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Frequently Asked Questions About Bali Properties

Posted by Ari on May 25, 2023
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Can Foreigners Own Property in Bali?

In the enchanting island of Bali, foreigners may wonder if they can own property outright or if they are limited to leasing real estate for a specific duration. The good news is that there is indeed a way for foreigners to securely own property in Indonesia: by establishing an Indonesian legal entity known as a PT PMA. This entity opens doors to the coveted ownership title called Hak Guna Bangunan (HGB), providing a solid legal foundation for property ownership.

It’s important to note that non-Indonesian citizens are not permitted to own land in Indonesia directly. However, they can obtain a leasehold title (Hak Sewa) for a designated period of time. This leasehold title can be held in the foreigner’s personal name and is fully recognized by Indonesian law, offering complete legal protection.

By acquiring a Hak Sewa title, foreign individuals can enjoy the benefits of owning a property in Bali without the concerns associated with direct land ownership. This legally sound solution allows foreigners to invest in residential premises such as luxurious villas, captivating houses, stylish apartments, or even commercial properties like hotels, offices, restaurants, and shops.

To navigate the real estate landscape in Bali, it is crucial to have a clear understanding of the different property titles available. While HGB is the most common title for residential, commercial, and industrial properties, Hak Pakai is another noteworthy option. Hak Pakai, or the right of use, grants individuals the right to use and construct buildings on freehold land. It is important to note that Hak Pakai is the only registered form of entitlement over land that can be granted to foreign individuals, making it a valuable avenue for property ownership in Bali.

When it comes to taxes associated with property transactions in Bali, it’s important to be aware of the applicable fees. For freehold property transactions (Hak Milik), the buyer is responsible for the land and building acquisition duty (BPHTB), which amounts to 5% of the government-assessed value (NJOP). On the other hand, the seller is subject to PPh income tax, equivalent to 2.5% of the NJOP value.

For leasehold property transactions (Hak Sewa), there are no tax implications for the buyer. The seller, however, is responsible for a final income tax payment, amounting to 10% for Indonesian nationals or KITAS/KITAP holders, and 20% for foreigners without KITAS/KITAP.

To optimize the property acquisition process in Bali, utilizing a foreign-owned company (PT PMA) is highly recommended. This strategic approach provides foreign investors with a safe and transparent means to invest in Indonesian real estate. By acquiring the Hak Guna Bangunan or Hak Guna Usaha titles through a PT PMA, foreign investors can confidently purchase land and embark on their property ownership journey in Bali.

In summary, while direct land ownership is restricted for foreigners in Bali, there are viable alternatives to securely and legally own property in this captivating island. By understanding the various property titles, tax implications, and leveraging the establishment of an Indonesian legal entity, foreigners can fulfill their dreams of owning a piece of paradise in Bali.

What is Leasehold?

In the realm of property ownership, it is crucial to grasp the concept of leasehold, also known as Hak Sewa. This particular title grants individuals the right to utilize an unoccupied land or the buildings situated on another person’s land for a predetermined duration. Leasehold rights can be bestowed upon land currently held under a Freehold title (Hak Milik), Right to Build title (HGB), or Right to Use title (Hak Pakai). Whether they are Indonesian individuals, Indonesian legal entities, or foreign individuals and legal entities, all have the opportunity to acquire Leasehold (Hak Sewa) properties.

The lease period typically ranges from 1 to 25 years, and frequently includes an option to extend the lease, which is explicitly outlined in the agreement between the landowner (Lessor) and the individual renting the property (Lessee). It’s important to note that Hak Sewa cannot be utilized as a mortgage instrument, nor can it be registered with the National Land Agency. However, under the stipulations of a lease contract, a foreigner has the ability to lease an empty plot of land, construct permanent structures, and subsequently transfer or sub-lease the remaining duration of the lease to a third party.

Various commercial ventures such as office spaces, factory buildings, restaurants, hotels, and shops fall under the purview of Hak Sewa titles. Furthermore, leasehold arrangements are applicable to residential properties including apartments, condominiums, villas, and houses.

By comprehending the intricacies of leasehold, individuals can navigate the real estate landscape with confidence, seizing opportunities to establish fruitful property ventures in a manner that aligns with their unique objectives.

