Investing in Bali Real Estate: The Complete Guide for French Buyers

Published on June 9, 2026 and written by Cyril Jarnias

More and more French people are dreaming of a villa with a pool just minutes from the beach, a bungalow nestled in the rice paddies, or a small building designed for seasonal rentals. Why does this island attract so many French-speaking investors, and above all, how can you invest safely and profitably without getting burned?

Good to know:

The Balinese real estate market has seen prices rise by about 44% over three years, with net rental yields stabilizing between 7 and 12% for well-managed properties. The legal framework for foreigners is now better defined, which represents a rare opportunity but requires careful preparation to avoid pitfalls.

This guide offers a clear, practical, and data-driven overview of real estate investing in Bali for a French audience: where to buy, what type of property to choose, under which legal structure, what returns to expect, with what costs and taxes, and how to handle day-to-day management.

An Attractive Balinese Market for the French

Bali has become one of the top destinations for French expatriates and investors in Asia. Several thousand French people already live there, mainly around Canggu, Ubud, and Uluwatu, with an honorary consulate in Denpasar and a very active French culinary scene, especially in Seminyak.

to be defined

The average cost per square meter illustrates the competitive price gap for French or European buyers compared to major Western cities

An Entry Ticket That’s Still Affordable

Villas are now the heart of the investment market in Bali, far more than apartments. The price range is wide, but 2026 market data helps set expectations.

Converted to euros, these amounts provide access to a villa with a pool in a global tourism market for an entry ticket sometimes lower than a small apartment in a major French city.

Where to Buy: Mapping the Best Areas

There is no absolute “best” neighborhood for investing in Bali. The choice depends on your profile: whether you’re seeking security, strong capital appreciation, maximum rental yield, or personal quality of life. Current data does, however, allow us to sketch out some broad lines.

Canggu: The Yield / Security Compromise

Analyses converge: Canggu is currently the lowest-risk area for an investor. Infrastructure is already well established, rental demand is proven and diverse (surfers, digital nomads, families, short-stay tourism), and the range of services is comprehensive.

Yields are solid. On a well-managed three-bedroom villa, the average observed:

– gross yield around 9 to 11%,

– usual net yield between 6 and 8% after management, maintenance, utilities and taxes.

Canggu remains one of the best choices for a French investor who prioritizes stability and consistent occupancy while aiming for 8 to 12% net yield in the best cases (professional management, good design, competitive pricing).

Pererenan: The “Sweet Spot” for a First Investment

Recent research identifies Pererenan as the ideal area, on its own, for a first foreign investment in 2026. The reasons lie in both price and potential.

Tip:

Lower entry prices than Canggu while being in the logical extension of the area, strong development momentum with rising tourist demand but still reasonable land prices, and capital growth potential above the island average.

Pererenan is therefore considered one of the best compromises between acquisition price, appreciation prospects, and medium-term rental demand.

Seminyak, Canggu, Ubud: The French-Speaking Hubs

Three areas concentrate a large part of the French diaspora and French-speaking social life: Seminyak, Canggu and Ubud. For a French investor, this translates into relative ease of integration, a network of French-speaking service providers, and a European clientele sensitive to a certain comfort and codes.

Example:

In Seminyak, a densely built international area, gross yields are 7 to 9% and net 5 to 7%. Canggu attracts surfers and digital nomads with sustained rental demand. Ubud, focused on culture and wellness, shows gross yields of 8 to 12%; average net 4 to 6%, potentially reaching 8 to 12% for high-end villas in the retirement/wellness segment.

Five Key Zones for All Investor Profiles

Some areas cover almost all profiles, from luxury to family, from green to highly profitable.

In addition to these areas, the entire Bukit (Uluwatu, Bingin, Pandawa, Sawangan) now concentrates some of the best net yields on the island, especially for ocean-view villas.

Lower Entry, High Potential: Pererenan and Bingin

For French investors looking for an accessible entry point with strong capital appreciation potential, two areas clearly stand out: Pererenan north of Canggu, and Bingin on the Bukit peninsula.

Both show:

– prices per square meter lower than the hyper-demand cores (Berawa, Seminyak),

– already attractive rental yields, driven by traveler spillover effect,

– superior capital growth potential thanks to the catch-up margin.

These sectors are becoming the new investment hotspots while offering a lower entry ticket.

What Yield Can a French Investor Really Expect in Bali?

Developer pitches promising 20 to 25% annual returns are common. They almost always rely on gross yields before expenses. Independent studies show a more nuanced reality but still very attractive.

