Discover Seven Recommendations for Secure and Legal Acquisition of Bali Real Estate by Foreigners
Bali’s real estate sector has emerged as an enticing investment destination for both investors and prospective homeowners seeking prime locations, breathtaking natural scenery, and lucrative returns.
However, the burgeoning development scene in Bali is not only appealing to genuine buyers but also attracts speculators.
To safeguard your finances, time, and legal standing when investing in Bali property, adhere to Ilot Property Bali’s seven expert suggestions:
Grasp Indonesian Legislation and Foreign Ownership:
Understanding Indonesian property laws and the rights available to foreigners is crucial. Different types of certificates signify various ownership rights, such as Hak Milik (freehold), Hak Pakai (leasehold), and Hak Guna Bangunan (right to build).
Consult with a Notary:
Engage with a licensed notary to facilitate the preparation and witnessing of essential legal documents in Indonesia. However, it’s important to note that notaries are not authorized to offer legal advice.
Appreciate Local Culture:
Display profound respect for local customs and traditions, recognizing the significance of cultural nuances. Consider hiring a reputable real estate agent proficient in the local language and market dynamics.
Evaluate Leasehold Options:
Due to the substantial capital requirements for freehold ownership, leasehold arrangements are widely favored among foreign individuals. Leasehold agreements grant rights to land use for 25-30 years, offering flexibility and affordability.
Execute Thorough Due Diligence:
Before finalizing any transactions, conduct comprehensive due diligence to assess various aspects, including legal status, potential disputes, and tax obligations. Seek assistance from trustworthy legal professionals to ensure a seamless process.
Consider Establishing a PT PMA:
Establishing a PT PMA (Foreign Investment Company) offers a secure pathway for long-term land ownership. PT PMA entities can own land for up to 80 years and provide access to additional benefits, such as renewable visas.
Avoid Nominee Arrangements:
Refrain from engaging in nominee agreements, which involve using local individuals or entities to hold property rights on behalf of foreigners. Such arrangements pose legal risks and are not recommended.
Stay Informed about Market Prices:
While Bali’s real estate market lacks comprehensive data, rely on reputable sources like Ilot Property for insights and guidance based on extensive local knowledge and experience.
By adhering to these recommendations and seeking guidance from trusted professionals, foreign investors can navigate the Bali real estate market securely and legally.
