TEMPO.CO, Jakarta – Bali has been named one of the most popular destinations in the world by the TripAdvisor Travelers’ Choice Awards 2024. Bali tourism attracts people from different backgrounds and cultures. It is no surprise that many travelers-turned-investors are considering Bali as their next big move.
Bali’s thriving tourism industry has made property investment a popular choice. The island’s continuous development of tourist attractions, coupled with its tropical climate, ensures that properties maintain their value throughout the year.
Even so, there are some tips you need to consider before buying property in Bali as quoted by Invested Legal Advisory.
1. Location
The first step to a successful Bali investment is choosing the ideal location. Whether you envision a luxurious villa, a cozy homestay, a vacation rental, or a larger-scale project, your chosen spot will significantly impact your investment’s potential.
Some of the most popular tourist areas in Bali are Seminyak, Canggu, Ubud, and Uluwatu. These locations offer attractive investment opportunities with their respective charms. You may want to make a note of the ambiance of each area and try to incorporate it into the theme of your investment.
2. Tax Regulation
Tax regulation plays a vital role in making an investment successful. Therefore, you need to be wary of the enforced law in Indonesia. Foreign investors need to do some research work on the local regulations before actually investing. This is also to avoid any chance of fraud from anyone trying to take advantage.
3. Property Ownership
Foreign investors should be aware of Indonesia’s property ownership laws, which differ from many Western countries. Unlike direct ownership, foreigners can only own property in Bali through a legally registered Indonesian company. This means that full ownership is transferred to the company upon purchase and the property rights are held by the company.
4. Building Permit
Bali has a color-coded zoning system to regulate land use. Green zones are for agriculture, yellow for residential, pink for tourism, and red for commercial. Investors need to understand these zones before making any real estate decisions.
In addition, construction in Indonesia requires specific permits depending on whether it’s residential or commercial. Working with a licensed local architect is essential to navigate this process.
5. Hire Professional Legal
Learning how to invest in Bali thoroughly with its regulations and permit access may be time-consuming. Just like any other investment, it takes a lot of work to bring your vision alive. Therefore, it may be best to hire a professional lawyer who is native to Indonesia’s set of law enforcement. You will save yourself from the freud.
While these guidelines provide valuable insights, it’s important to remember that every investment is unique. So even if these tips don’t perfectly fit your specific plans, keeping one or two key points in mind can greatly enhance your investment journey.
Vidya Amalia
Editor’s Choice: Here’s How a Foreigner Can Obtain SKCK in Indonesia
Click here to get the latest news updates from Tempo on Google News
