Buying Property in Your Wife’s Name: Is It Safe?
If you’re a foreigner married to an Indonesian citizen, buying property under your spouse’s name might seem like the easiest way to “own” land in Bali. But is it actually safe — and what are the risks?
Here’s what you need to know before taking that step.
Why Foreigners Buy in Their Spouse’s Name
Foreigners are not allowed to own land under a freehold (Hak Milik) title in Indonesia. Indonesian citizens, however, can. Because of this, many mixed-nationality couples choose to buy property in the Indonesian partner’s name, using the “nominee” ownership.
-> Check out the differences between freehold and leasehold agreements.
On paper, it looks simple:
- The land is legally owned by the Indonesian spouse
- The foreign spouse can live in or manage the property
- No company setup or lease structure is needed
But legally, the foreign partner has no ownership rights unless specific agreements are in place.
The Legal Risk: Marital Property
Under Indonesian law, all property acquired during marriage is considered joint marital property — but only when both spouses are Indonesian citizens.
In a mixed marriage (Indonesian + foreigner), the situation changes. The law treats the property as fully owned by the Indonesian spouse, even if the foreign spouse provided the funds.
That means:
- The foreign spouse has no legal claim to the land or villa
- If the couple divorces, the foreigner may lose the property entirely
- Inheritance can become complex if the Indonesian spouse passes away
This risk applies to any property purchased after marriage, unless a formal agreement separates ownership.
How to Protect Yourself
1. Pre- or Post-Nuptial Agreement (Perjanjian Pra Nikah / Pasca Nikah)
This is the most important step for mixed-nationality couples. A prenuptial or postnuptial agreement is a legal document that keeps finances and assets separate.
With a valid agreement in place:
- The Indonesian spouse can legally own land in their own name
- The property is excluded from joint marital assets
- The foreign spouse can enter into agreements such as long-term leases or Hak Pakai (Right to Use)
Without this, any property purchased during the marriage may be considered illegally acquired if the foreign spouse contributed money. That can expose the property to legal challenges or even forced sale.
2. Long-Term Lease Agreement
If the land is in your spouse’s name, you can still secure your position by signing a notarized lease between you and your Indonesian spouse. This lease (typically 25–30 years) gives you clear, legal usage rights to the property — even if your name isn’t on the land certificate.
Secure long term leasehold agreements.
This arrangement should always be drafted by a notary and clearly registered to protect both parties.
3. Hak Pakai or PT PMA Options
In some cases, the safer long-term solution is to separate family and business assets entirely.
You can:
- Obtain Hak Pakai (Right to Use) in your name if you meet eligibility criteria, or
- Set up a PT PMA (foreign-owned company) to hold property legally under Hak Guna Bangunan (Right to Build)
This avoids mixing personal relationships with ownership and ensures full legal compliance.
Final Thoughts
Buying property in your Indonesian spouse’s name can work, but it must be backed by the right legal structure. Trust in a marriage is important — but property law in Indonesia doesn’t recognize “trust” without proper documentation.
At Mata Property Bali, we regularly assist mixed-nationality couples in structuring safe, compliant ownership plans. Our team works with certified notaries and legal advisors to make sure your investment and your relationship are both protected.
