Catalog of real estate in Bali

Bali stands out as an attractive real estate investment destination for a number of reasons:

1. Indonesia's fast-growing economy
Indonesia is the largest economy in Southeast Asia and one of the fastest growing economies in the world. According to the International Monetary Fund (IMF) and the World Bank, in 2024, Indonesia is among the top 8 largest economies in the world in terms of purchasing power parity (PPP), and its nominal GDP exceeded US$1.4 trillion.

The average annual economic growth rate has held steady at 5-5.3% over the past decade, making the country one of the leaders in the G20 group. At the same time, inflation in the country remains moderate at less than 2.5% per year, thanks to the sound monetary policy of the Central Bank of Indonesia (Bank Indonesia).

Key growth drivers:
Active development of infrastructure projects, from new airports to expressways and industrial zones;
Steady inflow of foreign investment, especially in real estate, tourism, renewable energy and technology;
A young, fast-growing and digitally oriented population (over 270 million people, average age 29 years);
Indonesia's participation in major regional and global trade agreements (e.g. RCEP).
HSBC and Morgan Stanley forecast that Indonesia could become one of the world's top five economies by 2045, the centenary of its independence. All of this makes the country not only sustainable, but also a strategically advantageous platform for long-term investments, especially in real estate and rentals.

2. High rental yields on Bali real estate
Real estate in Bali shows one of the highest returns in the world among resort destinations. This is due to the stable and ever-increasing demand for rentals - both from tourists and digital nomads who choose the island for long-term stays.

Annual rental yields in Bali are as high as 12-15% and can exceed 18% per annum in certain locations such as Changgu, Ubud, Uluwatu and Seminyak. During peak seasons, properties with high ratings on short-term rental platforms (Airbnb, Booking) have an occupancy rate of over 80%** and allow owners to achieve a quick return on investment - on average in 5-7 years.

The key factors that ensure this profitability are:
- Year-round tourist flow (more than 6 million foreign tourists in 2023);
- Active development of transportation, social and tourism infrastructure;
- Strong domestic demand from expats, remote workers and investors;
- Affordable cost of market entry compared to other popular destinations such as Dubai, Miami or Maldives.

Choosing the right location, type of facility and management strategy is critical to maximizing returns. This is why it is important to consult with experienced investment experts who can help you match the asset to your objectives, calculate ROI and provide full transaction support.

3. Steady tourist flow
Bali welcomes millions of travelers every year, showing a steady growth in tourist flow. In 2023 alone, more than 6 million foreign and 9.4 million domestic travelers visited the island.

These figures confirm that Bali maintains its status as one of the most sought-after destinations in the world, ranking among the top destinations according to TripAdvisor, Forbes and BBC Travel.

For investors, this means a constant demand for rentals, both short and long term. Regardless of the season, Bali real estate remains a sought-after asset that generates a stable income.

Благодаря такому стабильному турпотоку вы инвестируете в рынок, где ваша недвижимость будет постоянно работать на вас, обеспечивая высокую заполняемость и быструю окупаемость.

4. Infrastructure development
Infrastructure development is the key to capital growth and living comfort
Bali is undergoing an active phase of infrastructure development, which has a direct impact on the island's investment attractiveness. Major projects are underway, including the construction of the Gilimanuk-Mengwi Expressway, the expansion of the existing airport (to 32 million passengers per year), and planning for a new international airport and rail link.

Amid Bali's growing popularity as a place to live and invest, foreign entrepreneurs are moving here in droves, opening restaurants, boutiques, beauty salons, fitness studios and educational centers, offering international quality services.

These changes are shaping a new quality of life on the island and creating additional growth points for investment: locations previously considered “up-and-coming” are rapidly transforming into new centers of attraction with a developed urban environment.

5. Attractive environment for foreign investors
Indonesia, and especially the island of Bali, is becoming an increasingly attractive destination for foreign investors due to the government's open policy. In recent years, the country's authorities have been actively simplifying the rules of real estate ownership for non-residents, making the process transparent and safe. However, it is important to understand that only an expert deeply versed in investment and legal nuances will be able to guide you through all stages of the transaction, secure the capital and maximize the investment potential, as they do in Ferox Real Estate.

One of the key benefits is the ability to obtain an investor visa (Investor KITAS), which is issued for up to 2 years and can be renewed. This visa allows investors not only to stay legally in Indonesia, but also to actively participate in the management of a business or rental activity. The investor visa can be issued by registering a PT PMA company - a legal entity.

In 2022, a Second Home visa (up to 10 years) is also introduced for wealthy foreign nationals who own real estate worth at least 5 billion Indonesian rupiah or have a corresponding bank deposit.

Indonesia offers foreigners:
- A stable economy;
- high tourist demand all year round;
- a fast-growing rental market;
- transparent tax and legal arrangements.

