Are you looking for a top property or top real-estate investment in Bali? Balilandvillaforsale.com, have the best selections of houses, villas, apartments, lands, and other types of commercial properties for sale and rent. Who We Are About Balilandvillaforsale.com, with a professional team of foreigner and local specialists, is ready to assist you in any property related field in Bali. Our team has the knowledge and the experience in this market and we emphasize to deliver excellent customer service for you. Balilandvillaforsale.com, will help you find your ideal choice of real estate investment in Bali! Visit this website Balilandvillaforsale.com, often to keep yourself up to date with our latest news.
All property matters, except for those pertaining to the mining and forestry sectors fall under the jurisdiction of the national land agency (Badan Pertanahan Nasional (or BPN for short), which was formed to administer all matters relating to the basic "Agrarian Law of 1960", such as the registration of the use of land. The Indonesian land legislation is based on the basic Agrarian law number 5 of 1960.
The Basic Agrarian Law recognizes several types of rights over Real Estate, all of which are outlined below. However, to the foreign investor, the following three main rights are relevant:
These rights all authorize the use of land. The differences lie in the duration of validity and nature of utilization and the opportunities for obtaining a mortgage. The right of ownership is an inheritable right that can be held only by Indonesian citizens.
This refers to absolute ownership of land and corresponds to freehold title in common law terms. This right can only be held by an Indonesian citizen, not a corporate entity whether local or foreign. Certain legal entities designated by the government, such as a state bank, agricultural cooperatives, religious bodies, and social right of ownership is held in perpetuity. It can be sold, transferred, bequeathed, and mortgaged.
This is the right to use, leasing land owned by another private party for building purposes. The right cannot be registered at the land office and therefore does not exist in certificate form. Land leases are not public documents.
The law does not stipulate a period for such lease agreements and whether this can be transferred or not depends on the original agreement between the parties (lessor & lessee). This right may be held by a foreigner permanently domiciled in Indonesian or a foreign legal entity having a representative office in Indonesia, and may not be mortgaged.
Better known by its abbreviation, "H.G.B.", this is the right to construct a building/s on a plot of land for a period of 20 or 30 years, and which can be renewed on consideration of policy of the regional government. This right can be sold, exchanged, transferred, and mortgaged, and can be held directly by any corporate entity whether it is a local company or a government approved PMA (joint venture) company.
If a joint venture company needs a land for a factory, storage, employee housing or whatever, the company can be granted the right of building (HGB) in accordance with existing regulations.
This is the right to exploit state-owned land for agricultural, fishery or animal husbandry purposes. Title is normally granted for a period of 35 years, which may be exended for a maximum of 25 more years, conditional that the company is still operational and sound. This right can be held by Indonesian individuals/entities as well as government approved PMA (foreign joint venture) companies, and may be mortgaged.
Foreign investors who have obtained mining rights from the Minister of Mines and Energy or exploitation rights from the Minister of Agriculture or the Minister of Forestry have automatically obtained the right to use the land within their concession boundaries for purposes directly connected with the operations of the enterprise.
