Real Estate Investment in Bali: Key Considerations & Tips

Property investment is an excellent way to diversify your portfolio and grow your wealth. It can also be intimidating for beginners, but with the right knowledge and strategies, anyone can become a successful property investor.

Real Estate Investment in Bali market has seen remarkable growth in 2024, fueled by tourism recovery and the digital nomad influx. The island’s booming tourism industry is driving rental yields higher than the global average, and offers investors exceptional ROI.

Real Estate Investment in Bali: Why Now Is the Time

The long-term land lease system in Bali requires careful consideration, particularly when investing in off-the-plan properties. It’s crucial to understand the terms, conditions and possible extensions of the lease before you invest, as this can have significant impacts on your long-term rental profitability and future resale value.

Foreigners are permitted to acquire land and property in Bali, provided that they establish a PT PMA (Perusahaan Penerbangan Militer) as the legal entity. This provides a legal foundation to acquire Hak Guna Bangunan, or the Right to Build, and Hak Pakai, or the Right to Use. Moreover, it allows you to receive dividend payments into your personal bank account, avoiding the double taxation of local income.