No, foreigners cannot own freehold land in Bali.
Hak Milik (freehold) is only for Indonesian citizens. Foreign buyers typically use leasehold or Hak Pakai (Right to Use) for residential purposes. At ZAYARI we recommend leasehold combined with Hak Pakai, because it is more affordable, legally secure, and gives you all the rights you need without unnecessary complexity.
Key facts:
Freehold = Indonesians only
Leasehold + Hak Pakai = recommended, safe & cost-effective
PT PMA (company) is not needed unless you want to run the business yourself
Leasehold and Hak Pakai are the main options, with HGB via PT PMA for business use.
Leasehold is the simplest and most common, structured through a notarial contract. Hak Pakai can also be applied to give you long-term residential rights.
Setting up a PT PMA company for HGB is only relevant if you plan to actively operate the property yourself.
For investors, leasehold + Hak Pakai is the most practical solution, and this is what we arrange at ZAYARI.
Key facts:
Leasehold = clean and flexible
Hak Pakai = residential rights (recommended combination)
HGB via PT PMA = only needed for direct business operation
Leasehold is a contract, Hak Pakai and HGB are land rights.
Leasehold gives you the right to use the property for a long period (typically 25–30 years, extendable). Hak Pakai is a formal residential right that can be combined with leasehold for extra security.
HGB is a company right, used for business purposes through a PT PMA. At ZAYARI, we structure projects with leasehold + Hak Pakai, so you get legal certainty without unnecessary costs.
Key facts:
Leasehold = contractual use right
Hak Pakai = registered residential right
HGB (via PT PMA) = for company/commercial use
No for leasehold, yes for Hak Pakai.
Leasehold does not require residency. Hak Pakai usually requires a stay permit, which can be arranged if needed. For investors, ZAYARI handles the combination of leasehold + Hak Pakai so you don’t need to worry about legal compliance.
Key facts:
Leasehold = no residency needed
Hak Pakai = requires stay permit (we arrange this when relevant)
ZAYARI assists in the full legal process
A notarial lease contract plus supporting legal documents.
Buyers receive the lease deed, extracts of the land certificate, building permits, and compliance documents. At ZAYARI, we prepare and guide you through this entire package so you know exactly what you are signing.
Key facts:
Lease deed/contract
Land certificate extracts
Building permits & compliance docs
ZAYARI support throughout the process
Yes, through a licensed operator or PT PMA.
Tourist rentals require the right licenses and tax handling. Instead of setting up your own PT PMA, ZAYARI partners with House of Reservations, who hold all necessary permits and manage rentals professionally. They also handle all tax reporting, so your rental income is fully compliant.
Key facts:
Rentals = commercial activity, needs permits
House of Reservations = licensed operator + tax handling
ZAYARI connects you directly, making it fully turnkey
Yes, but only relevant if you operate the business yourself.
A PT PMA can hold HGB rights and operate legally, but it requires setup costs, compliance, and in many cases a work KITAS if you want to manage it actively. For most investors, this is unnecessary. At ZAYARI we recommend working with our trusted management partner so your investment is hands-off.
Key facts:
PT PMA = secure structure, but complex
Requires compliance & work permit for self-operation
Not needed for passive investors (better to use licensed operator)
Leasehold rights can be inherited, subject to contract.
Leasehold can usually be passed on to heirs through a notarial process. Hak Pakai may continue if heirs meet requirements. If ownership is through shares in a PT PMA, those shares can be inherited according to corporate law. ZAYARI helps ensure your contract is structured clearly for inheritance.
Key facts:
Leasehold = transferable to heirs
Hak Pakai = depends on heir’s eligibility
ZAYARI ensures contracts are clear for succession
Your agreement is notarized and legally binding.
The legal counterparty is the landowner or developer. Contracts are executed by a certified notary, who ensures the legality of the transaction. At ZAYARI, we perform full due diligence on land title, zoning, and permits before any signing.
Key facts:
Notary = independent authority
Counterparty = landowner/developer
ZAYARI ensures due diligence and transparency
Yes, zoning rules apply.
Tourist rentals are only allowed in tourism-zoned areas. Residential zones allow living rights but not rentals. Agricultural land is not suitable for foreign structures. ZAYARI develops only in properly zoned areas to ensure your investment is safe and compliant.
