How to Buy an Apartment in Bali in 2026 as a French Citizen

Published on June 9, 2026 and written by Cyril Jarnias

Buying an apartment in Bali is a dream for many French people: year-round sunshine, reasonable cost of living, a dynamic rental market, and a well-established French-speaking community in Canggu, Ubud, Seminyak, or Sanur. But behind the postcard, the Indonesian legal framework is very specific, especially for foreigners. In 2026, the market is mature, transactions are numerous, and notaries are seasoned… but the slightest mistake can be very costly.

Understanding the basic rule: you will never own the land

The starting point, non-negotiable, is simple: Indonesian land law (Basic Agrarian Law of 1960, still in force in 2026) reserves full land ownership, the famous Hak Milik (freehold), solely for Indonesian citizens.

A French person, even a long-term resident, cannot therefore directly own land in Bali. However, they can legally hold:

– A registered right of use (Hak Pakai) on a dwelling

– A long-term lease right (Hak Sewa, leasehold)

– A right to build (HGB – Hak Guna Bangunan) through an Indonesian company with foreign capital, called a PT PMA

– A strata title right on an apartment, often attached to one of these regimes

Another crucial point: arrangements with an Indonesian “nominee” (a local who holds the Hak Milik on your behalf) are explicitly contrary to Indonesian law, regularly invalidated by the courts, and can lead to the outright confiscation of the property with no real recourse for the foreign buyer. Reputable notaries now refuse to draft this type of arrangement.

In summary: for a French person, the question is not “how to buy freehold”, but which legal structure (Hak Sewa, Hak Pakai, PT PMA, strata) best suits your project.

The three main legal structures for a French person

For an apartment in Bali, three configurations dominate in 2026.

Hak Sewa (leasehold): the simplest and most common solution

The Hak Sewa is a registered long-term lease, which gives the foreign lessee the right to use the property for a defined period, often 25 to 30 years, sometimes with options for extension of 20 to 25 years. In total, some contracts reach 50 to 70 years if well drafted.

Practically, for an apartment:

– You pay 100% of the “lease premium” upfront at the time of signing before the notary

– You have the right to occupy the apartment, rent it out, and resell the lease right for the remaining period

– At the end of the lease term, unless contractually renewed, the right reverts to the original owner of the land/building

For a French person, leasehold has several advantages:

– No need for a long-term visa: a simple tourist or business visa is sufficient to sign

– No need to set up a company

– Lower entry ticket: leasehold is on average 30 to 50% cheaper than an equivalent “quasi-freehold” via a company

– Relatively straightforward legal procedure

Hak Pakai: the “quasi-freehold” for resident foreigners

The Hak Pakai (right of use) is the only land title a foreigner can hold in their own name, but only if they hold a valid residence permit (KITAS, KITAP, or sometimes a “Second Home” visa).

Its main characteristics:

– Initial title up to 30 years

– Extendable by 20 years, then renewable for an additional 30 years

– Potential total duration: 80 years

– Residential use, not large-scale commercial

– Minimum price threshold in Bali:

– Approximately 5 billion IDR (≈ 305,000 USD / 280,000 EUR) for a house or villa

– Approximately 2 billion IDR (≈ 122,000 USD / 112,000 EUR) for a strata apartment

In practice, for an apartment, Hak Pakai remains rare because:

– Many complexes are designed for leasehold

– Few developers offer Hak Pakai structuring per unit

– It requires already having a resident status (KITAS/KITAP) or an eligible long-term visa

Nevertheless, it is a very secure option if your project is to live permanently in Bali (retirement, long-term remote work) and you meet the residency requirements.

PT PMA + HGB: the “business” route for structured investors

The PT PMA is an Indonesian company with foreign capital. It can hold an HGB title (Hak Guna Bangunan – right to build) on land that was originally Hak Milik, converted for the purpose.

For an apartment, this structure is found in:

– Residences operated as condotels or service residences

– Multi-property portfolios (several apartments, villas, commercial spaces)

– Long-term “business” investment strategies

The HGB offers:

– An initial right of 30 years, extendable by 20 years, then renewable for 30 years (up to 80 years)

– Control comparable to economic quasi-ownership as long as the company meets its obligations

In return:

– You must create and maintain the company (regulated capital around 10 billion IDR depending on the sector, setup costs 25 to 50 million IDR, timeline 2 to 5 weeks)

– There is accounting, tax filings, and corporate tax at 22–25% on company profits

– The structure is oversized for a simple studio or one-bedroom intended for holidays

For a French person buying a single apartment, without ambitions to start a small hotel chain, PT PMA is often excessive. It becomes relevant if you aim for multiple properties and a structured rental activity.

