Freehold Status

What you have to know about the freehold status in Bali

In Bali, Indonesia, the term "freehold" refers to a type of land ownership where the buyer owns the land outright, including both the land and any structures built on it. However, it's important to note that freehold ownership is generally not available to foreign buyers for residential or commercial purposes.

Indonesian law restricts foreign ownership of land, and in most cases, foreigners are not allowed to hold freehold title. Instead, they can opt for alternative arrangements such as leasehold or using a nominee structure. Leasehold allows foreigners to lease land for an extended period, often up to 25 or 30 years, with an option to renew.

In some cases, foreigners may explore the use of a nominee structure, where a local nominee holds the title on behalf of the foreign buyer. While this method has been used, it is important to approach it with caution and seek legal advice to ensure compliance with Indonesian laws.

It's crucial for anyone considering buying land, a house, or a villa in Bali to consult with a local notary or legal professional who specializes in Indonesian property laws. They can provide guidance on the available ownership structures, legal implications, and help navigate the complexities of the Indonesian real estate market.

Understanding the legal framework and seeking professional advice are essential steps to ensure a secure and legally compliant property transaction in Bali. Foreign buyers should be aware of the restrictions on freehold ownership and explore alternative options that align with Indonesian regulations.