What is Freehold?

In the realm of land title ownership in Indonesia, it is essential to grasp the concept of Freehold, also known as Hak Milik. This form of ownership stands as the most robust and secure title available. However, it is important to note that only individuals of Indonesian nationality have the privilege of owning land under the Hak Milik title. Limited liability companies (PT/Perusahaan Terbatas) and foreign individuals, unfortunately, do not have the ability to acquire land with a Hak Milik title.

Under the Hak Milik title, the owner possesses the liberty to utilize the land for any purpose, subject to zoning regulations. However, it is crucial to understand that this ownership does not grant the rights to exploit the natural resources located on or beneath the land. Nonetheless, the Hak Milik title has no limitations and provides the owner with various prerogatives, including the ability to sell, gift, exchange, bequeath through a will, and even utilize the property as collateral for a mortgage.

While foreign individuals are unable to directly acquire land under the Hak Milik title, there is an alternative form of entitlement available known as Hak Pakai or Right of Use. This avenue allows foreigners to possess land and enjoy certain usage rights akin to those under the Hak Milik title.

By comprehending the nuances of Freehold ownership, individuals can navigate the Indonesian real estate landscape with a heightened understanding of the options and limitations at hand. This knowledge empowers individuals to make informed decisions when considering property ventures, ensuring their objectives are aligned with the available ownership structures.

What is HGB?

In the realm of land titles in Indonesia, it is crucial to familiarize oneself with HGB, also known as Hak Guna Bangunan or the Right to Build. This title grants the holder the authority to construct and own buildings or other structures on various types of land, including state-owned land (Tanah Milik Negara), freehold land (Hak Milik), and land under HPL (Hak Pengelolaan). HGB is the most prevalent title associated with residential, commercial, and industrial properties.

Ownership of an HGB title is open to individuals of Indonesian nationality, Indonesian legal entities, including Foreign Capital Investment Companies (Penanaman Modal Asing/PMA), and Domestic Capital Investment Companies (Penanaman Modal Dalam Negeri/PMDN). Therefore, any legal entity, such as limited liability companies (Perusahaan Terbatas/PT), established in accordance with Indonesian law and domiciled in Indonesia, can acquire a property with an HGB title. However, it is important to note that HGB titles are not available to foreign individuals.

The initial period of an HGB title is typically up to 30 years, and it can be extended for an additional 20 years in most cases. Further extensions are at the discretion of the state and may be renewed for another 30 years. For approved capital investment companies, such as PMA or PMDN companies, HGB rights can be obtained for a total period of 80 years, comprising a 30-year initial term, a 20-year extension term, and a 30-year renewal term.

It is important to highlight that an HGB title over freehold (Hak Milik) land is valid for a maximum period of 30 years only. Any extensions beyond this timeframe would require a new agreement with the landowner and the registration of a new HGB or Right to Build title over the privately-owned land.

An HGB or Right to Build title can be legally transferred through sale, gift, exchange, or inheritance. Furthermore, it can also be encumbered by a mortgage, providing additional financial flexibility to the title holder.

By understanding the intricacies of HGB, individuals and entities can navigate the Indonesian real estate landscape with confidence, ensuring they make informed decisions regarding property ownership and transactions.

What is Hak Pakai?

Hak Pakai or the Right of Use is a title over Freehold land that allows the holder to use the land, including (subject to permitting requirements) the right to construct buildings. A Hak Pakai title may be held by foreign individuals and foreign representative offices as well as Indonesian citizens and legal entities established under Indonesian law. For foreigners to acquire a Hak Pakai title, they must be a resident or domiciled in Indonesia and therefore must hold a limited stay permit (KITAS) or a permanent stay permit (KITAP).

According to the Government Regulation (PP) no. 103 Year 2015, the term of granting rights to foreigners is specified to having one single property with a maximum land size of 3000 m2. Foreigners can acquire usage rights for 30 years. If the period has expired, it can be extended for another 20 years, then after a span of 50 years, the foreign national may renew his usage rights for a period of 30 years. In total, the given Right of Use period can reach 80 years.

