Legal structure

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Living or investing in Bali as a foreigner – through a secure lease structure

Leasehold – exclusive usage, not ownership

Foreigners cannot legally own land or real estate in Indonesia. That’s why Santai Homes Bali offers a turnkey lease solution: you lease a completed home on a leased plot of land — with full and exclusive usage rights.

This means you do not own the building or the land, but you do obtain a long-term and secure right to use the home and land — including the right to live there, make adjustments, and possibly rent it out (if allowed in the lease).

🧩 What do you actually get?

  • A notarized lease agreement covering both the home and the land

  • Exclusive usage rights (25 years + 25-year extension option)

  • The ability to use the home privately, or rent it out (depending on the agreement)

  • Clear contractual terms around renewal, termination, and permitted use

Leasehold means: no ownership — but secure and long-term usage of a fully developed home.

📌 Why no ownership?

If we were to transfer ownership of the building:

  • You would need to act as the legal building owner

  • Local regulations would apply (including foreign ownership restrictions)

  • You’d face complex tax and permit obligations

By keeping both land and home under lease:

  • We avoid legal complexity

  • We ensure compliance with Indonesian law

  • You receive a worry-free, ready-to-use lease solution

🔍 Legal framework

All lease contracts are:

  • Prepared and notarized in Bahasa and English

  • Include extension options, usage terms, and termination clauses

  • May be registered with the land office (BPN) if applicable

  • Reviewed by trusted legal partners

💬 Common questions

Am I legally protected?
Yes. Your lease agreement grants you full usage rights during the agreed term, with built-in options for renewal.

Can I rent out the home?
Possibly — this depends on zoning, permits, and the lease contract. We’ll advise you during the consultation.

Can I sell the house?
You cannot sell the building as your property, but you can transfer the remaining lease term to a new party (with approval).