Leasehold (Hak Sewa)
The leasehold structure is the most popular and accessible route for foreigners to enjoy property in Bali. You sign a long-term lease agreement giving you exclusive use of the land and any buildings on it for a fixed period — typically 25 to 30 years, with extensions negotiated upfront.
How it works
A notarised lease (Akta Sewa) is signed with the Indonesian landowner. You get full enjoyment of the property — to live in, renovate, or rent out — for the entire term. Extensions of 20–30 additional years can be pre-agreed and pre-paid to lock in today's price.
Who it's for
Foreigners seeking a holiday home, a rental investment, or a second residence without setting up a company. Ideal for shorter to mid-term horizons (10–50 years).
Costs & taxes
Lease payment is made upfront. A 10% withholding tax on the lease value applies. Notary fees range from 1% to 1.5%. No annual ownership tax beyond the modest PBB land tax.
Pros & cons
Pros: fast (4–6 weeks), low setup cost, no Indonesian company needed, full use of the property. Cons: not freehold ownership, value depreciates as the term shortens, requires careful contract drafting around extensions and inheritance.