FAQ`s

Yes. Foreigners can legally acquire rights to property in Bali, but the appropriate structure depends on what you are buying, how you intend to use it and how you want to hold it.

Foreign individuals cannot hold Hak Milik (Freehold / SHM) in their personal name. Recognised structures can include Leasehold (Hak Sewa), qualifying residential Hak Pakai, and property held through a qualifying

Indonesian company such as a PT PMA where appropriate.
For a PT PMA, the company structure alone is not a universal solution. The applicable KBLI, approved business field and permitted scope need to be appropriate for the intended property ownership, use and operation.

The correct structure should therefore be considered together with the property title, intended use, zoning, licensing and the buyer’s individual circumstances.
BREC helps clients understand the available options and coordinates the appropriate senior Notary/PPAT and professional specialists where required.

Leasehold (Hak Sewa) is a contractual right to use a property for an agreed period. It is widely used in Bali and can be held by Indonesian or foreign individuals and entities, depending on the structure and intended use.

A well-drafted Leasehold agreement should clearly set out the lease term, payment, permitted use, extension rights, transfer or resale rights, responsibilities of the owner and leaseholder, and what happens when the lease expires.

The remaining Leasehold can be transferred or sold to another buyer where the agreement provides the appropriate transfer rights.

Unlike a registered land title, Leasehold is a contractual right rather than ownership of the underlying land, which is why the quality of the agreement and the due diligence behind it are particularly important. BREC coordinates Leasehold transactions with experienced Notaries/PPAT and legal professionals where required.

Hak Milik, commonly referred to as Freehold or SHM, is the strongest form of private land ownership in Indonesia.
It is generally reserved for Indonesian citizens. A foreign individual cannot register Hak Milik in their personal name, and an ordinary Indonesian company does not automatically qualify to hold it.

Hak Milik has no fixed expiry period and can be sold, transferred, inherited or used as security, subject to Indonesian law.
Freehold ownership does not mean unrestricted use of the land. Zoning, building regulations, setbacks, permitted use and licensing requirements still apply.

For foreign buyers, a Freehold property can still form part of a transaction, but the appropriate acquisition structure depends on the buyer, property and intended use.

Hak Guna Bangunan (HGB), or Right to Build, is a registered land right commonly used by Indonesian companies, including qualifying PT PMA structures.

HGB is granted for a defined period and can generally be extended and renewed. The commonly used framework can provide up to 30 years initially, followed by extension and renewal periods subject to the applicable rules. An HGB extension should not be confused with purchasing a commercial Leasehold extension. Where the applicable requirements are met, renewal is an established administrative land-right process and the government costs are generally small relative to the value of the underlying property. Importantly, HGB does not depreciate in the same way as Leasehold. The underlying land continues to carry its market value, and the remaining HGB term should not be viewed simply as a countdown against the property’s value.

Where the land and receiving owner qualify, HGB can also be converted back to Hak Milik / SHM. This is another reason HGB should not be treated as a wasting Leasehold interest.

For a PT PMA, the company alone is not enough: the applicable KBLI, approved business activity, intended property use, zoning and licensing also need to be compatible.

Hak Pakai, or Right of Use, is a registered land right that can allow a qualifying foreign individual to hold a residential property in their own name.

Hak Pakai is specifically intended for residential use. It should not be treated as the appropriate structure for commercially operating a villa, hotel or other tourist accommodation.

For a landed residential property, the applicable rules generally limit the foreign holder to one residential property or plot per person or family, subject to the relevant regulatory conditions and exceptions.

The foreign holder must also meet the applicable Indonesian immigration or residency requirements. Like HGB, Hak Pakai is a registered land right rather than a contractual Leasehold and should not be valued as a wasting lease. Where the land and receiving owner qualify, the title can be converted back to Hak Milik / SHM.

Hak Pakai can be an attractive structure for a foreigner’s own residential home, while a different structure may be required for commercial or investment use

The tax treatment depends on the type of transaction and property structure. For the transfer of a registered land right such as Hak Milik, HGB or Hak Pakai, the buyer is generally liable for BPHTB. The rate is set by the relevant local government and can be up to 5% of the taxable acquisition value after the applicable non-taxable threshold.

The seller is generally subject to final income tax (PPh) of 2.5% of the gross transfer value for a standard registered land-right sale.
Leasehold transactions are treated differently because the underlying land title is not transferred. Income from a lease is generally subject to final income tax based on the gross lease or rental value.

