🟡 Can foreigners buy property in Bali?
Yes, foreigners can legally and safely buy a property in Bali under a lease agreement or “leasehold” (Hak Sewa title) or right to use (Hak Pakai) that will be valid for 25 to 30 years with an option to extend up to 80 years. Foreigners are invited to invest in property in Bali as individuals or through a special foreign-owned company called PT PMA (PT Penanaman Modal Asing) and those are the only legal ways to use land according to the law.
Initially, you will sign a lease agreement for 25 or 30 years, and when the lease expires you can either extend it for another 20-30 years or let it go and the ownership title will return to the original owner together with the building or any improvements you’ve made to this property.
🟡 Can I buy with a SMSF?
Yes . Subject to it being done compliantly in both countries. We can’t give financial advice however many clients have chosen to use SMSF to purchase. It simply has to be compliant in both countries.
🟡 How long will it take to build?
8-10 months, but allow 12 months to be conservative.
🟡 How do I rent them?
We provide full rental management services. Standard 25% fee on bookings.
🟡 What if I want to holiday in my apartment?
Easy, simply block off the weeks, or days you want.
🟡 Do they come fully furnished?
Yes that’s included in the price.
🟡 Can I come and inspect during the building stage ?
Sure,you can visit the site upon request.
🟡 How confident are the rentals projections?
We are very confident as they are based on an existing project, in similar rental demand areas, despite no effective marketing ie rented even without being added to Airbnb etc, which we will be utilising.
🟡 What if I don’t have the full funds now, but will in a few months?
If you will definitely have the full funds in 3-5 months, you can pay your 40% now, and 40% more in about 4-5 months when the half way mark is reached, for your apartment build, with 30 day grace periods.
🟡 Will the discounts last long?
No. The projects go to LUX Members Members first, and Refferal partner clients, then to real estate agents. Once the project is completed any sales then are at a significant increased prices.
🟡 What is a PMA company?
It’s a company on Indonesia you can set up for foreigners to own property or business’s in.
🟡 How much?
About $2500 AUD approximately
🟡 Do I need to set up a PMA company to buy a villa or studio?
Not until your villa is complete if you choose.
You simply sign a pre sale agreement in your own name to start, and once you villa is complete, you can have a PMA company, listed on your final contract, which is only drawn up after the completion of your villa or studio by the notary.
🟡 Do I have to attend bali or lombok to sign in front of a notary after the completion of my villa / studio / penthouse?
No as clients can appoint someone to sign the final contracts with the notary on their behalf. This is usually done through a Power of Attorney (POA), which needs to be properly drafted and notarized in Australia, then legalized or apostilled depending on the notary’s requirements here in Indonesia. Once that’s done, the appointed representative can legally sign the documents in Bali or Lombok.
🟡 When do I need to set up a PMA company if I choose to?
After you sign your pre sale agreement in your own name generally and make payment .
You have until your villa is completed to set to a PMA company which can then be added onto your final contracts which are created after your villa is completed.
It costs about $2500 AUD and after you have completed and signed your pre sale agreement and paid ( not before ) we can introduce you to advisors who can set these up for you ( takes about 14 days ) and many do it as very tax effective or if buying freehold it will become necessary after villa completion
See below for advise from the notary who you’ll sign final contracts with if purchasing a bali property.
In response to your question, based on the regulations in Indonesia, it is very important to ensure that the PMA (Foreign Investment Company) is established before signing the final contract and completing the payment. Here are several points to consider:
Establishing the PMA company before signing the final contract is the correct step. According to Indonesian law, in order to make a property investment, the PMA must be established first so that the transaction is valid and in compliance with existing regulations. If the final contract is signed after the PMA is established, it allows you to properly record their investment, so the money they pay can be counted as an investment by the PMA.
When the final contract is signed, it is possible to change the name from a personal name to the PMA company name. This will also help avoid any future issues related to ownership and the legal status of the company.
Ensuring that the date of the final contract is after the establishment of the PMA is the right approach to avoid problems with audits or the minimum investment requirements that the PMA must have. Without recorded investments in the PMA at the time of an audit, the PMA could be canceled. Therefore, setting the final contract date after the establishment of the PMA is crucial.
Generally, this is a standard procedure in many projects in Indonesia to ensure that the transactions and investments comply with the applicable laws. This helps ensure that all regulations regarding foreign investment are adhered to and minimizes the risk of PMA cancellation in the future.