Key take away:
Zoning defines what is allowed (residential vs tourism)
Rentals only in tourism zones
ZAYARI builds only on legally zoned land
The land is held under an Indonesian land title; your right is leasehold secured by a notary.
In our projects, the underlying land remains owned under an Indonesian title (usually Hak Milik at local level). As a buyer, you don’t take over that title but receive a leasehold contract tied to it. At ZAYARI we make sure the land title is valid, clear of disputes, and properly zoned.
Key facts:
Underlying title = Indonesian (Hak Milik or HGB)
Buyer receives leasehold right (not the land title)
ZAYARI checks title, permits, and zoning before sale
You receive a long-term leasehold (Hak Sewa) contract, often combined with Hak Pakai for extra security.
Leasehold gives you the right to use the land and villa for the agreed term. In some cases Hak Pakai can be added to strengthen your rights. ZAYARI structures this so your position is safe and transparent.
Key facts:
Leasehold = contractual right of use
Often combined with Hak Pakai (extra protection)
Registered via notary
Typical lease terms in Bali are 25–30 years, with extension options.
Our projects usually offer long initial terms. Extensions can be pre-agreed or renegotiated later. ZAYARI ensures extension clauses are clearly defined to avoid surprises.
Key facts:
Standard = 25–30 years
Extension possible by agreement
ZAYARI secures terms in the contract
Yes, if negotiated and notarized.
A lease is not automatically renewed. Extensions must be arranged with the landowner and recorded by a notary. At ZAYARI we negotiate clear extension terms upfront where possible, so your rights are predictable.
Key facts:
No automatic renewal
Extensions by contract + notary
ZAYARI handles negotiations for you
The land and property revert to the landowner unless extended.
When a lease expires without extension, your right ends and ownership returns to the landowner. That’s why securing extensions is key. ZAYARI structures projects so that investors have fair options for renewal.
Summary:
End of term = reverts to landowner
Extensions protect long-term value
ZAYARI plans lease terms with exit in mind
Yes, if your contract allows transfer.
Leasehold can be sold or transferred to a new buyer for the remaining term, as long as the agreement permits it. We make sure your lease is transferable, so you keep flexibility.
Summary:
Transfer possible with landowner consent + notary
Buyer takes over remaining years
ZAYARI ensures leases are transferable
Leasehold is recorded in a notarial deed, not in the land office.
Unlike Hak Milik or HGB, leasehold is not a registered land title. It’s a private contract certified by a notary. ZAYARI ensures contracts are properly executed, stamped, and tied to the underlying land certificate.
Key facts:
Leasehold = contract, not land registry title
Certified by notary
Linked to official land certificate
ZAYARI checks title, zoning, and permits before selling.
We perform due diligence to confirm the landowner’s rights, check zoning for tourism/residential use, and verify building/operational permits. This prevents surprises and ensures compliance. We always recommend to clients to also do their own due diligence.
Key facts:
Verify title (ownership, encumbrances)
Check zoning (tourism/residential)
Confirm permits (building/operational)
Building and operational permits are required; we arrange them.
Permits like PBG (building approval) and operational licenses for rentals must be in place. ZAYARI handles this process so the villa is fully compliant.
Summary:
Building permit (PBG/IMB)
Operational licenses for rentals
ZAYARI secures all documents
Zoning decides what you can do on the land.
Only land in the right zone (residential/tourism) allows building and rentals. Agricultural land cannot be legally used for villas. ZAYARI only develops in properly zoned areas.
Key facts:
Zoning = residential, tourism, or agricultural
Rentals only in tourism/residential zones
ZAYARI guarantees correct zoning
Yes, depending on zoning and agreements.
Agricultural land has limits, and some residential leases restrict commercial use. We make sure your contract clearly states what is and isn’t allowed.
Key facts:
Agricultural = no villa construction
Residential = living use, limited rentals
ZAYARI ensures clarity in contracts
Lease transactions include notary and tax costs.
Buyers pay notary fees, lease tax, and sometimes transfer tax. All costs are included in our prices and we give you a full breakdown upfront so you know all costs.
Summary:
Notary fees
Lease tax / BPHTB if applicable
Transparent cost overview from ZAYARI
Local mortgages for foreigners are rare; we offer structured payment plans instead.
Indonesian banks generally don’t lend to foreign individuals. At ZAYARI, buyers follow a stage payment plan linked to construction milestones, making it predictable and secure.
