The Easy Guide on Buying Property in Bali for Foreigners
16 December 2022
Bali is a well-known holiday destination in Indonesia. It does not only provide a cultural experience, but it also provides a huge investment potential by buying property in Bali.
Foreigners also have a chance to take a slot for property investment. However, the usual process usually includes using a local’s name. As a result, the investor may not have the safest security in the long term.
Using our service here, we will provide you with helpful assistance to ensure clients have the most potential property with the least risk.
The Regulation on Buying Property in Bali
Before buying a property, there are some regulations to learn. The regulation is based on Law 5, issued in 1960. It divides the ownership of property between locals and foreigners.
The law also regulates the type of rights foreigners can have when they acquire property in Bali, Indonesia. Here is the list.
Type of rights for property owners;
Hak Milik, later translated as Right to Own
This right decides the ownership of a property or land based on the certificate. If an owner obtains this right, he can sell his property.
Hak Pakai, later translated as Right to Use
The next right is the right to use. An owner does have not only the right to own but also the right to modify his land or property. This allows a foreigner to stay or use the property he owns.
Hak Guna Bangunan, later translated as Right to Build
The ownership continues for the former two rights. The owner also needs to get the Right to Build. Hence, the owner can build something on the property he owns.
“In order to obtain these rights lawfully, we help you to follow the right steps and ensure buying property in Bali with a long-term value and least risk.”
Steps on Buying Property in Bali
Here are the following steps to obtain ownership of property in Bali.
1. Learn the Type of Property
As we showed you the type of rights in property ownership, we understand that it may be costly to get all the rights. Therefore, choose the one that will fit the most.
For example, land with a building will only need a Right to Own since it does not need the Right to Use. The certificate includes both the land and the building. Hence, the owner will save some budget from obtaining the rest of the rights.
2. Register Through PT PMA
In order to obtain legal ownership, we will lead you to register through PT PMA. This corporation is the one that will help foreigners when they want to buy a property in Bali.
We Synergy Pro will assist you in applying for ownership legally and with the lowest risk. PMA is a foreign-owned company that provides the rights to obtain both Right to Own and the Right to Use.
Later, we can also assist you in obtaining the Right to Build. By setting a PMA, the owner can get these benefits.
Benefits of Setting PMA of A Property in Indonesia
Once the legal process is done, obtaining all the rights will receive the benefits:
1. Right of Inheritance
An owner can inherit his property from family members. Thus, the certificate is legal for the transfer process. However, it will depend on the type of rights obtained before.
2. Rights to Build
It allows an owner to build a property on land with a total ownership of 80 years.
The first period is 30 years. Extension is allowed for 20 years, and one-time renewal is for 30 years.
3. Right to Use
It allows an owner to obtain the right of use after purchasing real estate or another type of property. The extension allows the use from 70 years up to 80 years.
To set your PMA, our assistant will help you to set a legal one here.
After learning and strategizing on how to buy a property in Bali Indonesia, all we need is the document. We will guide you to prepare all the necessities as listed below.
1. Form to Register
Fill out the registration form to obtain the Right to Use. The form is from BPN (Badan Pertanahan Nasional)
2. Submit Payment Proof
The next requirement is to show proof of payment. If a client buys land or property, he will need to get proof for long-term safety risk. We will help you to double-check the payment proof to ensure easier approval.
3. Register for Right to Build Permission
After filling out the form, register for the right to build. It will help owners modify land, especially for those looking for property investment in Bali. Modified land may be good for long-term investment and a fresh source of immediate income.
4. Obtain the Right of Use
The next is to transfer the right of use to your set-up PMA. According to Indonesian government law, all the rights stated in the law are permissible under a PMA name. It also serves long-term benefits compared to individual ownership.
The Benefit of Using Our Service
There are reasons why we should be the ones helping you set up your ownership. Not only the certificate lasts longer than 25 years, but using our service will prevent you from these harms:
1. Getting Scammed by Illegal Nominee
A direct nominee to set the certificate’s name under Indonesian citizen ownership. Some of them may trick you into signing under their name, only to discover that all the documents they give are illegal.
A foreign owner may lose ownership very soon if he meets a troublesome nominee.
2. Losing Assets from Incomplete Rights
When an owner does not set up a PMA for his property’s license, he may lose some assets since he did not obtain all the required three rights and does not follow the due diligence. Especially for older owners who are not educated on this matter, transferring the right can be quite risky.
3. Getting Overpriced Property
Buying property in a foreign country takes many consequences if not handled properly. We recommend you consult with our consultant first to avoid getting an overpriced property.
After learning everything you need before buying property in Bali, set up your PMA and ensure only use the best advice from our experts. Our consultants are experts who have mastered Indonesian law for a more legal and safe investment in Indonesia. Have your certificate now by calling our Synergy Pro consultant here.
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