A second home in Bali: decisions to make before buying

Describe the use before choosing the house

A couple using a home for three months a year needs a different programme from a family arriving during school holidays with children, guests, household staff and a driver. A private residence also has a different compliance file from a villa offered for short stays for most of the year.

The distinction affects location, bedroom count, service circulation, staff space, storage, acoustics, security, maintenance and privacy. If paid accommodation is planned, it also changes the business and licensing analysis. The first brief should therefore describe how people will live in and operate the residence, not only its floor area and style.

Tenure must follow the project

A foreign individual cannot personally hold Hak Milik, the freehold title reserved for Indonesian citizens. A visa does not change that rule. Depending on the intended use and the buyer's structure, the routes to examine include:

• a long lease, which creates contractual rights rather than a registered freehold title;
• Hak Pakai, a registered right of use available to qualifying foreign residents under the applicable conditions;
• an eligible Indonesian company, including a PT PMA whose activities and licences match the project, holding a land right available to that entity;
• a separate operating structure when the residence will provide regulated accommodation.

Each route creates different rights and obligations. A PT PMA provides no universal shortcut to property ownership, while even a well-drafted lease remains time-limited. A nominee structure leaves the registered land right with the named Indonesian holder, and private agreements do not remove that structural risk. See PT PMA or nominee and Bali leasehold explained.

Separate immigration from ownership

Begin with the activity: personal residence, site visits, shareholder meetings, company management, operational work in Indonesia, local employment or remote work for an overseas employer. Immigration status permits a defined stay and specific activities. Land ownership, accommodation licensing and tax residence each follow separate rules.

What the official E33 Second Home page says

The official E33 Second Home page, checked on 17 July 2026, describes an initial stay of up to five years, extendable within a maximum total stay of ten years. It does not require a sponsor. Within 90 days of entry, the holder must meet and maintain one of the published immigration guarantees:

• hold the rupiah equivalent of at least USD 130,000 in the holder's own account at an Indonesian state-owned bank; or
• commit to purchasing a rumah susun or apartment in Indonesia worth at least USD 1,000,000, then submit the ownership evidence to the immigration office that issued the permit within 90 days of entry.

The published property route refers to a rumah susun or apartment and does not expressly include a detached villa. The page also leaves open the accepted title, valuation method and treatment of a unit already owned before the application. Confirm those points through the official eVisa portal before paying a deposit, committing to purchase or paying an intermediary.

Family members use the dependent routes linked to the principal holder. Their eligibility and documents should be checked individually rather than assumed from one application. Our Indonesia visa guide starts with the intended activity and length of stay before matching a visa code.

Prepare for tax residence before moving

Presence in Indonesia for more than 183 days within a twelve-month period is an important statutory indicator of Indonesian tax residence. Circumstances showing residence or an intention to reside may also matter, so the visa, property right and tax residence require separate analysis.

For someone who is tax resident elsewhere, the applicable treaty must then be read against the facts: days present, family home, income, company interests, dividends and Indonesian rental income. A personal tax outcome cannot be inferred from the visa or the day count alone. Obtain dated cross-border advice before changing residence or reorganising family assets.

Succession, governance and exit

The transfer of a lease depends first on its wording, the governing law, the landlord's identity and that person's authority to bind the landholder. Before signature, the family adviser should answer four questions in writing: can the lease pass to heirs; do renewal options transfer; what consent is required to assign the remaining term; and what happens on death or incapacity?

Where a company holds the relevant rights, the analysis moves to shares, voting rights, management powers, exit clauses and succession. In either case, organise the records a future buyer will need from the beginning: title or lease, planning, building approval, operating licences, tax filings, accounts, maintenance contracts and works history.

A lease loses remaining term every year. Its future value depends in part on the term left, the enforceability of renewal options and the quality of the file. Planning the exit at entry is basic investment discipline.

From structure to architectural programme

Once use, tenure, stay, tax and exit are defined, the design brief becomes more reliable. A staffed family residence may need service circulation, a production kitchen, storage, laundry, plant rooms, staff facilities, security, parking and contractor access in addition to the visible living spaces.

This is the stage at which land area, interior area, levels and budget can be tested without false precision. The Stay Matrix starts with the intended guest and owner experience, then shows how comfort, build quality, architectural expression and cost affect one another.

Common questions

Can a foreigner buy a residence in Bali to live in? A foreign individual cannot personally hold Hak Milik. Depending on the facts, a long lease, qualifying Hak Pakai or a right held by an eligible Indonesian company may be examined. Each route creates different rights and obligations.

Does an E33 permit allow me to own a villa outright? No. Immigration status and property law are separate. A residence permit may be relevant to certain rights such as Hak Pakai, but it does not make a foreign individual eligible for Hak Milik.

Can the residence be rented while the E33 holder is away? The E33 addresses the holder's stay. It does not authorise an accommodation business. Short-stay operation requires its own planning, building, activity, licensing, tax and operator analysis.

Can a USD 1,000,000 villa satisfy the property option? The official E33 page refers to a rumah susun or apartment in Indonesia. It does not confirm that a detached villa qualifies. Obtain written official confirmation for the exact property, title and value evidence before committing.

Where should the process begin? With one page covering intended use, occupants, time in Indonesia, activities on site, proposed tenure, land budget, development budget and exit horizon. Property visits come after that brief.

updated: 17 July 2026

Sources checked 17 July 2026: Directorate General of Immigration, E33 Second Home; official eVisa portal; Government Regulation 18/2021 on land rights; Indonesian tax-residence rules and the applicable tax treaty.