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Financing Options for Property Purchase in Bali as a Foreigner: The Complete 2025 Guide

Tips on different financing types & how expats can unlock financing for their property purchase in Bali.

Author

Jonathan Ma
May 14, 2025

We often get asked: Can Foreigners Finance Property in Bali?

Short answer, Yes—but there’s definitely limitations. In this guide, we will cover:

✅ Understand common legal terminologies & ways expats can invest in property market in Bali
🏡 Common property types and how expats currently finance the purchase
💳 A list of all viable financing options and their pros and cons
🔍 Tanaku’s Home Financing Product for expats (& locals)
✅ Considerations & tips for savvy investors

Whether you're buying a villa, land, commercial project or looking to refinance—this guide gives you the full picture.

Background: Why Financing in Bali is Complicated?

Bali continues to attract global citizens—digital nomads, entrepreneurs, retirees, and high-net-worth individuals who want to settle long term or invest in property.

Yet when it comes to financing property as a foreigner, the path is far from straightforward. Here’s why:

🏦 Indonesian banks rarely lend to foreigners—especially those without local income proof or residency making it risky for the banks to lend.
🛑 Foreigners cannot own freehold property (Hak Milik)—only leasehold or use rights, limiting what lenders can secure as collateral.
🌍 Global credit scores don’t apply—Indonesia’s systems aren’t integrated with foreign credit bureaus.
⚖️ Legal complexity & due diligence risks—Nominee ownership, PT PMAs, title types—create risk for traditional lenders.

👉 The result? Most expats are forced to buy in cash, limiting scale and liquidity.

🇮🇩 Understanding Property Ownership for Foreigners

Though expats cannot get Hak Milik (SHM), there are few ways Foreigners can invest in Bali Property Market:

Ownership Type

Available to Foreigners?

Notes

Hak Milik (Freehold)

❌ No

Only for Indonesian citizens (WNI)

Hak Pakai (Right to Use)

✅ Yes

30 years + extensions (up to 80 years) with KITAS/KITAP/Residency Rights

Hak Sewa (Leasehold)

✅ Yes

Most common for expats

HGB (Right to Build)

✅ Via PT PMA

Invest through a company structure

Nominee Arrangement

🚫 Risky

Legally gray, not recommended

⚠️ Basically → traditional mortgages, and freehold is off-limits unless you set up a foreign-owned company (PT PMA).

Current Property Types & Financing Options for Expats

When you consider buying a property in your home country, generally you consider Mortgage aka Bank Financing. This makes the property more affordable & you can pay in installments. However in Bali as an expat, be prepared to have 100% cash upfront for any transaction.

There are some exceptions with alternate financing options available (depending on the asset type):

Asset Type

Ownership Title

Local Bank Financing?

Current Mode of Financing

Notes

New Build Villas

Leasehold or PMA Freehold

❌ Rare

Cash or Developer Payment Plan

Most common expat route is cash or negotiate a payment plan with developer - very rare for fully built

Secondary Villas

Leasehold or PMA Freehold

❌ Rare

Cash (usually 100% upfront)

If negotiated, instalment plan available by seller

Off-Plan Villas

Mainly Leasehold

❌ Not available

Developer Financing / Milestone payments

Developer financing based on completion (often risky if developer defaults)

Land

Leasehold or HGB (PMA)

❌ Not available

Cash (usually upfront - rarely in installments)

Banks do not easily give loans against land as collateral

Commercial Projects (cafes etc)

PT PMA

❌ Complex but possible as business loan

Cash

Need strong cashflow proof & legal history of PMA

Key takeaway → Cash is king. Most of the property transactions involving expats in Bali is cash driven. Upon negotiation, some sellers or developers offer a financing plan but may have steep interest rates baked in.

💳 Top Financing Options for Bali Property (Ranked)

So what exactly are the options for foreign buyers to invest in property. We have stack ranked the top methods expats can use to obtain financing.

