Frequently asked questions
Leasehold vs. Freehold ownership
▎Freehold Ownership
Freehold ownership refers to owning the property and the land it sits on outright. In Indonesia, freehold title (Hak Milik) is only available to Indonesian citizens. However, foreigners can acquire freehold properties by establishing a local company (PT PMA) that allows them to hold the title (Hak Guna Bangunan). This type of investment grants full control over the property, providing investors with the freedom to modify, rent, or sell as they see fit. However HGB title is still limited to 80 years (30+20+30 years).
+ Full Ownership Rights
+ Long-Term Investment
+ Potential for Appreciation
▎Leasehold Ownership
Leasehold ownership, on the other hand, involves leasing the land from the owner for a specified period—typically ranging from 25 to 30 years. While leasehold properties do not grant full ownership rights, they are a popular choice among foreign investors in Bali. The lease agreement outlines the terms and conditions, including renewal options, providing a clear framework for both parties.
+ Lower initial investment
+ Flexibility
+ Simplicity
Freehold ownership refers to owning the property and the land it sits on outright. In Indonesia, freehold title (Hak Milik) is only available to Indonesian citizens. However, foreigners can acquire freehold properties by establishing a local company (PT PMA) that allows them to hold the title (Hak Guna Bangunan). This type of investment grants full control over the property, providing investors with the freedom to modify, rent, or sell as they see fit. However HGB title is still limited to 80 years (30+20+30 years).
+ Full Ownership Rights
+ Long-Term Investment
+ Potential for Appreciation
▎Leasehold Ownership
Leasehold ownership, on the other hand, involves leasing the land from the owner for a specified period—typically ranging from 25 to 30 years. While leasehold properties do not grant full ownership rights, they are a popular choice among foreign investors in Bali. The lease agreement outlines the terms and conditions, including renewal options, providing a clear framework for both parties.
+ Lower initial investment
+ Flexibility
+ Simplicity
What taxes do I need to pay?
Purchase tax:
Leasehold 10% of the purchase price, often included in the property price.
Freehold 5% for the buyer and 2,5% for the seller
In both cases additionally 1% notary fee
Annual property tax (PBB): Ranges from 0.1-0.2% of the property's market value.
Rental income tax: 20% for non-residents, 10% for residents (KITAS holders)
Leasehold 10% of the purchase price, often included in the property price.
Freehold 5% for the buyer and 2,5% for the seller
In both cases additionally 1% notary fee
Annual property tax (PBB): Ranges from 0.1-0.2% of the property's market value.
Rental income tax: 20% for non-residents, 10% for residents (KITAS holders)
Can I make a purchase remotely?
Yes, it is possible to buy a villa in Bali remotely. A Power of Attorney allows you to authorize a representative to act in your stead for the transaction. You can issue it to us, as your real estate agent, or any representative like a friend or family member that is currently in Bali.
© 2025 by Belleviss. All Rights Reserved.
© 2025 by Belleviss. All Rights Reserved.