Leasehold in Bali: how foreigners legally hold a villa
Why buyers in Bali take 25–30 year leases, how leasehold differs from freehold and what to check in the contract.
Updated 10/14/2026 · 5 min read
In short
- Foreigners can't own freehold land in Bali — the common route is leasehold (Hak Sewa).
- A leasehold is a 25–30 year lease with extension options that can be sold or inherited.
- The alternative is a PT PMA company with building rights (HGB), more complex to run.
- Check zoning and the building permit (PBG), or the villa may not be licensed for rental.
Key lease terms
Length, extension terms and price, the right to let and sell the lease, who pays land taxes and what happens to buildings at the end. A PPAT notary certifies the contract.
Why zoning decides everything
Short lets are only allowed in tourism zones. A villa in a green or residential zone may never get a rental licence — and never earn.
FAQ
What happens when the lease ends?+
Land and buildings revert to the owner unless extended — so the extension clause matters more than it seems.
Title deeds · Bali
Find a property for my budgetThis guide is for information only and is not legal advice. Rates and rules change — confirm them with a lawyer before you buy.