Different treatment can apply to companies, developers, non-residents and more complex commercial transactions. The relevant Notary/PPAT and tax professionals should therefore confirm the exact treatment for the specific transaction.

BREC provides clients with an estimated transaction-cost overview so that the acquisition or sale can be assessed on the total cost rather than the headline price alone.

Yes. An Indonesian company, including a qualifying PT PMA, can acquire certain property rights in Indonesia. However, setting up a PT PMA does not automatically make every property acquisition or business activity appropriate.

The company needs the correct KBLI, approved business field and permitted scope for the intended use. The property title, zoning, intended activity, building approvals and applicable licences also need to support that use.

A qualifying company may hold HGB, but the appropriate structure can differ significantly between a residential property, development project, long-term investment, hotel or other commercial asset.

The key principle is simple: the company structure, KBLI and intended property use need to work together. BREC starts with what the client wants to acquire and do with the property, and then coordinates the relevant corporate, notarial and legal review.

A Pondok Wisata is a specific form of small-scale tourist accommodation in Indonesia.

Under KBLI 2025, Pondok Wisata / Homestay falls under KBLI 55201 and is intended for small-scale accommodation within a residential home that is also occupied by the owner. It should not be treated as a generic licence for commercially operating any villa as short-term tourist accommodation.

There is a separate Villa Activities category – KBLI 55203 – for villas operated specifically as short-term tourist accommodation.
Which category is appropriate depends on the property, operation, operating entity, business scale and licensing requirements. Whether a property can legally be used for short-term accommodation depends on several elements working together, including zoning and permitted use, building approvals and compliance, the operating entity, the applicable KBLI and the required OSS and supporting licences.

The important distinction is that Pondok Wisata / Homestay and Villa Activities are different accommodation categories, and neither should be assumed simply because a property is rented to tourists.

A foreign individual should not assume that owning or leasing a property automatically gives them the right to operate it as commercial tourist accommodation.

Short-term accommodation is a business activity and needs to be operated through an appropriate and properly licensed structure. The correct setup depends on the type of accommodation, operating entity, applicable KBLI, permitted business scope, zoning, building approvals and other licensing requirements. Different categories exist for villas, homestays, hotels and other forms of tourist accommodation.

A PT PMA may be relevant where the applicable business classification and foreign-investment rules allow it, but a PT PMA should not be treated as a universal solution for every villa or accommodation business.

A residential ownership structure, including Hak Pakai, should not automatically be assumed to permit commercial accommodation activity. The key distinction is that holding the property and having the legal right to operate a tourist-accommodation business are two separate matters.

BREC can help establish the intended operating model and coordinate the appropriate notarial, legal, tax and licensing review before a property is operated commercially.

There is no fixed formula for calculating the value of Leasehold land in Bali, but a common market guideline is approximately 1%-1.5% of the comparable Freehold land value per year of lease.

This should only be treated as a starting point.

The actual Leasehold value depends heavily on factors such as:

• Location
• Current Freehold land values
• Demand in the area
• Availability and scarcity of comparable land
• Zoning and permitted use
• Commercial value and development potential
• Road access and infrastructure
• Land size, shape and topography
• Remaining lease term
• Extension rights and extension pricing
• Market conditions at the time of the transaction

In highly sought-after areas where suitable land is limited, Leasehold rates can be significantly higher than in locations with greater supply and lower commercial demand.

Leasehold should therefore be valued against the actual market, commercial potential and comparable land in the specific area rather than by applying a percentage formula alone.

BREC assesses Leasehold value using current market conditions, comparable land values and the specific commercial characteristics of the property.

Financing is available in certain situations, but it is not generally the preferred way to purchase residential property in Bali.

Indonesian financing and mortgage products can carry relatively high interest rates compared with many international markets, which can significantly increase the overall cost of an acquisition. For this reason, many foreign buyers purchase with their own funds rather than relying on local financing.

There are, however, more possibilities for commercial buyers and larger investment transactions. Depending on the asset, buyer and transaction structure, financing may be available through banks, specialist lenders or other structured arrangements.

Developer payment plans and staged-payment structures are also sometimes available, particularly for off-plan projects, but the commercial terms and buyer protections should be reviewed carefully.

BREC has access to financing options for suitable commercial acquisitions and can introduce clients to the appropriate financing partners where relevant.

For most residential purchases, financing should be assessed carefully against the cost of borrowing rather than automatically being considered an advantage.

Land use in Bali is controlled through regional spatial planning, including RTRW and more detailed RDTR zoning regulations. These determine what types of development and activities are permitted on a particular plot.

