Complete Checklist Before Buying in Bali: 25 Must-Check Points

Published on June 9, 2026 and written by Cyril Jarnias

Buying a villa or land in Bali is a dream. But behind the photos of rice fields and infinity pools, the Indonesian legal framework is very specific, especially for foreigners. Between land titles, zoning, tourism licenses, taxation, and legal limits for non-Indonesians, a mistake can cost you dearly, or even lose your entire investment.

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1. Verify Land Ownership: The Sertifikat Hak Milik (SHM)

Before talking about villa design or rental yield, it all starts with a document: the land certificate.

In Indonesia, the strongest title of ownership is the Sertifikat Hak Milik (SHM), the freehold reserved for Indonesians. For any purchase, you must absolutely check:

This verification is done at the BPN (Badan Pertanahan Nasional), the National Land Agency. A formal check of the SHM confirms:

– the official owner’s identity

– exact location and cadastral boundaries

– registration status in the national land database

The cost is modest (about 50,000 IDR) and the timeframe is usually 1 to 2 days. Never rely on an unverified copy or the seller’s word alone.

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2. Check Zoning: Where You Are Legally Allowed to Build and Rent

The second lock, and probably the most critical, is zoning. This is the element you can never “fix” after the fact. A wrong zone, and your villa rental project can become legally impossible.

Bali is divided into colored zones in the spatial plans (RTRW / RDTR). Each color corresponds to specific permitted uses.

2.1. Understanding the Main Zones in Bali

Here is a summary of the most important zone types for a villa buyer:

Official maps clearly show these zones with their colors. Many highly photogenic areas (rice fields, cliffs, riverbanks…) are actually in green zone or conservation zone, where building a villa is prohibited or extremely restricted.

2.2. Tourism vs. Residential: The Crux for Rentals

If your project includes short-term rental (Airbnb, Booking, OTAs…), the following detail is critical:

A useful summary:

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3. How to Actually Verify Your Land’s Zoning

Never rely solely on a marketing plan or an agent’s word. The serious process involves several steps.

3.1. Obtain the Land’s Precise References

You need to obtain:

– exact coordinates (latitude / longitude) or

– the certificate number (nomor sertifikat)

A vague pin on Google Maps or a screenshot is not enough. The slightest shift can move you from a pink tourist strip to a piece of unbuildable green zone.

3.2. Use Official Mapping Tools

Several platforms allow an initial check:

– GISTARU (Ministry of ATR/BPN): interactive map covering all of Indonesia, displaying zones in color.

– BATARA / BATARA Mobile: for Badung regency (Canggu, Berawa, Uluwatu area, etc.).

– Interactive RDTR maps of regencies (Badung, Gianyar, Tabanan…).

3.3. Obtain an Official Zoning Confirmation (ITR / PKKPR)

For maximum security, complete the verification by requesting:

– an ITR (Informasi Tata Ruang) or Izin Tata Ruang

– a PKKPR (Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang)

These documents, issued by the DPMPTSP or the local planning office, confirm in black and white:

– the exact zoning category

– permitted uses on your parcel

– the possibility (or not) of obtaining tourism licenses (Pondok Wisata / Sertifikat Standar, etc.)

A simple question to ask the administration: > “Can I obtain a Sertifikat Standar or a Pondok Wisata at this location?”

If the answer is no, your short-term rental project is legally compromised.

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4. Never Build in a Green Zone

Land in agricultural zones (zona hijau / green zone) is fascinating for its aesthetics: rice fields, open views, absolute calm. But legally:

– The intended use is agricultural, not residential or tourist.

– Building villas and commercial projects is in principle prohibited.

– Even if some build anyway, authorities can order demolition.

The consequences:

In other words, a “cheap land with a rice field view” but in a green zone is not a good deal, it’s a ticking time bomb.

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5. Check Building and Operating Permits

In Bali, many developers start construction without completing the required permits. So you need to carefully check the building-related authorizations.

