Owning a villa in Bali via PT PMA, living 3 months/yr, renting rest?

4POSTS

Yesterday

Hi everyone,

We're a French couple planning a yearly routine: 3 months in Bali, 3 months in Japan, 6 months in France, working remotely for French clients.

In Bali, the idea is to buy a small villa or apartment (Uluwatu area), live in it during our 3 months, and have a local manager rent it out the rest of the year. The villa must be free when we come back. We understand a PT PMA and a villa license are needed to rent legally, and we want to do it properly.

Is anyone running a similar setup? Your feedback would help a lot:

1. Structure: PT PMA, leasehold, or something else? Who set it up?

2. Costs: Real setup and yearly compliance costs?

3. Management: Which manager, what fee, and do they block your dates?

4. Numbers: Your real net yield after all costs?

5. Visa: Which permit lets you work remotely while there?

6. Regrets: What would you do differently?

We plan to rent for a year first before buying. Happy to share what we learn.

Thanks!

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Fred Indonesia Expert

30666POSTS

Yesterday

A minefield that is designed to explode under foreigners buying to rent.

Thank carefully before you spend any money as most such things are illegal, and a lot of land is being returned to Indonesian contriol with no compensation for the foreign buyers.

You can't buy land, but you can lease it and build. You can't rent it out without a business, and you have to spend a lot of money and jump through a lot of hoops to do that.

https://thebalisun.com/bali-cracks-down … d-to-know/

I see a lot of problems, and not much by way of legal solutions. Nominee schemes are run by schemers, so avoid them.

An Indonesian citizen such as my good, honest self can buy legally, and could happily set up a CV company to run it with minimal paperwork and zero risk to myself, but massive risk to you if I were to be bent and fancied a quick profit. and there's no legal comeback for you if I simply sold it as you would have to ask the courts to enforce an illegal contract.

All you would need is a SOSBUD visa and a sponsor (any Indonesian) for your three month stay.

I, or whomever else you picked, would make a profit, but you would probably lose out on the deal.

Still, I'm not far from retiring so I'm looking for something to do - PM if you think the risk is acceptable.