FAQ
Below are some of the most frequently asked questions we receive about our services.
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Buying Land in Bali
Villa Management
Building in Bali
Second Home Visa Bali & Indonesia
Buying Land in Bali
Buying Land in Bali
FAQs
The two main options for owning land in Bali for the purpose of villa development are freehold and leasehold.
Freehold means that you own the land indefinitely. This option is exclusively available for Indonesian residents, so is not the most common option for international buyers and investment villas.
Leasehold is similar to freehold in many ways, but you only hold the rights to the land for an agreed time frame. Importantly, international buyers will have their name on the lease and a legal right to use the land.
Typically, land is initially leased for 25-30 years, with the option to extend the lease at the current market value. The contract is overseen by a notary (specialist land lawyer), with checks and due diligence carried out prior to the lease beginning.
Leasing land in Bali is much cheaper than buying freehold, and provides the highest return on investment on villa developments.
The terms of leasing land in Bali are agreed between the land owner and the individual or party interested in leasing the property. A typical lease will last from 25-30 years, however some leases are as short as 20 years, whilst others can be longer than 40 years. The figures refer to the initial lease.
The lease contract will normally permit the leaseholder to extend the lease for a similar period to the initial lease, however the price will reflect the updated market value of the land at the time of the renewal. The ability to extend the lease is beneficial when a new villa has been built on the property.
If a land owner continues to agree to further lease extensions, the land can be leased indefinitely.
Foreigners can buy land in Bali, but there are a number of rules and regulations that need to be followed. Freehold land can only be purchased by Indonesian residents, but leasehold property can be purchased by foreigners.
There are also rules and regulations that must be followed in certain circumstances, such as renting out the villa as a holiday rental on Airbnb or other platforms. As with any country, taxes and fees may be applicable to rental income generated by the property.
Bali is one of the most scenic destinations in the world, which has resulted in many foreigners looking at land for sale in Bali as an investment. For professional advice on the latest rules for buying and investing in Bali, we can put you in touch with local legal professionals.
There are many areas in Bali that can deliver exceptional returns on investment. Some of the most popular areas in Bali for our clients include:
- Pererenan
- Canggu
- Berawa
- Nyanyi
- Seminyak
- Uluwatu
- Ubud
Areas with popular attractions nearby, such as beach clubs and restaurants, tend to attract high numbers of tourists, which is ideal for holiday rentals. For advice on popular locations to buy land in Bali, get in touch.
Below are some of the most common words and abbreviations you will likely run into if you are looking to buy land in Bali.
- Are: A popular unit of measurement for land in Bali. 1 Are = 100 sqm.
- Leasehold: A type of property ownership where you own the rights to use land for a set timeframe.
- Freehold: Property ownership whereby you own the rights to land indefinitely.
- Rp / IDR: Indonesian Rupiah – the currency used in Indonesia. It is also common for prices to be listed in USD (United States Dollar).
If you have any questions or require additional help, please get in touch.
There are a number of factors that can influence the cost of land in Bali. Pricing for leasehold land is normally calculated per “are” (100 sqm) per year, with prices starting from around Rp5.000.000 IDR (~ $350 USD).
Below are some of the main considerations in pricing land in Bali:
- Leasehold vs Freehold: As you would expect, buying freehold land is significantly more expensive as you hold the rights to the land. Leasehold land in Bali is much cheaper to buy, but leases typically only last for 25 – 30 years, with the option to extend the lease at the current market value of the land.
- Land Location: As is the case with buying land in any country, the cost of land in Bali is heavily influenced by location. Popular locations and beachfront properties typically attract the highest prices, whereas more rural and quieter areas offer the cheapest land deals.
- Nearby Attractions: Similar to land location, the availability of local amenities and attractions can increase the cost of buying land. Popular shops, restaurants and beach clubs can all impact price.
- Property Size: The larger a plot, the more it will cost. For the most affordable land prices, look for properties that suit your villa and pool requirements.
As well as the cost of land, it is important to budget for construction, landscaping and furnishings when investing in Bali.
The amount of land required will depend on the size of the villa you want to build. In most cases, the amount of land required to build will be smaller than you may think.
