If you’ve ever dreamed of owning a slice of paradise in Bali but aren’t an Indonesian citizen, leasehold property offers a practical solution. It’s a popular way for foreigners to invest in Bali’s real estate market without needing an Indonesian partner. But how long can you lease land in Bali, and what happens when the lease ends? Here’s everything you need to know.
The basics of leasing land in Bali
Leasehold agreements (Hak Sewa) allow foreigners to legally control land for a set period, unlike freehold property (Hak Milik), which is reserved for Indonesian citizens.
- Standard lease terms: most leases in Bali are structured for 25–30 years.
- Extensions: many leases include renewal options that can extend the term to 80 or even 99 years. These extensions are typically negotiated upfront to avoid complications later.
What happens when a lease expires?
At the end of the lease term, the land and any structures built on it revert to the original landowner. Without a pre-negotiated extension, you lose the rights to the property, including any villas or commercial buildings on the land.
To avoid this outcome, it’s essential to:
- Include clear renewal clauses in your lease agreement.
- Work with professionals who understand the intricacies of Bali’s property laws.
How Seacrest Real Estate can help
Navigating Bali’s leasehold system can be challenging, but Seacrest Real Estate specializes in helping investors secure legally sound and well-negotiated properties.
- Secure agreements: Ensure your lease includes clear extension terms.
- Professional guidance: Work with trusted legal professionals and notaries.
- Exclusive opportunities: Access prime properties, including beachfront villas, commercial spaces, and long-term investments in hotspots like Kedungu, Nyanyi, and Seseh.
How to secure a longer lease
- Negotiate extensions early
- When signing your lease agreement, make sure it includes renewal clauses specifying extension terms and costs.
- Legal assistance
- Always consult a trusted notary or work with a reputable real estate agency like Seacrest Real Estate to validate your contract.
- Consider a PT PMA (Foreign-Owned Company)
- For long-term investments or business operations, setting up a PT PMA allows you to lease land for extended periods under a different legal structure.
Is leasehold worth it?
Absolutely. Here’s why:
- Cost-effective: Leasehold properties are significantly more affordable than freehold, making them an accessible entry point for investors.
- High ROI potential: Bali’s rising property values mean leasehold investments can yield solid returns, even without outright ownership.
- Flexibility: Leasehold properties are ideal for generating rental income or creating a dream tropical home without the complexities of freehold ownership.
Final thoughts
Leasing land in Bali offers a fantastic opportunity for foreigners to invest, live, or operate a business on the island. The key to a successful lease is structuring it properly, negotiating extensions early, and working with experts who understand Bali’s property landscape.
At Seacrest Real Estate, we simplify the process by connecting you with the best leasehold opportunities and ensuring your agreements are legally sound.
Ready to make your dream a reality? Visit Seacrest Real Estate today and start exploring Bali’s top investment properties!