Gross and Net Yields: Setting the Record Straight

Gross yields vary according to location, management and property positioning.

Serious analyses converge: a good villa investment in Bali well-managed by a professional can deliver 7 to 12% net rental yield per year, and sometimes more in highly optimized zones or projects.

Total Return: Rent + Capital Appreciation

Total return is not limited to rents. The increase in property value plays a central role. Over the most recent period, prices have risen about 44% in three years, a very strong pace.

Caution:

Over a 5-10 year horizon, studies predict annual value increases of 5 to 10% depending on the area, potentially reaching 15 to 20% in certain premium micro-markets at the right point in the cycle.

The baseline scenarios for a disciplined investor are therefore:

– targeted net rental yield: 7 to 12% per year,

– annual appreciation: 5 to 10% depending on location,

– total return (rent + capital gain) over 5 to 10 years: 10 to 15% per year on average.

The best assets, well-chosen and well-managed, can occasionally achieve 15 to 20% annual total return, but these figures should be treated as upside scenarios, not the norm.

Illustrated Examples of Typical Villa Returns

Available data allows us to identify three villa profiles with meaningful order-of-magnitude figures.

These figures already include management fees (approximately 15% of revenue), running costs and booking platform fees, so they are close to what a French owner will actually receive.

Short-Term vs. Long-Term Rentals: What Strategies?

Bali has become synonymous with Airbnb and short-term rentals. However, the situation is becoming more complex, especially with tighter licensing, inspections and tax regimes. For a French investor, the choice between short-term and long-term should be a real strategic decision.

Short-term rentals often still have a significant gross advantage. A typical example for a two-bedroom villa:

Long-term vs. short-term rental comparison

Analysis of rental income based on the chosen strategy

Long-term rental

Monthly income of 1,200 to 1,500 USD, i.e. 12,000 to 18,000 USD per year. Predictable income but limited optimization possible.

Short-term rental

With a 65% occupancy rate and an average price of 90 to 100 USD per night, annual revenue easily reaches 20,000 USD or more.

Once taxes, management fees, platform fees, heightened maintenance and vacancy periods are factored in, the gap narrows. Many analyses show that short-term rentals, poorly managed, end up around 4 to 6% net, while professional and rigorous management can push that up to 10 to 15% net. The key is therefore not just the strategy, but the quality of operations.

Legal Framework: How Can a French Person Own Property in Bali?

One of the most sensitive and often misunderstood points concerns ownership itself. Indonesian law is very clear: a foreigner cannot hold a freehold title (Hak Milik) in their own name.

What Is Prohibited: “Nominee” Arrangements

For a long time, some intermediaries offered foreigners a way to circumvent the ban by placing the land title in the name of a trusted Indonesian, via private contracts. These so-called “nominee” structures are now clearly considered illegal and offer no legal protection.

The Indonesian Supreme Court has confirmed that such arrangements can be retroactively annulled. In practice, the official title holder is the sole legal owner. Many foreigners have lost their entire investment this way. For a French person, this type of arrangement is therefore to be excluded.

The Three Legal Paths for a Foreign Investor

To invest properly, three options are available to a French investor:

– Long-term lease (Hak Sewa, or leasehold),

– Residential use right (Hak Pakai),

– A foreign capital company (PT PMA) holding a building right (HGB).

1. Leasehold (Hak Sewa): The Simplest and Most Common

Leasehold is by far the most used formula by international buyers. It is a long-term lease contract granting exclusive use of the land and buildings for a given period, usually 25 to 30 years, with extension possibilities up to 70 or even 80 years if clearly provided for.

The main characteristics are as follows:

– relatively limited capital required: leaseholds are often 30 to 50% cheaper than equivalent properties held under a permanent land structure,

– accessibility: no residence permit or company creation is needed to sign a lease,

– legal security governed by the Indonesian Civil Code, with registration and notary,

– but value decreases as the end of the lease approaches, and the need to negotiate extension terms in advance.

For a French person targeting seasonal rentals over 20 to 30 years, leasehold remains in practice the most pragmatic option.

2. Hak Pakai: The Use Right for Foreign Residents

Hak Pakai is a form of title that comes closest to ownership for a foreigner residing in Indonesia. It allows the use right to be registered on the land registry in the foreign person’s name.

Key points:

Good to know:

This right requires a valid residence permit (KITAS or KITAP), not a tourist visa. The total duration can reach 80 years (30 years + 20-year extension + 30-year renewal). The land is capped at around 2,000 m² for residential use, strictly reserved for personal dwelling, without the legal possibility of short-term villa-hotel rentals.

