Legal framework for investing in Bali
Before investing in Bali real estate, it is important to understand the legal framework that applies to foreign investors. The legal structure, the way you hold land or your administrative obligations can directly impact the security of your project.
In this section, we answer two frequent questions about legally securing a real estate investment in Bali.
How to legally secure an investment in Bali?
How to legally secure an investment in Bali?
The first step to securing a real estate investment in Bali usually consists in setting up an Indonesian company called PT PMA, specifically designed for foreign investors.
This structure allows you to hold and operate a villa in Bali, collect rental income and, in some cases, apply for an investor visa.
It is the legal foundation used by many foreign investors to structure a real estate project on the island.
Another important point concerns how you hold the land. Most projects use leasehold, i.e. the right to use the land for a defined period, generally between 25 and 30 years.
What are the risks when investing alone in Bali?
What are the risks when investing alone in Bali?
Going it alone on a Bali real estate project can carry several risks if certain checks are not carried out. For example, a plot of land may have legal issues or be in an area where construction is not allowed, such as some agricultural Green Zones.
There are also risks related to construction quality, or to flimsy real estate projects shown only as 3D renders.
This is why it is generally recommended to surround yourself with experienced local professionals to verify the land, secure the legal structure and supervise construction.
At Balimmo, we support foreign investors at every step to secure their Bali real estate project, in particular through PT PMA company set-up and legal supervision of the investment.
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Continue exploring investments in Bali with the next topic in our guide series.
Investment
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