| Owning Property in Bali |
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Owning property in Bali is a popular option for investors looking for a holiday home, a place for retirement, or an investment to earn rental income from. Below is information to equip investors with knowledge on owning property in Bali along with services offered by Healy Consultants: | ||||
1.
| Owning property in Bali is appealing to many foreigners as it offers such a wide range of attractions. Combine this with a good selection of airlines and it is easy to see why this beautiful island is a popular tourist destination and home for many foreigners.
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2.
| By law, foreign individuals can not own freehold land in Bali. However, there are three basic avenues for owning property in Bali. These are outlined below:
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i)
| Using an Indonesian nominee power of attorney agreement - this has been the most common method for foreign individuals to acquire land in Bali. The Indonesian nominee buys the property and is registered on the land title deed. They also complete three other legal agreements including a loan agreement to prove the foreigner has lent the funds to the nominee, an irrevocable power of attorney which allows the foreigner to sell, mortgage, lease or otherwise use the land and a permanent right of use which gives the foreigner the right to occupy and use the property.
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ii)
| Using a Penanaman Model Asing (PMA) company - A PMA company can be 100% owned by a foreigner but this form of title is valid for 30 years with subsequent extensions of 20 years and 30 years an option. This is a valid option for multinational corporations as well as smaller off-shore companies. Hotels commonly use this form of ownership.
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iii)
| Leasehold title granted to a foreign individual - a foreign individual permanently based in Indonesia, satisfying conditions such as holding a KITAS working visa can enter into a 25 year lease renewable for a further 25 years. This is a direct lease between the foreigner and the local owner. This is most commonly used for retirees moving permanently to Bali or foreign companies that require residence for their employees working in Bali. A leasehold investment offers protection to the foreigner during the term of the lease. The government is considering extending this lease period from 25 years to 70 and some believe this could be implemented early in 2009.
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3.
| The property management services provided by Healy Consultants are beneficial for investors owning property in Bali. Our firm efficiently project manages requirements such as property maintenance and refurbishments, organizing appropriate property insurance, arranging property security, property valuations, finding tenants and ad hoc problem solving.
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4.
| According to the Bali Tourism Board in January of 2009, a total of more than 2.2 million tourists visited Bali. This value is up 13% from the same time last year, and is support to show Bali has recovered from the tourism downturn suffered after the terrorist activity in 2002 and 2005. The annual survey by Smart Travel Asia supports the popularity of Bali as a tourist destination. Their 'top holiday destinations' list has voted Bali as the number 1 destination for the last three years.
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5.
| The mortgage market in Indonesia has grown significantly in the last six years, although it is from a small base. Despite the growth, mortgage credits still accounted for only 2.5% of Indonesia's GDP. For foreign individuals wishing to own property in Bali, Healy Consultants assists with obtaining their property finance requirements. Including negotiating mortgage terms and conditions. Our firm works with leading international banks including ANZ Bank, HSBC and OCBC Bank.
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6.
| Whether the requirement is i) residential real estate or ii) commercial real estate, Healy Consultants offers comprehensive services to assist clients with their objective of owning property in Bali. Consideration is given to needs such as location, budget, size, proximity to international schools, and security requirements to develop appropriate property investment options. | |||
7.
| The costs for buying property in Bali are high as the buyer is subject to paying 10% VAT, 5% transfer tax, 1% for sale and purchase of Land Deed, 5% land and building transfer duty along with stamp duty, registration, and legal/agent fees. Property taxes are also applicable for investors owning property in Bali. Healy Consultants provides invaluable tax and accounting advice to investors in order to efficiently efficiently meet the tax obligations of Indonesia. For example, non-residents are charged 20% income from rent but there are variations for countries with double taxation treaties with Indonesia. |
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8.
| Indonesia is playing host to the 61st ‘International Real Estate Forum’ in 2010. Indonesia bolsters a large expatriate population, and in recent years has increased bilateral ties with many countries. |
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9.
| To ensure the legal matters associated with owning property in Bali are managed correctly, Healy Consultants appoints and supervises a local lawyer experienced in property transaction. This helps to maintain peace of mind and protect the rights of the purchaser. |
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10.
| For clients migrating to Bali, Healy Consultants arranges requirements such as immigration visas, relocation services, familiarization with the island of Bali.
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Contact Us | ||||
For further information on owning property in Bali, call our Singapore office at (+65) 67350120 or contact email@healyconsultants.com
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