Based on Presidential decree number 34 of 1992 concerning the use full of right of exploitation (HGU) and the right of building (HGB) for the joint venture company, stated that in the joint venture company that established on Indonesian Law and domiciled in Indonesia. Those HGU that kept by the joint venture company can be used as collateral and can be transferred after having permission by the Chairman of BPN.| News To Day For Bali Property Land Villa For Sale |
| Bali Property, rent, buy or build a Bali Villa, House or Bungalow Rent, build, own Property in Bali Indonesia. Here we show you property in Bali. From cheap houses and luxury Bali villas to undeveloped land where you can build your own house. Buying real estate in Bali can be an adventure; we can make it comfortable for you. Just mail us for an appointment and we show you our listed properties and explain if needed, the property laws in Indonesia and how they may apply to you. Some houses or villas are for rent too, so you may be able to 'try out' your choice for a while, to see if it fits. If you rather like to start from scratch and want to build you own home in paradise we can show you various real estate that has been build by the architects and contractors we represent. There is beach land or land in the hills and mountains of this tropical island available for you to create your own paradise, in almost every budget. From luxury beachfront villas to a house with rice paddy views or a house in a village. We don't promise you that you will get rich by owning Bali Real Estate, although some people do very well. Investment, in our eyes, is something you do first of all in yourself. This island gives you the opportunity to own a villa or house at a reasonable price with a good chance on return of investment. We can help you with rentals, with this website or the use of other channels. If you already own properties in Bali we can assist you in sales and rentals, also if you want to sell your hotel in Bali. For renting, lease, buying and selling we are able to assist. A tropical home, in a part of Indonesia with friendly people and a colorful Hindu culture, where life and real estate can be cheap, relaxing and very enjoyable. You can also build your own home in Bali, according to your specifications, in your own taste, or look at the section Bali Villas for sale List of all available Bali real estate. Villas, Bungalows, Houses for rent or sale |
Ownership in Bali : What is Hak Pakai? Ways to own property in BaliToday still a lot, may be even the most, people use a contract with an Indonesian to "own" a villa. Foreigners are not allowed to own property on their own name, so a few contracts are made up where the foreigner technically leases the property from the Indonesian citizen, but has the same rights (and obligations) as if he owned the property right out. There are plenty of forms in which these contracts appear, and the creators all believe that theirs is the best.This construction is, besides used a lot, also criticized a lot. It is supposed not to be safe, and would give easy allowance for fraud and corruption. And there are plenty of stories going around where such a construction has gone wrong somewhere and has led to a loss, in one or another way. Fact is however, that there are plenty of foreigners using this construction, and use it to live happily in Bali, are able to sell and buy property with consent of locals and local authorities, in total contrast with what the most harsh critics may say. It seems however, that the Indonesian government has responded to the need of foreigners to being able to invest in a home in Bali, without needing an Indonesian ‘name holder’, while not immediately opening the gates for the rich to buy up 'cheap' Indonesian land. This arrangement is called Hak Pakai. Hak means right, and Pakai means use, so it’s Right of Use. See this page for more Indonesian property terms. Hak Pakai can be issued to (foreign) individuals, but also to companies, that are domiciled in Indonesia. Please note, domiciled in Indonesia. Hak Pakai is for people actually living here. It does not mean that you cannot leave Indonesia, or cannot own property in other countries as well. It just means that you spend a considerable time of the year in Indonesia. Hak Pakai is not the same as leasehold. (Hak Sewa). Leasehold is a notary contract with an owner, and the ownership certificate doesn’t change. Hak Pakai is an official certificate issued by the land offices, and can be given for Hak Milik or State owned property. As soon as a Hak Pakai certificate is issued, this certificate has precedent over any other title the property may have. A foreigner can just have one Hak Pakai title on his or her name. The Hak Pakai certificate is valid for an initial 25 years, and can be renewed after that. Some companies seem to offer prepaid renewals for up to a total of 100 years. It’s freely transferable to another name, so you can buy and sell existing Hak Pakai titles. So, if you want property on your own name in Indonesia, and you are planning to live here, use the Hak Pakai arrangement. But, regardless of what people may say, the Hak Milik / Name Holder construction is a good alternative. Just look at the many many of people using it. |
