Are you considering living in Bali permanently? Moving to a tropical paradise like Bali is a dream many expats share. However, the process of settling down permanently requires careful planning and understanding of local regulations.
In this article, we will delve into the detailed basics expats need to know before making Bali their permanent home. From securing a place of residence to navigating property ownership and residency permits, we have got you covered. Let’s explore how to live in Bali permanently, step by step.
Residential Consideration in Bali
Before delving into the specifics, let’s first understand the primary considerations when it comes to choosing your residence in Bali. In the following sections, we provide detailed insights into various options available to expats seeking to secure a place of residence. These options include property ownership, renting, and the process of purchasing property through PT PMA.
Property Ownership in Bali
When it comes to owning property in Bali, expats have several options, each with its own regulations and requirements.
-
Purchasing property as a foreign individual
One option is purchasing property as a foreign individual. However, there are restrictions on the types of properties that can be acquired, and these restrictions vary depending on the location. It is crucial to work with a reputable notary and conduct thorough due diligence before finalizing any property transactions.
-
Long-term leases
Another avenue is long-term leases. Expats can lease land for up to 25 years with an option to extend for an additional 25 years. While this offers some security, understanding leasehold terms and conditions thoroughly is essential.
-
Use Hak Pakai
Lastly, Hak Pakai (Right to Use) is another option where expats can effectively have ownership rights for 25 years, extendable for another 25. However, this requires partnering with a local nominee, which carries certain risks and should be approached with caution.
Renting a Property in Bali
Renting a property in Bali is a popular choice for expats who prefer flexibility and may not want the long-term commitment of investment. Regulations and requirements for renting are relatively straightforward. You’ll need to sign a lease agreement, provide identification, and pay the required deposit and rent in advance. It’s advisable to work with a reputable real estate agent to ensure a smooth renting process and negotiate fair terms and conditions.
Buying Property with PT PMA
For those seeking a more secure option to acquire property in Bali, forming a PT PMA (Perseroan Terbatas Penanaman Modal Asing), or Limited Liability Company with Foreign Investment, can be an attractive choice. This method allows you to have control and ownership over property without the limitations faced by foreign individuals.
The process involves setting up PT PMA, obtaining the necessary licenses, and adhering to specific regulations. While it may be a more complex route, it provides expats with a more stable footing in Bali’s property market.
Holding KITAS (Limited Residency Permit)
To live in Bali permanently, you’ll need a KITAS (Limited Residency Permit). This permit allows you to stay in Indonesia for an extended period. There are various types of KITAS, including the following:
- Investor KITAS: For those who invest in a PT PMA.
- Employment KITAS: For expats working for Indonesian companies.
- Retirement KITAS: For retirees aged 55 years old and above.
- Marriage KITAS: For those married to an Indonesian citizen.
Each type of KITAS comes with its own set of requirements and privileges. It is crucial to choose the one that aligns with your circumstances and complies with the necessary regulations.
Entrepreneur Who Sets up A Company in Bali
For expats looking to become entrepreneurs in Bali, setting up a company is a viable option. This not only allows you to run a business but can also facilitate your visa and KITAS application.
Setting up a company in Bali legally involves registering your business entity, obtaining the necessary licenses and permits, complying with tax regulations, and hiring local employees if required. It is essential to consult with legal and business experts who are well-versed in Indonesian regulations to navigate this process smoothly.
In conclusion, living in Bali permanently is a dream for many expats, and with the right knowledge and preparations, it can become a reality. By understanding the nuances of property ownership, rental agreements, residency permits, and entrepreneurship, expats can navigate the process smoothly and enjoy a fulfilling life in this tropical paradise. Stay informed, follow the guidelines, and embark on your journey to learn how to live in Bali permanently.
