- Posted by Bali Legals
- On January 2, 2024
Purchasing property in Bali can be an attractive investment option for many reasons, including the island’s booming tourism industry, tropical climate, and natural beauty.
However, there are a few things to keep in mind before making a purchase.
Firstly, it’s important to note that as a foreigner, you cannot legally own land in Bali. Instead, you can purchase a long-term leasehold, which grants you the right to use the land for a predetermined period of time, typically 25 to 30 years, with the option to renew.
Alternatively, you can set up a foreign-owned company and purchase the land through that entity. It’s recommended to seek professional legal advice from us at Bali Legals before making any purchases to ensure compliance with local laws and regulations.
Secondly, be mindful of the location and type of property you’re interested in purchasing. Popular tourist areas such as Seminyak, Canggu, and Ubud tend to have higher property prices, while more rural areas may offer more affordable options. Consider the purpose of your purchase – whether it’s for personal use or as an investment property for rental income – and choose a location accordingly.
Thirdly, it’s important to research the developer or seller before making any payments. With our due diligence we check their credentials and reputation, as well as any licenses or permits required for the development or sale of the property. Ensure that all documentation is in order and that there are no outstanding issues such as liens or disputes.
Fourthly, factor in additional costs such as taxes, legal fees, and maintenance costs when budgeting for your purchase. It’s also recommended to have a contingency fund in case of unexpected expenses.
Lastly, keep in mind that the property market in Bali can be volatile and subject to fluctuations. It’s important to have a long-term perspective and not solely rely on short-term gains. As with any investment, there are risks involved, so it’s important to do your due diligence and seek professional advice before making any purchases.
In summary, purchasing property in Bali as a foreigner requires careful consideration and research. Seek professional legal advice from Bali Legals and choose a location and property type carefully.
For assistance with your visa, contact Bali Legals to discuss your requirements.
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