The finest homesfor sale in Bali

Yes, a foreigner can invest in property in Bali or Lombok, but not necessarily in the same form as in their home country. Hak Milik, the most complete land-ownership right, is reserved for Indonesian citizens. Foreigners can nevertheless access other legal arrangements, notably leasehold, certain rights such as Hak Pakai, or a PT PMA structure when the project justifies it.

Indonesian regulation PP No. 18/2021 provides, among other things and subject to conditions, for a foreigner holding the required immigration documents to hold certain residences.

What matters is therefore to verify the land title, the contract, the zoning and the holding structure before investing.

Read also Can a foreigner buy a villa in Bali?

Freehold, generally associated with Hak Milik, is the most complete land-ownership right in Indonesia and is reserved for Indonesian citizens.

Leasehold works differently: the investor obtains, by contract, the right to use and, depending on the contract, to operate or transfer a property for a fixed period.

For a foreign investor, much more than the advertised term has to be analysed: the remaining lease term, the extension conditions, how an extension is calculated, operating rights, and the conditions of transfer or resale.

Leasehold is very common in property aimed at international investors in Bali and Lombok, but the quality of the contract is decisive.

Read also Understanding the options before buying

Yes, an investor can consider a property investment in Bali or Lombok through a commercial company or a holding, but the structure must be studied before the acquisition.

Depending on the project, the investment may involve an Indonesian structure such as a PT PMA, a company that allows foreign investment. The applicable regime depends on the activity carried out and the structure chosen.

Tax also has to be anticipated. The tax treaty between France and Indonesia covers, among other things, the taxation of property income, profits, dividends and capital gains.

Before any transfer of company funds, the structure should therefore be confirmed with tax, accounting and legal advisers competent in the investor’s country and in Indonesia.

Read also Investing in Bali through a company or a holding: what to know

Before investing, a genuine property due diligence is required. A developer’s sales brochure is not enough.

We review, among other things, the land, the zoning, the required permits, the legal structure of the project, the developer’s experience, projects already delivered, the contract, the payment schedule, and the conditions of operation and resale.

Zoning is particularly important: an attractive plot is not automatically suited to a tourism activity or to the construction being considered.

Financial projections also have to be rebuilt from identifiable assumptions: average nightly rate, occupancy, costs, management and tax.

The aim is straightforward: understand what the investor is buying before analysing what the investment might return.

Read also 10 checks before buying a villa in Bali

There is no single or guaranteed rental return for Bali or Lombok. A serious projection must include the total price invested, the average nightly rate, occupancy, seasonality, management fees, maintenance and tax.

Bali does, however, benefit from substantial international tourism demand: the official statistics agency BPS recorded 6,948,754 direct international arrivals in 2025, which is +9.72% compared with 2024.

Lombok is at a different stage of tourism development and must be analysed separately.

We therefore favour several scenarios — cautious, central and optimistic — and we always distinguish rental revenue, gross yield and net operating return.

Read also What rental return can you realistically expect in Bali?

Bali and Lombok correspond to two different investment profiles.

Bali has a much more established international tourism ecosystem: 6.95 million direct foreign arrivals were recorded in 2025 by BPS.

Lombok’s market is less mature, but it benefits in particular from the development of The Mandalika, a tourism Special Economic Zone in the south of the island. ITDC states that this zone covers about 1,175 hectares and 16 km of coastline.

Bali can therefore suit a search for an already established tourism market, while Lombok can interest an investor who wants to position themselves in a more emerging territory.

The choice depends above all on the investment horizon, the budget and the wealth strategy being sought.

Read also Bali or Lombok in 2026?