Common zoning categories include:

• Residential zoning
• Tourism / accommodation zoning
• Commercial and service zoning
• Agricultural / green zoning
• Mixed-use or other specifically designated zones
• Protected or restricted areas

The important point is that zoning rules are not identical across Bali. Different regencies and local planning areas can apply different requirements regarding:

• Maximum buildable area / site coverage
• Building intensity
• Number of floors
• Building height
• Setbacks from roads, rivers, beaches and boundaries
• Minimum green or open-space requirements
• Permitted commercial activities
• Parking and access requirements
• Density and development scale

Bali offers a broad range of international, bilingual and alternative education options, with different schools suiting very different children and family lifestyles.

Some of the schools most commonly considered by international families include:

• Green School Bali
• Canggu Community School
• ProEd Global School
• Montessori School Bali
• Bali Island School
• Australian Independent School Bali
• Dyatmika School
• Pelangi School
• Lycée Français de Bali
• Other international, bilingual and alternative education providers

The important question is not simply ‘Which is the best school in Bali?’ Different children thrive in different environments – from more traditional international curricula to Montessori, alternative and experiential approaches.

School choice also has a major influence on where it makes sense for a family to live. In Bali, kilometres on a map can be misleading, so school commute, transport, children’s activities and the parents’ lifestyle should ideally be considered together.

BREC helps families look at school, location and home as one decision rather than choosing a property first and trying to make the school commute work afterwards.

EXPLORE FAMILY HOMES & INTERNATIONAL SCHOOLS
EXPLORE GREEN SCHOOL PROPERTIES

There is no single ‘best’ area in Bali. The right location depends on your personal preferences, lifestyle, daily routine and long-term plans.

Some people want to be close to the beach, restaurants, fitness and a more active social environment. Others prefer nature, privacy, more space, a quieter residential setting or easier access to particular parts of the island.

Families may also need to consider schools and children’s activities, while other buyers may focus more on work location, investment potential, community or access to specific amenities.

Traffic also means that distance on a map does not always reflect real travel time. Two locations only a few kilometres apart can function very differently in everyday life.

BREC therefore considers lifestyle and personal preferences, work and daily routine, schools where relevant, social life and activities, beach or nature access, property type and budget, traffic and accessibility, and long-term plans.

The objective is not simply to choose the most popular area. It is to find the location that best fits the way you actually want to live in Bali.

Financing is available in certain situations, but it is not generally the preferred way to purchase residential property in Bali.

Indonesian financing and mortgage products can carry relatively high interest rates compared with many international markets, which can significantly increase the overall cost of an acquisition. For this reason, many foreign buyers purchase with their own funds rather than relying on local financing.

There are, however, more possibilities for commercial buyers and larger investment transactions. Depending on the asset, buyer and transaction structure, financing may be available through banks, specialist lenders or other structured arrangements.

Developer payment plans and staged-payment structures are also sometimes available, particularly for off-plan projects, but the commercial terms and buyer protections should be reviewed carefully.

BREC has access to financing options for suitable commercial acquisitions and can introduce clients to the appropriate financing partners where relevant.

For most residential purchases, financing should be assessed carefully against the cost of borrowing rather than automatically being considered an advantage.

Yes. Buyers do not need to limit their search to properties listed directly by BREC.

We can act as your central point of contact across the wider Bali property market, including:

• Properties listed by BREC
• Listings held by other established agencies
• Properties advertised on online platforms
• Direct-owner opportunities
• Private and off-market properties
• Targeted searches for properties that are not currently being advertised

Where another agency controls the listing, BREC can usually coordinate the enquiry and viewing through a co-broking arrangement, allowing the buyer to continue working through one representative rather than dealing with multiple agents.

For clients who want a more comprehensive search, BREC can also work under a Buyer’s Agent appointment. This allows us to represent the buyer more actively across the market, source suitable opportunities, approach owners and other agencies, coordinate viewings, compare options, negotiate terms and manage the acquisition process through one central point of contact.

This is particularly useful where the buyer wants us to search beyond publicly available listings or has a specific brief requiring a more targeted approach.

Our objective is to find the right property for the client – not simply to sell what happens to be in our own portfolio.

Proper due diligence is an essential part of a property acquisition in Bali and is normally carried out after the main commercial terms have been agreed in a binding MOU and the property has been secured with a deposit.

In a typical transaction, the buyer and seller agree the principal terms in a binding MOU. The buyer then places a deposit – commonly around 10% – into the Notary/PPAT escrow account.
The transaction then proceeds subject to successful due diligence.

