Our agents specialize in assisting foreigners in navigating the complexities of buying a Balinese house. With knowledge of local laws, regulations, and market dynamics, they provide guidance at every step of the process.
Circular Letter IMI-0820.GR.01.01 of 2022 governs the acquisition of property in Indonesia by foreign citizens. This regulation offers clarity and convenience to investors seeking to buy a house in Bali as foreigners. Please get in touch with our company formation agents in Indonesia for assistance.
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Can foreigners buy property in Indonesia?
Foreigners can acquire property in Indonesia through lease agreements typically for 30 years with an option of renewal. However, full ownership rights (Hak Milik) of land are not attainable by foreigners due to legal restrictions. This limitation serves multiple purposes, including safeguarding Indonesian land from extensive foreign ownership and ensuring its utilization for the collective benefit of Indonesian citizens.
Despite the prohibition on full land ownership, foreigners can still secure land use rights through leasehold arrangements. This grants them the authority to utilize the land for a specified duration, including construction and development activities. If you want to buy a house in Indonesia as a foreigner, our agents can assist you.
Second home visa and second homestay permit in Indonesia
Foreign citizens seeking property ownership in Indonesia must apply for a second home visa and a second homestay permit. Our immigration lawyers in Indonesia can file a related application for you addressed to the designated Immigration Officer appointed by the Directorate General of Immigration. Essential requirements for the application include a valid passport, a recent photo with a red background, and evidence of financial capability amounting to Rp. 2,000,000,000 or proof of property ownership in Indonesia. The issuance process, conducted electronically, involves stages such as account registration, data submission, document upload, and PNBP payment.
Upon issuance, the second home visa and stay permit come with predetermined validity periods. Holders of the second homestay permit must furnish original proof of fund documents, like bank statements or property ownership certificates, within 90 days from permit issuance, while this reporting obligation does not extend to dependents.
If you are searching for a house to buy in Indonesia free of any encumbrances, our lawyers can assist you.
Requirements for foreigners buying property and obtaining visas in Indonesia
Foreigners wanting to buy a property in Indonesia are required to have a valid passport and obtain a Hak Pakai title, which serves as the leasehold title for the properties. Also, buyers are required to pay all the relevant taxes and fees associated with property ownership. Additionally, depending on the foreigner’s nationality and purpose of stay, he/she may also need to secure a visa to reside in Indonesia.
For example, those married to Indonesian citizens may qualify for a spousal visa. Similarly, individuals working in Indonesia can be eligible for work visas.
Buying a Balinese house and visa processing are complex and time-consuming tasks. For immigrating to Indonesia and streamlining the visa application process, the services of our lawyers are at your disposal. Further, they can also offer you a step-by-step guide to buying a Balinese house.
Overview of the real estate market in Indonesia
If you are planning to buy land in Bali, you should have a look at the facts given below:
- Real estate market size is estimated at USD 64.78 billion in 2024, projected to reach USD 85.97 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 5.82% during 2024-2029;
- Gross domestic product (GDP) from real estate activities in Indonesia recorded at IDR 468.22 trillion (USD 29.85 trillion) in 2021, as per Statistics Indonesia;
- Ministry of Public Works and Public Housing (PUPR) reported approximately 312,290 housing units constructed under the One Million Houses program by the end of May 2021;
- Residential property market in Indonesia exhibited stability, with the composite-16 property price index increasing by 1.74% in 2023, following year-on-year growth rates of 2% in 2022, 1.47% in 2021, 1.43% in 2020, and 1.77% in 2019, according to Bank Indonesia.
Besides assisting you with buying a house in Jakarta, we can also help you with accounting, company formation, VAT registration services, etc.
Our experts will not only advise you regarding setting up a company in Indonesia, but also assist you to comply with its legal requirements. After company incorporation in Indonesia, there are many other requirements that you need to fulfill. One of these requirements is accounting. If you are searching for the services of an accountant in Indonesia, consult us.
Contact our Indonesian lawyers to learn more about our services. Upon contacting, we can guide you on the process of buying land in Indonesia.