Bali Real Estate Explained: Leasehold vs Freehold in 2025

The Allure of Bali Real Estate in 2025

Who hasn’t dreamed of owning a place in Bali? Whether it’s the laid-back beach towns, lush jungle villas, or the peaceful lifestyle, Bali just pulls you in. And in 2025, buying property here isn’t just for daydreamers — it’s a real investment opportunity.

But before you start picturing yourself sipping coconuts on your villa porch, there’s one thing you need to get clear on: leasehold vs freehold. These are two very different ways of “owning” property in Bali — and understanding the difference can save you a lot of money and stress.

Let’s walk through it, no jargon, no confusion.

What Is Leasehold Property in Bali?

Think of leasehold as a long-term rental. You don’t own the land, but you have the legal right to use it for a set number of years — usually 25 to 30. After that, you may have the opportunity to extend it.

For foreigners, this is the most common and straightforward option. You don’t need to open a company or jump through crazy legal hoops.

Why people go for leasehold:

• More affordable upfront
• Ideal for short- to mid-term living
• Easier process for non-Indonesians
• Maximizes ROI with lower upfront capital
• Prioritizes cash flow over long-term land ownership
• Offers access to high-demand tourist zones
• Often comes with renewable agreements for future flexibility

But, be aware:

• You don’t own the land itself
• The extension terms can change later
• The closer your lease gets to expiring, the harder it is to resell

Still, if you're just dipping your toes into Bali real estate, leasehold is a solid way in.

What Is Freehold Ownership in Bali?

Freehold is simple — you own the property and the land. It’s yours, no expiration date.

Sounds perfect. It is, but here’s the catch: only Indonesian citizens can legally own land freehold.

If you’re a foreigner, you can’t buy a freehold directly — unless you set up a PT PMA (a foreign-owned company), or go through a nominee (not recommended without strong legal protection).

Here’s why people aim for freehold:

• It’s permanent — no ticking clock
• Properties hold more value and are easier to sell
• Great for those who want to stay long-term or pass it on to family

Yes, it’s more complicated (and more expensive), but for the right buyer, it’s 100% worth it.

Leasehold vs Freehold in 2025: Key Differences That Matter

So, yes — foreigners can buy property in Bali, but mostly through leasehold, or by using proper legal setups for freehold.

Smart Investment Decisions: Which One Should You Choose?

Here’s how to think about it:

• If you’re looking for a rental property in a tourist hotspot like Canggu or Seminyak, a leasehold might be all you need.
• If you’re planning to live in Bali long-term, raise a family here, or leave the property as part of your legacy, it’s worth exploring freehold through a PT PMA.

Your decision comes down to how long you plan to stay and what you want from the investment.

Trends Shaping Bali Real Estate in 2025

The Bali property scene is changing fast. Some things you should know:

• You can now buy remotely — a lot of buyers are handling deals online, from due diligence to payment
  
  
• Nominee structures are being reviewed — the government’s cracking down on shady deals
  
  
• Luxury properties are hot — places like Uluwatu and Ubud are seeing freehold villas getting snapped up
  
  
• Mid-term rentals are trending — many leasehold owners are earning well through Airbnb, and monthly tenants
  
  

Bottom line? There’s no one “best” option — it depends on who you are and what you’re buying for.

Legal Tips for Buyers in Bali (Foreign & Domestic)

Before you jump in, here are some friendly, hard-learned tips:

• Work with a legit property agent (not just someone who "knows a guy")
  
  
• Get your own notary/lawyer, not the one provided by the seller
  
  
• Be super cautious with nominee setups — or better yet, avoid them
  
  
• Double-check lease agreements — especially how renewals work and what happens at the end
  
  

Doing things the right way upfront can save you massive headaches later.

Conclusion: Final Thoughts on Leasehold vs Freehold in Bali

Bali’s real estate market is full of opportunity — you just need to understand how the rules work here.

If you’re looking for a smart way to invest, with flexibility, strong rental potential, and a shorter commitment — leasehold offers the best of both worlds. It’s ideal for those seeking returns, a vacation home, or both.

If you’re playing the long game and want full control and value, freehold is worth the effort (with the right setup).

Just remember: it’s not about what’s “better,” it’s about what’s better for you.

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Thinking of buying property in Bali but not sure where to start?

At LeyLines, we guide international buyers every step of the way — from choosing between leasehold and freehold to navigating legal details with confidence.

Our portfolio includes design-led, high-performing properties in Bali’s most sought-after locations — all built with long-term value, lifestyle, and returns in mind.

Reach out today to explore our latest listings and get trusted, expert advice tailored to your goals.

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