Your Complete Guide To Buying an Apartment in Bali In 2025

Bali is currently one of the most popular places for property investment, and apartments are becoming a top choice for buyers who want something affordable, easy to manage, and great for rentals. If you’re thinking about buying an apartment in Bali, this guide will help you understand the process, costs, and legal requirements.

Why Buy an Apartment in Bali?

    • Affordable Prices – Apartments cost less than villas, making them a good option for investors and homeowners.

    • Rental Income Potential – The strong tourism market means well-located apartments can earn good rental returns.

    • Low Maintenance – Apartments typically don’t have large gardens to look after. Many apartments come with management services, so you don’t have to worry about upkeep.

    • Prime Locations – New developments are popping up in popular areas like Canggu, Seminyak, Ubud, and Uluwatu.

    • Modern Amenities – Many apartments offer pools, security, gyms, wellness facilities and co-working spaces which are desirable to renters and homeowners alike.

    • Expanding Expat Community – Bali has a large international community, making it a comfortable place to live.

A luxurious modern apartment in Bali with a spacious balcony set against the green, tropical landscape and looking out over the beach and distant ocean views

Can Foreigners Buy an Apartment in Bali?

Foreigners cannot directly own freehold property in Bali, but they can buy apartments legally through:

    • Hak Pakai (Right to Use) – A legal way for foreign individuals to own their private primary residence

    • PT PMA (Foreign-Owned Company) – If you set up a foreign investment company, you can own property for business purposes under a HGB title

    • Leasehold Agreements – A long-term lease (usually 25-30 years with renewal options) is a common way for foreigners to secure property.

Leasehold vs. Freehold

    • Freehold (Hak Milik) – Only available to Indonesian citizens.

    • Leasehold (Hak Sewa) – A fixed-term lease from an Indonesian owner, usually renewable.

    • Hak Pakai and Hak Guna Bangunan (HGB) – A long-term right to use or right to build, approved by the government. It is issued on a freehold property and the property can later be resold with freehold title, making it a good option for foreign buyers who want similar benefits to freehold ownership.

What Fees Should You Expect?

When buying an apartment in Bali, be aware of these costs:

    • Strata Fees – Covers shared facilities like pools, gyms, and security. Costs range from $50 to $300 per month.

    • Sinking Fund – A reserve fund for major repairs or upgrades in the apartment complex. This can be a one-time or annual fee.

    • Management Fees – If you rent out your apartment, the property management company takes 10-40% of rental income depending on the services provided.

    • Legal & Notary Fees – Usually 1% of the property value for contracts and legal work.

    • Taxes – All properties have tax obligations, including land and rental income taxes.

    • Utilities – Electricity, water, and internet typically cost between $50 to $200 per month.

Can Foreigners Run a Short-Term Rental Business?

If you plan to rent your apartment as a short-term holiday rental, there are legal rules to follow. Foreigners cannot directly manage short-term rental properties—instead, you must hire an Indonesian-owned management company to handle bookings and guest services.

To legally operate a short-term rental, you need:

    • A Pondok Wisata (Tourism Accommodation License), allowing short-term rentals.

    • A contract with a local management company that holds the required business licenses.

    • Tourism Taxes & Fees – Rental properties must follow tourism tax regulations.

Ignoring these rules can result in fines, property closure, or other penalties.

A modern apartment complex in Bali with tropical landscaping, a swimming pool, and a contemporary design. The scene is bright and inviting, showcasing sunset and palm trees

Best Locations to Buy an Apartment in Bali

Bali has many great areas to invest in. Here are some of the top locations:

    • Canggu – A favorite for digital nomads and surfers, with strong rental demand.

    • Seminyak – A high-end area with luxury apartments and vibrant nightlife.

    • Ubud – A peaceful, cultural town ideal for wellness retreats and long-term stays.

    • Uluwatu – Known for its stunning cliffs and beaches, perfect for high-end buyers and surfers.

    • Sanur – A quiet, family-friendly beach area popular with retirees and families.

Steps to Buy an Apartment in Bali

    1. Choose a Legal Structure – Decide if you will buy under leasehold, Hak Pakai, or a PT PMA.
    2. Pick a Location – Select an area based on your lifestyle or investment goals.
    3. Work with a Reputable Agent – Use a trusted real estate agent to find secure deals.
    4. Do Your Due Diligence – Hire a reputable notary to do a complete check of property documents, ownership history, access agreements, legal permissions, licenses and permits, etc
    5. Sign the Agreement – Work with the notary to complete the legal paperwork.
    6. Register the Property – Pay all necessary taxes and fees to finalize the purchase.

Tips to Maximize Your Investment

    • Buy in a High-Demand Area – Places like Canggu and Seminyak attract strong rental demand but be aware of potential market saturation particularly in parts of Canggu where large increases in rental supply are imminent. Up and coming areas with low supply and increasing demand are often the hidden gems in the market.

    • Use a Management Company – Essential for running short-term rentals legally.

    • Market Your Property – The management company will list it on platforms like Airbnb and Booking.com and use social media for advertising.

    • Upgrade the Interiors – Modern, stylish furnishings can increase rental income. Many renters love an “Instagrammable” property

    • Consider Long-Term Renters – Target expats and digital nomads for steady income and less wear and tear.

Final Thoughts: Is Buying an Apartment in Bali a Good Idea?

If done right, buying an apartment in Bali can be a profitable investment. By understanding the legal options, being aware of costs, and ensuring compliance with rental regulations, you can enjoy strong returns and a hassle-free ownership experience.

If you’re ready to explore apartments for sale in Bali, work with legal professionals and experienced agents, like Casenta property, to make a smart and safe purchase.

Happy apartment hunting!

A cozy rooftop lounge of a Bali apartment, featuring comfortable seating, soft lighting, and a breathtaking view of the ocean at sunset