During this period, the relevant Notary/PPAT and legal professionals can review matters such as:

• Verification of the land title or Leasehold rights
• Confirmation of the legal owner and authority to sell
• Lease terms and extension rights where applicable
• Zoning and permitted use
• Building approvals and compliance
• Access rights
• Outstanding taxes, mortgages or other encumbrances
• Company documentation where relevant
• Licences and operating permissions for commercial properties
• Existing rental, management or third-party agreements
• Additional technical or structural checks where appropriate

The deposit remains fully refundable if the due diligence is not successfully completed in accordance with the agreed terms of the MOU. Once due diligence is successfully completed, the transaction proceeds toward final completion and the remaining payment stages.

BREC coordinates this process with the appropriate professionals and helps keep the transaction, documentation and communication organised from agreement through to completion.

The Notary/PPAT plays a central role in most property transactions in Bali and acts independently between the parties rather than representing the interests of either the buyer or the seller.

Depending on the transaction, their role can include:

• Holding deposits and transaction funds in the Notary escrow account
• Carrying out or coordinating legal due diligence
• Verifying ownership and land-title information
• Checking taxes, mortgages and other encumbrances
• Preparing Leasehold agreements and related deeds
• Preparing and registering transfers of land rights where applicable
• Coordinating signing, payment and completion
• Releasing funds in accordance with the agreed transaction terms

For a standard property transaction, BREC generally considers an experienced senior Notary/PPAT one of the most important professional appointments.

Unlike a lawyer who is normally engaged to protect and represent the interests of one particular client, the Notary/PPAT is a public official appointed or authorised by the state with a duty to act independently and correctly in the transaction. This makes a highly experienced Notary/PPAT particularly valuable for property transfers, land matters and transaction documentation.

That does not mean lawyers are unnecessary. Independent legal counsel can be useful for complex corporate structures, disputes, unusual contractual arrangements or matters requiring representation of one party’s specific interests.

In many straightforward property acquisitions, choosing a strong, experienced Notary/PPAT from the outset can avoid unnecessary duplication of professional work and keep the transaction more efficient.

BREC works with a number of experienced senior Notaries/PPAT who meet the standards we expect for our clients, and through these established relationships we are also able to secure preferred rates for BREC clients.

BREC generally recommends that transaction funds are handled through the appointed Notary/PPAT account, commonly referred to as the Notary escrow account, rather than transferring significant funds directly between buyer and seller before the transaction conditions have been satisfied.

In a typical BREC transaction:

• Buyer and seller first agree the commercial terms in a binding MOU
• The buyer places a deposit, usually around 10%, into the Notary/PPAT escrow account
• The deposit remains fully refundable if the agreed due diligence is not successfully completed
• The Notary/PPAT and relevant professionals complete the required due diligence
• Once the transaction conditions are satisfied, the remaining payments are made according to the agreed payment structure
• Funds are released in accordance with the transaction documents and completion requirements

For more complex acquisitions, the payment structure can also include multiple payment stages, title-transfer conditions, corporate transactions, construction milestones or other safeguards appropriate to the deal.

The payment structure is an important part of the transaction itself. BREC works with the buyer, seller, senior Notary/PPAT and, where appropriate, lawyers and other professional advisers to structure the process so that payments, documentation and transfer of rights remain properly coordinated through completion.

The timeframe depends on the property, ownership structure and complexity of the transaction. A straightforward acquisition can often be completed within several weeks once the commercial terms have been agreed.

The usual process includes:

• Agreement of the principal commercial terms
• Signing of a binding MOU
• Payment of a deposit, typically around 10%, into the Notary/PPAT escrow account
• Legal due diligence
• Resolution of any outstanding documentation or transaction conditions
• Preparation and signing of the final transaction documents
  Balance payment and applicable taxes
• Formal handover of the property

More complex transactions can take longer, particularly where they involve companies, HGB structures, commercial properties, development land, hotels and resorts, licensing matters, multiple parties or more sophisticated payment and ownership structures.

This is also where BREC’s experience goes beyond that of a conventional property brokerage. We have substantial experience assisting with complex and high-value transactions, coordinating the different commercial, legal, notarial, corporate, tax and technical elements required to bring a transaction to completion.

A well-prepared property with complete documentation, taxes paid and original documents readily available will always help the process move faster.

BREC remains the central point of coordination throughout the transaction, from the agreed commercial terms through due diligence and final completion – including transactions that require considerably more than a standard property sale.