Under current laws, a Hak Pakai title is the only registered form of entitlement over land that can be granted to a foreign individual which can be evidenced by a land certificate reflecting the name of the foreigner and the term on the certificate which serves as formal evidence of this form of ownership right. In accordance with Indonesian law, this title can be sold, gifted, exchanged and/or passed down, unless the deed of conveyance specifies otherwise, but under a Hak Milik title, it cannot be used in the form of a mortgage.

Can Foreigners Apply for Loans in Indonesia / Bali?

While securing financing may present specific challenges for non-Indonesian citizens in Indonesia, the journey towards your Bali dream needn’t be daunting. At R Property, we pride ourselves on navigating complex real estate landscapes, and securing loans for foreign investors is no exception.

While regulations stipulate that loan availability hinges on possession of a KITAS or KITAP residence permit, this shouldn’t discourage your vision. Several esteemed banks, including Commonwealth Bank and Permata Bank, tailor loan programs specifically for qualified foreign residents.

Unlocking Opportunity:

  1. Commonwealth Bank: Requires a minimum 2-year tenure in a qualified private sector role.
  2. Permata Bank: Caters to both employed and entrepreneurial foreigners. For employees, 2 years’ experience and a minimum monthly income of IDR 25 million (USD 1,500) are prerequisites. Entrepreneurs need 4 years of proven business expertise.
    Streamlining the Process:

For those pursuing Permata Bank loans, preparing the following documents will expedite the application:

  • KITAS or stay permit copy
  • Passport copy
  • Last 3 months’ saving account statements

Remember, securing financing involves navigating specific regulations and understanding your unique circumstances. At R Property, we go beyond simply showcasing properties. We’re your trusted partners in deciphering loan options, maximizing your investment potential, and ensuring a seamless journey towards realizing your Bali vision.

What taxes do I need to pay when buying/selling property in Bali?

When it comes to buying or selling property in Bali, understanding the associated taxes is crucial. The tax obligations differ depending on the type of property transaction, whether it involves Freehold (Hak Milik) or Leasehold (Hak Sewa) properties. Allow us to shed light on the tax considerations you need to keep in mind:

For Freehold Property Transactions (Hak Milik): Buyer’s Tax Obligation: The buyer is liable for the Land and Building Acquisition Duty (BPHTB), which amounts to 5% of the Government Assessment Value (NJOP).

Seller’s Tax Obligation: The seller is responsible for the PPh income tax, which is equivalent to 2.5% of the NJOP as determined by the government.

For Leasehold Property Transactions (Hak Sewa): Buyer’s Tax Obligation: There are no tax implications for the buyer in a Leasehold property transaction.

Seller’s Tax Obligation: The seller, depending on their status, must pay a final income tax. Indonesian nationals or individuals holding a limited stay permit (KITAS) or a permanent stay permit (KITAP) are subject to a 10% tax. Foreigners without a KITAS or KITAP, on the other hand, face a 20% tax on the transaction.

Understanding these tax obligations is essential to ensure a smooth and compliant property transaction in Bali. Whether you are buying or selling, being aware of the taxes involved allows you to plan your finances and fulfill your legal responsibilities. Seek professional advice from experienced advisors to navigate the intricacies of property taxes and optimize your investment strategies.

At R Property, we are committed to providing you with the guidance and expertise you need to make informed decisions in the dynamic Bali real estate market. Contact our team of professionals today to explore the exciting opportunities that await you.

Can I use a company to buy property in Indonesia?

As a foreign national, venturing into the Indonesian property market can present unique challenges. However, there is a secure and advantageous route to property ownership in Bali: utilizing a foreign-owned company, known as a PT PMA, and obtaining the esteemed ‘Right to Build’ certificate, also referred to as Hak Guna Bangunan. This avenue not only offers safety but also opens doors to lucrative opportunities.

A PT PMA is a foreign limited liability company established within Indonesia, recognized as a legal entity by the Indonesian government. By leveraging the benefits of a PT PMA, foreign investors gain the ability to acquire two types of land titles: the Right to Build (Hak Guna Bangunan) and the Right to Use (Hak Guna Usaha).

