Home Blog Building Property in Bali as a Foreigner in 2024: What You Need to Know Bali | Business Licenses | Land Property Ownership Building Property in Bali as a Foreigner in 2024: What You Need to Know InCorp Editorial Team 4 June 2025 6 minutes reading time Table of Contents The Prospects of Renting a Property in Bali Why Start a Property Rental Business in Bali? Understanding The Types of Land Titles Steps To Safely Building Property in Bali Many investors worldwide still consider Bali one of the world’s leading destinations. To provide a complete leisure experience, building a property in Bali will offer a promising return on investments. Tourism plays a significant role in Bali’s economy, and the pandemic impacted the industry. However, this is also an excellent opportunity to start investing. The Prospects of Renting a Property in Bali Bali boasts some of the highest rental yields in the world, with an average return of around 15% on the purchase price. In comparison, the global average rental yield is around 5%. Additionally, property in Bali sees a year-on-year appreciation of about 15-20%, which is significantly higher than many other markets. Rental costs are on the rise throughout Bali, with annual rent increasing by approximately 15-20%. However, it’s worth considering how sustainable this growth is in the long run. The occupancy rates in Bali are impressive, with most properties being occupied for about 65-80% of the year on average. It’s possible to recover your entire investment within six years. This rapid return means that you can reinvest in additional properties sooner, leading to substantial passive income over time. Digital nomads, in particular, often prefer investing in rental properties in destinations like Bali instead of settling in a permanent home. Why Start a Property Rental Business in Bali? Bali is usually a place for vacation and fun. However, aside from that, Bali is also an up-and-coming area for business – specifically the rental business. This is because foreigners’ demand for homes in Indonesia has significantly increased after the pandemic. As a result, Bali has been busier than ever, with tourists going in and out of the region. In addition, the properties in Bali are getting rented out quickly due to the changing post-pandemic work style and the new second-home visa scheme. The Bali Real Estate industry has been trying to catch up with the demand. Rental prices have surged to a new high post the pandemic. Newly built villas now cost up to IDR 30 million per month. Demand range from long-term rentals to short-term ones, both beneficial and profitable in different ways. There are many reasons to invest in Bali property. Some of them include the following: 1. Way of Life Bali is known for its relaxed and easy-going lifestyle compared to other cities. It provides a good mix between relaxation and vision. The infrastructure and development allow you to be connected while disconnecting from the daily bustle. 2. Tourism Scene The general ambiance of Bali is such that it attracts tourists. In addition, Bali has several natural beaches, waterfalls, forests, and mountains. Aside from that, unique restaurants, coffee houses, and other establishments are built to attract tourists, making it a worthy investment spot. READ MORE:The Ultimate Handbook for Managing a Rental Property in Bali10 Strategic Locations for Buying Property in Bali 3. Prices and Affordability The prices in Bali are comparatively low. Therefore, it is one of the key attractions for foreigners who are okay with spending long periods in Bali for vacation. 4. General Location Bali is surrounded by equally beautiful islands, including Nusa Penida, Nusa Lembongan, and Nusa Ceningan, which are also tourist locations. This makes Bali a strategic area for long-term investment, considering its potential. Understanding The Types of Land Titles 1. Right of Ownership (Hak Milik) The land you own can be utilized for any purpose due to your Right of Ownership, which has no expiration date. However, only citizens of Indonesia are eligible to purchase the Right of Ownership. It is because the Indonesian Agrarian Law gives this land the highest authority. 2. Right to Build (Hak Guna Bangunan / HGB) With the Right to Build, you have a permit to construct a structure on the property that is not your own. The right to make has a 30-year term that can be extended for a maximum of 20 years. This land right is granted to legal companies incorporated following Indonesian law and to Indonesian nationals. 3. Right to Cultivate (Hak Guna Usaha) You can develop farming, raising animals, and fishing areas by owning the Right to Cultivate. These lands are under the control of the State government. For Indonesian legal entities, the permit is valid for 35 years; for individuals, it is suitable for 25 years. This license may be extended for an additional 25 years. READ MORE:Top Investment Opportunities for Diaspora Visa Holders in Bali7 Items to Check before Buying Property in Bali 4. Right to Use (Hak Pakai) You can utilize the goods gathered from land that belongs to the State or another individual if you have the right to use it. The right to use may be obtained by foreigners, Indonesian citizens, locally held businesses, and businesses with both local and foreign ownership. 5. Leasehold Right (Hak Sewa) Through the leasing agreement, Hak Sewa permits you to utilize a portion of the land that is not your property but belongs to another person for a specific time. You must pay the landowner’s rent following the terms of the lease agreement. 6. Right of Land Clearing and to Collect Forest Products (Hak Membuka Tanah dan Hak Memungut Hasil Hutan) These two permits allow the holder the authority to clear a portion of land that is not their own and to take materials and goods straight from the forest on the property. Steps To Safely Building Property in Bali Aside from acquiring buildings, building new properties in Bali is possible. To do this, it is advisable to primarily understand the new regulations governing the land’s ownership and use before purchasing. Finding a location is also integral to suit the type of property you want to build. Land certificate acquisition can be tricky to handle. For this matter – consult InCorp Indonesia (An Ascentium Company), which is well-versed in the land and property registration process. Post-building the property, it is also essential to ensure proper management that is experienced in providing adequate management of various property types to ensure the rental processes run smoothly. In short, owning and building properties in Bali can be challenging but worth the risk. InCorp Indonesia (An Ascentium Company) also provides services for business licensing for entrepreneurs looking to benefit from the same. Read Full Bio Verified by David Susandi Branch Manager – Bali Office at InCorp Indonesia Holding 11 years of experience in various roles, including project manager, operational manager, and corporate strategist, David Susandi is a prominent figure for many entrepreneurial organizations expanding in Indonesia. Frequently Asked Questions What kind of license does a PMA company need to get? In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types: Business Identification Number (NIB) Low-risk businesses needing only an NIB Standard Certification Standard Certification is necessary for medium-low and medium-high-risk businesses Licenses/Permits High-risk businesses require licenses/permits Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM). How A PMA company can be eligible to conduct import activities? What licenses and procedures are necessary while engaging in import-related activities? A PMA company in Indonesia must obtain an NIB, which also functions as: Importer Identification Number (Angka Pengenal Impor or API) Producer Importer Identification Number (Angka Pengenal Impor Produsen or API-P), which is required for the import of machinery and equipment, goods, and materials used in production. General Importer Identification Number (Angka Pengenal Impor Umum or API-U), which is required for the import of specific goods for trading purposes, is grouped under one section in the Customs Classification System. Customs Identification Number (Nomor Identitas Kepabeanan or NIK), It functions as an identifying document for the applicable Customs and Excise authorities during the customs clearance process. Some goods may face limitations or restrictions on importation in Indonesia, potentially requiring additional approval from the Ministry of Trade. Recommendations from technical ministries like Industry or Agriculture may influence these approvals. What if my product has been registered under a local distributor, and I decide to transfer the license to my company or another distributor? You can transfer the license if your local distributor agrees to change the product license holder. Get in touch with us. Lead Form Contact Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Bali 5 Facts About Renewable Energy Investments in Indonesia Read more Bali Visa Options for Indians Read more Company Incorporation in Bali: What Licenses are Needed? Read more