Where to buy your apartment in Bali as a French person

Location is just as important as the legal structure. In 2026, several “micro-markets” stand out, with different yield and risk profiles.

Cash-flow core: Canggu / Berawa / Seminyak

The most dynamic area for short-term rentals remains the Canggu–Berawa–Seminyak corridor, highly popular with digital nomads and expats.

2025–2026 studies indicate:

– Very strong rental demand, high occupancy rates

– Anticipated price growth of 5 to 8% per year for Canggu/Berawa

– Seminyak, more mature but still upscale, remains a solid market (shopping, restaurants, nightlife)

For an apartment:

– Gross rental yield often 5–10% per year if well managed

– Main risk: supply saturation, downward pressure on rates (ADR), and heavy traffic

“Next wave” areas: Pererenan, Seseh, Cemagi, Umalas

West of Canggu, areas like Pererenan, Seseh–Cemagi, Kediri, Kaba‑Kaba are seen as the “next wave“:

Umalas, between Seminyak and Canggu, positions itself as a very attractive compromise: close to amenities, a more residential atmosphere, strong presence of expat families, stable rental fill.

Views and luxury: Uluwatu / Bukit / Bingin

On the Bukit Peninsula, the Uluwatu and Bingin areas are rising:

– Projected annual growth for sea view / cliff front properties: 8–12%

– Excellent nightly rates for well-positioned properties

– Less saturated than Canggu, but more speculative in certain segments (Bingin in particular)

For an apartment, this is more about luxury sea views, with higher entry tickets and international clientele.

“Family” and long-stay strategies: Sanur, Ubud, East Bali

For a more residential project:

In these areas, apartments and small residences offer more moderate yields, but stable demand from long-stayers and retirees.

Budget: how much does an apartment cost in Bali in 2026?

Price data shows levels well below major French or British cities.

Here is a table of benchmarks (averages, all areas combined):

Converted to British pounds, some reports suggest an average price of around 271 £/m² for an apartment in Bali, i.e., 84 to 92% cheaper than London, 75 to 81% cheaper than Brighton, 62 to 77% cheaper than Bath.

In terms of entry ticket:

For a French person targeting a 1-bedroom or 2-bedroom apartment in an expat area (Canggu, Pererenan, Umalas, Sanur, Ubud), a budget of 150,000 to 250,000 USD (≈ 140,000 to 230,000 EUR) is common, excluding fees.

Step 1: define your project, your horizon… and your structure

Before browsing listings, you need to clarify three elements:

– 1. Main objective

– Second home, personal use

– Rental investment (short-term like Airbnb or long-stay)

– Preparing for retirement in Bali

– Mixed personal use + rental

– 2. Holding horizon

– 10–15 years: a 25–30 year leasehold is more than sufficient

– 20–30 years with desire for transfer: Hak Pakai or PT PMA to consider

– Multi-property portfolio: PT PMA almost mandatory

In 2026, most professional guides converge: for a first purchase, the most pragmatic option for a French person is an apartment or small unit on a leasehold basis, in an already completed building, with proper titles and permits.

Step 2: financing the purchase as a French person

Several financing strategies are available to you, combinable if needed.

Paying cash: the simplest (and often fastest)

For a foreigner in Bali, paying cash remains the smoothest path:

– No local credit file

– No LTV (loan-to-value) constraints

– Shorter transaction time

– Stronger negotiating power with the seller or developer

Most payments are made in USD or IDR via international wire transfer. You need to factor in:

– Bank fees and exchange spreads

– Reporting obligations (in France, any significant transfer abroad must be justified)

Borrowing in France: using your French assets

If you are a homeowner in France, you can finance Bali by leveraging your French assets:

The advantages of French banks for this type of operation:

– They lend to non-residents and international buyers

– Rates are often lower and fixed over 15–20 years

– For operations ≥ 1 M€ and with wealth management, it is possible to finance up to 100% of the price in exchange for assets under management

However, the HCSF limits debt to 35% of gross monthly income, whether you are a resident or not.

