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Shape Haus, Shaped by culture. Built with dedication.
Bali attracts people with dreams: a private villa, a home under the sun, or an investment that feels right not only financially but personally as well.
Yet behind that dream is a reality shaped by its own rules, rhythms and responsibilities. Real estate in Bali does not work the way it does in the Netherlands, Belgium or most of Europe. You will encounter different ownership structures, different permits, different expectations, and a culture in which relationships matter as much as documents.
This guide helps you navigate that world with clarity.
It shows what is safe, what is sensible and what requires attention.
Not through glamour, but through truth.
The goal is simple:
to help you make decisions that are legally sound, financially realistic, culturally respectful and technically reliable.
Indonesia does not use the familiar full-ownership system common in many Western countries. Instead, you work with several types of rights, each with slightly different implications.
Understanding these is essential before signing anything.
Full ownership. Strong, permanent, unlimited.
But available only to Indonesian citizens.
Any arrangement in which an Indonesian holds the title “for you” is legally unstable. In a dispute, you have no enforceable claim.
The right to build and own a structure.
HGB can be held by a PT PMA (a foreign-owned Indonesian company).
This is the most professional, scalable route for foreign investors.
It provides control, clarity and the ability to lease out legally.
A usage right primarily intended for personal residence.
It can be suitable for long-term stays but is not designed for commercial rental operations.
A long-term lease of 20 to 40 years with renewal options.
Flexible, straightforward and safe – as long as the contract is well-written.
The strength of a leasehold is entirely dependent on its documentation.
Only three routes consistently work:
Everything else – especially nominee structures – offers the illusion of control, not real control.
Building a villa in Bali does not start with drawings or materials but with a foundational question:
Where will this place come to life?
Your location determines your audience, your pricing power, your occupancy and how easily you can sell later. This choice operates on two levels: the island level and the plot level.
Bali is a collection of micro-markets, each with its own culture, energy and demand patterns.
Canggu feels entirely different from Uluwatu, and Uluwatu feels nothing like Sanur or Ubud.
Even within the perfect region, a single factor can undermine your entire investment.
Pay attention to:
Foreign buyers often assess visually.
Local experts assess technically.
You need both.
A villa in Bali is not a single purchase but a phased development.
You must not only understand what you buy today, but what is required to complete the journey - construction, furnishing, permitting and long-term operation.
Beyond the purchase price, include:
Returns are not fixed numbers but ranges.
Use comparable market data to anchor expectations:
Good investors work with evidence, not optimism.
The process becomes manageable when broken into five phases:
Following this sequence gives you control and removes avoidable risk.
Due diligence is not paperwork.
It is the backbone of your investment.
Ask yourself:
Legal
Certificate, ownership chain, mortgages, seller authority.
Technical
Foundations, roof, electrics, septic, water pressure, drainage, pool, ventilation.
Permitting
PBG, SLF, historic documentation, use classification.
Commercial
Occupancy, ADR, distribution mix, management contracts.
Fiscal
Taxes, tourist levies, company registrations.
A solid DD protects you from the problems others discover years later.
Developing and renting in Bali follows a clear sequence:
A villa without an SLF cannot legally open, even if the building is flawless.
Building in the tropics requires a deeper sensitivity to climate, context and long-term durability.
Everything begins with the land, the light and the wind.
A proper handover prevents most future issues:
A villa is a small business.
Returns come from rhythm, attention and optimisation.
Those who optimize consistently outperform those who wait.
Risk management is invisible when done well, yet felt in everything.
Bali is more than an island.
It is a community with rituals, rhythm and cultural identity.
Investing here means participating, not extracting.
Investors who show respect build more than villas.
They build trust.
The most frequent issues come from rushing or assuming.
Avoid:
Most problems do not start with bad luck, but with a premature decision.
Bali rewards those who work with care.
Those who take time to listen to the land, the rules and the community.
Those who build with intention rather than speed.
Those who invest with vision instead of illusion.
A villa that feels good today must perform even better tomorrow.
That requires clarity, discipline and genuine partnership.
When you are ready for your next step,
we are ready to walk it with you.
shape.haus
Est. 2022
© shapehaus · 2026
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