The Right to Build (Hak Guna Bangunan) title holds a validity period of 30 years, with the potential for an extension of 20 years. Furthermore, an additional extension of 30 years can be granted, offering a substantial total duration of ownership. On the other hand, the Right to Use (Hak Guna Usaha) title is valid for 25 years, extendable for an additional 25 years. Additionally, there is an opportunity for a further extension of 35 years, providing an extensive window for property ownership and investment.

By establishing a PT PMA, foreign investors can navigate the Indonesian property market with confidence and capitalize on the numerous advantages presented. This strategic approach not only ensures legal compliance but also facilitates long-term investment opportunities. Through a PT PMA, investors gain access to prime real estate, seize development prospects, and harness the potential for substantial returns.

What is a Pondok Wisata License?

In Bali’s vibrant tourism landscape, the ability to legally rent out villas or homestays is a coveted opportunity. To embark on this venture, obtaining a Pondok Wisata license is paramount. This commercial license grants you the authority to operate your villa or homestay within the designated tourism zoning, ensuring compliance with the necessary regulations. The Pondok Wisata license serves as the operational foundation, encompassing several other licenses essential for seamless processing.

To obtain this license, the building permit must be classified as “Peruntukan Pondok Wisata,” signifying its purpose as a vacation rental property. With a Pondok Wisata license, you can confidently operate your villa as a commercial vacation rental, accommodating guests and maximizing your property’s earning potential. It is important to note that a Pondok Wisata license typically covers properties with up to 5 bedrooms.

Should you aspire to own a property larger than the specified limit, additional Pondok Wisata licenses or even a hotel melati or hotel bintang license may be required. These licenses cater to larger-scale hotel operations, ensuring compliance and opening doors to even greater possibilities in Bali’s thriving hospitality industry.

Can a foreigner apply for a Pondok Wisata License?

If you’re a foreign investor with dreams of venturing into Bali’s lucrative villa rental market, you may wonder if you can apply for a Pondok Wisata license. While this license is typically issued in the name of an Indonesian individual, there are avenues for foreigners to explore in order to tap into this opportunity.

To obtain a Pondok Wisata license as a foreigner, you have two options:

  1. Establish a PT PMA Company: Setting up a foreign-owned company in the form of a PT PMA (limited liability company) opens doors to the possibility of acquiring a Pondok Wisata license under the company’s name. This avenue allows you to manage the property directly and maximize your control over the villa rental business. It’s important to ensure that your PT PMA’s business field includes villa management to align with the licensing requirements.
  2. Form a Management Agreement: Alternatively, as a foreign investor, you can enter into a management agreement with a local PT (limited liability company) or an Indonesian individual. This agreement grants you the opportunity to operate the property under the umbrella of the local entity’s Pondok Wisata license. While this option provides a viable pathway for foreigners, it’s crucial to establish a solid and legally binding agreement to protect your interests and ensure smooth operations.

The Pondok Wisata license is typically issued with a validity period of 5 years, which can be extended to continue operating your villa rental business seamlessly. Additionally, it is essential to comply with local taxation regulations by filing taxes and obtaining the local villa tax number (NPWPD) for your property. Even if your property does not generate income, adhering to the appropriate taxation declarations is a requirement to maintain compliance.

Indonesian nationals have the advantage of being able to apply for the Pondok Wisata license without the need to establish a business entity. However, with the right guidance and expertise, foreigners can navigate the process successfully by setting up a PT PMA or forming a management agreement.

Can a foreigner run a holiday rental villa or a guesthouse as a private entity?

For foreigners aspiring to operate a holiday rental villa or guesthouse as a private entity in Indonesia, there are specific requirements that must be met. To embark on this entrepreneurial journey, foreigners are required to establish a business entity known as a PT PMA (limited liability company) and obtain a Pondok Wisata license.

The Pondok Wisata license is an essential prerequisite for running a holiday rental villa or guesthouse in Bali. It grants the legal authorization to operate within the tourism zoning and ensures compliance with the local regulations. As a foreigner, setting up a PT PMA allows you to establish your own private entity, which will be the vehicle for obtaining the coveted Pondok Wisata license.

