How to invest in Bali real estate?

Even before talking about land or construction, the first step to invest in Bali consists in understanding the legal framework that applies to foreigners.

Unlike France, where it is common to buy real estate in your own name, most foreign investors go through an Indonesian company called PT PMA.

This structure lets you in particular:

On the tax side, the difference is also significant.

With a PT PMA, taxation is 0.5% on revenue during the first three years.

In contrast, in your own name, rental income can be taxed between 15% and 25% depending on the income level.

The legal structure also matters when reselling the property.

Capital gains tax is generally around 10% via a PT PMA, vs around 20% in your own name.

Another essential point: how you hold the land.

In Bali, most real estate projects for foreigners are done as leasehold. It is the right to use the land for a defined period, often 20 to 30 years, with renewal options provided contractually.

Even if this system can seem unusual for a European investor, it perfectly matches the reality of the local real estate market.

Once the legal framework is in place, the second step to invest in Bali real estate consists in finding land suited to your project.

The choice of area is a decisive factor. In Bali, some areas are particularly touristy and adapted to short-term rental, while others are more residential and sought after for life projects.

For example, areas like Canggu or Pererenan attract many travellers and digital nomads. They are therefore often preferred for rental investments.

Other neighbourhoods like Umalas or Seseh offer a calmer and more residential environment.

Once the area is chosen, several criteria must be analysed before signing:

Before any signing, it is essential to carry out a due diligence, i.e. a legal and technical verification of the land.

This verification lets you in particular check:

These checks are usually carried out by a local notary and a lawyer specialised in Indonesian law.

Once the land is secured, the third step consists in designing the villa.

Work begins with the architectural design of the villa. The architect generally produces several proposals as 2D plans, then models the villa in 3D to validate volumes, circulation and the general atmosphere.

The goal is not just to create a beautiful villa.

It is also about designing a property:

Good design also lets you optimise rental yield by creating an attractive product on platforms like Airbnb or Booking.

You can for example check our villa catalogue to see different project types, plans and architectural inspirations.

Once the plans are validated, the construction of the villa can begin.

The construction of a villa in Bali generally follows several steps:

When investing remotely from abroad, site monitoring is essential to guarantee quality and meet deadlines.

Once construction is finished, the villa must be furnished and equipped.

This step is essential if your goal is short-term rental in Bali, because the interior photos are what makes travellers want to book.

Good furnishing must be:

A well-thought-out interior lets the villa stand out on platforms and get better reviews, which directly improves rental yield.