FAQ`s

There is only one way for foreigners to securely own property in Indonesia outright, instead of leasing real estate for a certain period of time:
By setting up an Indonesian legal entity- a PT PMA.
The ownership title of the property is called Hak Guna Bangunan (HGB). The Right to Build and Right to Use(Hak Pakai) titles provide you with clear legal grounding.

A non-Indonesian citizen cannot own land in Indonesia. However, a foreigner can acquire a leasehold title (Hak Sewa) to a land and building for a defined period of time. This title can be held in your own personal name and is 100% legal and protected by the Indonesian law.

Hak Sewa or the leasehold title gives the holder the right of use for an empty plot of land or the building(s) on someone else’s land for a fixed period of time.  A Leasehold Right title can be granted over land currently held under a Freehold title (Hak Milik), Right to Build title (HGB) or Right to Use title (Hak Pakai).  Indonesian individuals, Indonesian legal entities and foreign individuals and legal entities may acquire Leasehold (Hak Sewa) properties. The period of lease is generally between 1 to 25 years and usually there is an option to extend the lease, which is specified in the agreement between the land owner (Lessor) and the who rents the property (Lessee)

Hak Sewa cannot be used in the form of a mortgage, nor can it be registered with the National Land Agency.  Subject to the conditions of a lease contract (lease deed), a foreigner may lease an empty plot of land, build permanent buildings on the land and resell the remaining balance of the lease term to any third party by way of a sub-lease or transfer of Leasehold Right.

Commercial leases of office space, factory buildings, restaurants, hotels, shops and the lease of residential premises are all examples of Hak Sewa titles.  Residential properties can include apartments, condominiums, villas and houses.

Hak Milik or Freehold is the strongest form of land title ownership in Indonesia. Only individuals of Indonesian Nationality can own land under the Hak Milik title. Consequently, neither limited liability companies (PT/Perusahaan Terbatas) nor foreign individuals may obtain land with a Hak Milik title. Subject to zoning restrictions, the Hak Milik title owner can use the land for any purpose, although it does not entitle the owner to exploit the natural resources found on or under the land. The title has no limit and may be sold, gifted, exchanged, handed down by a will and may also be used in the form of a mortgage.

Foreigners may, however, acquire land under a Hak Milik title in another form of entitlement called Hak Pakai or Right of use.

Hak Guna Bangunan (The right to build) or HGB title allows the holder to construct and own buildings or other structures on state-owned land (Tanah Milik Negara), freehold land (Hak Milik) and HPL (Hak Pengelolaan) land.  This is the most common title for residential, commercial and industrial properties.  An HGB title can be owned by individuals of Indonesian Nationality, Indonesian legal entities, including Foreign Capital Investment Companies (Penanaman Modal Asing/PMA), or Domestic Capital Investment Companies (Penanaman Modal Dalam Negeri/PMDN).  Thus, any legal entity such as limited liability companies (Perusahaan Terbatas/PT) which are established under Indonesian Law, with domicile in Indonesia, may obtain a property with HGB title.  However, the HGB title is not available for foreign individuals.

The title is granted for an initial period of up to 30 years and can generally be extended for an additional period of 20 years.  Subsequent extensions are at the discretion of the state and may be renewed for another 30 years.  An approved capital investment company (i.e., PMA or PMDN company), may obtain HGB rights for a period of 80 years (i.e., 30-year initial term, plus 20 year extension term, plus 30 year renewal term).

HGB title over Freehold (Hak Milik) land is valid for a period of 30 years only.  Any extensions beyond 30 years would be subject to a new agreement with the landowner and registration of a new HGB/Right to Build title over the privately-owned land.

An HGB/Right to Build title can be sold, gifted, exchanged or handed down and/or encumbered by a mortgage.

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.

For a Freehold property transaction (Hak Milik)

• The buyer: Land and building acquisition duty (BPHTB)
• = 5% of NJOP value (government assessment)
• The seller:  PPh income tax = 2.5% of NJOP (government assessment)

For a Leasehold property transaction (Hak Sewa)

• The buyer: no Tax implications
• The seller: final income tax of 10% (Indonesian nationals or KITAS / KITAP holders) and
• 20% (foreigners without KITAS / KITAP)

Yes, the safest way for a foreign national to invest in property in Bali is to do it through a foreign-owned company (PT PMA) and acquire the ‘Right to Build’ (Hak Guna Bangunan) certificate. A PT PMA is a foreign limited liability company in Indonesia.