By forming a PT PMA, you not only fulfill the legal obligations but also gain the advantage of having full control and ownership of your holiday rental villa or guesthouse business. It provides the flexibility to shape and manage your operations according to your vision and goals. This private entity status enables you to establish a solid foundation for long-term success and growth.

How to Apply for a Pondok Wisata License?

Obtaining a Pondok Wisata license is a crucial step for villa owners in Indonesia looking to operate their properties as holiday rentals. To streamline the application process, there are five essential documents that villa owners must submit. At R Property, we are well-versed in the intricacies of obtaining a Pondok Wisata license and can guide you through the process with professionalism and expertise.

Document of UKL-UPL:
The first document required is the UKL-UPL, which stands for Environmental Management and Environmental Monitoring Effort. This document outlines the environmental management system and monitoring measures that you have implemented for your villa. It demonstrates your commitment to environmental sustainability and responsible tourism practices.

IMB with purpose for Pondok Wisata:
The IMB (Izin Mendirikan Bangunan) is the building permit that certifies the legal construction of your villa. When applying for a Pondok Wisata license, you must include an IMB with the purpose specified as “Pondok Wisata.” This ensures that your property is classified for commercial holiday rental purposes.

SITU/HO:
SITU (Surat Izin Tempat Usaha) or HO (Hinder Ordonnantie) is a permit that grants you the right to operate a business in a specific location. It serves as proof that your villa complies with the zoning regulations and is eligible for commercial activities.

Tanda Daftar Perusahaan:
The Tanda Daftar Perusahaan is the Business License that registers your villa as a legal entity and allows you to conduct commercial operations. This document certifies the legitimacy of your business and establishes your compliance with Indonesian business regulations.

NPWPD Number:
The NPWPD (Nomor Pokok Wajib Pajak Daerah) is the Local Tax Number that identifies your property for tax purposes. Even if your villa does not generate any income, you are still required to file the appropriate tax declarations. The NPWPD number ensures that you fulfill your tax obligations as a responsible business owner.

What is the value of leasehold land in Bali?

Determining the value of leasehold land in Bali is essential for making informed investment decisions. At R Property, we understand the intricacies of the Bali real estate market and can provide you with valuable insights to unlock the potential of leasehold properties.

As a general guideline, the value of leasehold land is typically calculated at approximately one percent per year per square meter or per are (100 m2). This rule of thumb allows you to estimate the lease value based on the duration of the lease agreement.

To illustrate, let’s consider an example: Suppose you have identified a plot of land measuring 100 m2 with a freehold (Hak Milik) value of IDR 1 billion. Applying the one percent per year calculation, the approximate value to lease that land would be around IDR 10 million per year (1% per year) for the duration of the lease.

It is important to note that this estimation is a general guideline and may vary depending on various factors such as the location, desirability, and market conditions of the specific area in Bali. Additionally, individual negotiations and terms of the lease agreement may also influence the final value.

What different Land Zonings are there in Indonesia?

The Indonesian property market, including the enchanting island of Bali, has experienced significant growth in recent years. In response, the land and building department has implemented regional regulations to ensure proper management and control. At R Property, we stay up to date with these regulations to provide you with the most comprehensive and accurate information.

Gone are the days when one could freely build on any available land. Today, most regions in Bali have well-defined regulations in place to govern land usage. One of the key regulations is the Regional and Spatial Planning (RTRW), which has a legal duration of 20 years. For instance, the recent RTRW regulations of Badung, ratified in 2013, will be effective until 2033. It is crucial to consider the following points in light of these regulations:

  1. Check the zoning (Ijin Tata Ruang – ITR) before purchasing land for any project. This step ensures that the intended use aligns with the designated zoning.
  2. Determine if the zoning allows for different types of building permits and licenses (IMB – Izin Mendirikan Bangunan) based on your specific requirements, whether it be for commercial or residential purposes.