| Please note that the information here supplied is to be used as a guide only . For exact information please consult a lawyer or notary in your area, and seek advise from foreigners who have been living in Bali for some time. There are exceptions on the information here supplied, depending on the area of Indonesia, rules in Batam and Jakarta are different. There there are "decrees" with exemptions. In general one can conclude that that there many unclear areas in the Indonesian law, but it is generally safe to aquire properties. Can a foreign person or other foreign entity legally purchase property in Indonesia? The Indonesian government issued Law 5 of 1960 on the "Basic Regulation Of Land in Indonesia" ("UU 5/1960"), which came into force on 24 September 1960. This law explicitly and implicitly revoked many older laws. As a result, it can be said that UU 5/1960 established revolutionary new rules and principles concerning rights in land. UU 5/1960 recognized and regulated several rights over land and houses, including the: Right of Ownership (Hak Milik), Right to Cultivate (Hak Guna Usaha), Right of Building (Hak Guna Bangunan), Right of Use (Hak Pakai), and Right of Building Lease (Hak Sewa Atas Bangunan). The freehold property option for foreigners. The most used (and unfortunately for the unwary, misused) option is to use an Indonesian name holder for your property, with who you make contracts. These contracts give you the right to use the property. See for more information below. We cannot stress enough that these contracts should be checked and double checked. No matter how friendly the people are that offer their help, ask advice from a well know legal company in Bali, like for instance PT Bali IDE. Right of Ownership is the most comprehensive and complete form of individual rights over land. There is no time limit, and the holder has the right to use the land, including the earth underneath and the water and air above. It does not, however, include the right to obtain wealth from resources underneath the earth. Right of Ownership may be had only by Indonesian citizens. The Right to Cultivate is the right to cultivate State-owned land or to use it for other agricultural purposes for a certain period of time. There are two kinds of Right to Cultivate: for farming enterprises that are smaller than 25 hectares and for enterprises that are 25 hectares or more. Government Regulation 40 of 1996 on the Right to Cultivate, Right of Building, and Right of Use ("PP 40/1997") states that the period for Right to Cultivate is not to exceed 35 years initially but can be extended for another 25 years. When the extension period expires, the Right To Cultivate shall be renewed over the same land. The Right to Cultivate may only be owned by Indonesian citizens and companies established under Indonesian law and domiciled in Indonesia. Right of Building is a right over land, either State-owned or private, with which the holder may erect and possess buildings for a certain period of time not to exceed thirty years (can be extended for another twenty years). When the extension period expires, Right of Building shall be renewed. There are no limitations on the size of the holding. Right of Building may only be owned by Indonesian citizens and companies established under Indonesian law and domiciled in Indonesia. Right of Use is a right over land, either State-owned or private, which gives the holder the right to use and obtain the product of a certain piece of land. The land to which Right of Use is applied may be used as a building site or for agricultural purposes. PP 40/1997 states that the initial period for Right of Use is not to exceed 25 years but can be extended for another twenty years or even indefinitely if the land is still in use for a certain reason. Right of Use may be owned by Indonesian citizens, resident foreigners, Indonesian companies domiciled in Indonesia, and foreign companies that have a representative office in Indonesia. Currently it is easy for foreigners in Bali to obtain the right of use. Right of Building Lease is a right to lease land, either State-owned or private, which gives the holder the right to use the land in return for compensation. The payment could be one-time or periodical as determined by mutual understanding between the parties. Right of Building Lease may be owned by Indonesian citizens, resident foreigners, Indonesian companies domiciled in Indonesia, and foreign companies that have a representative office in Indonesia. Property Rights of Foreigners UU 5/1960 only allows foreigners to obtain Right of Use or Right of Building Lease. However, UU 5/1960 only provides very general information on how to obtain either of these rights, the maximum time period, or the legal assurances provided. As a result, many foreigners in Indonesia are not willing to engage in such transactions because they do not know the regulations or feel insecure with the regulations. Renewal of rights on expiry of the initial term is via an application to the National Land Agency and is subject to payment of a fee. An application must be submitted one year before expiry of the term. Although the law is silent in regard to the period after the expiry of the extended terms, the consensus is that a land right can be extended if there has been no infringement of the conditions attached to its usage. Pipil is land owned by Balinese families by inheritage and never has been formally registered with the Land Registration office. Before aquiring this type of land it has to registered. This takes usually 4 to 6 months. What do foreigners have to do if they want to use an Indonesian nameholder? It is best to use a well known company to arrange your contracts, and it is not unusual to ask a second opinion about the contracts. Important issues are inheritage and marriage. A foreigner married to an Indonesian woman, needs to have a marriage contract f.i. Procedures for Property Acquisition. All transactions of land rights must be via deeds executed before a land deed official at the local office of the Pejabat Pembuat Akta Tanah (PPAT) where the land is located and must be registered in the regional office of the National Land Agency. The PPATs are privately managed offices (usually run by a notary) authorized by the National Land Agency to handle land acquisition matters. Although there is no regulation that