Frequently asked questions (FAQ)

Leasehold is a temporary ownership structure where you can use a property for a set period, usually 20–30 years, with the option to extend. While this is commonly offered to foreign investors, it comes with a major downside: after the lease period ends, the property no longer belongs to you. The resale value may also decrease significantly as the lease term approaches its end. For these reasons, leasehold is often not recommended as a long-term investment.

Freehold (Hak Milik) provides full, permanent ownership of both land and building. This is the most secure form of property ownership in Bali, offering the ability to build, rent, and sell without time limitations. While foreigners cannot directly hold freehold under their own name, there are legal ways to acquire full property rights using corporate structures—a process that Asian Properties can guide you through.

Bottom line: Freehold properties offer long-term security and real value appreciation, whereas leasehold comes with significant limitations and risks.

Foreigners cannot directly register freehold property under their personal name in Indonesia. However, it is possible to acquire ownership using legal structures. Asian Properties has extensive experience assisting clients through this process, making it feasible for foreign buyers to have effective ownership of their Bali villa.

This approach allows you to fully enjoy, rent, and sell your property, with the security and long-term benefits of true ownership, without relying on a temporary lease.

The moment you start generating profit depends entirely on whether you buy leasehold or freehold:

• Leasehold: You only make a real profit after you have recovered your investment, which typically takes 8–15 years. Since leasehold properties lose value every year as the lease period shortens, your potential return at resale is also much lower.

• Freehold: You start making profit from day one, because you don’t have to “pay back” your investment in time. Every rental income stream is direct profit, and on top of that, your property gains value every single year. Unlike leasehold, which depreciates, freehold appreciates—meaning that when you eventually sell, your total return on investment is massively higher.

This is the biggest difference between leasehold and freehold: leasehold becomes less valuable over time, while freehold continues to generate profit and grows in value, creating real wealth for investors.

Yes, it is possible to purchase a property in Bali including the land. While foreigners cannot directly own freehold land in their personal name, there are legal options that allow you to own both the villa and the land securely. Asian Properties has been successfully helping clients with this process for years, ensuring full compliance with Indonesian law.

Many buyers are surprised to learn that full land and property ownership is feasible, contrary to common misconceptions about Bali real estate.

Asian Properties specializes in helping foreign investors secure safe, profitable, and legally compliant properties in Bali. Our services include:

• Guidance on fully-owned properties versus leasehold risks

• Assistance with corporate structures to hold property under your effective ownership

• Long-term investment advice to maximize rental income and resale value

• Full support with legal documentation, contracts, and government compliance

With Asian Properties, your Bali real estate investment is secure, profitable, and hassle-free.

To declare your income at the end of the year, you must have a NPWP number, which is assigned by the tax department. We can assist you to get this number. We can also keep your accounts (receipts / expenses) for your tax return. However, for this we will need to be in possession of your bank statements, as is customary in the business accounting environment. If you are not convinced, you can manage your accounting yourself and we can prepare the file and obtain the NPWP number.

People looking for quality accommodation in Bali are very numerous. Whether tourists looking for a seasonal rental or long-term rental, demand is growing. The average time to find customers wishing to stay in one of our villas is between 1 week to 1 month.

In Bali, the owner is free to set the amount of his rent and increase it at any time. There is no law governing this aspect of rental. We can however advise you on the price of the rent of your villa.

You are free to set the duration of your lease. It can be a long-term contract (1 year or more), a medium-term contract (6 months) or even seasonal contracts. All you need to do is specify the periods you want to rent, your preferences for the duration of the rentals and we will fill your calendar with clients who wish to rent your villa.

f you want to work with us to rent out your villa, our price is 20% for one or two bedroom villas and 18% for three or more bedroom villas.