Leasehold Villas in Bali:
How Ownership Works for Foreigners

Leasehold is the standard, established way for foreign buyers to own a villa in Bali — and understanding it is the single most important step before purchasing. This guide explains how it works, using Shanti Village's up-to-82-year structure as a reference.

What leasehold means

Under a leasehold (Hak Sewa), you hold the exclusive right to use and enjoy a property for an agreed term. In Indonesia, foreign nationals generally cannot hold freehold title (Hak Milik) directly, so leasehold is the normal, legal route for international buyers. You control and benefit from the villa for the lease period, and the right can typically be transferred or resold within the remaining term.

How the term works at Shanti Village

Villas are offered on a leasehold of up to 82 years — an initial 32-year term plus a 50-year extension. The remaining lease length is a key driver of both long-term value and resale price: the longer the remaining term at exit, the more valuable the asset.

Freehold vs leasehold — the practical difference

Freehold is indefinite ownership but isn't directly available to foreigners; some buyers use a PT PMA company structure, which carries its own rules, costs and obligations. Leasehold is simpler, widely used, and well understood by Bali's legal and notary community. For most foreign villa buyers, it is the practical path.

What to verify before buying

• The exact lease term and the extension mechanism (how and when the 50-year extension is secured).
• Who holds the underlying land title and the terms of the head lease.
• Transfer and resale rights within the remaining term.
• Zoning and permitted use for the specific plot.
• That the purchase is supported by independent legal counsel and a qualified Indonesian notary (PPAT).

Shanti Village purchases are supported by independent legal counsel, and every villa is delivered fully furnished on this up-to-82-year structure. As with any property, confirm the exact legal structure and your personal circumstances with a qualified notary or legal advisor before committing. This article is general information, not legal advice.