Key Legal Structures for Foreign Property Ownership in Bali

For foreigners considering property investment in Bali, understanding the legal frameworks is essential. Indonesia's property laws present unique challenges and opportunities that require careful navigation. The most common ownership structures include:
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Leasehold Agreements - Typically 25-30 years (renewable), this remains the simplest option for foreigners, though long-term security depends on contract terms.
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PT PMA (Foreign Investment Company) - Allows indirect ownership through an Indonesian corporate entity, suitable for commercial projects but with higher setup costs.
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Nominee Arrangements - While technically possible, these carry significant legal risks if not properly structured with safeguards like mortgage agreements.
Each option has implications for taxes, inheritance, and resale potential. Lease transfers require notarization, while PMA companies involve annual compliance. Recent years have seen tighter enforcement of regulations, making proper legal counsel more important than ever.
Beyond legalities, practical considerations like land zoning (many beachfront properties have building restrictions) and local village permits (izin lingkungan) can affect usability. Some areas also require cultural sensitivity regarding land use.
For those exploring options, Bali.Realestate offers updated guides on ownership structures, regional variations, and professional service recommendations to help navigate this complex landscape. Their resources break down the pros and cons of each approach with current regulatory insights.
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