Financing is available in certain situations, but it is not generally the preferred way to purchase residential property in Bali.

Indonesian financing and mortgage products can carry relatively high interest rates compared with many international markets, which can significantly increase the overall cost of an acquisition. For this reason, many foreign buyers purchase with their own funds rather than relying on local financing.

There are, however, more possibilities for commercial buyers and larger investment transactions. Depending on the asset, buyer and transaction structure, financing may be available through banks, specialist lenders or other structured arrangements.

Developer payment plans and staged-payment structures are also sometimes available, particularly for off-plan projects, but the commercial terms and buyer protections should be reviewed carefully.

BREC has access to financing options for suitable commercial acquisitions and can introduce clients to the appropriate financing partners where relevant.

For most residential purchases, financing should be assessed carefully against the cost of borrowing rather than automatically being considered an advantage.

Not necessarily. A large part of the property search and transaction process can be handled remotely.

BREC regularly works with overseas buyers and can assist with:

• Property sourcing across the wider market
• Remote property viewings by video call
• Additional photography and video where required
• Negotiations with sellers
• Preparing and coordinating the agreed commercial terms
• Notary/PPAT and due-diligence coordination
• Digital document exchange and transaction administration
• Coordinating inspections and specialist reviews

Binding MOUs can be signed digitally, allowing the property to be secured and the transaction process to begin without the buyer necessarily being in Bali.

For certain later stages of a transaction, a buyer may need to sign specific documents in person. However, a Power of Attorney can also be used in certain situations, subject to the requirements of the transaction and the relevant Notary/PPAT.

Depending on the property and structure, most or even all of the acquisition process can therefore often be coordinated while the buyer is overseas.

BREC manages the process locally and coordinates with the Notary/PPAT to determine which signatures or documents can be handled digitally, by Power of Attorney or require personal attendance.

Property pricing in Bali can be difficult to assess because advertised asking prices do not necessarily reflect actual market value.

BREC compares a property against actual achieved sales prices in the relevant area where we have access to transaction data, rather than relying only on online asking prices.

We also consider:

• Current comparable listings
• Land value in the immediate area
• Freehold, HGB, Hak Pakai or Leasehold structure
• Remaining Leasehold term and extension provisions
• Building quality, age and replacement cost
• Zoning and permitted use
• Location and micro-location
• Demand and availability of similar properties
• Commercial or development potential
• Current market conditions

Two properties that appear similar online can have very different values because of title, zoning, access, lease terms, construction quality, scarcity and actual buyer demand.

BREC combines regional sales data, current market activity, comparable properties and more than a decade of hands-on Bali market experience to help determine whether an asking price is realistic and where there may be room for negotiation.

The asking price is only the starting point. What matters is what comparable properties are actually selling for in that market.

Yes. A Leasehold property can be resold by transferring the remaining lease rights to a new buyer, and many Leasehold agreements also provide a mechanism for extending the term.

A well-drafted lease should clearly address:

• The right to transfer or assign the remaining lease
• Whether an extension is available
• When the extension can be exercised
• How the extension price will be calculated
• The length of the additional term
• Whether the extension and transfer rights pass to a future buyer
• What happens to buildings and improvements at expiry
• Handover obligations and any rights relating to furniture or equipment

Some leases include a fixed extension price or formula, while others provide for an extension based on the prevailing market value at the time.

The resale value will depend on the remaining term, location, demand, condition of the property, zoning, commercial potential and the quality of the extension and transfer provisions.

If the Leasehold reaches the end of its agreed term without being extended, the leaseholder’s contractual right to use the property ends in accordance with the lease agreement.

In practice, many owners extend or resell well before expiry. BREC considers the remaining term, extension mechanism, transfer rights and long-term exit options when assessing a Leasehold property.

They are very different arrangements, even though both involve a right to use a property.

A Leasehold purchase is a longer-term contractual property right, often acquired for many years and paid substantially upfront. The lease can be structured with rights to transfer, resell and extend the remaining term, making it closer to an acquisition than an ordinary rental.

A yearly rental is a residential tenancy agreement. You are renting the property from the owner for an agreed period, usually one year or several years, without acquiring the same transferable property interest.
The main differences include the length of the agreement, amount and timing of payment, transfer and resale rights, extension provisions, rights to modify or develop the property, responsibilities for major repairs and maintenance, intended use, and the tax and transaction structure.

A Leasehold should therefore not be confused with simply paying several years of rent in advance.

BREC helps clients determine whether purchasing a Leasehold or taking a long-term rental better suits their plans, budget and intended length of stay in Bali.