If you are looking to invest in Bali property, you will want to maximise your land use for the highest return on investment. On each of our developments, we indicate the recommended amount of land required to build each villa. You can view the developments here:
- The Hut (100 sqm Build Area)
- The Kayu (200 sqm Build Area)
- The Eco (280 sqm Build Area)
- The Luxe (450 sqm Build Area)
Most villas have a pool and landscaped garden, which is strongly recommended when looking for land to build an investment villa.
For advice on the right land size for your new villa, please get in touch.
The first step of buying land in Bali is finding the perfect plot for your budget and requirements. Once suitable land is found, the process typically takes around 1 month, as per the following timeframes:
- Inspection and due diligence (2 weeks)
- Contracts (1 week)
- Money transfer (1 week)
Timeframes can vary for many reasons, but the above timeline is typical for most our clients.
Once land has been purchased, you can then begin with the fun process of architectural design and planning.
Villa Management
Villa Management
FAQs
Our villa management services throughout Bali are designed to take the hassle out of running a holiday rental. Our management team can take care of every aspect of your holiday rental and ensure your guests have a great stay.
If you already have your own staff, our basic villa management plan is ideal. With this plan, our specialist team will run the admin side of your villa rental. This includes:
- Creating a listing on accommodation booking platforms, such as Airbnb, Booking.com, etc.
- Optimising your listing to increase the number and value of bookings.
- Syncing calendars across multiple platforms to prevent double bookings.
- Communicating with guests at every stage of their stay (pre, during and post).
- Dynamic pricing depending on demand and popularity, to ensure high nightly rates and occupancy.
- Coordination of your villa staff for services such as cleaning, gardening and maintenance.
- All booking and payment processing via preferred or recommended platforms.
- Creation of a house manual and neighbourhood guide for guests.
- Satisfied customers with regular 5-star reviews.
Our complete villa management plan has all of the above mentioned features, plus a number of additional benefits, including:
- Staff for cleaning, maintenance, inspections and handyman services.
- Guest airport transfers.
- Personal on-site check in for guests.
- Restocking of essential amenities in the villa.
- Legal and tax consulting.
The cost of villa management in Bali is typically a percentage of the income from bookings, with average management fees ranging from 20-30%.
Balitecture offer very competitive villa management prices, with complete management from only 20% of the booking revenue plus villa operating expenses.
Our villa management services typically pay for themselves, as our experienced holiday rental team can enhance the number and value of bookings.
Our Bali villa management services have a number of benefits.
Firstly, we take the hassle out of running your villa, so you can sit back and enjoy the benefits of your investment.
Secondly, our team has years of experience in every aspect of managing villas in Bali. We can optimise your listing on platforms such as Airbnb to ensure you rank higher and receive more bookings.
Our costs will generally be covered by the increase in bookings, and you will also experience a higher return on your investment.
Building in Bali
Building in Bali
FAQs
Building in Bali is cheaper than most western countries when comparing like-for-like properties. Prices are calculated per square metre of build area, with a typical villa costing $500-$1,000 (USD) per square metre. The quality of materials will incluence the cost, but most builds fall within this price bracket.
As the cost of building in Bali directly relates to the size of the villa, calculating the cost of a build will depend on the size required. Larger villas will cost more than smaller villas.
Purchasing land is another cost that most clients need to consider. Land prices vary throughout the island, with the plots in popular areas or near to beaches attracting the highest prices. Find out more about leasehold, freehold and the cost of buying land in Bali here.
When calculating the total cost of building in Bali, it is important to also consider furnishing. Larger villas require more furniture, which increases the overall construction cost. The average cost of furnishings normally ranges from $10,000 to $40,000 USD.
Our popular hut style villas start at just $170,000 USD. You can find more information about villa prices on our development page, which has a range of different build sizes from 100 sqm to 370 sqm. Our architects can also build unique villa based on your specific requirements.
Generally, when comparing similar build sizes and materials, it is cheaper to build in Bali then in most western countries. However, prices in other South East Asian countries, such as Thailand, or even other areas of Indonesia can be cheaper than Bali, but typically have a less profitable return on investment.
