Property Types in Bali

Bali offers four main property types: Freehold, Leasehold, HGB (Right to Build), and Hak Pakai—each with distinct ownership rules and investment advantages.

A) Freehold Land (Hak Milik – Full Ownership)

• Only Indonesian citizens can legally own freehold property.

• Foreigners cannot directly own Hak Milik.

• However, foreign investors may access the land through a PT PMA structure using HGB rights.

B) Leasehold Properties (25–30–50 Years)

The most popular model for foreigners.

• 25–30–50-year usage rights

• Fully renewable

• Applies to villas, plots, commercial buildings

• Ideal for long-term rentals, passive income, and ROI

C) HGB (Right to Build) Through PT PMA Company

This is the safest model for foreign investors.

• The property is held under a foreign-owned company

• Allows long-term ownership

• Perfect for villa development, commercial operations, or large-scale investments

D) Hak Pakai (Right to Use)

Suitable for foreigners living in Bali full-time.

• 30 years + 20-year extensions

• Typically used for residential villas