Regulations also impose a minimum property value (often between 2 and 5 billion rupiah depending on category and location). This arrangement is therefore more aimed at the primary or secondary residence of an expatriate than pure rental investment.

3. PT PMA + HGB: The Tool for Commercial Projects

PT PMA is an Indonesian company with foreign capital. It can hold a building right (HGB) on land for commercial uses such as operating rental villas, resorts, coworking spaces, etc.

This structure allows:

– long-term control of the land (HGB renewable up to 80 years),

– holding and operating multiple properties,

– hiring staff, issuing legal invoices, signing contracts.

On the other hand, it involves:

100,000

The minimum paid-up capital required to set up a company in Indonesia is over 100,000 USD.

For a French person considering a genuine real estate business (portfolio of villas, resort, development), PT PMA is often essential. It also allows sponsoring investor visas (KITAS) to reside and work locally within the company.

How Does a Typical Transaction in Bali Unfold?

The purchase procedure, whether for a leasehold, a Hak Pakai, or an acquisition via PT PMA, follows a well-established sequence:

1. choice of asset type and holding structure (individual leasehold, Hak Pakai with KITAS, or PT PMA),
2. full due diligence: verification of titles, zoning compliance, building permits (SLF, formerly IMB), legal feasibility of tourist rentals,
3. agreement on price, signing of a preliminary agreement or reservation agreement, payment of a deposit (often 10 to 30% of the price),
4. deed preparation by a notary/PPAT (legally responsible for registrations),
5. payment of transfer taxes and notary fees,
6. signing of the final deed and registration with the local land office.

For a French person, it is highly recommended to be assisted by a lawyer specialized in Indonesian real estate law, independent of the agent or developer.

Financing Your Investment as a French Person

The majority of foreigners buy in cash in Bali: more than 95% of transactions involving non-residents are done in cash, often via SWIFT transfers to a notary escrow account. This is the simplest and fastest route.

Cash Purchase and Staggered Payments

For a standard cash purchase:

– an initial deposit of 10 to 30% secures the property,

– the balance is paid at final signing, with proof of source of funds.

In the case of an off-plan project, serious developers offer payment plans spread over 3 to 5 tranches, with a final tranche of 10 to 20% at key handover. These are not real mortgage loans, but rather payment schedules, often associated with a higher interest rate than a bank loan.

Loans from Indonesian Banks

Local bank financing for foreigners exists, but remains reserved for very specific profiles.

Typical conditions observed:

– must reside in Indonesia with a residence permit such as KITAS or KITAP,

– open a local bank account, show stable income, sometimes credit check in country of origin,

– effective interest rates between 8 and 12% per year for foreigners, higher than for Indonesian residents,

– limited loan-to-value: the bank generally lends only 50 to 70% of the appraised value,

– minimum down payment of 30 to 50% of the price,

– loan term between 10 and 30 years.

Good to know:

For a non-resident French investor, financing solutions are limited and often less attractive than financing obtained in France, such as refinancing an existing property, a mortgage loan, or a credit line like a portfolio-backed real estate loan.

International Financing and Alternative Solutions

Many French investors choose to finance from their home country:

– refinancing their primary or rental residence in France,

– a mortgage secured against a property located in Europe,

– loans backed by a financial portfolio (Lombard type).

International banks (certain subsidiaries of HSBC, Barclays, LHV, etc.) sometimes offer dedicated solutions for buying property in Bali, with rates that can start at a few percentage points above Euribor for the best profiles. This is often more competitive than the 8 to 12% offered locally.

Solutions like real estate crowdfunding, private loans or partnerships with Indonesians exist, but often come with high interest rates (12 to 18%) and should be approached with caution.

Acquisition Costs: Don’t Underestimate the Fees

Beyond the listed price, buying real estate in Bali involves a set of taxes and fees that can quickly add up to several percentage points of the amount invested. A French investor should budget a 10% buffer from the start to cover everything.

Main Purchase Costs

The cost structure varies depending on whether it is a leasehold or a real right (Hak Pakai, HGB). A working estimate for a foreigner in 2026 is between 6 and 9% of the purchase price on the buyer’s side, with possible extremes between 5 and 10% depending on complexity.

For an off-plan purchase from a developer, sometimes 12 to 14% extra in taxes and fees on the listed price should be expected, notably due to VAT.

Annual Holding Costs

Holding costs remain modest compared to Europe, but must be included in the profitability calculation.

