Bali has over the past decade emerged as one of the tops draws for astute investors. People looking to make a shrewd business investment are now trooping to Bali in large numbers. This development is completely borne out of the region’s emergence as a tourism hub. Bali is endowed with luxurious villas that are built with high end and quality features. Bali is an easy pick for any traveler seeking pure bliss and comfort. 80% of Bali’s economy is accrued from tourism and its related activities.
For any potential investing in Bali for a foreigner, understanding the laws guiding the ownership of property is a must. There are restrictions that are dedicated to curtailing the rate at which foreigners acquire land and properties. There are four crucial property laws a foreign must be conversant with:
Lease-holding properties ( hak sewa )
The right to use a property ( hak pakai )
The right to own a property ( hak milik )
The right to build properties ( hak guna bangunan)
Owning and building property rights are only meant for Indonesian citizens themselves, while everyone else has to right to either lease or use.
Hire An Agent And a Notary
For any potential investor looking to buy a property in Bali, it is highly advisable to consider seeking the services of reputable property agents. This will enable you get the best deal for your money and also, you will avoid falling victim to cheap hustlers and fraudsters. If you are in need of such service, Uma Di Bali comes highly recommended. Uma di Bali will guide you every step of the way to making a shrewd property decision investing in Bali for a foreigner. How to acquire a property as a foreigner n spite of the strict regulations guiding the acquisition of property, there are legal schemes that can be employed to bypass various regulations.
Leasehold Long Term Rental
This is a long term lease contract agreement that can be stuck between a foreigner and the original owner of the property. The land title remains under the name of the original owner. The land can be rented for an initial period of 25 years and an extension clause can be activated for up to a period of 70 years. The foreign leaseholder is at liberty to sub-lease out the property to other people.
Another way by which a foreigner can acquire land is via the system of using a nominee or setting up a foreign-owned company. Foreigners looking to making an investment in Bali are not recommended to embark on any business transaction without proper and qualified counsel. For more information on any aspect of investing in property in Bali, please contact Uma di Bali directly here.