contracts have to be in Indonesian language, it is recommended having contracts and agreements always drawn up and executed in Bahasa Indonesia (or two languages) to prevent later arguments that the local partner did not fully understand the content. Property Sales Tax. When property is sold there is tax to be paid by both the selling and the buying party. This is 5%, for each, over the amount that is on the sales contract. Please note that the amount on the sales contract can be different from the actual price agreed upon. The tax has to be paid to the notary handling the transaction. Project developers usually include all in their pricing schemes, but when negotiating please ask how sales tax will be handled. Many a foreigner got an unpleasant surprise after agreeing on a price and hearing of the extra tax. Documents drawn up at the Notary. There are four documents needed: Number one describes that the foreigner gives money to the Indonesian name holder to buy land and property and the Indonesian gives this land and property to the foreigner to use it, out of his free will. The document also describes that the name holder gives the foreigner permission to sell , to rent it out or rebuild the house or property. It states that the agreement, if necessary, passes automatically to the heirs, as well of the foreigner as the name holders. It states that all of the property costs (electricity, water and taxes) have to be paid by the foreigner. The official 'Sertipikat' will be in the foreigners possession as well as the statement of cession, signed by the name holder. Only with this 'Sertipikat Hak Milik' it is possible to sell the land. In the second document the selling of the property is granted to the foreigner. The name holder gives his explicit permission to do so. In the third document the name holder gives permission to rent out the house or property. The fourth document commits the name holder to co-operate, if the time ever comes that foreigners can own land and property in Indonesia, in making the foreigner being the new name holder on the 'Sertipikat'. In case the law changes in the disadvantage of foreigners, the name holder will co-operate in changing the agreement into a lease-contract of 50 years with option for another term. Choose the right Indonesian Partner to "own" your property or land. This may take some time and asking around. Talk with foreigners in your area, and don't haste. Properties can be owned by companies, like a PT or a PMA. A PT is an Indonesian "Limited", a PMA is a foreign investment company which can be owned 100% by foreigners. The PMA property license has to be renewed every 20 or 30 years. Setting up a PT costs about 7 to 10 million rp, a PMA around 35 million rp. Hak Pakai for foreign investors Since March 2004 in effect in Bali:
A foreigner can purchase or construct a house built only on land with the right of use (Hak Pakai), the right of use with the right of proprietorship, or the right of lease (Hak Sewa). An apartment can only be purchased by a foreigner on land with right of use (Hak Pakai). Foreigners are not, however allowed to purchase houses or apartments classified as "low cost housing" or "very low-cost housing". |
Property Owners Visa What is the best Visa if you own property in Bali?This is one of the questions we get a lot. Some people think that owning property in Bali in one or another way, may give them special rights to obtain a visa.Unfortunately this is not the case. People who own property through a PMA (Indonesian Ltd.) get a visa because they own a company, but not because they (their company) own property. If you just are for short periods in Bali, and don't use your property (or rent it out), a tourist visa may be enough. If you spend longer periods in Bali, a Social Visa (Sosial Budaya) may be a good solution. This Visa is valid for 6 months. The 'SosBud' is issued at first for 2 months, and then can be renewed (in Bali) each month for a total period of 6 months. The Social Visa requires an Indonesian to be your sponsor, and a so called Sponsor Letter is part of the application process. This Visa is not issued in Bali, it can only be issued outside of Indonesia. Some people who want to stay longer then 6 months in Bali, do the so called Visa runs; after 6 months fly up and down to Singapore or any other nearby place with an Indonesian Embassy or Consulate, and get a new Social Visa. This Visa does not allow you to work. If you are over 55, you can get a Retirement Visa. This is issued for a year, and can be renewed each year for a total period of 5 years. There are certain rules and regulations (and costs) to obtain such a Retirement Visa, but they are not very strict. Also with this Visa, you are not allowed to work. If you are, besides buying property, planning to do business in Bali, a PMA is probably the best solution. A PMA is a Ltd. which can be owned by foreigners. This company can hold property, and can obtain Visas and working permits for its directors and employees. Obtaining some right to stay in Bali seems to worry a lot of future buyers. Practically however, there are no real problems. It is advisable however, to use a good and well known Visa agent, such as Bali IDE, to make your life more easy. And, obey the rules that apply to your Visa. Sometimes bending the rules a bit seems easy, but if you own property in Bali, you better not... Important to know is that only people who have a Kitas, either a Retirement Kitas, or a Kitas / Working Permit, can ship containers with household goods etc to Bali. Also, in most cases, Kitas holders have more advantages. Kitas holders can obtain an Indonesian driving license, its more easy to open Indonesian bank accounts, and you can put cars, motorbikes and such on your own name. Mobile phone and other paid subscriptions are also easier. |