When exploring land opportunities in Indonesia, it is important to understand the different zoning types. Here are the primary zoning types you will encounter:

  1. Government-owned land: This category includes areas such as beaches, natural reserves, and forests. These lands are typically restricted to individual investors.
  2. Residential zoning: As the name suggests, residential zoning is designated for housing or villa developments intended for residential purposes. Different building licenses can be obtained for houses, villas, apartments, or even commercial activities permitted within residential areas.
  3. Commercial and tourism zoning: This zoning classification allows for various commercial activities, including hotels, resorts, condotels, apartments, entertainment parks, and residential properties. It is possible to obtain commercial licenses as well as a Pondok Wisata license, which specifically permits holiday rentals.
  4. Agricultural zoning (green zone): Agricultural zones are strictly reserved for farming activities. Residential or commercial buildings are prohibited in these areas, and no building permits will be issued for such purposes.

What are the International Schools in Bali?

When it comes to education, Bali offers a diverse range of international schools that cater to the needs of students from various backgrounds. At R Property, we understand the importance of quality education and are here to guide you towards the best options available. Here are some renowned international schools in Bali:

  1. Green School in Mengwi: Immerse your child in a unique learning environment that focuses on sustainability and experiential education. Visit their website at www.greenschool.org to learn more.
  2. Montessori School in Canggu: Embrace the Montessori approach to education, which nurtures independence, creativity, and critical thinking. Discover more about their programs at www.montessoribali.com.
  3. Canggu Community School in Canggu: Providing a well-rounded education with a strong sense of community, this school offers a dynamic learning experience. Explore their offerings at www.ccsbali.com.
  4. Bali Island School in Sanur: With a focus on academic excellence and holistic development, this school offers a comprehensive international curriculum. Visit their website at baliinternationalschool.com for further details.
  5. Australian Independent School in Denpasar: Offering an Australian-based curriculum, this school delivers high-quality education in a supportive environment. Learn more about their programs at www.ais-indonesia.com.
  6. Sunrise School in Kerobokan: Dedicated to providing a nurturing and stimulating learning environment, this school focuses on the intellectual, emotional, and physical growth of its students. Discover more at www.sunriseschoolbali.com/index.html.
  7. LFB – Lycée Français Bali in Umalas – Kerobokan: Immerse your child in a French educational system that promotes academic rigor, cultural appreciation, and linguistic proficiency. Visit their website at www.lfbali.com for further information.
  8. Sanur Independent School in Sanur: Offering a supportive and inclusive learning environment, this school focuses on personalized education and fostering a love for lifelong learning. Explore their programs at www.sisbali.sch.id.
  9. Pelangi School in Ubud: Committed to providing an engaging and inquiry-based education, this school offers a blend of international and Indonesian curriculum elements. Learn more about their approach at www.pelangischoolbali.com.

What are the 3 best internet providers in Bali?

When it comes to staying connected in the digital age, having reliable and high-speed internet is essential. Bali, known for its vibrant lifestyle and thriving digital community, offers a selection of top-notch internet service providers. At R Property, we understand the importance of seamless connectivity, and we’re here to guide you towards the best options available. Here are three of the top internet providers in Bali:

  1. Global Xtreme: Experience the power of lightning-fast internet with Global Xtreme. With speeds of up to 1000 Mbps, they provide a robust and reliable connection that meets the demands of today’s digital world. Discover more about their services and packages at globalxtreme.net.
  2. CBN (PT. Cyberindo Aditama): Connect with CBN and enjoy high-speed internet that reaches up to 1000 Mbps. Whether it’s streaming, gaming, or working remotely, CBN ensures a seamless online experience. Visit their website at cbn.id to explore their offerings and find the perfect plan for your needs.
  3. MTM Bali (PT Mitra Telemedia Manunggal): Elevate your digital experience with MTM Bali’s exceptional internet services. With speeds of up to 1000 Mbps, they deliver reliable connectivity that keeps you connected at all times. Learn more about their packages and features at mtmbali.com.

Where to Live in Bali?