It depends on what is meant by ‘lease’.

If you purchase a Leasehold property, you acquire contractual rights to the property for an agreed term. Those rights can be structured so that the remaining Leasehold can later be transferred or sold to another buyer. This is different from simply renting a property and subletting it.

If you are renting a villa or property on a yearly rental agreement, you should generally not assume that you have the right to sublease it to somebody else. The rental agreement and the owner’s consent are important.

Commercial subletting is a separate issue again. A residential rental or Leasehold agreement does not give somebody the legal right to commercially sublet or operate tourist accommodation from the property. The operating structure, KBLI, zoning and applicable licences still need to be appropriate, and commercial subleasing should not be treated as a workaround for those requirements.

The key distinction is that buying a transferable Leasehold interest is not the same as renting a property and subletting it.

BREC checks the underlying agreement and intended use so that buyers and tenants understand exactly what rights they are acquiring.

Yes. Off-plan developments are common in Bali and can offer attractive opportunities, particularly when the pricing properly reflects the additional construction and completion risk.

As a general market guideline, an off-plan property should usually be priced around 30% below the value of a comparable completed product. The exact discount depends on the developer, location, construction stage, project quality and overall risk profile.

BREC looks beyond the renders and sales presentation. Important considerations include:

• The developer’s background and previous projects
• Ownership or control of the underlying land
• Zoning and development permissions
• Building approvals and project licensing
• The proposed Freehold, HGB or Leasehold structure
• Construction specifications and what is included
• The legal securities built into the transaction
• When and how the land title or property rights are transferred or secured
• A payment structure linked to verified construction progress
• Construction milestones and completion schedule
• Contractual protections in case of delays, changes or non-completion
• Extension provisions for Leasehold projects
• Management and rental agreements where applicable
• Ongoing fees and operating costs

A buyer should not simply be financing the entire development upfront. A well-structured transaction should provide meaningful protection throughout the construction period, with payments corresponding to actual progress and the buyer’s rights secured appropriately.

Where required, BREC can coordinate legal, technical and financial review with the appropriate professionals before the buyer proceeds.

An off-plan purchase should offer both a meaningful price advantage and a transaction structure that protects the buyer while the project is being completed.

An investment property should be assessed differently from a property purchased primarily for personal use.

BREC looks beyond the advertised purchase price and projected rental return. Important considerations can include:

• Location and future demand
• Purchase price compared with the surrounding market
• Freehold, HGB, Hak Pakai or Leasehold structure
• Remaining Leasehold term and extension provisions
• Zoning and permitted use
• Whether the intended rental or commercial operation is legally possible
• Construction quality and future maintenance requirements
• Realistic rental income and occupancy
• Management and operating costs
• Taxes and transaction costs
• Development or repositioning potential
• Future resale market and exit strategy

For commercial assets, hotels and larger investment properties, the analysis can go considerably further and include financial performance, EBITDA, cash-flow modelling, feasibility, competitive positioning and potential value enhancement.

Projected returns should always be tested against realistic operating costs and market conditions rather than relying purely on a developer’s or seller’s headline figures.

BREC can help assess both the property itself and the commercial logic behind the acquisition, allowing clients to make investment decisions based on the complete picture rather than the sales presentation alone.

It depends on the property, the existing ownership structure and the purpose of the acquisition.

Where a property is already held by an Indonesian company, the buyer may have the option of acquiring the shares of that company rather than transferring the property itself.

In a share acquisition, the land or property remains registered to the same company. Only the ownership of the company changes. As a result, there is no transfer of the property title itself and therefore no additional property transfer taxes such as BPHTB arising simply from the share transfer.

This can make a share acquisition particularly interesting for HGB properties, development projects, hotels and other commercial assets.

However, acquiring the company also means taking over its corporate history and potential obligations, so due diligence should include:

• Shareholders and corporate documentation
• Land titles and company ownership of the assets
• KBLI and permitted business activities
• Licences and approvals
• Tax history and liabilities
• Existing contracts and financing
• Employees and employment obligations
• Pending disputes or claims
• Other assets and liabilities held by the company

The share transfer itself can also have corporate, notarial and tax implications, which should be reviewed as part of the transaction.

For larger commercial acquisitions, the choice between an asset purchase and a share purchase can materially affect the transaction structure, taxation and due-diligence requirements.

BREC has experience coordinating both property transfers and company/share acquisitions and can work with senior Notaries/PPAT, lawyers and tax advisers to determine the most appropriate structure for the transaction.

