For most foreign buyers, a Bali villa is purchased on a leasehold basis. The concept is simple once it's explained — here's what leasehold means, how a purchase typically works, and what to check before you sign.
Red flags that end deals
Walk away from: land without a clean certificate; "freehold via nominee" offers to foreigners; leases silent on extension pricing; villas built without permits (they cannot legally operate as rentals); and any pressure to skip independent legal review. Every one of these is visible during due diligence — which is exactly why you do it. For the structural background, read our leasehold vs freehold explainer.
What "leasehold" actually means
Leasehold — often referred to locally as Hak Sewa — gives you the right to use a property for a fixed number of years agreed with the landowner. During that term you can live in it, rent it out and sell the remaining lease to someone else. It is the most common, straightforward way for foreign individuals to hold a villa in Bali, and it's the basis on which Casa Infinity's remaining villa is offered.
Typical lease terms
Lease lengths vary by property, but 25 to 30 years is common, frequently with a pre-agreed option to extend for a further period. What matters is that the term, any extension option, and the price of that extension are written clearly into the lease agreement from the start — so there are no surprises later.
The buying process, step by step
- Shortlist and view. Identify the villa, confirm the asking price and what's included (furniture, management, rental bookings on the books).
- Reserve. Agree terms and typically pay a reservation deposit to take the property off the market.
- Due diligence. Your notary and legal advisor check the land certificate, zoning, building permits and that the lease can be properly registered.
- Lease agreement. The lease — term, extension option, rights and responsibilities — is drafted and reviewed before signing.
- Signing & payment. The agreement is signed before an Indonesian notary and the balance is paid per the agreed schedule.
- Handover. Keys, documents and any management or rental arrangements are transferred to you.
Due diligence: what to check
- The land certificate — who holds it and that it matches the property being sold.
- Zoning — that the location permits villa and tourism / rental use.
- Building permits — that the villa was built and is operated with the correct permits.
- Lease registration — that the lease can be formally registered with the notary.
- Extension terms — the option, period and price, in writing.
- What's included — furniture, management contract, and any forward rental bookings.
Costs beyond the price
Budget for transaction costs such as notary fees and applicable taxes, plus ongoing running costs — management, staff, utilities, maintenance and pool care — if you intend to rent the villa out. A good operator can give you a clear picture of both the purchase costs and the expected running costs and rental performance.
Questions to ask before you commit
How many years are left on the lease? Is an extension agreed, and at what price? Is the zoning correct for rentals? Who manages the villa and what does that cost? What rental income is already on the books? Honest answers to these — backed by your own legal due diligence — are the foundation of a safe purchase.