Bali, an island of mesmerizing beauty and vibrant culture, offers an array of captivating neighborhoods to call home. At R Property, we understand the significance of finding the perfect location that aligns with your lifestyle and preferences. Allow us to guide you through a curated selection of Bali’s most sought-after areas:

  • Canggu: Experience the allure of Canggu, a thriving hotspot that has captivated the hearts of residents and visitors alike. With its world-class surf breaks, awe-inspiring sunsets, and an abundance of trendy boutiques, cafes, and restaurants, Canggu embodies the epitome of chic coastal living. Families are drawn to Canggu-Berawa for its proximity to the renowned Canggu International School and recreational facilities. Northern suburbs such as Pererenan, Seseh, and Cemagi are favored by “Green School families” who value their close proximity to Ubud’s cultural charm and the mesmerizing ocean.
  • Umalas: Nestled inland, Umalas attracts a laid-back community of European and Australian creatives and entrepreneurs. Its prime location between Canggu and Seminyak offers a peaceful and convenient lifestyle. Umalas boasts hidden gem eateries with breathtaking rice field views, and it is particularly cherished by the French community due to the presence of the French International School.
  • Seminyak: Indulge in the vibrant energy of Seminyak, one of Bali’s most beloved tourist destinations. With its exquisite private villas, luxury beach clubs, upscale shopping, and renowned dining establishments, Seminyak caters to the sophisticated crowd seeking the ultimate island lifestyle. The high demand for luxury villas in Seminyak presents an excellent investment opportunity for those seeking exceptional returns.
  • Uluwatu: Discover the allure of Uluwatu, often referred to as the “Beverly Hills” of Bali. This exclusive enclave is home to magnificent cliff-top villas, offering unparalleled privacy and breathtaking views. Uluwatu boasts world-class surf spots, pristine beaches, and prestigious beach and cliff-top clubs, providing the perfect backdrop for enjoying life’s finer moments.
  • Ubud: Immerse yourself in the cultural and spiritual heart of Bali in Ubud. Surrounded by lush greenery, UNESCO-listed rice terraces, and captivating natural beauty, Ubud offers a serene escape. Luxurious villas and unique hotels with stunning swimming pools dot the landscape, while the famous Sacred Monkey Forest, vibrant art markets, and cultural performances add to the enchantment. Families are drawn to Ubud for its renowned Green School, known for its innovative approach to education.
  • Tabanan: Embark on a journey of natural splendor in Tabanan. Stretching from north of Canggu, this region boasts expansive rice fields, picturesque black sand beaches, majestic mountains, cascading waterfalls, and tranquil lakes. Tabanan is home to some of Bali’s largest villas and oceanfront properties, making it an ideal area for those seeking tranquility, potential capital gains, and a close connection to nature.
  • Nusa Dua: Experience pure indulgence in Nusa Dua, renowned for its pristine white sand beaches and luxurious five-star hotels and villas. Feast your senses at the exquisite restaurants nestled within resorts and revel in the stunning ocean views offered by exclusive cliff-front properties.
  • Sanur: Embrace the relaxed and serene atmosphere of Sanur. With its sheltered beaches, slower pace, and village-like ambiance, Sanur is a preferred choice for families and those seeking a more mature lifestyle. Bali International School (BIS) caters to expatriates with children, while the colorful wooden fishing boats and idyllic beachside promenade create a captivating setting for leisurely walks and cycling.

How to sell a property in Bali?

Selling a property in Bali requires careful planning and expertise to ensure a smooth and successful transaction. At R Property, we provide you with a comprehensive guide to help you navigate the selling process with ease. Follow these steps to maximize your selling potential:

  1. Organize your property documents: To save time and ensure a hassle-free sale, ensure that all property-related documents are complete. Reach out to your trusted real estate agent in Bali and consult a public notary. You can also refer to our property documents checklist for guidance. Consider conducting a property pre-due diligence to address any potential issues. Once you have verified the completeness of your documents, scan and upload them, along with high-quality photographs of your property, to a secure cloud storage space.
  2. Choose reputable property agents: Selecting the right real estate agency is crucial for a successful sale. Beware of uncertified agents with limited knowledge and experience. Engage no more than a handful of trustworthy agencies to list your property or consider an exclusive listing agreement for a specified period. Inquire about additional value-added services offered by the agency.