Borrowing in Indonesia: possible but demanding

Indonesian banks lend to foreigners, but under a stricter framework:

Some banks (Permata Bank, HSBC Indonesia, CIMB Niaga, Bank Mandiri, BCA) have products for expatriates. But without a KITAS/KITAP, access to local credit is very restricted.

Developer payment plan (off-plan)

If you buy an apartment off-plan, it is common for the developer to offer a staggered payment schedule:

– Deposit of 10–30% upon reservation

– 3 to 5 intermediate payments linked to progress (foundations, structure, roofing, finishing)

– Balance (10–20%) upon completion

This is a short-term financing provided by the developer over a construction period of 12 to 24 months. This solution avoids bank credit but requires having liquidity available as the project progresses.

Summary of financing options for a French person

Step 3: selecting the apartment and verifying its legality

Once your budget is set and your target structure chosen (leasehold, Hak Pakai, PT PMA), you can start the search.

Search and pre-selection

You can combine:

– Local portals (Exotiq, Bali.Realestate, Propertia, agency platforms)

– Agencies specializing in foreign investors

– Recommendations from the French-speaking community (Canggu, Ubud, Seminyak, Sanur)

At this stage, the goal is to draw up a shortlist compatible with:

– Your budget and financing method

– Your target area (Canggu, Pererenan, Umalas, Sanur, Ubud, etc.)

– Your strategy (short-term rental, long-stay, primary residence)

– The legal structure offered by the seller (leasehold, strata Hak Pakai, etc.)

Due diligence: the step never to rush

Before paying a single cent to the seller, Indonesian law requires going through a notary-PPAT. It is the notary who:

In parallel, it is highly recommended to have a specialized lawyer to:

A good due diligence also includes:

– A boundary survey by a surveyor (high frequency of boundary disputes)

– A technical building audit (especially for secondary or older properties): leaks, drainage, electricity, structure. Studies show that 55–60% of new villas have hidden defects within 6–12 months (waterproofing, drainage, finishes). For apartment buildings, the same risks exist.

Step 4: offer, deposit, and signing at the notary

Once you have found the apartment and the due diligence looks positive, the classic sequence is as follows.

1. Letter of intent / reservation agreement A short document, sometimes accompanied by a reservation deposit (often 10%, sometimes a fixed amount of 2,000 to 10,000 USD for off-plan). This deposit must be placed in the notary’s escrow account, never directly to the seller or agent.

2. Preliminary contract (PPJB / CSPA) This contract details the price, payment terms, deadlines, the nature of the right transferred (leasehold, Hak Pakai, strata), and conditions precedent (e.g., satisfactory completion of due diligence).

– 4. Signing of the deed

– The deed is read in Indonesian by the notary, who can explain the key points in English

– You can sign in person, or via a power of attorney (POA) if you are buying remotely

– Upon signing and full payment, the notary registers the right with the BPN

– 5. Handover of keys and certificates

– You receive an official copy of the deed

– For an apartment, the strata title right or the registered lease contract

– Practically, you then legally have the right to occupy, rent, and resell that right

What the operation really costs: taxes and hidden fees

Many buyers rely on the “listed price” of the apartment and forget that in Indonesia, closing costs can add 10 to 20% to the final bill, depending on the structure.

Main cost items at purchase

For a French person buying an apartment in Bali, you need to factor in:

– Notary / PPAT fees:

– Typically 0.5 to 1% of the price, sometimes up to 2% on complex files

– Include title verification, deed drafting, registration, tax formalities

– Acquisition tax BPHTB (if applicable to the type of right):

– 5% of the taxable base, equal to the price or the official tax value (NJOP) if higher, minus a small allowance (NPOPTKP) often between 60 and 80 million IDR

– Main cost item for a purchase under Hak Pakai or HGB via PT PMA

– Lawyer and due diligence fees:

– Titles, zoning, inspections: a few million IDR for each component

– Complex cases: up to 0.5–1.5% of the property value

In practice, for a standard purchase under Hak Pakai or via PT PMA, the sum of statutory fees (PPN 11% + BPHTB 5% + notary 1–2%, excluding lawyer) can mechanically approach 17–18% of the listed price. For a pure leasehold, the absence of BPHTB and PPN (if it is a resale between individuals) significantly reduces the bill: 2026 reports mention 6–9% effective closing costs for properties eligible for state-covered VAT days, and often 2–4% on a simple leasehold.

