In addition to beautiful and stunning beaches, Bali has a tradition and culture to be proud of. In fact, Bali is indeed the best attractive destination for tourists or investors. Every year more and more foreigners from various worlds come to the island of Bali and decide to settle down. Not a few foreigners who marry locals or build businesses in the local market. Foreigners can buying property in Bali for personal or commercial use. It should be noted that legally, foreigners cannot own property in any form. In fact, many foreigners own property using the name of a partner, or a trusted local resident. Consider a few things that are necessary before buying property in Bali.
This is not known by many foreigners or foreign investors. Custom land! Land with customary land ownership certificates are usually inherited based on lineage. It will be difficult to solve problems when you are trapped in a customary land dispute. Property on Bali has never lost its interest, but it’s a good idea to ensure that you don’t buy customary land.
Applicable Agrarian Laws (No. 5 of 1960)
Before buying property in Bali, you must pay attention to the rules of certified land ownership transactions based on the agrarian principal through the national land agency. The requirements for foreigners to get property are as follows:
Sertifikat Hak Guna Bangunan (SHGB) – it is explained that for property selector documents with a building rights certificate, it can build for a period of 30 years and can be extended for another 20 years. For foreigners, a building rights certificate can be the right choice. But make sure that your company is officially registered and complies with government regulations.
Sertifikat Hak Pakai (SHP) -This certificate is similar to SHGB with a validity period of 25 years, but the extension is up to 80 years.
Sertifikat Hak Guna Usaha – This certificate is only used for land used for agriculture. Document validation for this certificate is 25 years and can be extended up to 35 years.
Above is a glimpse of the regulations set by the government that needs to be considered when foreigners want to buying property in Bali. With all the regulations set are there any tips for succeeding in investing in Bali?
Get to know the local customs
It is important to know the local area before deciding to buy property in Bali. Each area and local custom usually have different rules. For that, it is better to get to know more closely in order to recognize the applicable regulations.
It is important to know the legal status when you are going to invest either in a residence or business. Due diligence is important to conduct a comprehensive assessment of your investment. You need to know your rights and obligations as a tenant. Due diligence is also carried out to prevent you from being involved in a land dispute.
So from all the explanations above, whether the question of whether it is possible for expats to buy property in Bali has been answered. Make sure you have completed all the requirements and documents needed to expedite the process.