11/05/2023
Leasehold and freehold are two forms of land and property ownership rights in Bali.
Leasehold is the right to lease land or property for a certain period (usually up to 25 years) with the option to renew the contract. Foreign investors can acquire a leasehold on land and property in Bali. However, after the lease term expires, the land and property are returned to the owner, and the investor cannot extend the contract unless agreed by the owner.
Freehold is the complete and unconditional ownership of land and property. However, the ownership of land and property in Bali can only be transferred to an Indonesian citizen, so freehold is only available to them.
For investors, leasehold is the more common form of land and property ownership in Bali. This is because it is more accessible to foreign investors and acquiring a leasehold does not require significant investment. In addition, leasehold can provide an opportunity for stable income from renting out the property and the possibility of reinvestment if the investor decides to extend the contract.
However, freehold may be a more advantageous form of ownership in the long term, as freehold owners can have full control over the property and have greater freedom to dispose of their assets. However, to obtain ownership rights in Bali, investors must comply with Indonesian laws and be prepared for significant investment.
Thus, the choice between freehold and leasehold depends on the investor, investment strategy, and project stage. Generally, leasehold is the more optimal option for investors who want to start investing in Bali, while freehold may be a profitable option for investors with larger capital and seeking long-term investment opportunities.
