How to Secure a Long-Term Lease for a Villa in Bali
Bali continues to attract people from around the world looking for a lifestyle that blends comfort, investment potential, and natural beauty. For foreigners, one of the most popular and secure ways to live or invest on the island is through a leasehold agreement. But how exactly do you secure a villa lease in Bali — and do it safely?
What Is a Leasehold Agreement?
A leasehold gives you the legal right to use land or property for a fixed period — most commonly 25 to 30 years, with the option to renew.
This structure is fully legal for foreigners and widely used for both residential villas and rental properties.
It’s important to note that under Indonesian law, you’re leasing the right to use the property, not owning the land itself (since Hak Milik titles can only be held by Indonesian citizens).
Learn about the difference between leasehold and freehold agreement and about foreigner’s right to own land in Indonesia.
Step-by-Step: How to Lease a Villa in Bali
1. Define Your Needs
Start by clarifying your goals before you start viewing properties:
- Preferred location (Canggu, Uluwatu, Ubud, Pererenan, Sanur…)
- Number of bedrooms
- Minimum land or building size
- Budget and payment flexibility
- Purpose (personal residence, rental income, or hybrid)
- Dealbreakers
A clear brief helps your agent narrow down properties that fit your criteria and ensures the lease structure matches your intended use.
2. Work With a Trusted Real Estate Agency
Always work with a licensed local agency familiar with Bali’s property laws.
A professional agent will:
- Verify the land certificate and ownership
- Check zoning and building permits
- Negotiate fair lease terms and renewal clauses
- Coordinate with a notary to ensure all documents are legally valid
Avoid “direct owner deals” unless a trusted notary is involved — even if it looks straightforward. You can choose among our skilled agents according to their focus and expertise.
3. Check the Land Certificate
Every leasehold agreement must be tied to a valid land certificate (Hak Milik) owned by an Indonesian citizen.
Your lease contract should specifically reference this certificate, including plot number, size, and boundaries.
Confirm that the land is:
- Properly zoned for your intended use (residential, tourism, or commercial) and understand land zoning color
- Free of liens, disputes, or overlapping ownership claims
- Equipped with valid access rights (hak jalan)
4. Sign a Notarized Lease Agreement
Your lease must be signed before a notary (notaris/PPAT) and registered with the National Land Agency (BPN).
This ensures the agreement is legally binding and enforceable in Indonesia.
A proper lease contract should clearly state:
- Total lease duration
- Extension terms and pricing method
- Use limitations, such as subletting or renovations
- Payment schedule and method
- Rights and obligations of both parties
This notarized contract is your main legal protection as a foreign lessee.
5. Negotiate Extensions in Advance
Extensions are possible — but only if they’re written into your agreement.
If your contract doesn’t specify renewal terms, the landowner has no legal obligation to extend your lease, even if you’ve built a villa.
Common extension clauses include:
- A pre-agreed renewal period, often 15–25 years at a fixed or market-based rate
- A right of first refusal if the landowner decides to sell
- The option to convert to a PT PMA structure later, for long-term investment or business use
Key Tips for a Safe Leasehold Deal
- Never transfer funds before signing a notarized agreement
- Avoid verbal or informal “gentleman’s agreements”
- Use a bilingual contract (Bahasa Indonesia + English)
- Include refund, penalty, and extension clauses
- Keep certified copies of all documents
Final Thoughts
Securing a long-term villa lease in Bali is one of the safest and most accessible ways for foreigners to enjoy island life or generate rental income — as long as every legal step is followed.
At Mata Property Bali, we assist clients from start to finish — from identifying the right villa to verifying ownership, drafting the lease, and registering it with the notary. Our goal is to make your Bali investment secure, transparent, and tailored to your lifestyle or financial goals.
Ready to find your villa? Contact our team for a free consultation.
