Frequently Asked Questions

Can foreigners own property in Indonesia?
  • Yes, foreigners can legally and safely buy property in Bali, Indonesia.

  • There are two main ways this can be done, Freehold (Hak Milik) and Leasehold (Hak Sewa).

What is the difference between Freehold and Leasehold?

Freehold

  • It means that you own the land indefinitely. This option is exclusively available for Indonesian citizens, so it is not the most common option for international buyers and investment villas. 

Leasehold

  • It is available to both Indonesians and foreigners, it is like a freehold in many ways, but as a foreigner, you only hold the rights to the land for an agreed time frame. Importantly, international buyers will have their name on the lease and a legal right to use the land. 

  • Typically, the land is initially leased for 25-30 years and can be extended by purchasing additional years from the freehold owner.

  • Leasing land in Indonesia is much cheaper than buying a freehold. This makes leaseholds the most popular form of ownership among foreigners. It is an attractive option for investors providing higher returns while having the most benefits of a freehold title.

Why invest in Bali?

1.    It’s one of the top destinations to visit in the world

  • Bali is one of the World’s most popular tourist destinations, attracting visitors from all around the globe. It was named the top destination for Asia in the 2023 TripAdvisor Travellers Choice Awards and the second in the world – beating out London, Paris, Rome & Bangkok.

  • Uluwatu's picturesque ocean views, pristine beaches, well-known surfing spots, and ideal location have resulted in a surge in demand for properties. The area has emerged as a popular destination among tourists and high-end investors alike, and is expected to become the next hub for Bali's real estate market.

2.    Profitable Investment

  • Rental properties in Bali generate high ROI, anywhere from 10%-20%.

  • Uluwatu's greatest advantage lies in its potential to generate a long-term, high return on investment.

  • Uluwatu is a highly valuable location for real estate investment, as it is currently trending and offers a unique opportunity for cliff-top living. This makes it a prime location for achieving maximum return on investment.

  • There is a strong demand for luxury properties.

  • High occupancy rates are common in the area.

  • The investment is regarded as having a lower level of risk.

  • The cost of land in this location is lower in comparison to other popular tourist destinations.

3.    Investment friendly

  • Indonesia welcomes foreign investment, buying property in Bali is safe and legal.

  • The Indonesian government has made significant efforts to attract foreign investment to the country, including recently introducing the Second Home Visa.

  • Second Home Visa allows foreigners to stay in the country for five or ten years. It also helps them carry out business activities, like investing and entrepreneurship. This is particularly useful for any foreigners looking to buy a villa in Bali or start an investment in Bali. It makes the island an even more attractive destination for foreign investors who are looking to invest in the region’s property market.

4.    Reason Why Tourism investment in Bali keeps thriving

What can I expect during construction?
  • We provide you with complete peace of mind by allocating an experienced client project manager to oversee your build without any additional charges.

  • Our project manager will handle risk management, quality assurance, and coordination of contractors to ensure your project is completed within budget, time, and quality objectives.

  • We believe in complete transparency, and you will be kept informed throughout the project via regular progress reports, onsite video calls, or physical site visits if you prefer to be on-site.

What is included in the property management services?

Housekeeping

  • Professional cleaning including pool &gardening

  • Property inspections & maintenance

  • 24/7 Support and Assistance

Marketing & reservations

  • Comprehensive Guest Concierge Services

  • Listing, reviews and booking platform management

  • Marketing campaigns & products sales to boost villa’s revenue

Administrative support

  • Staff hiring & Management

  • Legal consulting

  • Leasehold extensions & villa re-sell

Accounting& Bookkeeping

  • Expenses optimisation & management

  • Detailed monthly revenue & expenses reporting

  • Indonesian tax compliance

How much does villa management cost?

The typical villa management cost in Bali is a percentage of booking income, averaging between 15-30%. At Praia Villas, we offer highly competitive rates starting at just 20% of booking revenue plus villa operating expenses. Our comprehensive management services often prove to be an investment, as our experienced rental team excels in maximizing bookings and their value.

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