Leasehold vs. Freehold in Bali: What International Buyers Should Know

Leasehold vs. Freehold in Bali: What International Buyers Should Know

Introduction
Bali is more than just a tropical paradise — it has become a global hotspot for property investment. Whether you're dreaming of a private villa escape or seeking long-term returns, one key decision awaits: leasehold or freehold? In this article, we break down the differences, explain what’s legal for foreigners, and help you choose the best path for your investment strategy.

What’s the Difference Between Leasehold and Freehold?

Freehold

• Full ownership of the land and property.
• Can be passed down or sold without time limits.
• Only Indonesian citizens or legal entities are allowed to own land under freehold.

Leasehold

• A long-term rental agreement, typically 25 to 30 years, often with extension rights.
• The land is owned by an Indonesian citizen, but the buyer has full rights to use and develop it during the lease term.
• Fully legal and commonly used by foreign investors.

What Can Foreign Buyers Legally Own in Bali?

According to Indonesian law, foreign nationals cannot directly own land under freehold titles. However, they are allowed to:

• Own property under leasehold (Hak Sewa).
• Own apartments under Right to Use (Hak Pakai) in certified buildings.
• Set up a local company (PT PMA) to hold freehold through more complex legal structures.

For most individuals, leasehold is the most secure and straightforward way to invest in Bali property.

Why Many Investors Choose Leasehold

• Legal and secure — Protected by formal agreements and recognized under Indonesian law.
• Lower entry cost — Typically more affordable than freehold property.
• Strong return potential — Especially attractive for short- and long-term rentals.
• Flexible — Most leasehold agreements can be extended or renegotiated for longer terms.

How This Relates to The Royal Shivana Villas

At The Royal Shivana, we offer premium 25-year leasehold villas with guaranteed extension options. Our model is designed specifically for international buyers who seek:

• A private, serene location in Nusa Dua.
• Full legal clarity and ownership security.
• A luxury villa with high potential for value growth and rental income.
• A worry-free ownership experience with professional villa management.

Which Option Is Best for You?

Final Thoughts

Leasehold is not a compromise — it is a practical, secure, and investor-friendly option for foreign buyers in Bali. With the right legal support and property developer, leasehold can provide excellent value, lifestyle benefits, and long-term returns.

At Aura Property Group, we ensure every step of the purchase process is transparent and guided by experienced professionals. If you're considering a villa investment in Bali, we invite you to explore The Royal Shivana — a modern sanctuary offering timeless value.

Contact us today to learn more or schedule a consultation!