a sale price of up to Rp5 billion, subject to the regulation’s requirements. The rules also allow qualifying foreign nationals with an NPWP to benefit where they meet the applicable foreign-ownership requirements.
This incentive is subject to specific conditions and should not be assumed to apply to every Bali property or every foreign buyer.
Bali Property in 2026: The Bottom Line
Yes, foreigners can still buy property in Bali in 2026.
But the market has changed.
Foreign buyers need to distinguish between:
property ownership
and
running a property business.
They also need to understand the difference between:
Hak Milik, Hak Pakai, HGB, leasehold and apartment ownership.
And with Bali tightening foreign-investment licensing in certain business categories, relying on outdated advice, informal nominee structures or sales claims without independent verification is increasingly risky.
The safest approach is simple:
Verify the legal structure. Verify the title. Verify the permits. Verify the intended use. Then assess the investment.
Looking for property in Bali?
Indo Property Hub (IPH) is building a property marketplace designed to make Indonesian property easier to research, compare and discover.
Whether you’re looking for a Bali villa, leasehold property, land, apartment or investment opportunity, start by understanding the legal structure and asking the right questions before you buy.
A good property search starts with good information.
This article was prepared for general informational purposes and should not be treated as legal, tax or investment advice. Indonesian property regulations can change, and individual circumstances vary. Always obtain independent professional advice before entering a property transaction.
Last reviewed: August 2026
