Bali’s vibrant culture, stunning landscapes, and affordable lifestyle make it a magnet for digital nomads, expats, and investors alike. If you’re considering renting a property in Bali—whether it’s a villa in Canggu, a beachfront bungalow in Uluwatu, or a modern apartment in Seminyak—it’s important to understand how the process works to avoid pitfalls.
1. Leasehold vs. Freehold
Foreigners cannot legally own freehold land in Bali, but renting under a leasehold agreement is a common and safe alternative. Lease agreements typically range from one year to 25 years, with an option to extend. Always ensure the lease agreement is in writing and notarized to protect your interests.
2. Know the Legal Requirements
When renting, foreigners must rent in their personal name or through a registered Indonesian company (PT PMA). For long-term stays, you’ll need a proper visa—either a social, retirement, or investor visa, depending on your situation. Renting under the right visa is crucial to avoid immigration issues.
3. Use a Reputable Agent or Lawyer
Local knowledge is everything in Bali. A trusted property agent and legal advisor (like Bali Legals) can help you vet properties, check land titles, ensure zoning compliance, and draft rental contracts. Don’t rely on verbal agreements or informal terms, no matter how friendly the landlord may seem.
4. Due Diligence is Key
Before committing, check that the property has the correct permits—particularly the IMB (building permit) or PBG (the newer version), and that it’s zoned for residential or commercial use (depending on your purpose). Unpermitted buildings may face demolition or legal trouble.
5. Budget for Upfront Costs
Most rental contracts require full payment in advance for the term of the lease, especially for yearly or multiyear leases. In addition to rent, budget for taxes, maintenance, security deposits, and possibly agency fees.
6. Respect Local Customs and Laws
Bali has a rich cultural and spiritual heritage. Be mindful of local customs, maintain good relationships with neighbours, and always follow community rules (adat) to integrate respectfully.
Need Legal Help?
At Bali Legals, we specialise in guiding expats through the rental process safely and legally. Whether you’re leasing a villa or setting up a business, we’re here to make your Bali property journey smooth and stress-free.
Get in touch with us today to schedule a free consultation.
For assistance with renting a property in Bali, please contact us.
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