The purchase price is only one part of the total acquisition and ownership cost.

Depending on the property and transaction structure, buyers should also allow for:

• Notary/PPAT fees – usually around 1%
• Buyer taxes where applicable
• Legal or specialist professional fees where required
• Company or corporate-structure costs where relevant
• Government registration and administrative fees
• Lease-extension costs where applicable
• Insurance
• Initial repairs, renovations or furnishing
• Annual property and land taxes
• Electricity, water and internet
• Pool, garden and general maintenance
• Property management fees where relevant
• Company administration, accounting and tax compliance where a company is involved
• Licensing or operational costs for commercially used properties
• Taking over existing staff and related employment obligations where applicable

For operating villas, hotels or other commercial properties, existing staff, employment contracts, accrued benefits and other operational commitments should also be reviewed as part of the acquisition.

For rental villas, hotels and other investment properties, ongoing expenses should be included when calculating the real net return rather than looking only at gross rental income.

BREC provides clients with an estimated transaction-cost overview before proceeding and can help assess the likely ongoing costs of a particular property where relevant.

Financing is available in certain situations, but it is not generally the preferred way to purchase residential property in Bali.

Indonesian financing and mortgage products can carry relatively high interest rates compared with many international markets, which can significantly increase the overall cost of an acquisition. For this reason, many foreign buyers purchase with their own funds rather than relying on local financing.

There are, however, more possibilities for commercial buyers and larger investment transactions. Depending on the asset, buyer and transaction structure, financing may be available through banks, specialist lenders or other structured arrangements.

Developer payment plans and staged-payment structures are also sometimes available, particularly for off-plan projects, but the commercial terms and buyer protections should be reviewed carefully.

BREC has access to financing options for suitable commercial acquisitions and can introduce clients to the appropriate financing partners where relevant.

For most residential purchases, financing should be assessed carefully against the cost of borrowing rather than automatically being considered an advantage.

A hotel or resort acquisition is considerably more complex than buying a residential property. You are acquiring not only real estate, but potentially an operating business, licences, employees, contracts, financial history and existing liabilities.

Depending on the transaction, BREC can assess or coordinate review of:

• Land title, ownership and corporate structure
• Zoning, permitted use and licensing
• Applicable KBLI and business scope
• Number and legal status of rooms or units
• Historical revenue, occupancy and ADR
• EBITDA and operating profitability
• Management and franchise agreements
• Employment obligations
• Existing contracts, liabilities and tax position
• Technical condition and future capital expenditure
• Expansion or repositioning potential
• Market positioning and competitive set
• Acquisition structure and exit strategy

BREC can also provide in-depth analytical services, ranging from an initial investment review through to:

• Financial performance analysis
• EBITDA and cash-flow analysis
• Investment return modelling
• Market and competitive analysis
• Repositioning and value-enhancement analysis
• Development and expansion assessment
• Full hotel or resort feasibility studies

For larger or more complex acquisitions, these services can be combined into a comprehensive evaluation of whether the asset, operating model and purchase price make commercial sense.

BREC specialises in hotel and resort acquisitions and can manage the process from market search and direct owner approach through commercial negotiation, analytical review, due diligence coordination and completion, working alongside senior Notaries/PPAT, lawyers, tax advisers, accountants and technical specialists where required.

Many of Bali’s most significant hotel opportunities are never publicly advertised, which is why direct market access, owner relationships and the ability to properly analyse an opportunity are all important parts of the acquisition process.

A smooth property sale starts with having the property and its documentation properly prepared before marketing begins.

Ideally, sellers should have:

• All ownership and property documents in order
• Original documents readily available
• Clear digital copies stored in an organised Drive folder
• Property and land certificates or Leasehold agreements
• Building approvals and relevant licences
• Zoning and supporting documentation where applicable
• Property taxes and other applicable taxes paid and up to date
• Utility bills and relevant service records
• An up-to-date inventory of furniture, fixtures and equipment included in the sale
• Clear information on any exclusions from the sale
• Lease-extension terms where relevant
• Company documents where the property is held through a company
• Any existing rental, management or operational agreements that affect the property

It is also important to establish a realistic asking price and identify any legal, technical or documentation issues before serious buyers begin due diligence.

Having everything organised from the beginning makes the property easier to present, reduces delays during negotiations and gives buyers greater confidence in the transaction.

BREC can help sellers prepare the property for market, organise the required information, coordinate professional marketing and manage the sales process through to completion.

