If you’re considering buying property in Bali, you’ll quickly come across two key terms: leasehold and freehold. Understanding the difference is essential before making an investment.
Leasehold means you’re buying the right to use the land for a specific period — usually 25 to 30 years, with options to extend. This structure is common for foreigners, as Indonesian law prohibits foreign individuals from directly owning freehold land. Leasehold is often more affordable upfront and ideal for rental-focused investors or those planning to use the property for a fixed timeframe.
Freehold, on the other hand, offers lifetime ownership of the land. This is generally available only to Indonesian citizens or companies with local partnerships. Some foreign investors choose to set up PT PMA (foreign-owned companies) to access freehold rights, although this involves more complexity and regulation.
At Proply Bali, we help clients navigate both models. Whether you choose a leasehold villa with guaranteed ROI or a long-term freehold investment through a legal structure, understanding your options is the first step to a smart purchase.
