Bali Property Investment
Why Invest in Real Estate in Bali :
Bali is a unique environment, the world's most elegant living culture situated on an enchanting island of absolute beauty. Located in the Indonesian archipelago, and a popular destination for the rich, the famous and the bon-vivants, Bali displays a richness of culture and an affordable and secure ambience increasingly rare in today's world.
General development in Bali over the last decade has resulted in a world class international airport, well-surfaced roads, international standard health services, high class boutiques and restaurants, and a continually improving infrastructure of all kinds.
Legal Aspect
How to own/acquire Property in Bali
According to Indonesian law foreigners are not allowed to own freehold property title in Indonesia. However non-Indonesians can legally acquire property and enjoy the full rights of ownership through a number of alternatives, summarised as follows:
- Freehold (Hak Milik)
Enter into a legal agreement with an Indonesian nominee, either an individual or a company. While they hold the title to the property, they simultaneously enter into a power of attorney, handing over full rights from the Indonesian nominee to the foreign party.
- Lease
Make a leasehold investment agreement in the foreigner's own name, usually for 20-30 years, which is extendable. This method provides full legal protection to the foreigner for the term of the lease; however, once the lease term has expired the property reverts to the owner; unless extended.
- Right of Use (Hak Pakai)
Right of Use
is a right over land, either State-owned or private, which gives the holder the right to use and obtain the product of a certain piece of land. The land to which Right of Use is applied may be used as a building site or for agricultural purposes. PP 40/1997 states that the initial period for Right of Use is not to exceed 25 years but can be extended for another twenty years or even indefinitely if the land is still in use for a certain reason. Right of Use may be owned by Indonesian citizens, resident foreigners, Indonesian companies domiciled in Indonesia, and foreign companies that have a representative office in Indonesia. Currently it is easy for foreigners in Bali to obtain the right of use.
- Corporate ownership
Form a foreign investment company, which can be solely owned by a foreigner, and the title of the property will be in the company name. However, title in this case will be limited to 30 years, as, by then, the company will have to apply to the Indonesian Government to extend its licence.
PT. Real Estate Bali is available to assist in the above ownership process, either by recommendation of nominees, advice in the formulation of ownership agreements, or in the actual closure of the sale. However it is important for clients to have independent legal advice at all times while securing property in Bali.
Remember, much of our business at PT. Real Estate Bali is built on recommendations from our satisfied clients. We are here to offer our extensive expertise to assist in the successful acquisition of your dream property in Bali.
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