Good to know:

Budget for property tax of 30 to 285 euros per year, local community fees (banjar), possible condominium fees, 3 to 5% of revenue for upkeep in a tropical climate, and operating costs (electricity, internet, staff, pool, garden) that can exceed 1,000 USD per month for a large high-end villa.

Taxation: What a French Person Should Anticipate

Investing in Bali is not only analyzed from the Indonesian perspective. A French person generally remains a French tax resident and must therefore navigate both systems, fortunately governed by a bilateral tax treaty.

Taxes in Indonesia

Locally, several levels of taxation apply.

– Rental income tax:

– if income is received in the personal name of a non-resident, a 20% withholding tax on gross may apply, sometimes reduced to 10% if the tax treaty is properly used,

– via a company (e.g., PT PMA), rents may be subject to a final 10% regime on gross, or corporate income tax (22%) on net profit after expenses.

– Annual property tax (PBB): low, around 0.1 to 0.3% of taxable value,

10

Taxation can go up to 10% of the gross selling price for certain rights such as Hak Pakai or Hak Sewa

To benefit from reduced rates and avoid additional taxes (e.g., a 20% surcharge without a local tax ID NPWP), it is important to register properly in the Indonesian tax system.

Taxes in France: France–Indonesia Treaty

The France-Indonesia tax treaty provides that real estate income is taxable in the country where the property is located, i.e., in Bali. In France, this rental income is generally exempt from income tax, but is taken into account to determine the rate applicable to other household income (the “exemption with progressivity” method).

However:

17.2

French social security contributions apply to foreign-source real estate income.

Upon resale, capital gains are taxable in Indonesia at the local rate (often 2.5% on the gross selling price) and subject to French social contributions, according to French capital gain calculation rules, but without double taxation thanks to the treaty.

For a French person, the right legal combination (direct ownership, through a French SCI, through a PT PMA, etc.) therefore depends as much on tax strategy in Indonesia as in France. Coordinated advice from tax specialists in both countries is a real asset.

Rental Management: Structuring It Like a Business

Achieving a good return in Bali depends not only on choosing the right area or legal structure. Performance largely hinges on operational management. Experience shows that the gap between a villa managed “remotely” by its owner and one managed by a professional team can be 4 to 6 percentage points of net yield.

Cost of Professional Management

Local management companies offer turnkey services: listing on platforms, check-in/check-out, cleaning, maintenance, financial reporting, dynamic pricing, etc.

The typical model is as follows:

– commission of 13 to 20% on gross revenue,

– sometimes a fixed monthly fee in addition, around 2.5 million rupiah.

30-40

Management fees and commissions can reduce net yield by 30 to 40% compared to the advertised gross yield.

Why Professional Management Is Almost Indispensable

In practice, a poorly managed villa (poorly optimized calendar, badly adjusted prices, neglected maintenance) quickly plateaus at 4–6% net yield, despite sometimes flattering gross figures. Conversely, an experienced operator can combine:

– dynamic pricing strategy,

– optimized occupancy rates (60 to 75% depending on area),

– strict cost control,

– customer loyalty building.

It is this discipline that makes it possible to get close to the 8–12% net range and to maximize both rental income and future resale value.

For a French person not living locally, delegating to a professional structure is therefore less a luxury than a near-essential condition for achieving the expected returns.

How to Approach the Investment: Strategic Advice for a French Person

Investing in Bali, in 2026, is neither a short-term speculative operation nor a simple pleasure purchase. Experience feedback converges: it should be thought of as a 5 to 10-year business.

Several guiding principles emerge:

Tip:

For a successful real estate investment in Bali, follow these 5 key tips: 1) Analyze the local market zone by zone before falling in love; 2) Choose the appropriate legal structure (leasehold for seasonal rental, PT PMA for real estate business, Hak Pakai for residence); 3) Build a safety margin into your business plan for hidden costs (SLF permit, renovation, 4-6% wage and energy increases); 4) Target realistic returns of 7 to 12% net from rentals, with 5 to 10% capital appreciation, rather than the promised 20–25%; 5) Surround yourself with a local lawyer, an experienced notary, and a financial advisor who understands France–Indonesia relations.

For a French person, Bali today offers a rare mix: still reasonable entry prices, a solid global tourism market, an active French-speaking community, and rental yields that are hard to achieve in France or Western Europe. Provided you respect Indonesian law, structure your investment correctly, and manage your villa like a real business, it is possible to build a profitable and sustainable portfolio.

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Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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