FAQS

Support & Info

General FAQs About Selling and Buying Property in Bali
What’s the difference between leasehold and freehold ownership?

Freehold (Hak Milik): Only available to Indonesian citizens. Full ownership with no time limit.

Leasehold: A long-term rental agreement, usually 25-30 years, renewable. It is the most common legal method for foreigners to control land.

What is the process of listing my property with Luxo Property?

It starts with an initial consultation where we assess your property and market readiness. We then guide you through pricing, documentation, and a professional photoshoot. Once listed, your property is promoted through our network, website, and partner platforms.

What happens during the property inspection process for potential buyers?

Potential buyers will schedule visits to the property for inspection, where our agents will guide them through and answer any questions.

What documents should I prepare before listing my property?

You should prepare your land certificate (Hak Milik or lease agreement), IMB or PBG (building permit), proof of ownership, tax documents, and photos. Our team will guide you through any missing pieces.

What areas in Bali are currently best for property investment?

Bali has several high-demand areas for property investment, each catering to different lifestyles and returns. Canggu, Berawa, and Pererenan are popular among digital nomads and expats, offering strong rental yields. Uluwatu and Bingin are growing hotspots with scenic views and increasing development. For a more serene lifestyle, Ubud remains a favorite among long-term residents.

Is it better to buy land and build, or buy a ready-made villa?

It depends on your goals. Buying land and building offers customization and can save costs long term. But buying a completed villa is faster, easier, and often generates income immediately. Our team can help you explore both options.

Is Bali a good place for long-term property investment?

Yes, Bali continues to show strong demand for both short-term rentals and long-term stays. With tourism rebounding and remote work increasing, well-located properties with good management can generate consistent returns over time.

How many tourists visit Bali each year, and how does it affect occupancy?

Bali attracts 7 million+ tourists per year, creating strong demand and high occupancy rates for holiday rentals, especially villas. This makes Bali a prime market for short-term rental income.

How does Luxo select which properties to feature?

We look for properties that are legally clear, well-maintained, and located in desirable areas. We prioritize listings with strong design, good amenities, and high rental or resale potential. Our goal is to showcase homes that reflect the Luxo standard.

How do I start the process of buying or investing in Bali?

Simple! Start by browsing listings, setting a budget, and booking a consultation. At LUXO Property, we’ll walk you through:

  • Finding the right property

  • Understanding legal structures

  • Handling negotiations and paperwork

  • Post-sale management or leasing
Do I need to sign an exclusive agreement to work with Luxo?

We offer both exclusive and non-exclusive listing options. However, exclusive listings receive prioritized marketing, dedicated promotion, and higher visibility across our platforms.

Can I list my property if I live overseas?

Yes. Many of our clients are based abroad. With proper legal documentation and a trusted power of attorney (if needed), we can manage the listing and sale process remotely.

Can Foreigners Own Property in Bali?

This is one of the most common questions we get—and we’re happy to explain!

While freehold ownership (Hak Milik) is reserved for Indonesian citizens, foreign buyers still have several legal, secure options to invest in property, including:

  • Leasehold Agreements (Hak Sewa) – 25 to 30-year terms with renewal options.

  • Right to Use (Hak Pakai) – for those with residence permits (KITAS/KITAP).

  • Foreign-owned company structure (PT PMA) – allows long-term control through HGB titles.

Our team has helped many foreigners navigate these legal structures safely, with the help of experienced notaries and legal advisors. With us, you’re not just buying property—you’re building confidence in your investment.

Legal, Ownership & Residency
What permits or licenses should a property have to be legally sold?

The property should have a land certificate (Hak Milik, HGB, or Hak Pakai), building permit (IMB or PBG), and proof of tax payment (PBB). For villas operating as rentals, a business license (NIB) may also be required.

What is the nominee structure, and is it legal?

A nominee structure involves using an Indonesian citizen to hold property on behalf of a foreigner. While common in practice, it is legally grey and not officially protected by Indonesian law. We advise consulting with legal professionals before pursuing this route.

What is a PT PMA, and how does it help with ownership?

A PT PMA (foreign-owned company) allows foreigners to legally operate a business and hold Hak Guna Bangunan (Right to Build) or Hak Pakai (Right to Use) over land. This is one of the few legal methods for foreign nationals to control property beyond leasehold.

What is a KITAS, and can it help with property ownership?

A KITAS is a limited stay permit for foreigners in Indonesia. While it doesn’t grant ownership rights, certain types (such as retirement KITAS) may allow access to longer lease periods or the right to use a residential property (Hak Pakai).

Residency Do I need a notary or lawyer for the property transaction process?

Yes, working with a local notary ("notaris") is required in any formal property transaction in Indonesia. A legal advisor or lawyer can also help review contracts, verify ownership, and ensure your rights are protected.

ROI, Taxes & Terms
What taxes or fees are involved in property transactions?

Buyers typically pay:

  • 5% transfer tax (for freehold)
  • Notary/legal fees (approx. 1%) Sellers pay income tax (PPh) on the sale. There may be tax on rental income as well (10%), depending on your structure. We always recommend working with a local notary or tax consultant.
What happens when a leasehold expires?

When a leasehold ends, legal rights to the property revert to the landowner unless a new agreement is made. It's important to negotiate renewal terms well in advance of expiration.

What are the agency fees when listing with Luxo Property?

Our agency fee is typically a percentage of the final sale price, agreed upon during the listing agreement. This fee covers marketing, client communication, negotiation support, and transaction coordination.

How much rental income can I expect from my villa in Bali?

Rental yields in Bali are among the highest in Asia. Well-managed villas in prime areas (Canggu, Seminyak, Uluwatu) can generate 10% to 25% annual returns, depending on location, design, and occupancy.

Do I have to pay capital gains tax?

Indonesia does not have a separate capital gains tax for individuals. Instead, a fixed final tax is applied to the transaction value, as mentioned above (2.5%).

Can I renew or extend my leasehold property?

Yes. Most leasehold contracts include options to extend for additional terms (e.g., 25+25 years). It’s important to ensure this clause is clearly stated in your agreement.

Are there taxes when selling a property in Bali?

Yes. Sellers are typically responsible for a 2.5% final income tax on the sale price. Buyers also pay a 5% transfer tax (BPHTB). These rates can vary based on ownership type and legal structure.

Are Bali properties expensive compared to other countries?

Not at all. Bali offers affordable luxury. A modern, fully furnished villa with a pool can cost between USD 150,000 – 400,000, making it a fraction of the cost compared to places like Australia, the U.S., or Europe.