Rank

Financing Type

✅ Pros

⚠️ Cons

1️⃣

Cash Purchase

✔ Fast and simple
✔ No need for approvals
✔ Zero interest burden

❌ Ties up large capital
❌ No leverage
❌ Exposed to FX risk

2️⃣

Developer Financing

✔ Easy approval
✔ Short-term flexibility
✔ No bank involvement

❌ High interest rates
❌ Limited tenure
❌ Mostly for off-plans (risky bet)

3️⃣

Offshore Mortgage

✔ Use global income/assets
✔ Access higher LTVs
✔ Long tenures possible

❌ Difficult approval process & collateral risk
❌ Currency & title alignment issues
❌ Geo-political and FX risks

4️⃣

Local Bank Loan (Kitas/KITAP / IPL Loan)

✔ Access to lower local interest rates
✔ Regulated environment
✔ Available for long-term residents or PT PMA owners

❌ Requires local income or residency
❌ Hard to qualify for expats
❌ Limited to specific title types (e.g., Hak Pakai)

5️⃣

Private Lenders

✔ Fast funding
✔ More flexible than banks
✔ Often foreigner-friendly

❌ High interest rates
❌ Limited protections
❌ Shorter durations

6️⃣

Debt Under a Company (PT PMA)

✔ Enables access to land/build rights
✔ Legal foreign structure
✔ Easier to raise capital

❌ Complex setup
❌ Requires compliance
❌ Initial capital needed with clean history

7️⃣

Diversify Other Assets (Crypto/Stocks)

✔ Preserve property liquidity
✔ Potentially rising asset base
✔ Fast access to funds via liquidation

❌ Volatile valuations
❌ Risk of loss during downturns
❌ Opportunity cost if assets rebound

📌 Summary: Most expats rely on cash or developer financing, but offshore loans and structured PT PMA debt are growing fast. Choose based on your risk profile, liquidity, and ownership goals

Can Tanaku help with financing?

Yes, at Tanaku, we finance expats (long term residents/PMA Holders) and global buyers with financing solutions designed to be simple, flexible and easy to access.

Our solution stack in a nutshell:

Solution Type

Who It’s For

Key Features

Ideal Asset Types

Local Home Credit

Indonesian citizens (WNI) or PT PMAs (foreign-owned)

✅ Up to 60% financing
✅ 7-year tenure
✅ IDR currency
✅ For ready-built units only

Freehold villas (SHGB / SHM), ready only - both primary and secondary

Offshore Collateral Financing

Expats with global assets or income

✅ Up to 80% LTV
✅ Active in Australia
✅ Leasehold or freehold
✅ Works for any asset types

Leasehold villas, land, mixed assets

Property Refinancing

Current property owners (freehold)

✅ Tap into existing equity
✅ Fund renovation or next purchase
✅ Flexible use of proceeds

Freehold villas (SHGB / SHM)

Project Financing (Businesses)

Developers

✅ Partner capital available

Commercial real estate developments

Want to check if your property purchase is eligible for financing?

Tanaku Verdict → Financing is a smarter play to purchase your property.

  1. Use financing to preserve liquidity—don’t go all-in with cash

  2. Use rental income to cover loan repayment

  3. Avoid liquidating appreciating assets like crypto or stocks

  4. Hedge currency risk by borrowing in IDR if income is global

  5. Refinance existing properties to fund next

✅ Final Thoughts

Bali offers one of Southeast Asia’s most dynamic real estate markets—but for expats, the key to success is understanding how to structure your ownership and financing.

Don’t go in blind. With the right legal setup, funding structure, and local knowledge, property ownership in Bali is absolutely within reach.

What’s next?

  1. Know more about our financing services → here

  2. Want to find if you are eligible for financing or refinancing or have questions - Book a 1:1 Consultation with us

    Want to get access to more opportunistic Bali property deals, market insights and trends not accessible to the public? Click here to join our community 

    or Simply get deal reminders on Whatsapp

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This article is for educational purposes and does not constitute legal or financial advice.