Bali Villas for Sale: Freehold for Foreigners Explained

When you’re on your Bali villa hunt you may often see two options available on the market: leasehold and freehold. The terms are often confusing yet affect the price of the property a lot. And most importantly the legality and your ownership status. To find the most affordable and legal villas, discover a selection of freehold villas for sale in Bali by Harcourts Purba.

In this simple guide, Harcourts will also explain what it means exactly when you see a villa for sale for “freehold” in Bali and if it is a good deal for foreigners.

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What is a freehold villa in Bali?

Freehold or Hak Milik, in Indonesian, is an ownership title that allows Indonesian citizens and companies to own the land. It is often said that foreigners can’t purchase freehold villa, but it is not true. 

Foreigners may purchase a villa that is owned under a Hak Milik title by an Indonesian but in another form of ownership called Hak Pakai or Right of use. You will be able to use the villa or any other property for up to 80 years. 

Can you buy freehold property in Bali?

Foreigners can buy freehold property in Bali only through a PT PMA company, not individually, acquiring a so-called Hak Pakai or HGB title. Freehold is often compared to leasehold. A leasehold is simply a long-term rental of a villa (25-30 for up to 80 years). In Indonesia, it is called Hak Sewa – right to lease. It means that you are leasing a villa that is under Hak Milik (right to own) of an Indonesian citizen or company. 

How it works: an Indonesian citizen owns his land and villa freehold under the Hak Milik title. When you want to buy it freehold you will purchase the right to use this land or villa (Hak Pakai) and it is only possible with a PT PMA company – a foreign-owned limited liability company​​. If you want to lease this villa without setting up a company in Indonesia you would buy it under Hak Sewa – right to lease.

Buying land and villas for sale in Bali freehold under your company is the safest and most legally strong way to “own” property in Bali.

How much are freehold villas in Bali? 

As freehold implies longer ownership of the villa, freehold villas for sale will be significantly more expensive as you are paying for the whole number of years. 

It will also depend on the location of the villa: beachfront villas, properties with ocean or volcano views, or tourist spots are more expensive. And the number of bedrooms/bathrooms affects the pricing as well – the bigger the villa, the higher the asking price will be.

The construction stage can also affect the final price – it is cheaper to buy an off-plan villa at the early stage of the building than a fully furnished one. 

Harcourts Purba Bali curates a collection of 200+ freehold villas in Bali and the prices start from USD 160 000 for construction-only villas or USD 260 000 for a finished villa in areas 20-40 minutes from Canggu and tourist spots. A villa in the heart of Canggu can cost something from USD 600 000 – 700 000.

Best options for Bali Villas for sale Freehold

We’ve already discussed how to choose a location for your future house in Bali, and it is also important to consider different freehold options while planning such a big purchase. You can invest in a freehold villa in Bali as soon as the building starts to save money, or buy a fully furnished and operational villa or even a resort. 

If you like doing your own research and comparing options, please browse all 200+ freehold villas for sale in Bali and the outer islands that are guaranteed to be legally cleared and safe to buy.

Off-plan freehold villas

The construction of these villas finishes in the next 11 months while you can already purchase them based on detailed design and architectural drawings or even make minor changes to the plans! It is an affordable way to buy villa freehold even in hotspots.

We’ve seen interesting 2-bedroom freehold villa offers in Pererenan – close to Canggu relaxed neighborhood, starting from USD 115 000. 

Villas for sale freehold in Bali

Whether you are choosing a villa to move in with your family or to rent out year-round for numerous tourists and digital nomads, you are probably looking to do it right now and can’t wait 11 months. In such a case, with a slightly larger budget, you can find a villa ready to move in with all necessary appliances, furniture, a pool, and a garden. 

At Harcourts Purba, we keep a list of featured freehold villas for sale in Bali that you can browse right now. Villas prices in remote areas or smaller islands around Bali for freehold will start from USD 150 000. A 2-3 bedroom villa freehold in Bali, in centers like Canggu, Berawa, or Uluwatu will cost USD 400 000 and more.

Resorts and retreats for sale freehold

If you are looking into starting a tourism business in Bali, and have a significantly larger budget, you may take over a profitable retreat or resort and guarantee high returns on your investments. 

For commercial and business purposes Harcourts real estate experts personally evaluated and selected a few hotels and resorts that you may be interested in. The prices start from USD 1 400 000. 

To buy a resort for freehold in Bali it is mandatory to set up a foreign-owned company in Bali called PT PMA, and Harcourts Bali can assist you with it to guarantee the safe transaction of the ownership title. 

To make a weighted decision you can always rely on 20-year experience from real estate experts at Harcourts Bali. We are here to help you navigate the complex legal aspects of property ownership in Indonesia and find an ideal freehold villa for you or for your investments. Contact us today to secure long-term villa ownership on the island.

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We’ve been working with Harcourts Purba for a while now and we are very impressed with their commitment to providing excellent Realestate Services. They have been proactive in their searches and dealings and sensitive and understanding towards our needs in the various projects we’ve chosen them to be our partner in. Even though the Realestate Services market in Bali offers many options, we recommend Harcourts Purba to everyone who is keen to live and or invest in Bali or the surrounding islands. From the friendly and non-confronting atmosphere at their offices to their unparalleled local knowledge and great understanding of realestate markets and trends, you’d be hard pressed to find a better realtor.
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