You bought property in Bali — which KITAS lets you live in it
Short answer: owning a home gives you no right to stay. A purchase produces a document about the property; the right to be in Indonesia comes from a separate document about the person — a KITAS or a KITAP. Buying never converts into a visa. The link runs the other way: some permits accept a housing investment as proof of funds. Below: what a foreigner can actually hold in their own name, why a nominee arrangement is riskier than it looks, and which permit fits which buyer.
Updated: 12 October 2026 · Verified by the Malina Visa team
Two different rights that get confused constantly
A right to a property and a right to stay live in different laws. Land and buildings belong to agrarian law and the land registry — a certificate in the owner's name. Staying belongs to immigration law — a residence permit. They touch in exactly one place: some immigration statuses require proven capital, and a housing investment can be that proof.
The practical consequence saves people months: buying a house does not extend your stay by a single day. Arrive as a tourist, buy a villa, and you are still a tourist with the same deadline and the same overstay fine. The reverse is also true — owning nothing does not block a residence permit, and most of our clients live in rented homes.
What a foreigner can really hold in their own name
Freehold land ownership (Hak Milik) is closed to foreigners — that is a direct rule of the 1960 agrarian law. Two workable options remain, and both are real registered rights.
Hak Pakai — the right of use. Granted for up to 30 years, extended by 20 and renewed for another 30 — up to 80 years in total. It fits a standalone house on land. The right is registered, sellable and inheritable.
A strata title on an apartment can be issued to a foreigner when the building stands on land held under Hak Pakai or HGB. That is the lawful way to own a flat in your own name.
For business there is a third route: HGB, the right to build, held by an Indonesian company with foreign shareholding. When a home is bought as a rental asset or as part of a project, it is usually held by a PT PMA rather than an individual — then the income is also earned legally through the company.
The minimum price is a requirement, not advice
The ATR/BPN Ministry set a minimum price per region for housing a foreigner may own. Decree No. 1241/SK-HK.02/IX/2022 has applied since 12 September 2022.
| Bali | Minimum price |
|---|---|
| Landed house | from IDR 5bn |
| Apartment (strata) | from IDR 2bn |
A property below the threshold simply will not be registered to a foreigner. That, incidentally, is the first reason sellers suggest "putting it under a local name" — the threshold goes away, and so does your protection.
Why the nominee structure is not a shortcut
It looks convenient: the land is registered to an Indonesian citizen, and between you sit a loan agreement, a power of attorney and a statement that the real owner is you. Legally this is a construction built to defeat the ban on foreign land ownership, which makes the deal challengeable. Under agrarian law the consequence is blunt: the right to the land ends and the land itself passes to the state.
- A power of attorney can be revoked at any time, and you are the one who has to litigate
- If the nominee dies, the property goes to their heirs under Indonesian law
- You can only sell through the same nominee — meaning with their consent
- No bank will take the asset as collateral, and immigration will not treat it as your investment
Most importantly: a nominee title produces no immigration status at all. A permit needs property or shares in your own name, and on paper you own nothing.
Which permit fits a property buyer
Ownership alone grants no visa, but several grounds are open, and the choice depends on where your income comes from and how old you are.
| Permit | Basis | Term | Who it suits |
|---|---|---|---|
| Second Home E33 | Funds in an account (benchmark from IDR 2bn) or a housing investment | 5 or 10 years | Bought and lives on own money, no local job |
| Investor E28A | Shares in your own PT PMA — from IDR 10bn | 1–2 years, renewable | Rents the property out as a business |
| Retirement E33F | Age plus proven income | up to 5 years | 55+, living on a pension |
| Silver Hair E33E | Age 60+ and funds | up to 5 years | Retiring here without a business |
| Family E31 | Marriage to an Indonesian citizen | 1–2 years, then KITAP | Family already here |
One detail about Second Home: the basis can be proven by a commitment to buy property instead of a bank deposit — and the official benchmark for that investment starts at USD 1m. So a villa at IDR 5bn clears the ownership threshold for a certificate, but not yet the Second Home investment threshold. That gap is where wrong expectations come from.
The order that saves money
- Decide first what you will live on here — a pension, your own business, capital, family. The permit follows that, not the property
- Check the title before the money: type of right, remaining term, encumbrances, zoning. Buying under Hak Pakai and buying under HGB through a company are different transactions with different paperwork
- Match the price against the regional threshold — IDR 5bn for a house, IDR 2bn for an apartment in Bali
- Choose the owner — you personally or your PT PMA. If you plan to rent it out, the company is usually cheaper on tax and cleaner on reporting
- Run the permit in parallel, not afterwards: a KITAS is what lets you open a bank account, put utilities in your name and get a local licence
What else an owner has to carry
A purchase is not only a transaction but an annual duty: property tax, tax on rental income, reporting. We put the numbers in a separate piece on taxes for a property owner, with a worked example on a villa.
If the home is bought to rent out, you will also need a tax number: how foreigners get one is in the NPWP article, and the annual return is covered in the SPT one.
Rather not work it out alone? We will match the permit to your situation, check the title before you pay, and run the filing — from Second Home and the investor KITAS to setting up a PT PMA to hold the asset.
FAQ
Does buying property give residency in Indonesia?
No. Ownership and a residence permit are different documents. A housing investment can serve as proof of funds for Second Home, but that investment threshold starts at USD 1m.
Can I buy while on a tourist visa?
The transaction is possible if you hold a valid immigration document and the property clears the price and title rules. It does not let you stay beyond your visa, though.
What happens to Hak Pakai if I lose my KITAS?
The property right does not vanish with the status, but extending it and transacting with it will require valid immigration documents. Better not to break the status.
Is a nominee arrangement with a contract safe?
No. It runs against the ban on foreign land ownership, the deal is challengeable, and under agrarian law the land can pass to the state. Immigration will not count such property as yours.
Own personally or through a company?
To live in your own house — personally, under Hak Pakai. To run it as a rental business — usually through a PT PMA: legal income, deductible costs and clear reporting.