Bali property FAQ: 60 questions from Australian buyers

Short answers. Where an answer needs more than two sentences, it links to the article that gives it. Where an answer is not settled, it says so.

Ownership

1. Can an Australian buy property in Bali? Yes, but not freehold. Foreign nationals cannot hold freehold title in Indonesia. Full answer

2. What can I actually hold? A leasehold (Hak Sewa), a right to use (Hak Pakai), or property through a foreign-owned Indonesian company (PT PMA). Compared

3. Is a nominee arrangement legal? No. Holding land through an Indonesian nominee is not enforceable and exposes you to losing the asset.

4. What is the longest lease I can get? Terms vary; what matters more is the extension clause. Why

5. Is 25 years plus 25 the same as 50? No. The second 25 depends on the extension clause and who is bound by it.

6. Can I leave a leasehold villa to my children? Generally yes, subject to the deed. Check that succession is addressed explicitly.

7. Can my partner and I hold it jointly? Usually yes. Confirm how the deed handles the death of one holder.

8. What is a PT PMA? A foreign investment company registered in Indonesia. It can hold Hak Guna Bangunan and business licences, and it carries ongoing reporting.

9. Is a PT PMA worth it for one villa? Often not, on cost alone. It depends on whether you need to hold the rental licence yourself.

10. What is the minimum investment for a PT PMA? There is a stated threshold; confirm the current figure with an Indonesian corporate lawyer before relying on it.

Buying

11. What does the process look like? Due diligence, deposit, notary, deed, payment schedule, handover.

12. Do I need to be in Indonesia to buy? Not necessarily, but you should see the plot at least once.

13. What does a notary do? Drafts and executes the deed and registers what has to be registered. Ask for the notary’s name before you pay a deposit.

14. Can I use my own lawyer? Yes, and you should. Not the seller’s.

15. What deposit is normal? Varies. What matters is whether it is refundable and on what conditions, in writing.

16. What is a payment schedule tied to milestones? Instalments released when a physical stage is reached rather than on a calendar date.

17. What happens if the developer misses a milestone? Whatever the contract says. If it says nothing, that is the answer.

18. Can I get a mortgage? No. Why

19. How do I transfer the money? Through a bank, with a documented purpose. Expect the transfer to be examined at both ends.

20. Should I use a currency broker? Often cheaper than a bank for large transfers. Compare the total cost including margin, not just the fee.

Costs

21. What does a villa actually cost in AUD? Purchase price plus transfer taxes, notary, legal, and set-up. The full stack

22. What are the transaction costs? Typically several per cent of the price, split between taxes and professional fees. Get the exact figures for your structure in writing.

23. Who pays what at settlement? Negotiable and it varies. Have it stated explicitly in the deed.

24. What are the ongoing costs? Management, maintenance, pool and garden, utilities, insurance, Indonesian tax on rental income, and a sinking fund if there is one.

25. What is a normal management fee? Around 20 per cent of gross is common. Ask what it includes and what is billed on top.

26. Do I need a sinking fund? Yes. Tropical buildings consume maintenance. Budget for it whether or not the developer mentions it.

27. What does insurance cover? Ask specifically about flood, earthquake and loss of rent, and read the exclusions.

28. Is there council rates equivalent? There is an annual land and building tax. It is small relative to Australian rates.

29. What happens to the furniture package? It should be an itemised schedule attached to the contract, not a photograph.

30. What is the currency risk? You buy and often earn in IDR, and spend in AUD. That is a position; treat it as one.

Renting it out

31. Can I rent it out legally? Under the right structure, yes. The licence is the issue. Full answer

32. Who holds the rental licence? Not you personally, unless it sits in a PT PMA.

33. Can I use Airbnb? Platforms operating in Indonesia now require a business identification number for listed accommodation.

34. What occupancy should I assume? Ask the manager for actuals from comparable villas in the same street, in writing, for the last twelve months.

35. What is a realistic nightly rate? Whatever comparable villas actually achieved last year, not what is asked.

36. Is 15 per cent yield realistic? Rarely, and not net. Gross versus net

37. What is the difference between gross and net? Management, maintenance, utilities, vacancy and Indonesian tax. Together they are large.

38. Who pays Indonesian tax on the rent? You do, through the operating structure. Get the rate and the mechanism confirmed.

39. Can I use it myself? Yes, and every week you use it is a week it does not earn. Model that honestly.

40. What if the manager underperforms? Check the exit terms in the management agreement before you sign it.

Australian tax

41. Do I declare Bali rental income in Australia? If you are an Australian tax resident, yes, on worldwide income. Detail

42. Do I get credit for Indonesian tax paid? A foreign income tax offset may be available. Your accountant, not us.

43. Is capital gains tax payable when I sell? Generally yes for Australian residents, with the usual discount rules. Confirm your position.

44. Can I claim expenses? Foreign rental expenses are treated under the Australian rules. Keep records to Australian standards from day one.

45. Can I hold it in my SMSF? Complicated, and frequently not. Take advice before, not after.

46. Does owning in Bali affect my Australian residency for tax? Owning does not. Moving might.

47. What records will the ATO expect? Contracts, statements, receipts and evidence of foreign tax paid, in a form an Australian accountant can use.

Risk

48. Is it safe to buy in Bali? With clean papers and a proper structure, it is a normal foreign property risk. Without them, no. Honest answer

49. What happened in Bingin? In July 2025, 48 structures on state land in the coastal green belt were removed. None had permits.

50. How do I check zoning myself? Get the classification and code from the spatial plan, with a map and a check date. How

51. What is a PBG? The Indonesian building permit. It should exist before construction.

52. What is an SLF? The certificate of fitness for a completed building.

53. What if the developer goes under mid-build? You are an unsecured creditor. This is why milestone payments and track record matter.

54. What if there is an earthquake? Bali is seismically active. Ask about the structural design basis and check the insurance exclusions.

55. How do I check a developer? Twelve checks, published. The method

Selling

56. Can I sell it later? Yes, into a narrow market, over months rather than weeks. The resale question

57. What will it be worth? Largely a function of remaining lease term and documented income.

58. Who buys second-hand? The same foreign investor pool, minus buyers who want a fresh term and a warranty.

59. Will the developer buy it back? Only if there is a buy-back clause, and there usually is not.

60. What should I keep from day one? Every document, every statement, every payout record. It is what makes the villa sellable.

---

If your question is not here, send it. We add the ones that get asked twice, and we would rather answer in public.