The Bali property glossary.

Indonesian freehold, held on a Sertifikat Hak Milik. Only Indonesian citizens can hold it, and any sale, gift or arrangement meant to pass it to a foreigner, directly or indirectly, is void in law, with the land falling to the State.

A registered right to use land for a fixed term, and the only land title a foreign individual can hold. On State land it runs up to 30 years, extendable by 20 and renewable by 30, each step applied for and approved. On land owned by an Indonesian, the usual Bali case, it runs up to 30 years and renews only through a new deed the owner agrees to.

A lease of someone else's land for building, against rent paid in one sum or in instalments. It is the most common structure for foreign buyers in Bali: a contract with the landowner, normally a notarial deed, that industry guides put at 25 to 30 years, with extensions only if the contract provides for them.

Strata title to an apartment unit. A foreigner may own a unit in a building on Hak Pakai or HGB land, in the zones where foreign strata ownership is allowed, so the developer's notary has to confirm that the specific building qualifies. The title lasts as long as the land right beneath it.

Hak Guna Bangunan, the right to build and own buildings on land for a term. A foreign individual cannot hold it; an Indonesian company with foreign shareholders, a PT PMA, can.

"Borrowing a name": an Indonesian holds the title on behalf of a foreigner. These arrangements are void and unenforceable, and since February 2026 Bali's provincial regulation No. 4/2026 expressly bans nominee land transfers and sanctions anyone who arranges them.

Makes authentic deeds such as the conditional sale agreement (PPJB), lease deeds and company deeds. Bali leases are normally signed as notarial deeds, because a private agreement is weak evidence in an Indonesian court.

Makes the deeds that transfer or create registered land rights, such as the deed of sale and the deed granting Hak Pakai. Before signing, the PPAT checks the certificate at the land office and needs proof that the seller's income tax and the buyer's BPHTB have been paid. A notary may also hold PPAT office.

The National Land Agency and its local offices, which register titles. A right such as Hak Pakai over private land binds third parties only once it is registered there and the certificate is issued.

Akta Jual Beli, the deed of sale signed before a PPAT, after which the transfer is registered at the land office and the certificate issued.

The conditional sale agreement used before the deed of sale, for example on an off-plan unit. Under the housing rules a developer may sign one only once it holds the land certificate and the building permit and at least 20% of construction is complete.

Persetujuan Bangunan Gedung, which replaced the IMB building permit. Construction may start only once it has been issued, so an off-plan buyer should see it before paying more than a deposit.

Sertifikat Laik Fungsi, issued by the regional government to confirm that a building is fit for use before anyone uses it. It is valid for 20 years for a house and 5 years for other buildings.

Paid by the buyer of a registered title at up to 5% of the higher of the price and the assessed value (NJOP), less a non-taxable allowance that each regency sets.

A regional tax of up to 0.5% of the assessed value each year, billed on the yearly SPPT notice. Under a lease, who pays it is a term of the contract.

The government-assessed value of land and buildings, used to calculate the PBB and as the floor for the buyer's BPHTB and the seller's income tax.

A regional tax of up to 10% on payments for accommodation, villas and homestays let to guests included. The rental operator collects it.

A stay permit of up to 5 years, extendable to 10, for a foreigner who keeps at least US$130,000 in a state-owned Indonesian bank or buys an apartment worth at least US$1 million. Government fees total IDR 13 million. A leasehold villa does not qualify.

The limited (KITAS) and permanent (KITAP) stay permits. Notaries commonly ask a foreign buyer of a Hak Pakai title to hold one, so plan on a valid stay permit before signing.

An Indonesian company with foreign shareholders, the lawful route for a foreigner to run a rental business. Since October 2025 its minimum paid-up capital is IDR 2.5 billion, with an investment plan above IDR 10 billion per business line and location.

The national online licensing system and the business identification number it issues. Every accommodation business needs one, tied to the KBLI code of its activity.

The standard code that defines what a licensed business may do. A villa let to guests needs an accommodation code on its licence.

By the official definition, a house occupied by its owner and owned by the local community, with part of it let to tourists. It is not a structure for foreign owners.

The regional spatial plan, the detailed spatial plan and the spatial-use conformity approval. Together they decide whether a plot may take a villa at all: land in a green or agricultural zone cannot.

Bali's traditional rice-field irrigation system, part of a UNESCO-listed cultural landscape that includes the Jatiluwih terraces in Tabanan.