An exclusive listing appoints one real estate agency as the primary representative responsible for positioning, marketing and managing the sale of the property for an agreed period.

For the seller, this can provide several advantages:

• One consistent asking price and market position
• Better control over how the property is presented
• One central point of contact for enquiries and viewings
• More coordinated buyer feedback and negotiations
• Better tracking of introductions and interested parties
• Professional cooperation with other agencies and buyer representatives
• Reduced risk of duplicated, outdated or incorrectly priced listings

An exclusive listing also allows BREC to be more proactive and invest more into the marketing of the property. Depending on the asset, this can include enhanced photography and video, targeted digital campaigns, direct buyer outreach, location-specific marketing and more active promotion through BREC’s network.

Exclusive representation does not mean limiting market access. BREC can still co-broke with other established agencies while keeping the listing, pricing and transaction strategy centrally coordinated.

BREC also does not believe in locking property owners into unnecessarily long exclusive agreements where the agency benefits more than the seller. The purpose of exclusivity should be to allow the agent to commit more resources, take greater responsibility and actively work to achieve a sale.

A good exclusive listing should give the seller better marketing, stronger representation and wider coordinated exposure – not simply a longer contract.

Real estate commission in Bali varies depending on the type of transaction, the property and the level of service provided.

At BREC, our standard commission structure is:

• Property sales: 5%
• Yearly rentals: 10%
• Monthly rentals: 15%

For sellers, the most important figure is ultimately the net amount they realistically achieve from the transaction, not simply whether one agency quotes a lower commission percentage.

A lower commission can sometimes look attractive initially, but it may also reduce the incentive and resources available to actively market the property, cooperate with other agents and pursue buyers. Properties offered substantially below normal market commission levels will often receive less attention than competing listings offering standard terms.

Commission also plays an important role in co-broking. BREC regularly works with other agencies, buyer representatives and international property partners. If there is insufficient commission available to share, meaningful cooperation with these partners can become difficult or impossible, reducing the property’s potential market exposure.

BREC therefore prefers a commission structure that allows us to properly market, represent, negotiate and actively distribute the property across a wider professional network.

Commission is agreed with the owner in advance and clearly documented in the listing agreement.

The objective should always be the best achievable result for the seller – not simply the lowest agency fee on paper.

Yes. Not every property benefits from being publicly advertised.

For certain high-value residences, hotels, resorts, development sites or sensitive transactions, a confidential or off-market strategy may be more appropriate.

Depending on the property, BREC can:

• Present the opportunity directly to qualified buyers
• Approach selected investors and acquisition clients
• Work through trusted local and international partners
• Require an NDA before releasing sensitive information
• Limit photographs, financial information or the exact location until a buyer has been qualified
• Conduct targeted outreach to specific buyer profiles
• Manage negotiations discreetly without publicly exposing the property

For larger hotel and resort transactions, BREC generally handles the process discreetly and off-market. These assets are typically introduced directly to qualified investors, hotel groups, family offices and acquisition clients rather than being openly advertised.

An off-market strategy can provide greater privacy and control, although it does not automatically suit every property. In some cases, broader public marketing will produce the stronger result.

BREC can advise whether a public, confidential or combined marketing strategy is most appropriate for the property and the seller’s objectives.

Yes. Particularly in the current regulatory environment, buyers and sellers are better protected when working with an established and properly licensed Indonesian real estate agency rather than informal brokers or businesses operating under an inappropriate company structure.

A professional agency should be able to:

• Identify the legal entity behind the business
• Operate under the appropriate KBLI and permitted real estate business activities
• Provide clear agency and commission agreements
• Properly represent and market properties
• Coordinate offers, negotiations and transaction documentation
• Work with established Notaries/PPAT, lawyers and other professional partners
• Maintain proper transaction and client records
• Coordinate complex ownership, corporate and commercial transactions where required

This has become increasingly important following recent changes to Indonesia’s KBLI classifications and business-licensing framework. A company being registered in Indonesia does not automatically mean that it is permitted to carry out real estate agency activities; the company structure, ownership and approved business scope all need to be appropriate.

BREC is a locally owned Indonesian real estate agency and is structured to comply with the current KBLI requirements applicable to real estate activities. This is an important distinction in a market where some foreign-owned or PT PMA operators may no longer have the appropriate scope for the same activities under the current regulatory framework.

BREC combines this compliant local structure with more than a decade of hands-on Bali property-market experience, covering residential transactions and land acquisitions through to complex commercial, hotel and resort transactions.

Who represents you in a Bali property transaction matters just as much as the property itself.