Summary:
Mortgages for foreigners = very limited
Stage payments = standard approach
Linked to build milestones, not upfront only
Payments are made in stages, from deposit to completion.
Typically you pay a deposit to reserve, then staged payments at milestones (foundation, structure, finishing, handover). We provide a clear timeline so you always know when the next payment is due.
Summary:
Deposit secures your villa
Stage payments during build
Final balance at handover
Payments are in Indonesian Rupiah (IDR), with bank transfers from abroad possible.
By law, property transactions must be in IDR. You can transfer in foreign currency; your bank or receiving bank handles the conversion. We provide clear invoicing in IDR.
Summary:
Legal requirement = IDR
Transfers from abroad accepted
Banks apply FX rates & fees
Payments go through a notary or dedicated account for security.
To protect both buyer and seller, funds are released via a notary or controlled account at each milestone. At ZAYARI we use transparent processes so your money is safe.
Summary:
Payments verified by notary/controlled account
Released only at milestones
Full transparency for buyer
Deposits are usually non-refundable, but conditions apply.
Deposits secure your villa and remove it from the market. They’re typically non-refundable unless the seller fails to meet obligations. We outline this clearly upfront.
In the end we want happy clients so we will always have a fair discussion and discover possibilities together.
Yes, optional upgrades or furniture packages can be added to the base price.
All our villa are deliver turnkey and ready for rental.
Buyers can choose for different finishing or furnishing options.
Extra costs are agreed before ordering and added to the payment schedule.
Summary:
Base price = turnkey & rental ready villa
Upgrades/furniture = optional
Costs agreed upfront
Buyers must provide standard identification and source-of-funds documentation.
To comply with Indonesian regulations, banks and notaries require ID, proof of funds, and sometimes tax ID. We guide you on what’s needed so transfers are smooth.
Summary:
ID & passport required
Proof of funds / source documents
ZAYARI assists with requirements
Yes, payments follow progress, not fixed dates.
Payments are tied to construction milestones, not a rigid calendar. If a stage is delayed, your payment is postponed until that milestone is achieved.
Summary:
Payments linked to progress
No pay until milestone complete
Protects your cash flow
Returns depend on occupancy, nightly rates, and costs, typically 12 -20% net is realistic.
Bali villas can perform well if managed professionally. With good occupancy and market pricing, many investors see net yields in the 12–20% range.
We calculate with 14% to show estimates to be on the conservative side.
Yes, rental income is taxed at a flat percentage of gross revenue.
In Indonesia, rental income is subject to withholding tax (commonly around 10%). If you work with a licensed operator, this tax is withheld and paid directly. We recommend House of Reservations. They ensure this is fully handled for you.
Summary:
Rental income = taxable
Withholding ±10% of gross revenue
Operator handles tax payment
Usually yes, but double taxation treaties prevent paying twice.
Most countries require you to declare foreign income. Thanks to tax treaties in a lot of cases you don’t have to pay double in your country. Always check with your tax advisor.
Summary:
Declare income at home
Double tax treaty prevents double payment
Land and building taxes are low compared to Western countries.
Indonesia charges small annual property taxes (PBB) based on land/building value. These are minimal compared to Western rates. ZAYARI makes sure these payments are arranged through our management partner.
Summary:
Annual property tax (PBB) applies
Amount is relatively low
Operator/ZAYARI ensures compliance
Profits can be legally transferred abroad through the banking system.
Indonesia allows foreign investors to repatriate profits, provided taxes are paid and paperwork is in order. Using a PT PMA or licensed operator ensures transfers are clean and compliant.
Summary:
Repatriation allowed once taxes are settled
Must use official banking channels
Partner/operator handles documentation
Yes, hospitality income includes VAT and service charges.
Tourist rentals are subject to additional charges (VAT, service tax). If you use a licensed operator, they apply and remit these taxes correctly.
Summary:
VAT & service tax apply to tourist rentals
Operator adds & remits these
Fully included in management setup
You’ll receive monthly and annual reports from the management company.
House of Reservations provides detailed reporting on bookings, revenue, expenses, and taxes paid. This helps you file locally and abroad.
Summary:
Monthly & annual financial reports
Includes income, costs, taxes paid
We ensure full transparency
We work with House of Reservations, a licensed operator with years of experience.
