Transaction Advisory for Agencies in BaliTourism growth amid complex foreignownership and zoning law

Real Estate Advising in Bali for Developers, Brokers, and International Investors

Why Bali is high-yield but legally complex

Bali is one of Asia’s most dynamic real estate markets. Its villa culture, international tourism, and strong digital nomad presence drive constant demand for short-term rentals, boutique resorts, and commercial hospitality projects. However, Indonesia’s foreign ownership laws, layered zoning classifications, unclear title regimes, and evolving tax structures make real estate investing in Bali legally challenging. Success depends on the correct legal setup, title verification, and operational compliance across all phases of acquisition, development, and leasing.

VelesClub Int. provides tailored real estate advising in Bali for developers, real estate brokers, and institutional investors. We help clients navigate legal pitfalls, ownership formats, tax structuring, and project approvals — ensuring investment security and long-term performance.

Foreign ownership restrictions and nominee risks

Foreigners cannot directly own freehold land (Hak Milik) in Indonesia. The most common alternatives include long-term leasehold (Hak Sewa), right-to-use structures (Hak Pakai), or nominee agreements — where an Indonesian national holds title on behalf of the investor. Improper use of nominee structures poses major legal risk, including asset seizure or unenforceable claims.

VelesClub Int. evaluates project goals and offers compliant structures, including PT PMA company formation, leasehold acquisition, or Hak Pakai strategies. We prepare enforceable contracts, secure notarial approval, and ensure legal clarity for each client’s situation.

Land classification and zoning barriers

Bali applies detailed zoning rules (RTRW) that designate each plot as tourism, residential, agricultural, green space, or mixed-use. Many popular areas like Canggu, Uluwatu, and Ubud contain fragmented zoning even within the same village. Some villas operate in non-tourism zones, risking closure or rejection of permits.

We conduct land zoning verification, prepare zoning adjustment applications where allowed, and match project types to legal land use. Our process ensures clients don’t invest in non-developable or non-permitted land.

Due diligence and title status

Title records in Bali may be unclear, missing, or disputed — especially for inherited plots or subdivided land. Verifying that land is properly certified, transferable, and free from liens or claims is essential before signing any contract.

VelesClub Int. performs comprehensive due diligence via the Indonesian Land Office (BPN), reviews historic deeds, and engages notaries for transaction verification. We detect red flags early and provide written title confirmation before funds are committed.

Company formation and land acquisition

The safest way for foreigners to acquire property in Bali for business or development is through a PT PMA — a foreign-owned limited liability company. This format allows land use rights, property holding, and revenue generation legally, but it requires corporate setup, reporting, and capital requirements.

We establish PT PMA entities with full licensing, coordinate tax and legal registrations, and manage bank setup for incoming capital. VelesClub Int. ensures your entity is properly structured to own, lease, or build in Bali.

Development permits and building codes

All construction in Bali requires an IMB (building permit), which is now being replaced by PBG under the new OSS system. Projects without proper permits may face fines, demolition, or denial of operation licenses. Requirements differ by land type, building use, and location.

We prepare permit documents, architectural submissions, and engage local officials to secure IMB/PBG approval. Our team ensures buildings meet spatial planning, safety, and environmental standards from the start.

Rental licensing and tourism tax

Properties used for short-term rentals in Bali must be licensed for hospitality under local Perda regulations. Many villas operate unlicensed, exposing owners to sudden closure, fines, and loss of listing privileges on platforms. Additionally, revenue is subject to tourism tax and income tax.

VelesClub Int. legalizes rental operations, secures local business licenses (NIB, TDUP), and registers for tourism tax. We help clients run profitable, fully compliant rental portfolios across Bali’s most active zones.

Taxation on acquisition, income, and resale

Indonesia applies several taxes on real estate: 10% VAT or acquisition tax, annual land tax (PBB), personal or corporate income tax on rental earnings, and capital gains tax on asset disposal. Foreign structures may trigger higher rates if not optimized correctly.

We model full tax exposure, plan ownership via PT PMA or leasehold paths, and document deductible expenses to reduce liability. Our advisory ensures real after-tax returns are protected and compliant.

Notary engagement and deed registration

All real estate transactions in Bali must be notarized by a licensed Indonesian notary and registered with the BPN. The notary also verifies land zoning, seller rights, and title chain. Using unvetted notaries or skipping deed registration invalidates the transaction.

VelesClub Int. provides trusted notary partners, manages contract review, and oversees deed processing and post-sale registration. We secure legal closure and enforceability for every transaction.

Joint ventures and resort partnerships

Foreign developers often enter Bali via JV with Indonesian landowners, hotel operators, or lifestyle brands. These structures must clearly allocate rights, profit splits, project timelines, and exit paths to prevent future conflict.

We design joint venture frameworks, draft MoUs and shareholder agreements, and define project SPVs with clear dispute resolution. VelesClub Int. builds secure cross-border cooperation formats for scalable hospitality development.

Inheritance, nominee protection, and long-term control

Properties held under nominee or local partner structures face succession and control risk. If the nominee dies or sells shares, foreign investors may lose rights. These issues must be addressed contractually and via power-of-attorney or shareholder protections.

We structure long-term nominee agreements with step-in rights, pre-sale blocks, and security mechanisms. Our legal templates ensure foreign parties retain effective control across life-cycle events.

Operational compliance and local reporting

Rental properties and hotels in Bali must submit tax filings, employee registrations, and health & safety compliance under local laws. Failure to comply triggers audits, penalties, or shutdown orders. Investors must stay current even with local operators in place.

VelesClub Int. handles full operational compliance — from monthly reporting to inspections. We offer oversight tools for offshore owners to maintain legality through local managers.

How VelesClub Int. supports real estate success in Bali

We advise foreign clients, developers, and institutional investors across every step of Bali’s complex real estate market:

• Title verification and land use due diligence
• Zoning analysis and reclassification support
• PT PMA company setup and banking compliance
• Leasehold structuring and Hak Pakai formats
• Development permit acquisition and PBG submission
• Rental licensing and tourism tax setup
• Acquisition, income, and exit tax modeling
• Notary selection and deed registration
• Nominee structuring with legal protection
• Joint venture contracts and project governance
• Operational compliance and monthly reporting

Bali combines extraordinary real estate demand with legal intricacy. VelesClub Int. ensures your investments are not only profitable — but protected, compliant, and structured for long-term success in Indonesia’s premier island market.