5.1. PBG: The Current Building Permit

The PBG (Persetujuan Bangunan Gedung) has replaced the old IMB. This document:

– must exist before construction starts

– formalizes the construction authorization, area, height, plans, etc.

Without a PBG:

– the building is considered irregular

– it risks a demolition order or closure

– insurance will not cover damages

If you buy an already-built villa, request a copy of the PBG and verify that:

– the filed plans actually match the construction

– there is no illegal extension (added floor, pool built into a restricted zone, etc.)

5.2. SLF: Proof the Building is Compliant and Safe

The SLF (Sertifikat Laik Fungsi) is the certificate of compliance and safety. It attests that the villa:

– was built according to the approved PBG

– meets technical standards (structure, electricity, plumbing, etc.)

– is deemed fit for use

Again, without an SLF, you have an administratively “shaky” asset: difficult to insure, harder to resell, and potentially exposed to sanctions.

5.3. NIB and Tourism Licenses: Essential for Legal Renting

If your goal is short-term rental, the business dimension is unavoidable:

Caution: The ability to issue a Pondok Wisata varies by regency and depends on zoning. Many villas advertised online operate without proper permits: authorities have started sealing such properties.

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6. Understand Your Legal Options as a Foreigner

In Indonesia, one point is non-negotiable: A foreigner cannot directly hold Hak Milik.

Land law (UUPA) reserves full freehold ownership for Indonesian citizens. No “freehold for foreigners” formula is legally possible, even if some sellers claim otherwise.

6.1. Main Legal Structures Available

In practice, three paths are used by foreigners:

– 1. Hak Pakai (right of use) in their name

– requires a special title and a stay permit (KITAS / KITAP)

– typical duration: 30 years + 20 years + 30 years (up to 80 years)

– reserved for certain types of properties (residential, with price thresholds)

– allows use of the property and ownership of the building, not freehold land

– 3. Leasehold / Hak Sewa (long-term lease)

– rental contract for the land (and often the building) for 25, 30 years or more, with extension option(s)

– no strict legal limit on duration, but practice ranges around 25–30 years per tranche

– very common for individual villas

– does not grant land ownership but exclusive use rights during the lease term

6.2. The False Good Idea of “Nominee”

The nominee practice is still circulating:

Legally:

– this type of arrangement is contrary to land law

– nominee contracts are considered void ab initio

– the state can confiscate the property, or transfer it entirely to the Indonesian

Several concrete cases show foreigners being evicted from their villas after a death, family conflict, or the nominee’s debt, with no solid legal recourse. To be avoided at all costs.

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7. Verify the Seller’s Identity and Chain of Ownership

Once the structure is chosen (Hak Pakai, HGB via PT PMA, or leasehold), ensure that the seller or lessor is indeed the one with the right to sell or lease to you.

Basic checks include:

It is also prudent to check for any ongoing legal disputes or inheritance conflicts regarding this parcel at the district court.

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8. Involve an Independent Notary / PPAT

In Indonesia, any serious land transaction goes through a Notary / PPAT (Pejabat Pembuat Akta Tanah).

Their role:

– verify land certificates and taxes

– ensure compliance of titles and permits

– draft and authenticate official deeds (Akta Jual Beli, Akta Sewa, etc.)

– register the transfer with the BPN

Points of vigilance:

A serious PPAT knows the specific issues for foreign clients: PT PMA structures, long-term leases, zoning constraints, coordination with BPN, etc.

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9. Secure Payments: No Transfers to Personal Accounts

Financially, a healthy scheme rarely looks like “pay everything now to the developer’s personal account.” Good practices include:

– never transfer large sums to a personal account of a seller or agent

– use an escrow account managed by the notary / PPAT or a third-party escrow service

– set up a payment schedule linked to verifiable milestones:

– obtaining permits (PBG, etc.)

– construction progress (foundations, structure, shell, finishing…)

– issuance of SLF

It is also recommended to:

– not pay more than 30% as a deposit at signing

– condition any deposit on a satisfactory due diligence outcome

– record every promise in the contract (delivery date, material quality, warranties, management options, etc.)

