The purchase of land in Bali or the famous freehold
After referring to the bare land rent (cf. Bali Gazette No. 33 – February 2008), make it a point this month on the purchase of land by an Indonesian law particulier.Le establishes the principle that “only an individual of Indonesian nationality can buy freehold land. “The 1996 law on the ownership limit for its transfer of ownership to 25 years renewable. Therefore, to better understand the legal techniques implemented, deviating from our minds the notions of “transfer of ownership” and “actual purchase” as we understand them culturally. So if you are considering buying a property, two options are available and that, whatever the nature of your visa: an acquisition by a nominee or an acquisition in own name.
The first option is commonly known as “Hak milik” ownership with nominee. The “Hak milik” you must associate a person to Indonesian nationality legally becomes your nominee. So the person who signs the act of buying a notary, in your presence and of course, on your behalf and for your account. A whole range of legal acts was developed by professionals to secure maximum transaction. Among the most common processes, we return to … lease: the nominee rents the land for a 25-year period renewable once, and gives you in advance all the power. The mortgage decision in your favor that no transaction can be made without you to be notified beforehand. Some notaries still establish wills: nominee designates you as heir. Note that this transaction is subject to a tax calculated on the land value fixed by the authorities. Note also that the title carries the nominee’s name and that this purchase is made right for a specified period. This method has the purchase for a large majority of foreigners living in Bali for many years. It is true that the practice is common now that notaries and legal mastered techniques to secure the maximum opération.La second option called “Hak pakai”, introduced in 2004, conveys a right to use the land you buy a bit like the concessions that are found in Latin America. It gives rise to the establishment of a security certificate in your name, whatever the nature of your visa. It can only apply theoretically a land whose area does not exceed 20 acres. In fact, more or less depending on the region in which the land is located. Moreover, the “Hak pakai” is not recognized everywhere in Bali. The land acquired under this statute must have a private use. That is to say, the construction of a dwelling and the title is unique, ie you can not be in possession of more land at a time. As for the duration of the right of use and tax it engenders, opinions and practices diverge. There, a title can be obtained for 25 years renewable, here however, the title is granted for 25 years and renewal involves another deed. Some take for granted this renewal, for others it is a question mark. Regarding the tax theoretically based on the market value of the land at the time of renewal, the amount is not fixed beforehand, we remain in the dark.