Frequently Ask Questions
Welcome to our FAQ section! Here, you’ll discover answers to some of the most frequently asked questions about our services and the Bali real estate market.
If you don’t find the information you need, feel free to contact our team of experts, who are always ready to help.
We are committed to offering our clients the most thorough information and resources to support informed decision-making.
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Property Purchase Process in Bali
Can foreigners buy property in Bali?
Foreigners cannot directly own property in Indonesia. However, they can purchase property through legal structures such as a Right to Use / Leasehold (Hak Pakai) or by setting up a foreign-owned company (PT PMA) that allows property ownership.
How long does the property purchase process take in Bali?
The property purchase process in Bali typically takes about 1 to 3 months, depending on the complexity of the transaction, the type of property, and the completeness of the required documents.
Do I need a lawyer to buy property in Bali?
It is highly recommended to use the services of a local lawyer or notary experienced in property transactions in Bali to ensure that all documents and procedures comply with the applicable laws.
Legalities and Permits
What is a Freehold Title (Sertifikat Hak Milik, SHM)?
A Freehold Title (SHM) is the highest form of property ownership in Indonesia, where the certificate holder has full rights over the property. However, SHM can only be owned by Indonesian citizens.
What is a Leasehold Title (Hak Guna Bangunan, HGB)?
A Leasehold (HGB) grants the right to construct and own buildings on land owned by another party, typically the state, for a certain period (up to 30 years) and can be extended.
How can I verify the authenticity of a property certificate?
The authenticity of a property certificate can be verified through the local Land Office (BPN) or via a notary who has access to the BPN system. It's essential to perform this check before proceeding with any transaction.
Costs and Taxes
What costs should I prepare for when buying property in Bali?
Costs include notary fees, certificate verification fees, Income Tax (PPh) for the seller, Land and Building Acquisition Duty (BPHTB) for the buyer, and other administrative fees.
Is there an annual tax for property in Bali?
Yes, property owners in Bali are required to pay the Land and Building Tax (PBB) annually, which is calculated based on the property's value.
How is the Land and Building Acquisition Duty (BPHTB) calculated?
BPHTB is typically 5% of the Taxable Sales Value (NJOP) or the transaction price listed in the Deed of Sale and Purchase, whichever is higher.