Bali is a small Indonesian island with a coastline that is one continuous beach for year-round recreation in a tropical climate. Interest in the island is growing among foreigners precisely because of its tourist appeal and relatively affordable cost of Bali property for sale.

Advantages of Buying Bali Real Estate

Buying real estate in Bali provides many advantages. Here are the main ones:

Affordable prices. The real estate prices in Bali are lower than in other popular resorts in the world. This makes buying real estate in Bali a profitable investment.
Rental potential. Tourism in Bali is actively developing, which means that real estate can easily be rented out, receiving a stable income.
Developed infrastructure. The island has modern schools, clinics, restaurants and shops, which makes it attractive for families with children.
Unique lifestyle. The opportunity to live near the ocean, surf, practice yoga and enjoy a calm atmosphere.
Investment attractiveness. Real estate in Bali continues to grow in price, which makes it profitable for long-term investment.

Real Estate Costs in Bali

Real estate sales in Bali are actively developing in popular areas such as Seminyak, Canggu, Ubud, and Uluwatu. The demand for local real estate is driven by a large flow of tourists and the subsequent investments.

Over the past couple of years (2023–2025), property prices in Bali have shown a trend of increasing by an average of 7% annually, with peak values of 13% in coastal areas.

Average property prices in Bali by type:

Property Type	Area	Average Price in 2023 (USD)	Average Price in 2025 (USD)
Villa (2–3 bedrooms)	Canggu/Berawa/Pererenan	321,000	484,000
Villa (luxury, beachfront)	Seminyak/Umalas	350,000–700,000	500,000–900,000+
Apartment (1–2 bedrooms)	Sanur	150,000–250,000	200,000–300,000
Apartment (luxury)	Bukit (Uluwatu)	200,000–400,000	250,000–500,000
Land (1 are)	Ubud	50,000–80,000	70,000–100,000
Land (beachfront)	Tabanan/Seseh	80,000–150,000	100,000–200,000

Additional costs may increase Bali real estate prices. One of the main ones is the property transfer tax (BPHTB), which is around 5% of the property value. Additionally, notarial and legal fees can range from 1% to 2.5% of the property value, and there may also be agent commissions, usually around 2–5%.

How to Buy Real Estate in Bali

Buying a house in Bali is not so easy, as the local market is different from most countries. Foreigners can only purchase property on the island through certain legal mechanisms due to the limited area of the island.

Step-by-step process for buying property in Bali:

Decide on the type of ownership. Choose the most suitable form: leasehold or right to use (Hak Pakai). If you want to own the property through a company, open a PT PMA.
Selecting a property. You can buy property in Bali either by independently studying the local market or with the help of a professional agent or agencies. Check the condition of the property, location and infrastructure of the area and make sure that the property is not encumbered (debts, disputes).
Checking the legal purity. Hire a qualified lawyer to check all the documents: title, lease agreement, consent of the owners (if they act through intermediaries).
Agreeing on the terms of the transaction. Negotiate with the seller on the price and conditions and make sure that all the details are spelled out in the contract: the amount of the transaction, the lease terms, the possibility of extension.
Concluding a preliminary contract. Draw up a preliminary agreement on your own or with the help of a lawyer, which includes the terms of the transaction, the amount of the advance payment, and the terms of the final payment.
Pay the advance payment. At this stage, a deposit is made (10-20% of the price). Transfer the agreed advance payment amount to the seller's bank account. It is important to use Indonesian bank accounts for the transparency of the transaction.
Register the transaction with a notary. The notary prepares the contract and checks the legality of the transaction. The signing of the leasehold or use agreement (Hak Pakai) takes place in the presence of both parties.
Register the property. The documents are sent to the land registry (BPN) for official registration. At this stage, taxes and registration fees are paid.
Receive the documents. You receive the registered documents confirming your rights (lease agreement, certificate of right of use, or other documents).

Frequently Asked Questions about Buying Property in Bali

Is buying property in Bali a good investment?

Buying property in Bali can be a good investment, but it depends on several factors. The island’s growing tourism industry and increasing demand for both short-term and long-term rentals provide opportunities for rental income. In some areas, real estate prices in Bali have been increasing steadily, with potential for capital appreciation. Average rental yields for villas and apartments can range from 6% to 15% annually, depending on the type of property and location.

Is it easy for foreigners to buy property in Bali?

Foreigners cannot own land in freehold ownership (Hak Milik), which is available only to Indonesian citizens. Instead, options include leasehold (25–30 years with possible extensions) or setting up a PT PMA company to acquire building rights (HGB) or usage rights (HGU).

A resident visa (KITAS/KITAP or Second Home Visa) is required, along with company registration and notarial procedures. Tourists with a visa can lease or buy under leasehold, but full ownership requires a resident visa.

Do you pay property tax in Bali?

Property taxes in Bali include an annual land and building tax (PBB), which is 0.1%–0.3% of the assessed value (NJOP), determined by local authorities; a property transfer tax (BPHTB) of 5% of the transaction price for the buyer; and a capital gains tax (PPH) of 2.5% for the seller (or 10–20% for leasehold properties without an NPWP). Commercial property taxes are higher (0.3%–0.5%). Foreigners pay the same rates, but through a PT PMA company. Additionally, VAT (11%) may apply to new properties, as well as rental income tax (10–20%).

Where is the best place to buy property in Bali?

The best location depends on your goals. For long-term rental or permanent living, Ubud or Sanur are ideal. For short-term rental and beach holidays, Seminyak or Jimbaran are better options.

What is a leasehold in Bali?

Leasehold (leasehold) is the right to use land for a fixed term (usually 25–30 years, with an option to extend up to 80–100 years). The land remains owned by the lessor (often an Indonesian), and the tenant can build, sublet, and enjoy the property.

Which areas of Bali are best to live in?

For comfortable living, Seminyak, Canggu, Ubud, Sanur, and Uluwatu (rocky, with views) are suitable. These areas have everything you need, from schools to hospitals.

How much does real estate cost in popular areas of Bali?

In Seminyak/Canggu, the average cost of property in Bali typically ranges from $350–950+ thousand. In Ubud and Uluwatu, prices are lower and range from $200–500 thousand for apartments or villas.

Where is the best place to buy investment property in Bali?

For investment, choose Canggu, Seminyak, and Pererenan, which offer high ROI (up to 10–15% from rental). Properties in Uluwatu and Tabanan show the most growth in the region, making them suitable for asset acquisition with expected further appreciation.

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