In Bali, as in other regions of Indonesia, two main types of property rights are used: leasehold and freehold. Here are their main features and differences:
Leasehold is a form of leasing in which the owner (lessor) grants another person (lessee) the right to use the property for a specified period (usually 25-99 years). Rights: The lessee has the right to use the property during the lease term, but does not formally own the land. At the end of the lease, there is the option to extend the lease, but this depends on the terms initially agreed upon. It is often used by foreigners, as they cannot directly own land in Indonesia. Leasehold provides access to property for a long term. Leasehold is a more common option for foreigners looking to invest in Bali real estate, as it allows them to bypass land ownership restrictions.
Freehold is a form of outright ownership, in which the owner has unlimited rights to the property and the land on which it is located. Freehold owners have the right to fully manage their property, including the right to sell, lease, or bequeath it to their heirs. Freehold ownership in Indonesia is generally only available to Indonesian citizens. However, there are options for foreigners to establish companies through which they can acquire freehold. Freehold ownership grants full ownership but is only available to Indonesian citizens or through certain legal structures for foreigners.
It is important to carefully review the terms and legal aspects before deciding to purchase real estate in Bali, as regulations may change and vary depending on your specific case. We recommend consulting with our lawyers, who specialize in real estate in Indonesia.
For any questions, please call us or submit a request; one of our specialists will contact you shortly.
Leasehold is a form of leasing in which the owner (lessor) grants another person (lessee) the right to use the property for a specified period (usually 25-99 years). Rights: The lessee has the right to use the property during the lease term, but does not formally own the land. At the end of the lease, there is the option to extend the lease, but this depends on the terms initially agreed upon. It is often used by foreigners, as they cannot directly own land in Indonesia. Leasehold provides access to property for a long term. Leasehold is a more common option for foreigners looking to invest in Bali real estate, as it allows them to bypass land ownership restrictions.
Freehold is a form of outright ownership, in which the owner has unlimited rights to the property and the land on which it is located. Freehold owners have the right to fully manage their property, including the right to sell, lease, or bequeath it to their heirs. Freehold ownership in Indonesia is generally only available to Indonesian citizens. However, there are options for foreigners to establish companies through which they can acquire freehold. Freehold ownership grants full ownership but is only available to Indonesian citizens or through certain legal structures for foreigners.
It is important to carefully review the terms and legal aspects before deciding to purchase real estate in Bali, as regulations may change and vary depending on your specific case. We recommend consulting with our lawyers, who specialize in real estate in Indonesia.
For any questions, please call us or submit a request; one of our specialists will contact you shortly.
