If you’re a foreigner married to an Indonesian citizen, buying property in your spouse’s name might seem like the easiest way to “own” land in Bali. But is it really safe—and what are the risks involved?
This article explores the pros, cons, and legal protections available when considering this path.
Why Foreigners Use Their Spouse’s Name
Indonesia prohibits foreigners from owning land under a freehold (Hak Milik) title. But Indonesian citizens can. For this reason, many mixed couples decide to purchase land or a house under the Indonesian spouse’s name.
This solution seems simple on paper:
- The land is legally owned by the Indonesian partner
- The foreign spouse can live in or invest in the property
- No company or lease structure needed
But legally, the foreign partner has no ownership rights unless certain precautions are taken.
The Legal Risk: Marital Property
Under Indonesian law, any property acquired during marriage is considered joint marital property—even if it’s registered under one spouse’s name. However, there’s a catch: this rule only applies between two Indonesian citizens.
In mixed marriages (Indonesian + foreigner), the law treats the property as fully owned by the Indonesian spouse—unless a legal agreement says otherwise. This means:
- The foreign spouse has no legal claim to the land
- If the couple divorces, the foreigner may lose the property entirely
- Inheritance can be complicated if the Indonesian spouse passes away
How to Protect Yourself
1. Pre- or Post-Nuptial Agreement (Perjanjian Pra Nikah / Pasca Nikah)
This is the most important tool for foreigners in mixed marriages. It’s a legal document, signed before (or after) marriage, that keeps finances and assets separate.
A proper prenup allows:
- The Indonesian spouse to legally own land
- The property to be excluded from joint marital assets
- The foreign spouse to engage in certain agreements like long-term leases or use rights
Without a prenup, any property bought under the Indonesian spouse’s name may still be considered “tainted” if the foreign spouse contributed funds.
2. Long-Term Lease Agreements
Even if the land is in your spouse’s name, you can secure your rights through a notarized lease contract (typically 25–30 years). This gives you clear legal usage rights—even if your name isn’t on the land certificate.
3. Hak Pakai or Hak Guna Bangunan via PT PMA
In some cases, a better solution is to set up a PT PMA or use Hak Pakai under your name, if you qualify. This adds legal clarity and keeps personal relationships separate from property rights.
Final Thoughts
Buying property in your spouse’s name can work, but only with the right legal protections in place. A marriage built on trust should still be backed by clear legal boundaries—especially when it comes to real estate investments.
At Mata Property Bali, we work closely with legal advisors and notaries to help couples navigate this situation safely. If you’re planning to invest as a mixed-nationality couple, reach out for advice tailored to your case.
