Bali Real Estate Financing: A Practical Guide and Tips

Published on October 4, 2025 and written by Cyril Jarnias

Bali, the Island of the Gods, is attracting more and more foreign investors drawn by its paradise-like setting and real estate potential. Whether you dream of an ocean-view villa in Canggu or a property in the heart of Ubud’s rice fields, financing your real estate project in Bali may seem complex. However, with the right information and proper guidance, making your Balinese dream a reality is entirely possible. In this article, we will explore the different real estate financing options in Bali for foreigners, the necessary documents, and the requirements for obtaining a loan.

Do the Gates of Paradise Open for Foreign Investors?

Contrary to what one might think, foreigners can indeed obtain real estate financing in Bali. However, it’s important to understand that the process differs from that in many Western countries. Indonesian banks are generally more reluctant to grant loans to non-residents, but this doesn’t mean it’s impossible.

The first thing to know is that most Indonesian banks require the borrower to be a resident of Indonesia. This means you will likely need to obtain a KITAS or KITAP residence permit before you can qualify for a real estate loan. Some banks, like Bank Mandiri or BCA (Bank Central Asia), offer products specifically designed for expatriates and foreign investors.

Another option to consider is financing through an international bank present in Indonesia. Institutions like HSBC or Citibank may be more inclined to work with foreign clients, especially if you already have a banking relationship with them in your home country.

The Winning File: What Documents Do You Need to Secure Your Financing?

To maximize your chances of obtaining real estate financing in Bali, it’s crucial to prepare a strong application. Here are the documents generally required by Indonesian banks:

• Valid passport
• KITAS or KITAP residence permit
• Proof of income (pay stubs, tax returns)
• Bank statements from the last 6 months
• Employment contract or proof of professional activity in Indonesia
• Proof of address in Indonesia
• Business plan or detailed investment project
• Guarantees or collateral (if available)

It’s important to note that all documents must be translated into Indonesian by a certified translator. Additionally, some banks may require additional documents depending on your personal situation and the type of property you wish to acquire.

A crucial aspect not to overlook is proof of the legal origin of funds. Indonesian banks are particularly vigilant about this point, due to strict anti-money laundering regulations. Therefore, make sure you can clearly justify the source of your funds.

Finally, don’t forget to prepare a presentation file for your real estate project. The more detailed and professional your project is, the better your chances of convincing the bank to grant you a loan.

Keys to Success: Conditions for Securing Your Balinese Real Estate Loan

Obtaining real estate financing in Bali as a foreigner requires meeting certain specific conditions. Here are the main criteria that Indonesian banks consider:

1. Resident Status

As mentioned previously, most banks require you to be a resident of Indonesia. This generally means you must hold a KITAS (temporary permit) or KITAP (permanent permit). The KITAS must be valid for at least one year, and some banks may require you to have resided in Indonesia for a minimum period before you can qualify for a loan.

2. Financial and Professional Stability

Banks will want to ensure your ability to repay the loan. They will carefully examine:

• Your regular income (salary, rental income, dividends)
• Your employment history or professional activity in Indonesia
• Your savings and assets

It’s generally recommended to have a monthly income of at least 30 million Indonesian rupiah (approximately $1,900 USD) to be considered a serious candidate.

3. Personal Contribution

Indonesian banks often require a significant personal contribution. For foreigners, this contribution can range from 30% to 50% of the property price. The higher your contribution, the better your chances of obtaining a loan with favorable terms.

4. Age and Loan Term

The maximum age for obtaining a real estate loan in Indonesia is generally 55 years, with repayment that must be completed before age 65. The maximum loan term is often limited to 20 years for foreigners.

5. Property Type and Title

The type of property you wish to acquire and the associated title can influence your ability to obtain a loan. Banks generally prefer properties with clear, dispute-free titles. For foreigners, the right of use (Hak Pakai) is often the most accessible and easily financeable form of ownership.

6. Insurance

Banks will generally require you to take out life insurance and fire insurance to cover the loan. These insurances must be contracted with companies licensed in Indonesia.

Alternative Strategies: Exploring Other Financing Options

If obtaining a loan from an Indonesian bank proves difficult, there are other options to consider for financing your real estate project in Bali:

1. International Financing

Some international banks specializing in overseas real estate loans may be more flexible in their conditions. Institutions like HSBC Global or Barclays International sometimes offer financing solutions for purchasing properties in exotic destinations like Bali.

2. Seller Financing

In some cases, the seller may accept installment payments, thus acting as a lender. This option is more common for high-end properties or private transactions. However, make sure to properly secure this type of arrangement with the help of a specialized lawyer.

3. Real Estate Crowdfunding

Real estate crowdfunding platforms are beginning to emerge in Indonesia. Although this option is still relatively new, it can offer an interesting alternative for financing part of your project.

4. Partnership with a Local Investor

Partnering with an Indonesian investor can facilitate access to financing. This approach requires great caution and a solid legal framework, but can open doors in terms of financing and local management of your property.

5. Refinancing Properties in Your Home Country

If you own real estate properties in your home country, consider refinancing them to obtain the necessary funds for your purchase in Bali. This option may be simpler and potentially less expensive than trying to obtain a loan in Indonesia.

Navigating Balinese Real Estate Financing Waters: Expert Tips

To maximize your chances of success in your quest for real estate financing in Bali, here are some expert tips to keep in mind:

1. Get Assistance from Local Professionals

Hire a lawyer specialized in Indonesian real estate law and a financial advisor familiar with the specifics of the Balinese market. Their expertise will help you navigate the legal and financial complexities of the process.

2. Build a Strong Banking Relationship

If possible, open a bank account in Indonesia and start making regular transactions there well before applying for a loan. An established banking relationship can greatly facilitate the financing process.

3. Be Transparent About Your Intentions

Clearly explain your real estate project to the bank. Whether it’s for a personal residence or a rental investment, a detailed business plan and solid financial projections can strengthen your application.

4. Prepare for Higher Interest Rates

Interest rates for real estate loans in Indonesia are generally higher than in many Western countries, often between 8% and 12% per year. Make sure your financial plan accounts for these rates.

5. Consider an Appropriate Ownership Structure

Explore different ownership structures, such as creating a PT PMA (foreign company in Indonesia) to hold the property. Although more complex, this approach can sometimes facilitate obtaining financing.

6. Stay Flexible and Patient

The process of obtaining real estate financing in Bali can take time. Stay open to different options and be prepared to adjust your strategy if necessary.

Conclusion: Realizing Your Balinese Real Estate Dream

Obtaining real estate financing in Bali as a foreigner is a challenge, but not an impossibility. With careful preparation, a thorough understanding of local requirements, and potentially exploring alternative financing options, you can realize your investment project in this tropical paradise.

Remember that each situation is unique and market conditions can change. It’s crucial to stay informed about the latest regulations and surround yourself with competent professionals to navigate the complexities of the Balinese real estate market.

Whether you dream of a luxury villa in Seminyak, a peaceful retreat in Ubud, or a rental investment in Canggu, with the right approach and careful planning, your real estate project in Bali can become a rewarding reality, both personally and financially.