Your Trusted Keys to Bali

• As an individual, you can only own leasehold property in Indonesia. However, if you establish a PT PMA (Foreign Investment Company), you can hold freehold property, although it is typically registered under an HGB (Hak Guna Bangunan) title.
  
  
• Freehold and leasehold each have their own advantages and disadvantages. The most notable difference is that freehold properties generally require a significantly larger investment compared to leasehold properties.

It depends on your needs and goals. If you want a single villa, you may not find a suitable land plot since available plots are typically larger.

However, if you plan to develop the land, you will find options in various sizes.

Keep in mind that finding land, securing it, designing, and constructing a villa can take 1 to 2 years. If you need a house immediately, buying a ready-built villa is the better option.

Realistically, 10-15% for leasehold properties and 5-8% for freehold properties period.

In general, it’s the same as in your home country. Once an offer is accepted, both parties will sign a Binding Agreement and you’ll wire a 10% deposit payment to a notary’s escrow account to conduct the legal due diligence.

Then, you and the seller will sign a Transfer of Lease Agreement (for Leasehold transactions) or a Sale & Purchase Agreement (for Freehold transactions), pay the remaining balance and then the handover can take place. In standard terms, the whole process may take 1 month.

Additional costs include a 1% notary fee for both leasehold & freehold property, 5% buyer’s tax (BPHTP) for freehold property.

An 11% VAT may be applied to specific properties if it’s developed by a company.

Yes, if it’s an off-plan villa development project there are typically payment terms throughout 12 months, whereby for a ready-built villa, you typically have to pay the full payment in advance before the handover.