At The R Property, we provide a range of VIP marketing services, free of charge, for exclusive property listings:

  • Professional property appraisal
  • Tailored marketing strategies
  • Social media advertising
  • High-quality property photography
  • Aerial video and photography
  • Commercial video production
  1. Obtain a property appraisal: Request your agent to conduct an appraisal of your property to determine its market value. Pricing your property accurately will expedite the selling process.
  2. Submit scanned property documents: Share the link to your cloud storage folder with your agents, allowing them to download the scanned documents and professional real estate photographs.
  3. Sign a listing agreement: Formalize your partnership with your chosen real estate agency by signing a listing agreement. This agreement outlines the terms and conditions of the agency’s representation.
  4. Facilitate property viewings: Designate a point of contact for property viewings when you are not available in Bali. Inform your agent about the person responsible for organizing inspections, such as a staff member or a villa manager. Ensure that your property is accessible and well-prepared for viewings with potential buyers. If your villa is currently rented, inform your tenants about the viewing schedule, and reconfirm it with them on the day of the appointment. Instruct your staff to thoroughly clean the villa and present it in an inviting manner, complete with amenities like sun chairs, cushions, flowers, and refreshments. Remember, first impressions matter!
  5. Handle offers and negotiations: Promptly respond to submitted offers and inform your agent if you wish to make a counter offer. It is important to note that the initial offer from a potential buyer may not be the final one.
  6. Sign a binding “Sale and Purchase” agreement: Once the terms and conditions have been negotiated and agreed upon, sign a binding agreement with the buyer to finalize the sale. This agreement clearly outlines the obligations and expectations of both parties.
  7. Submit original property documents to the notary: Only provide the original property documents to the notary when you have received proof of transfer from the buyer to the notary’s escrow account and a deposit receipt issued by the Notary PPAT.
  8. Finalize the sale: Sign the final “Sale and Purchase” Deed or Lease Transfer Deed in the presence of the notary. Beforehand, check with your bank to ensure that the balance transfer has been credited to your account. Once the funds are received, inform your agent and arrange for the handover of the property. Ensure that all outstanding bills and staff salaries are settled. If you plan to relocate within Bali and are interested in renting or purchasing another property, inform your agent in advance to assist you further.

How to buy a property in Bali?

If you’re considering purchasing a property in Bali, our team at R Property is here to guide you through the process with expertise and professionalism. Follow these steps to ensure a seamless and successful property purchase:

  1. Connect with your trusted real estate agency: Start by contacting your trusted real estate agency in Bali and provide them with your property requirements. They will assist you in finding suitable properties that align with your preferences.
  2. Schedule property viewings: Once you have identified your favorite properties, make appointments with your agent to visit and explore these properties firsthand. This will allow you to assess their features and determine their suitability.
  3. Submit a signed ‘Offer to Purchase’ document: When you have found your dream property, initiate the negotiation process by submitting a signed ‘Offer to Purchase’ document. This document expresses your interest in acquiring the property and serves as a starting point for negotiations.
  4. Choose a reputable Notary/PPAT: Upon acceptance of your offer, it is important to select a reputable Notary/PPAT (Public Notary) to handle the legal aspects of the transaction. Your real estate agent can provide recommendations if needed.
  5. Sign a binding “Sale and Purchase” agreement: Once the terms and conditions of the purchase have been agreed upon, sign a binding “Sale and Purchase” agreement. This document clearly outlines the rights and obligations of both the buyer and the seller.
  6. Secure your investment with a deposit: To secure your investment, transfer a deposit (usually 10% of the purchase price) to the notary’s escrow account. This deposit demonstrates your commitment and ensures that the property is taken off the market, preventing it from being sold to any other party.
  7. Conduct due diligence: After the deposit has been received, the notary will commence the due diligence process. This involves a comprehensive assessment of the property’s ownership title and its location. The duration of this process typically ranges from 14 to 30 days.
  8. Completion of legal due diligence: Once the due diligence is deemed satisfactory, you can schedule an appointment with the notary to sign the final sale and purchase deed or lease transfer deed. In the event that the due diligence reveals unsatisfactory results, the notary will refund 100% of your deposit.
  9. Sign and process the balance payment: Upon signing the final “Sale and Purchase” deed with the seller in the presence of the notary, you can proceed with transferring the balance payment to the seller’s nominated bank account.
  10. Take possession of the property: Once the final payment has been received by the seller, a handover meeting will be arranged at the property. This is the moment when you officially take possession of your new property.

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