A foreign company is recognized by the Indonesian government as a legal entity, the foreign investors can purchase either of the two types of land titles, Right to Build (Hak Guna Bangunan), that is valid for 30 years and can be extended for 20 years and another 30 years, and/or Right to Use (Hak Guna Usaha), which is valid for 25 years and can be extended for 25 years and a further extension of 35 years can be granted.

A Pondok Wisata is commercial license to legally rent out a villa or homestay in the allocated tourism zoning. It is the operational license that consists or several other licenses required to process. The purpose of the building permit has to be classified as “Peruntukan Pondok Wisata” (for Pondok Wisata) to operate villas as vacation rentals commercially. This license covers up to 5 bedrooms. For anything bigger than that, it would require more than one Pondok Wisata license of a hotel melati or hotel bintang license for large scale hotel operations.

This License can only be issued in the name of an Indonesian individual, or managed by a PT Company with scope for the business field in villa management.

The Pondok Wisata licence is issued with a validity duration of 5 years which can be extended. It is required to file taxes with the local villa tax number (NPWPD) of the property. Even if the property does not generate any income, you still need to file the appropriate taxation declaration.

Indonesian nationals can apply for the license without setting up a business entity.

Foreigners are required to set up a business (PT PMA) in order to apply for a Pondok Wisata under the company name or set up a management agreement with a local PT or a local individual.

To process the Pondok Wisata license there are 5 documents which need to be submitted by the Owner of the Villa:

1. Document of UKL – UPL: (Environmental
2. Management and Environmental Monitoring Effort / Management System and Monitoring for Environment)
3. IMB with purpose for Pondok Wisata
4. SITU / HO: (Disruption Dispensation Permit)
5. Tanda Daftar Perusahaan (Business License)
6. NPWPD Number (Local Tax Number)

Foreigners in Indonesia are required to set up a business (PT PMA) in order to obtain a Pondok Wisata license.

1. Contact your trusted real estate agency in Bali and submit your property requirements
2. Select your favorite properties and make an appointment for viewings
3. Submit a Signed ‘Offer to Purchase’ Document for your dream property to initiate the negotiation
4. Choose a Notary/ PPAT – after acceptance of your offer or ask your agent to make a recommendation
5. Sign a binding “Sale and Purchase” agreement to clarify the terms and conditions
6. Transfer a deposit to the notary escrow account (usually 10% of the purchase price) to secure your investment. With the receipt of the the deposit, the property will be taken off the market and restricted from selling to any third party.
7. Due Diligence – After your deposit has been received, the notary will start the process of due diligence which takes in average 14-30 days, depending on the property ownership title and the location of the property.
8. Completion of Legal Due Diligence – Once the due diligence is satisfactory, you can make an appointment at the notary to sign the final sale and purchase deed (Lease transfer deed). In case of a non-satisfactory due diligence, the notary will refund 100% of your deposit.
9. Sign and process balance payment – Once you have signed the final “Sale and Purchase” deed (lease transfer deed), with the seller, in front of the notary, you can transfer the balance payment to the nominated bank account of the seller.
10. Take Possession of the Property – once the final payment has been received by the seller, you will meet at the property for a handover. 

Now make yourself feel at home!

Please contact one of our Bali Real Estate Consultants, should you require any services in regards to: Property management, renovation, contractual works, interior design and architecture by email info(at)balirec.com or call +6281930505055

1. Get your property documents sorted – to safe you time and guarantee a smooth and hassle-free sale in the future, make sure that all property related documents are complete. You can contact your trusted real estate agent in Bali, a public notary and take a look at our property documents checklist. You may also inquire for a property pre-due diligence. Scan and upload – Once you have made sure that all is complete, you can scan all documents and upload them on a cloud storage space together with the photographs of your property.
2. Chose your trusted property agent/s in Bali. Be careful, there are many uncertified agents on the island with little to no knowledge and experience. Pick not more than a handful of trustworthy agencies to enlist your property with or go with an exclusive listing agreement for a certain period of time. Always ask the agency about added value services for exclusivity. The Bali Real Estate Consultants offer a variety of VIP marketing services, for exclusive property listings, free of charge:

• • Professional property appraisal
  • Special tailored marketing strategies
  • Social media advertising
  • Professional property photography
  • Matterport 3D virtual property tour
  • aerial video and photography
  • commercial video production