Thanks to these conditions, Bali is a leader in Asia as a destination for long-term and profitable real estate investments.

Legal protection of our clients is one of our top priorities. We provide full legal support of the transaction at all stages: from inspection of the property to registration of rights and signing a lease or purchase agreement through PT PMA.

It is important to realize that Indonesian law does prohibit direct land ownership for foreign individuals. However, there are legal mechanisms for ownership and investment, such as long-term leases (leasehold) for up to 25 years with an option to extend up to 80 years, and registration of ownership through an investment company (PT PMA). These forms are widely used and perfectly legal - in 2023 alone, more than 1,000 leasehold transactions involving foreign investors were concluded in Bali.

What sets us apart from other agencies:
We do not work with all real estate developers in a row. This is the principled position of our company. Before including an object in our portfolio, we carry out a detailed legal check of the developer, its permits and land ownership at our expense. In our catalog you will find only reliable and proven projects - this is your additional guarantee of the safety of the transaction.

With us, you get more than just a real estate object - you invest in an asset that is fully legally verified.

Leasehold is a form of long— term lease that gives foreign investors the legal right to use real estate in Bali, receive rental income and dispose of the property (including sale or inheritance) for a specified period of time.

In practice, a leasehold is issued for a term of up to 25 years with the possibility of extension up to 80 years. This is a legal and widely used mechanism under Indonesian land law, specially adapted for foreign investors.

It's important to understand:
Leasehold — is not a “lease in the usual sense of the word”, but a full-fledged investment model. In fact, you buy a managed asset with a predictable income, which means a business. You can lease the object in short-term or long-term lease, conduct operational activities, receive profit and - if necessary - sell the asset, returning your investment or earning on the growth of its value.

There is no need to be afraid of leasehold. This is not a “temporary holding”, but a clear financial strategy approved by the state and used by tens of thousands of foreign investors.

Why it works:
- You get full right to use the object and the land under it for a long term;
- You have the right to rent out the property and receive a stable income;
- In case of sale, you can transfer the remaining leasehold term to the new owner.

And most importantly:
We never offer projects without prior legal due diligence. All projects in our portfolio are thoroughly checked for lease rights, land and developer's compliance with the law - at our company's expense. You invest in an object that has already been checked by our lawyers and recommended for sale.

Indonesia's tax system is simple and transparent, especially for foreign investors. All key rates are clear in advance and easy to plan within the investment model.

Property Tax (Property Tax / PBB) is 0.3 - 0.5% of the cadastral value of the property (NJOP) - this is usually significantly lower than the market value and is reviewed annually by the government.

Rental Income Tax-a flat rate of 10% of the income received, which is levied on rent.
➤ For example: if you earn $5,000 per month from renting a villa, the tax would be $500.

If the property is registered through an investment company (PT PMA), corporate tax is additionally taken into account, the standard rate of which depends on the total turnover of the company. When you just open a company, the payment rate is 0.5%. If your turnover exceeds 4.8 billion, the rate is 11% - 22%, and tax deductions and cost optimization through business expenses are possible.

What's important:
We help structure the purchase with tax efficiency in mind, select the optimal legal form (individual or company), and advise on reporting and interaction with tax authorities.
You get all the calculations in advance - even before the deal is finalized, so you can see the full financial picture.
We work with trusted tax advisors in Bali who will ensure transparency and compliance.

Taxes are not an obstacle, but part of the business model. Our job is to make sure they don't come as a surprise and eat away at your profitability. That's why we build all costs into the financial plan in advance and provide you with maximum transparency and control.

The management company searches for tenants and advertises on popular platforms such as Airbnb, Booking and Agoda, and controls the receipt of rental payments. It takes care of the complete maintenance of the property, including regular cleaning, maintenance and repairs to keep the property in good condition. Financial accounting is also the responsibility of the management company - owners receive transparent reporting on income, expenses and tax payments. In addition, the company monitors compliance with local legislation, concludes lease agreements and provides legal support. An important part of the work is interaction with tenants: the management company organizes the check-in and check-out process, as well as provides 24-hour service for tenants.This service is especially convenient for foreign owners who do not live in Bali, but want to receive a stable rental income.

Cooperation with a management company allows property owners to save time and saves them from having to deal with tenant search, maintenance and legal issues on their own. Thanks to professional management, the property brings stable income, and the high level of service increases its attractiveness to tenants. Companies provide transparent reporting, timely maintenance of the property and compliance with all legal regulations, which makes the rental process safe and convenient.

On average, a management company's commission ranges from 10% to 25% of the rental income, depending on the services provided. Some companies offer package solutions with a fixed rate or additional services such as marketing or personalized service.

Using a property management company in Bali is a convenient and effective solution for property owners who want to receive a stable income without active involvement in management. It allows to minimize risks, reduce time costs and provide a high level of service for tenants.