Verbal agreements have no legal value: everything must be in writing in notarized deeds.

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10. Conduct a Complete Due Diligence (Legal, Technical, Tax)

A serious real estate due diligence usually takes place in several phases:

This due diligence usually takes one to three weeks, sometimes longer if inheritance files need to be regularized (deceased owner, incomplete succession division, etc.).

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11. Physically Inspect the Land and Construction

Even with perfect documents, a physical inspection remains essential.

Some crucial checks:

If you cannot be on site, mandate an independent third party (inspector, lawyer, trusted representative) to obtain:

– dated photos

– timestamped videos

– possibly drone footage

The goal is to not rely solely on the developer’s marketing material.

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12. Evaluate the Developer and Their Track Record

For an off-plan purchase, the developer’s solidity is as important as the land itself. A serious developer should be able to show:

– completed projects you can visit

– delivery dates that were actually met

– villas in operation with owners available to testify

– a clear legal entity (PT or PT PMA) with an NIB and NPWP

– building permits already issued for the project (PBG)

Positive signals include:

– transparency on materials, plumbing, waterproofing, finishes

– fixed-price contract, with variations only by written agreement

– warranty after delivery (duration, coverage, repairs covered)

– clarification on management of the villa after handover (who manages, what fees, possibility to change operator)

A very polished Instagram is not proof of reliability. The real indicators are titles, permits, and already delivered villas.

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13. Recognize Red Flags and Common Scams

Several behaviors should immediately put you on red alert:

If any of these situations occur, at minimum you should slow down and strengthen checks. Often, it’s best to simply walk away.

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14. Understand the Total Acquisition Cost and Taxation

Beyond the advertised price, a purchase in Bali involves several taxes and fees:

– BPHTB (land acquisition tax): generally 5% of the taxable base (transaction value – local exemption).

– PPN (VAT) on new properties sold by a registered developer, typically around 11–12% on the building value.

– Notary / PPAT fees: often 1 to 2.5% of the sale price.

– For a purchase via PT PMA and HGB / Hak Pakai, the cumulative taxes and fees typically range around 10–15% of the price, or even 17–18% for some structures.

During operation, you must also account for:

– annual property tax (PBB), calculated on the tax value NJOP, generally between 0.1% and 0.3% of that base depending on the regency

– for rental activity:

– PHR (hotel and restaurant tax) around 10% of accommodation revenue

– and, if you are a non-resident without NPWP, a withholding of 20% on gross rental income

A serious business plan must integrate these elements based on prudent assumptions, not overly optimistic projections.

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15. Think About the Exit Strategy from the Start

Real estate in Bali is not just about entry, but also about exit:

A property without complete permits, poorly zoned, or held through a legally dubious structure will be much harder to transfer, or even impossible to legally value.

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16. What to Do If You Discover a Scam or Dispute After the Fact?

If despite all precautions you fall victim to fraud or an illegal scheme, several steps are possible:

The earlier you formalize the situation, the better your chances of limiting the damage.

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17. The 25 Points to Check Before Buying in Bali

To summarize all of the above, here are the 25 checks to include in your own personal checklist before signing:

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Conclusion: Buy in Bali, Yes, but Armed to the Teeth Legally

Real estate in Bali offers great opportunities, provided you accept that this is not a “postcard” market, but a specific legal environment, with:

– clear prohibitions for foreigners (no direct Hak Milik)

– a structured land administration (BPN, RTRW/RDTR zoning, electronic systems)

– permits and licenses essential for building and renting

– a market where very serious projects and high-risk schemes coexist

The difference between a successful investment and a nightmare lies not in the color of the pool, but in your ability to

Real Estate Investment Advice

– verify titles,

– understand zoning,

– demand permits,

– secure payments,

– refuse illegal schemes.

By scrupulously following the 25 points on this checklist, you maximize your chances of buying in Bali safely, with a villa that is fully usable and resalable, and much more peaceful sleep.

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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