Land prices vary greatly throughout the island. The cheapest properties can be found along the north of the island and in rural areas, whilst popular locations such as Canggu, Seminyak and Uluwatu cost more. Beachfront villas also attract premium prices.
Yes, foreigners can buy property in Bali, but there are rules and regulations that need to be followed. Within Indonesia, foreigners can only purchase a villa under a leasehold agreement, whereas Indonesian citizens can buy freehold.
What is the difference between leasehold and freehold villas?
- Freehold: You own the rights to the land indefinitely. As a freehold owner, you can lease the property.
- Leasehold: You do not own the property, but lease it from the owner for a period of time. A lease typically lasts 25-30 years, with the option to extend.
For professional advice on the latest rules for buying and investing in Bali, we can put you in touch with local legal professionals.
We have a collection of designs and builds on our portfolio page, which provide an overview of some our past projects.
You can find a case study of a recent build called Aura Villas. This page provides a great overview of the building process, from the initial land acquisition, various stages of construction, and professional villa management to ensure the villa has high returns for our client.
There are many areas in Bali that can deliver exceptional returns on investment, with each area offering its own unique attractions and benefits. Some of the most popular areas in Bali for our clients include:
- Pererenan
- Canggu
- Berawa
- Nyanyi
- Seminyak
- Uluwatu
- Ubud
Areas with popular attractions nearby, such as beach clubs and restaurants, tend to attract high numbers of tourists, which is ideal for holiday rentals. For advice on popular locations to buy land in Bali, get in touch.
The average time to build a villa typically ranges from 6 months to 1 year. The size of a build and number of levels are primary factors in build time. Smaller builds, such as our popular hut design, can be completed in as little as 3 – 5 months.
Below is a typical timeline for one of our builds:
- Land Purchase
- Architectural Design
- Access Road Construction (if needed)
- Footings
- Foundations
- Slab
- Interior Forms
- Pool Construction
- Interior Finishing
- Landscaping
- Furniture Installation
- Interior Design
You can view a complete timeline, along with photos, in our case study of Aura Villas.
Bali is a popular location for property investors. The tropical island has been named as the best travel destination in the world on several occasions, resulting in millions of holidaymakers arriving every year.
Whilst there are hotels available, most travellers opt for the benefits of a villa, with a private pool, tropical garden and ample space to relax. It is these short term rentals that make Bali a very lucrative location to invest in property.
Our villa management services make it easy for international buyers to invest in Bali property and minimise the workload of dealing with client communication, check-ins, laundry and property maintenance.
We have included a ROI estimation on each of our development pages, which will provide a greater insight into the expected financial returns based on different levels of occupancy. For example, The Luxe villa can achieve an annual ROI of 21% with a high level of occupancy.
The villa size you choose is influenced by a clients budget, requirements and land size.
Bigger budgets can afford a larger villa. Generally, 3 and 4 bedroom villas perform better than smaller villas as short term holiday rentals, and can result in the highest return on investment.
Not all villas are for investment purposes, as many clients build a villa as their main residence. In this case, each individual client is likely to have their own preference, whether that is more space dedicated to the master bedroom, or larger entertainment/relaxation areas.
The size of land available to build a new villa is one of the main restrictions when building a villa. Generally, villas in Bali are no more than 3 levels high, and a pool is highly recommended in the tropical heat. Our architects are experts at maximising space, and can create the perfect design for your plot.
Get in touch with our friendly team for all your construction needs.
Below are some of the most common words and abbreviations you will likely run into if you are looking to build in Bali.
- Are: A popular unit of measurement for land in Bali. 1 Are = 100 sqm.
- Leasehold: A type of property ownership where you own the rights to use land for a set timeframe.
- Freehold: Property ownership whereby you own the rights to land indefinitely.
- Rp / IDR: Indonesian Rupiah – the currency used in Indonesia. It is also common for prices to be listed in USD (United States Dollar).
If you have any questions or require additional help, please get in touch.
Balitecture provides a complete property development service, from design and villa construction through to management and maintenance.
Below are some of our services:
- Land Acquisition: Find and acquire the ideal plot of land in Bali.
- Architecture: Design the ideal villa for your specifications and land.
