6 Important Consideration Before Shopping Bali Real Estate for Sale

6 Important Legal Consideration Before Shopping Real Estate for Sale in Bali

Per 2021, more than 3,000 expats coming from various countries all around the world are settling in Bali. That number is showing no signs of going down and, in fact, expected to keep climbing. As one of the most popular holiday destinations, many are interested in the investment opportunity in this island. Before you jump in for shopping real estate for sale in Bali, here’s eight important things you should always take note. 

Check on Land Use & Zoning Before Purchasing Bali Real Estate for Sale

Check on Land Use & Zoning Before Purchasing Bali Real Estate for Sale

Prior to making a purchase, make sure you can obtain a Building Permit (IMB) and that the land is zoned correctly to ensure there are no restrictions that could jeopardize the construction of your villa. Some people bought Green Belt or agriculturally zoned land but have been unable to build on it.

Licensing and zoning are required for both developed and undeveloped lands. If you buy a Bali villa for sale with the intention of renting it out for profit in the future, make sure it’s legal.

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Learn About Seatbacks

In land use, “setbacks” refers to the distance between a building or other structure and a roadway or road, a river or other stream, a cliff, beach, or floodplain, or any other location regarded to require protection. Other things like fences, landscaping, septic tanks, and various possible hazards or nuisances may be restricted depending on the jurisdiction in the region. Setbacks are usually determined by zoning or a local regulation. Setbacks applies to the sidings’ exteriors as well as the roof edges.

Pay Attention with Nearby Holy Temples

Pay Attention with Nearby Holy Temples

Bali also have unique building rules that no building should be any taller than a nearby temple. This is a rule that doesn’t exist at anywhere else in Indonesia—and you should keep this in mind.

Building near a temple or sacred place also has setback regulations. Before beginning any construction project, consult with the local ‘Banjar’ (council) to obtain authorization from the village chief.

Check the Land Certificate

After you find an interesting real estate and villa for sale in Bali and want to seriously inquire the property, make a detailed check on the land certificate. Examine the documentation of the land certificate to make sure the land matches the certificate.

There are a few other things to look at when it comes to land certificates. A certified Notary or Lawyer can examine the land certificate and related acquisition documentation (who should not be the same one as the seller).

The Special Permit for Renting Your Bali Real Estate as Holiday Villa

You will need a Pondok Wisata license if you plan to rent your Bali property. If you’re buying an existing villa rental, make sure it has a license. Although some persons have managed to “fly under the radar,” tax authorities have become more clever and diligent in their pursuit of illegal properties.

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Do the Construction Taxes Meticulously

Whether you build your own home or purchased an existing one, you must ensure that all applicable construction taxes (PPn) have been paid.

The building contractor or developer will be in charge of this. However, be aware that sometimes they exploit the mechanism. In Bali, bureaucracy moves slowly, and it may be difficult to hunt down the building business by the time an official arrives at your home to inform you that the tax has not been paid. In situations like this, you, as the owner, are legally obligated to pay.