Yes, foreigners can invest in Bali’s real estate market. While there are certain restrictions on land ownership, we offer expert guidance on legal structures such as leasehold and freehold arrangements that allow non-citizens to invest and own properties in compliance with Indonesian regulations. Contact our sales team to learn more.
Buying a villa in Bali from our projects is easy. If you choose to own a villa in Bali for rent or you choose to have a second home from one of our Bali private villas with pool, simply reach out to our dedicated sales team, who will provide you with detailed project information, rental management structures, and financial projections. We guide you through the entire purchase process including providing legal & taxation support, and are with you throughout the entire investment lifecycle, ensuring transparency and ease of participation at every stage of the process.
Yes, investing in Bali’s real estate involves legal processes, including leasehold or freehold ownership certification, taxation & immigration considerations, and more. Our in-house legal team will guide you through the legal considerations, ensuring that your investment adheres to Indonesian regulations and is secure.
Leasehold and freehold in Bali are terms used to describe different types of property ownership. In Indonesia Leasehold is called Hak Sewa and Freehold is called Hak Milik. These terms define the extent of ownership rights and responsibilities that an individual or entity holds over a piece of real estate. Here’s an explanation of both concepts and their differences, along with the benefits associated with each type of ownership:
LEASEHOLD
In a leasehold arrangement, an individual or entity (the lessee or tenant) obtains the right to use and occupy a property owned by another party (the lessor or landlord) for a specified period of time. This period is usually outlined in a lease agreement, which can vary from several years to several decades. Leasehold agreements can be extended, so long as this option is mentioned in the master lease.
Leasehold properties are often associated with residential, commercial, and even vacation properties and are the preferred option for foreigners to enjoy secure property investments in Bali. The Edge Bali Villas offer long leases ranging from 25 to 70 years.
Benefits to Leasehold ownership include:
FREEHOLD
In Indonesia, Freehold, is granted under the Basic Agrarian Law of 1960. It’s considered to be the highest form of property ownership and grants the owner full rights and control over the property, including the land and any structures on it. This type of ownership is reserved for Indonesian citizens and Indonesian legal entities only, meaning it’s not available to foreigners. However, if you establish a foreign-owned company through a PT PMA, which The Edge Bali Villas will do for you, Freehold ownership is an option some investors prefer
Benefits to Freehold ownership include:
Yes! With a leasehold title, you own the property for the length of time on the lease and any extensions. With a freehold title, the answer is also yes if you purchase through the PT PMA setup, and there are no time restrictions in place.
ROI stands for “Return on Investment.” It’s a financial metric used to measure the profitability or efficiency of an investment relative to its cost. ROI is expressed as a percentage and is calculated by dividing the net profit generated by an investment by the initial cost of the investment and then multiplying by 100 to express it as a percentage.
The ROI percentage indicates how effectively an investment is generating profits relative to its initial cost. A positive ROI means the investment has generated more profit than its cost, while a negative ROI indicates that the investment has resulted in a net loss.
The generally accepted formula for calculating ROI is: ROI = (Net Profit / Cost of Investment) X 100
In this formula:
Net Profit refers to the amount of profit generated by the investment after deducting all relevant costs, including operating expenses, taxes, and other associated expenses. Cost of Investment represents the initial amount of money invested in the project, including the purchase price, setup costs, and any other initial expenses.
ROIs with The Edge Bali Villas early bird investors tend to see better ROIs, which are based on conservative projections and reflect the NET amount received by owners from rental revenue.