Leasehold Land
Overview
Freehold property ownership in Bali is typically restricted to Indonesian citizens or companies. Foreigners cannot directly own freehold property but may secure it through a nominee or a legal entity like a PT PMA. While offering greater security and control, freehold ownership involves higher costs and a more intricate legal process. Foreign ownership may be subject to specific restrictions.
Advantages
Permanent ownership
Flexibility to modify or develop the property without landowner restrictions
Maintains resale value without a diminishing lease term
Disadvantages
More expensive than leasehold
Complex and time-consuming acquisition process compared to leasehold
Higher risk of land disputes due to unclear titles and documentation
Nominee arrangement is not recognized by Indonesian law and may face legal challenges
Foreigners cannot obtain building permits for land less than 10 Are
Selling Leasehold Property
The transfer process for selling freehold property is more straightforward. After signing a purchase agreement and settling the agreed-upon price, the seller transfers the land title to the buyer through a notary, who verifies ownership and ensures all taxes and fees are paid.
Foreign ownership of freehold land is subject to restrictions, and legal professionals are recommended for guidance.
Overview
Freehold property ownership in Bali is typically restricted to Indonesian citizens or companies. Foreigners cannot directly own freehold property but may secure it through a nominee or a legal entity like a PT PMA. While offering greater security and control, freehold ownership involves higher costs and a more intricate legal process. Foreign ownership may be subject to specific restrictions.
Advantages
Permanent ownership
Flexibility to modify or develop the property without landowner restrictions
Maintains resale value without a diminishing lease term
Disadvantages
More expensive than leasehold
Complex and time-consuming acquisition process compared to leasehold
Higher risk of land disputes due to unclear titles and documentation
Nominee arrangement is not recognized by Indonesian law and may face legal challenges
Foreigners cannot obtain building permits for land less than 10 Are
Selling Leasehold Property
The transfer process for selling freehold property is more straightforward. After signing a purchase agreement and settling the agreed-upon price, the seller transfers the land title to the buyer through a notary, who verifies ownership and ensures all taxes and fees are paid.
Foreign ownership of freehold land is subject to restrictions, and legal professionals are recommended for guidance.