- Construction: Build your dream villa to high standards and a premium finish.
- Furniture: Build custom furniture to suit your villas unique style.
- Villa Management: Manage your villa to maintain a high level of occupancy and high return on investment.
- Maintenance: ongoing maintenance of your villa, pool and gardens.
Second Home Visa Bali & Indonesia
Second Home Visa Bali, Indonesia
The hotly anticipated new visa in Indonesia, The Second Home Visa, has been officially launched!
Indonesia’s Directorate General of Immigration, under the Ministry of Law and Human Rights, announced this new regulation on December 21, 2022. This newly-launched visa marks a commitment to open up more opportunities and interests for foreigners on making Indonesia their “second home”. Indonesia understands and values the contribution of foreigners living here. With the second home visa, foreign nationals are encouraged to stay in the long term, of course with the intended goals that are mutually beneficial.
With the launch of this visa, Indonesia is optimistic about attracting foreign visitors to Bali and other destinations, to encourage economic and industry growth, as well as to develop property business in Indonesia.
Second Home Visa Requirements
FAQs
Second Home Visa is granted to foreign nationals to live in Indonesian territory for a period of 5 or 10 years.
Personal
- CV (Curriculum Vitae)
- PASSPORT – valid for a minimum 36 months
- PROOF OF FUNDS – with a value of at least IDR 2 billion ($140,000 USD)
- PHOTO – Recent coloured photograph with white background (4cm x 6cm)
Companion
- PASSPORT – valid for a minimum 36 months
- PHOTO – Recent coloured photograph with white background (4cm x 6cm)
- Second Home Visa or Second Home ITAS that belongs to husband or wife, children or parents who are legal and still valid
- Proof of having a family relationship with a foreigner holding a Second Home Visa or Second Home ITAS
Additional Documents
- Proof of full dose COVID-19 vaccine
- Statement letter willing to comply with all applicable health protocols in Indonesia
- Proof of ownership of health insurance/travel insurance
Find more details from Indonesia’s immigration and online application here.
Within 90 days of issuing a Second Home Visa, the applicant should provide proof of sufficient funds in the form of:
- An account owned by an applicant, for an amount of at least IDR 2 billion in an Indonesian state-owned bank, or
- Proof of property ownership in Indonesia on behalf of an applicant in form of Hak Pakai (Right to Use) of property value of IDR 5 billion or apartment value of at least IDR 2 billion.
In case a foreigner cannot show proof of funds/property within 90 days, the visa will be canceled by Immigration.
This Visa is not a work permit. But you can be a remote worker, freelancer or entities abroad, be on staycation or simply stay here as a tourist.
In the press release, “investment” is also mentioned. However, being an investor in Indonesia does also come with other requirements depending on what type of invesments are done.
Your global income will not be taxed. That would defy the purpose of this Visa. We highly suggest you to send an email to immigration’s customer service ([email protected]) or tap into the website to ask for valid information.
Foreign Nationals or Sponsors can conveniently apply for a Second Home Visa through the official website of the Directorate General of Immigration (www.imigrasi.go.id) or Online Visa Approval application.
Second Home Visa is completed within a maximum of four working days, starting after the payment is made in accordance with the provisions of the legislation.
The non-tax state revenue (PNBP) rate for a Second Home Visa is IDR 3,000,000 ($220 USD). Payment can be made outside the territory of Indonesia through the PNBP payment portal.
Yes, holders of Second Home Visa will also be available to apply for the same visa for their husband or wife, children or parents.
That is not clarified yet. Probably some nationalities will not be eligible. We highly suggest you to send an email to immigration’s customer service ([email protected]) or tap into the website to ask for valid information.
Well, this is it. At this point we don’t foresee that the requirement of having to proof funds of USD 140,000 or above will be changed. We might be wrong, but for now the Second Home Visa is what the government has created to attract foreigners to stay longer in Indonesia. What was referred to as Digital Nomad Visa previously, assuming that the hurdle to get it would be lower, is probably not going to happen. And it is expected that it will replace the Retirement Visa at some point.
Disclaimer
Any information on this page is carefully researched. We are not responsible nor liable for any information that might not be accurate or change.
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