Are you dreaming of owning a vacation home in Bali? It’s not surprising, as Bali is one of the most popular tourist destinations in the world.
With its beautiful beaches, stunning landscapes, and rich culture, it’s no wonder that many people are considering investing in a vacation home on this island paradise. But can you actually buy a vacation home in Bali? Let’s take a closer look.
Foreign Ownership Laws
As a foreigner, you cannot directly own land or property in Bali. However, there are legal ways to work around this law and buy a vacation home on the island. One of these ways is through a leasehold agreement.
Leasehold Agreements
A leasehold agreement is an agreement between the owner of the land and the buyer of the property that allows you to own and use the property for a set number of years. The lease can be renewed after it expires, usually for up to 25 years.
Pros:
- You can own a property in Bali without having to be an Indonesian citizen.
- You have more control over your property than if you were renting it.
- You can rent out your property when you’re not using it.
Cons:
- You don’t own the land that your property is built on.
- Your leasehold agreement will eventually expire, so you’ll need to renew it or figure out what to do with your property at that time.
- The cost of renewing your lease may increase over time.
Purchasing Property Through an Indonesian Nominee
Another option for foreigners looking to buy a vacation home in Bali is to purchase it through an Indonesian nominee. This involves finding an Indonesian citizen who will act as the legal owner of the property on your behalf.
Pros:
- You can own a property in Bali without having to go through a leasehold agreement.
Cons:
- You don’t have legal ownership of the property, and there is always the risk that your nominee could take advantage of this situation and try to claim ownership of the property for themselves.
- There are legal risks associated with using an Indonesian nominee that you should be aware of before pursuing this option.
Conclusion
So, can you buy a vacation home in Bali as a foreigner? The answer is yes, but it’s important to understand the legal restrictions and risks involved with each option.
A leasehold agreement may be the best choice for many foreigners looking to own a vacation home in Bali, but it’s essential to work with reputable lawyers and agents who specialize in these types of transactions. With proper planning and research, owning a vacation home in Bali can be a reality for many people.