They handle everything from marketing to guest services, cleaning, staff, and tax compliance. This way your villa is fully managed even if you live abroad.
Of course you are free to choose any management company (or none) but we highly recommend this to achieve a high ROI.
Summary:
Professional licensed operator
Full-service management (from bookings to cleaning)
Hands-off for investors
Fees are a percentage of rental income and cover most operational costs.
The operator charges a transparent commission on bookings, which includes guest handling, staff management, listing, maintenance coordination, and income reporting. Exact rates are shared upfront (around 15%).
Summary:
Fees = % of revenue
Includes operations, staff, reporting
Transparent and agreed in advance
Yes, owner stays are always possible.
You can block off dates for personal use. The operator simply closes those dates in the booking calendar. There may be small cleaning or staff costs, but no rental commission is charged on personal stays.
Summary:
Owner stays allowed anytime
Just block dates in the calendar
Only cleaning/staff costs apply
Yes, though we recommend our trusted partner.
You are free to appoint a different management company or self-manage, but you’ll need the right business permits. Our partner already has licenses and infrastructure in place, making it easier and more profitable.
Summary:
Freedom to choose
Self-management = permits required
Partner offers licensed turnkey solution
The villa management company manages routine maintenance and coordinates repairs.
Regular upkeep is included in management. Bigger repairs are quoted before execution. This ensures the villa stays in top condition without surprise costs.
Summary:
Routine upkeep included
Major repairs quoted & approved
Keeps villa in prime condition
On all major platforms like Airbnb, Booking.com, and direct channels.
House of Reservations lists villas across multiple channels, optimizes pricing, and manages calendars to maximize occupancy.
Summary:
Airbnb, Booking.com, direct channels
Dynamic pricing strategies
Optimized occupancy & revenue
Yes, insurance is arranged for property and liability.
Villas are insured against fire, natural damage, and liability. Management ensures policies are up to date and claims are handled correctly.
Summary:
Property & liability insurance in place
Policies maintained by operator
Peace of mind for owners
You receive monthly and annual financial reports.
Reports cover bookings, revenue, expenses, and taxes paid. This gives full transparency and helps with personal or home-country tax filing.
Summary:
Monthly & annual reports
Revenue, costs, taxes included
Transparency for tax filing & returns
A reservation is secured with a signed agreement and a deposit.
Once you choose your villa, we prepare a reservation agreement. By paying the deposit, the villa is taken off the market and locked for you.
Check our current projects for more information
Summary:
Sign reservation agreement
Pay deposit to secure villa
Villa taken off market
The process runs from reservation → notary signing → staged payments → construction → handover.
We guide you step by step: reservation, legal checks, contract notarization, milestone payments, build updates, and final handover. We stay involved from start till after finish.
Summary:
Reservation → legal checks → notarization
Payments tied to milestones
Guided all the way by ZAYARI
Typically 12–18 months from groundbreaking to handover.
Timelines vary depending on the project and weather. We provide regular updates so you can track progress and know when to expect completion.
Summary:
12–18 months on average
Updates provided during build
Transparent progress reporting
Yes, everything can be arranged remotely.
Even though we recommend visiting and would love to meet you: With a power of attorney (POA) and digital signing, you don’t need to be in Bali. We send build updates via photos and video so you’re always connected.
Summary:
Full remote purchase possible
POA + digital signing used
Build updates via photo/video
A valid passport and proof of funds are usually sufficient.
The notary may also require a tax number and personal details. We provide you with a full checklist in advance.
Summary:
Passport + proof of funds
Additional details if requested
ZAYARI checklist ensures nothing is missed
Every villa is inspected before handover and comes with a warranty.
We do final quality control with the notary and the buyer (or their representative). Construction typically includes a 1-year warranty for major defects.
Summary:
Full inspection before handover
Notary present for formalities
Warranty against structural defects
The villa is connected to utilities, furnished, and handed to the management team.
After you receive the keys, ZAYARI and House of Reservations onboard your villa into their system, activate listings, and ensure utilities and staff are ready.
Summary:
Utilities activated, staff onboarded
Villa listed on booking channels
Smooth transition into rental management
We are your single point of contact from start to finish.
We coordinate with the notary, builder, and management partner so you only deal with one trusted team. You’ll always know who to call for updates or questions.
Summary:
One contact = ZAYARI
We coordinate notary, builder, manager
Always accessible for updates