Nominee ownership penalised
Bali's regional regulation targets property held in an Indonesian's name on a foreigner's behalf. These arrangements give the investor no legal protection.
Perda Bali 4/2026
Bali investment advisory
Invest in Bali the compliant way.
We are a licensed Bali company that has built and operated property in Bali. We help foreign investors understand what they can legally own and what it will really earn, and we introduce them to the licensed people who make it happen.
Licensed PT PMARegistered foreign investment company in Bali
Paid by you onlyNo commission from sellers, agents or developers
Rules reviewedContent checked against regulations, November 2026
Why compliance comes first
Bali's property rules changed in 2026. Many investments made the old way no longer hold up.
Indonesia has tightened licensing, ownership and rental rules, and Bali is enforcing them. Before you buy, build or rent anything out, it has to fit the current rules, and those rules keep moving. Having built and operated property here, we have dealt with these rules first-hand.
Unlicensed rentals delisted
Short-term rentals need a business licence matched to the right activity code, tourism zoning, building approvals and local tax registration. Listings without one are being removed.
PP 28/2025 and OSS licensingNew low-risk foreign companies blocked in Bali
The OSS system now rejects new PT PMA registrations in Bali for low and medium-low risk activities. Setting up a company the easy way is no longer possible.
Ministry of Investment, OSSProperty brokers must be licensed
Anyone paid to broker a property deal must work through a licensed brokerage with certified brokers. Sanctions apply from October 2026.
Permendag 33/2025
What foreigners can and can't invest in
What is possible, what needs the right structure, and what to avoid
A plain summary of the main options in Bali today. Each one still needs checking by a notary or lawyer for your situation, and we introduce you to them.
| Investment | Allowed? | What it takes |
|---|---|---|
| Leasehold villa or land for your own use (Hak Sewa) | Yes | A notarised lease, typically 25 to 30 years, with extension terms written in. Title, zoning and the landowner's rights must be checked before you pay. |
| Leasehold villa rented to guests | With conditions | Must run through a licensed entity: your own PT PMA or a licensed operator. Needs tourism zoning, building approval and certificate (PBG/SLF), local tax registration and monthly 10% hotel tax. |
| House in your own name (Hak Pakai) | With conditions | For residence only. In Bali, minimum prices are IDR 5 billion for a landed house and IDR 2 billion for an apartment. Generally one plot per family, up to 2,000 m². |
| Company-held property through a PT PMA (HGB right to build) | With conditions | Paid-up capital of at least IDR 2.5 billion and an investment plan above IDR 10 billion per business activity and location. The activity code must match what you actually do. |
| Restaurant, café or small hospitality business | With conditions | Generally open to foreign ownership through a PT PMA, subject to investment thresholds, the right activity code, zoning and operating licences. |
| Unit in a licensed hotel or resort scheme | Yes | The operator holds the licences. Check the operator's permits, the title of your unit and the management contract before you buy. |
| Freehold land (Hak Milik) | No | Indonesian citizens only. |
| Nominee or marriage-based arrangements | No | Holding property through an Indonesian's name is illegal and now penalised in Bali. You have no protection if the relationship ends or the nominee dies. |
| Renting a villa in your personal name | No | Short-term rental is a commercial activity. It needs a licensed entity or operator. |
| Villas on rice fields or green-zone land | No | Agricultural and protected land cannot be licensed for tourism. Authorities check listing locations against zoning maps. |
General information as at November 2026, not legal advice. Rules change and are applied case by case. Confirm your structure with a licensed notary or lawyer before you commit money.
Real returns
What a Bali villa really earns once the costs come out
Developers often advertise yields of 10 to 17 percent. Those figures are usually gross, before booking fees, management, staff, repairs and tax. Here is what an owner actually keeps in a worked example.
| Per year | Conservative | Realistic | Strong |
|---|---|---|---|
| Nights booked | 55% | 65% | 80% |
| Rental income | IDR 562m | IDR 664m | IDR 818m |
| Gross yield (what is usually advertised) | 9.4% | 11.1% | 13.6% |
| Running costs (50% of income) | −IDR 281m | −IDR 332m | −IDR 409m |
| Owner's net income | IDR 281m | IDR 332m | IDR 409m |
| Net yield | 4.7% | 5.5% | 6.8% |
| Lease running down (6.0bn over 25 years) | −4.0% | −4.0% | −4.0% |
| Net yield after lease run-down | 0.7% | 1.5% | 2.8% |
Assumptions
- Average nightly rate achieved: IDR 2.8 million.