3. Get an appraisal – Ask your agent to view the property and make an appraisal to determine the market value of your property. Pricing your property correctly will speed up the selling process.
4. Submit scanned property documents – Now simply send the link to your cloud storage folder to your agent/s to download the document scans and professional real estate photographs.
5. Sign a listing agreement with your trusted real estate agency
6. Viewings: Set a point of contact for viewings – When you are not in Bali or unavailable to provide access to your property, inform your agent about the person in charge to organize inspections with i.e. a staff member or a villa manager. Make sure the property is available and representable for viewings with potential buyers – Inform your tenants if your villa is rented out and reconfirm the viewing time with them again on the day of the appointment. Ask your staff to clean the villa and set everything up nicely i.e. sunchairs with mattresses and pillows, flowers, cold water or a welcome drink. The first impression counts!
7. Offers and negotiations – reply in a timely manner to submitted offers and inform your agent should you like to make a counter offer. Keep in mind, the first offer from a potential buyer is usually not the final one.
8. Sign a binding “Sale and Purchase” agreement to clarify the terms and conditions of the sale
9. Submit your original property documents to the notary, only when you have seen a proof of transfer, from the buyer, to the notary escrow account and a receipt of the deposit, issued by the Notary PPAT.
10. Sign the final “Sale and Purchase” Deed (Lease transfer deed) in front of the notary. Check with your bank and make sure you receive the balance transfer. Once the final amount is credited to your bank account, you can inform your agent and make an appointment for the handover of the property. Make sure all bills and staff salaries are paid up to date. If you consider relocating within Bali and would like to rent or buy a different property, please inform your agent in advance.

As a rule of thumb, the value of a leasehold land is approximately one percent per year per square meter or per are (100 m2).

Example:

If the freehold (Hak Milik) value of a plot of land measuring 100 m2 is IDR 1 billion, then the value to lease that land is approximately IDR 10 million per year (1% per year) of the lease duration.

As a result of the property boom in Bali and other Indonesian islands, the land and building department has implemented some regional regulations.
The times when one could build on any available land are over and things are properly regulated now, in most of the regions in Bali.

Regional and Spatial Planning (RTRW) regulations have a legal duration of 20 years. The recent RTRW regulations of Badung have been ratified to replace the older version ratified back in 1995. Its effective period is from 2013 until 2033. As a result of the new regulations, it is important to consider the following points:

– Check the zoning / ITR (Ijin Tata Ruang) before buying land for any project
– Check if the zoning will allow different types of building permits & licenses (IMB – Izin Mendirikan Bangunan) for either commercial or residential purposes

Of the various zoning types, there are 4 primary types of zoning that will pertain to most purchases:
1) Government owned land
2) Residential zoning
3) Commercial & tourism zoning
4) Agricultural zoning (green zone)

1) Government owned land
There is government owned land everywhere and it is restricted to individual investors only. They include beaches, natural reserves, forests, and so on.

2) Residential zoning
The residential zoning, as the name implies, is granted for residential properties such as houses or villas as a residence only. It is possible to apply for different building licenses suitable for a house, villa, apartment (or rumah kost), and even some commercial licenses that are permitted within residentially zoned areas.

3) Commercial & tourism zoning
This zoning is granted for any commercial purpose, which includes hotels, resorts, condotels, apartments, entertainment parks, as well as any residential properties. It is possible to apply for a commercial license and for a Pondok Wisata, which allows for holiday rental. 

4) Agricultural zoning (green zone)
Agricultural is only for farming. Residential or commercial buildings are strictly prohibited. No building permits will be issued for houses, villas, and so on.

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

Here you find a short description of the most common areas to live on the island:

Canggu
Canggu has grown wildly in popularity over the past years. From a sleepy local village it has developed to Bali’s most sought after hot spot, known for one of the best surf breaks, breath-taking sunsets, classy boutiques and a vast array of healthy and hip cafes, bars and restaurants.
Canggu-Berawa has become a favourite location for Expats with children, due to the Canggu International School and the recreation club being close by. Pererenan, Seseh and Cemagi are northern suburbs, favoured by “Green School families” because of their vicinity to Ubud (30-40 minutes drive) and the ocean.

Umalas
Set inland, Umalas is home to a laid back European and Australian creative, entrepreneurial crowd. It is conveniently and quietly located between Canggu and Seminyak, and though rather residential it boosts some hidden gem eateries with gorgeous rice field views. There is a large French community in Umalas due to it’s French International School.