Annual costs and recurring charges

Once the apartment is purchased, you need to account for:

– PBB (land and building tax):

– Theoretical rate 0.1 to 0.5% of the fiscal value (NJOP), in reality for an average apartment it is a few hundred euros per year

– Strata / HOA fees:

– Vary by residence (services, pool, security, reception)

– Banjar fees / community contributions (more common for villas, but some complexes are subject to them):

– Typically 120 to 300 USD / year

– Recurring bills: electricity, water, internet, property management

– Rental income tax:

– As a non-resident, withholding tax is often 20% of gross rent, sometimes reduced to 10% if the France–Indonesia tax treaty is properly applied

– Via a company (PT PMA), rental profits are taxed at the corporate rate (≈ 22–25%)

How taxation works for a French person

As a French person, you must deal with: the traditions, the gastronomy, the French language, the culture, and the history of your country.

– Indonesian taxation, levied on income generated in Bali (rent, capital gains)

– French taxation, if you remain a French tax resident or receive French income

The France–Indonesia tax treaty prevents double taxation. In practice:

It is therefore essential to:

– Obtain an NPWP (Indonesian tax ID) if you operate the property as a rental

– Consult a French accountant familiar with tax treaties to optimize your structure (direct ownership, company, etc.)

Major risks to absolutely avoid

The market is attractive, but certain pitfalls consistently appear in cases of poorly advised foreigners.

– 1. The nominee arrangement

– Illegal, unenforceable, risk of total loss of the property and legal action

– The legal “owner” is the Indonesian citizen, not you

– 2. Non-compliant zoning and permits

– Properties in “green zones” or on protected land sold as “ready to rent”

– Buildings without PBG or SLF, impossible to operate legally

– Administrative closures of entire complexes (e.g., the PARQ case in Ubud) for non-compliance with zoning regulations

– 4. Unrealistic yield promises

– ROI of 20–25% “guaranteed” without accounting for actual occupancy, seasonality, platform fees, management costs (often 18–25% of revenue)

– Underestimated operating costs (maintenance, refurbishments, marketing, staff)

– 5. Overpricing at purchase

– Agents paid a percentage by the developer, incentivized to inflate prices

– Lack of independent market comparison

– Most investor losses often come from a purchase price that is too high, more than legal issues

The only realistic safeguard: independence of your advisors. Have your own notary-PPAT, your own lawyer, and even a buyer’s agent paid a fixed fee rather than commission.

What yield can you reasonably aim for on an apartment in Bali?

2025–2026 analyses converge: in good areas, for a well-positioned and well-managed product, an investor can aim for:

– Net rental yield: 7–12% per year (after management fees, charges, local taxes)

– Annual price growth: 5–10% in core areas (Canggu, Berawa, Uluwatu) and more in a few well-chosen emerging zones

– Total return (rental + capital appreciation): 10–15% per year over 5–10 years for solid assets

But these figures only hold if:

To test the solidity of a project, you can:

1. Estimate a conservative occupancy rate (not the developer’s “marketing” rate) 2. Apply a realistic nightly rate, documented by current listings 3. Deduct 30–50% of gross revenue to cover management, charges, maintenance, marketing, local taxes 4. Divide the net result by your total acquisition cost (price + fees + furnishings + setup)

Below 7% net, question either the price or the quality of the asset.

Buying remotely: possible for a French person, but structured

In 2026, many French people buy their apartment in Bali without being on the island during the transaction. The typical procedure includes:

Here again, the key remains the quality of the notary-PPAT and your legal counsel.

In practice: the typical journey of a French person buying an apartment in Bali

To summarize:

Bali in 2026 remains an exceptional market for those who can combine a tropical life dream with legal and financial discipline. A well-informed French person, guided by an independent notary-PPAT and lawyer, can buy an apartment in Bali legally, securely, and profitably, accepting a simple reality: you don’t buy “land for life,” but well-structured rights to a real estate asset in one of the most dynamic tourist markets on the planet.

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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