- Running costs: booking platforms 15%, management 15%, staff, utilities and supplies 15%, repairs reserve 5%.
- 10% hotel tax charged to guests on top of the rate. Income tax and currency movements not included.
- Lease run-down assumes resale value falls in line with remaining years. Land growth or a lease extension can offset it.
What we offer
Fee-for-service advice, paid only by the investor
We work for you, not the seller. Every service has a fixed fee agreed before we start, so our advice is never tied to whether you buy.
Discovery session
A 60 to 90 minute meeting, in person or by video, to understand your goals, budget and timeline and tell you honestly what is possible.
Market entry report
A written report for your situation.
- Area and asset type
- Budget reality check and return model
- Legal structure options to discuss with a lawyer
- Shortlist of vetted professionals
Developer offer review
Send us a developer's brochure or projection. We check the yield claims, the land title basics, licensing and zoning risks, and give you a clear go or no-go.
Site and due diligence coordination
Accompanied site visits, with title, zoning and permit checks carried out by licensed notaries, lawyers and surveyors. You get one plain-English summary report.
Project advisory retainer
A monthly fee for us to be your eyes on the ground through purchase, construction or fit-out: reviewing contractors, budgets, progress and quality.
Restaurant and hospitality launch
Concept, budget, licensing roadmap, and introductions to operators, suppliers and fit-out contractors for restaurants, cafés and small hotels.
Why investors use us
We are not another agency or management company
We have built here ourselves
We know what land deals, permits, contractors and materials really cost in Bali because we have paid for them. Our advice comes from experience, not brochures.
Compliance before anything else
An investment is only as good as its licences. We check zoning, building approvals and rental licensing up front, before you fall in love with a property.
Independent, with no hidden commissions
We don't take money from sellers, agents or developers. The only people paying us are our clients, so we have no reason to push you into a deal.
Honest numbers
We show net returns after every cost, including the lease running down. If a deal only works on a best-case spreadsheet, we will tell you.
We stay through the build
Most advisors leave at signing, yet construction is where foreign owners lose the most money. We can oversee your builders and budget until handover.
Local contacts we have vetted
We introduce you only to licensed professionals we have checked, so you are not choosing a notary or builder from a Facebook group.
Case study
Villa Luja
A family villa our team took from design to completion: a three-level home with a pool and slide, a garden lawn and a rooftop spa. It taught us what building in Bali really involves, and that experience is what we pass on to our clients.
Permits first
Zoning and building approvals decide what you can build and whether you can rent it out. We sort them before design is final.
Contractors need managing
Clear contracts, staged payments and regular site checks keep a build on budget and on time.
Design for the guest
Features guests book for, like a pool slide or rooftop spa, are planned in from the start rather than added later.
How it works
From first conversation to a compliant investment
Discovery
We learn what you want and tell you honestly what is possible.
Plan
Market report, return model and structure options for your lawyer.
Check
Licensed professionals verify title, zoning and permits.
Structure
Your notary and lawyer set up the lease or company. We coordinate.
Build and operate
Optional oversight through construction, licensing and launch.
Who we introduce you to
Notaries and land deed officials (PPAT)Corporate and property lawyersLicensed property brokersArchitectsLicensed contractorsTax accountantsLicensing agentsVilla and restaurant operators
Contact
Talk to us before you commit money in Bali
Tell us what you are considering. We will tell you honestly whether it can be done compliantly and what it is likely to return.
Emailinfo@indoluxurygroup.com
WhatsApp+62 813 385 17645
OfficeJl. Tegal Cupek Gg. Wayang 22 No. 2, Kerobokan, Kuta Utara, Badung, Bali 80361