Seminyak
Seminyak is one of Bali’s all-time favourite tourist spots. With a wide selection of private villas and resorts, boutiques, shopping, luxury beach clubs, a vibrant night life and trendy bars, it is home to Bali’s best restaurants and funky cafes. Seminyak has it all – and therefore attracts a sophisticated upmarket crowd who loves living the good life. With hundreds of luxury villas, Seminyak has the highest occupancy rate on the island and therefor is the perfect place to invest in a holiday home that can generate above average returns.

Uluwatu
Also know as the “Beverly Hills” of Bali, or the “Bukit” (hill), Uluwatu is home to many exclusive event style, cliff top villas that are used for weddings and events or high-end residencies, guaranteeing absolute privacy. This area has gorgeous white sand beaches, turquoise blue water and stunning sunsets. Uluwatu is known for its world class surf spots such as Bingin, Padang Padang, Balangan and Suluban. The Bukit features stunning 5 star beach and cliff top clubs, perfect to sip Champagne with the best views on the island.

Ubud
The cultural and spiritual heart of Bali, known for its lush greenery and UNESCO world heritage rice terraces, as seen in the movie Eat Pray and Love. Ubud has many luxurious villas and a range of hotels with the most unique swimming pools and surroundings. It is home to the famous Sacred Monkey Forest, many art and craft markets, offers cultural performances and close by waterfalls. It is a paradise all of its own. The variety of restaurants and cafes in Ubud is second to none! Many families move to Ubud, to have their children experience the famous Green School for its different approach to education.

Tabanan
Starting just north of Canggu, Tabanan Regency covers a large portion of the inland and southwest coast. The majority of the area consists of rice fields and plantations, making this region particularly beautiful. It is also home to picturesque black sand beaches, mountains, waterfalls and flowing lakes. Some of the largest villas and ocean front properties can be found here. If you are looking for land banking and capital gain or a peaceful residence surrounded by nature, Tabanan is one of the best areas to invest in.

Nusa Dua
Home to many 5 star hotels and villas, Nusa Dua features gorgeous white sand beaches. You can feast at the many options of restaurants most of which are housed within resorts. The area features some very exclusive cliff front properties and villas with stunning ocean views.

Sanur
With safe, sheltered beaches for swimming and a much slower pace than the Kuta-Seminyak area, Sanur offers a more village feel, making it one of the preferred areas of Bali for families and a more mature crowd. Bali International School (BIS) is a great option for expatriates with children, living in Sanur. The beaches are lined by colourful wooden fishing boats and the long path way along the beach is popular for cycling and relaxed walks.

So you have been searching for your dream home on the island and simply can’t find the perfect match?

With the increasing amount of families relocating to Bali, the demand for family homes is bigger than ever and there are simply not enough Villas that can cater to family needs, especially with young children. 

The process of building in Bali can be very challenging, quite intense and frustrating when dealing with local architects and contractors. It’s a Jungle out there!

The Bali Real Estate Consultants would love to take you by the hand and guide you through the entire process. 

From finding the most suitable plot of land until the handover of the keys to your new home in Bali, we’ve got you covered!

We work with the most reputable partners in various fields such as:

• Architecture
• Interior Design
• Engineering
• Building services / Contractors
• Legal Advisory / Creation of legal entities
• Villa Management

Please contact us for a free consultation: info(at)balirec.com or call: +62(0)81930505055

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 in Mengwi: https://www.greenschool.org
• Montessori School in Canggu: http://www.montessoribali.com 
• Canggu Community School in Canggu: http://www.ccsbali.com/
• Bali Island School in Sanur:  http://baliinternationalschool.com 
• Australian Independent School in Denpasar:  http://www.ais-indonesia.com/
• Sunrise School in Kerobokan: http://www.sunriseschoolbali.com/index.html
• LFB – Lycée Français Bali in Umalas – Kerobokan:  http://www.lfbali.com
• Sanur Independent School in Sanur: (http://www.sisbali.sch.id
• Pelangi School in Ubud: http://www.pelangischoolbali.com

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

1. Global Xtreme: https://globalxtreme.net/  – up to 1000 mbps
2. CBN (PT. Cyberindo Aditama): https://cbn.id/ – up to 1000 mbps
3. MTM Bali (PT Mitra Telemedia Manunggal: https://mtmbali.com/ – up to 1000 mbps

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.