Blog about overseas real estate

Obtaining Bali citizenship by purchasing a new building: myth or reality?

Many investors considering purchasing real estate in Bali wonder about the possibility of obtaining citizenship through property acquisition. It's important to clarify: directly purchasing a new building in Bali does not grant the right to Indonesian citizenship, including Bali citizenship, which doesn't exist as such, as Bali is merely one of Indonesia's provinces. Indonesian law, like that of most countries, does not automatically grant citizenship based solely on real estate investment.

However, this doesn't mean that purchasing a new building in Bali cannot be a step toward legal residency and, potentially, obtaining a residence permit, which can be converted into permanent residency. The process of obtaining an Indonesian residence permit (KITAS/KITAP) is usually linked to other criteria, such as:

  • Investing in a registered business: The most common way for foreigners to obtain a residence permit is by establishing or investing in a local business that is officially registered and meets certain requirements. -

  • Employment: Employment with an Indonesian company that has a permit to employ foreign workers.

  • Family reunification: If you have a spouse or close relative who is an Indonesian citizen.

  • Pension KITAS: For individuals over 55 who meet certain financial requirements.

Purchasing a new build property in Bali can indirectly contribute to obtaining a KITAS/KITAP if you plan to use the property for rental income, or if you intend to register a company to manage your property. In such cases, owning a home can be a positive factor in your residency application, but it alone is not sufficient grounds for eligibility.

Important points for future buyers: Property ownership for foreigners. Foreign citizens cannot own land directly. There are two main forms of ownership:

  • Hak Pakai (right of use), which is typically granted for up to 30 years with the option to renew.
  • Leasehold (long-term lease), where you lease the land and building for a long term (e.g., 25-50 years with options for renewal).

Bali Citizenship - A Myth: It's important to remember that Bali is an island within Indonesia. The term "Bali citizenship" doesn't exist. It refers to Indonesian citizenship.

  • Residence Permit (KITAS/KITAP): This is a document that allows a foreigner to legally reside in Indonesia for a specified period. KITAS is issued for up to one year and is renewable, while KITAP is a permanent residence permit, usually issued after several years of residence under a KITAS.

In conclusion, buying a new build in Bali is an excellent investment and an opportunity to enjoy life on the island, but there is no direct path to Indonesian citizenship through property purchase. However, a thoughtful investment approach, combined with other legal grounds, can open the door to obtaining a residence permit and long-term residency in Indonesia. It is always recommended to consult with legal and immigration specialists to obtain up-to-date and accurate information.

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