FREQUENTLY ASKED QUESTIONS
Find the answers to your questions about Bamboo Village and investing in Bali
If you are not an Indonesian national, you cannot buy property in Bali in the traditional sense. Don’t buy freehold because foreigners cannot own property in Bali; consequently, any freehold transaction is unlawful. However, it is possible to hold a long term lease on land and property.
If you buy an existing villa, do not buy it if there’s no IMB. Be careful and respectful of laws in Bali just like you would be in Europe, Singapore, or Australia.
Foreigners can’t borrow money or have a mortgage in Indonesia, and if you are a foreigner, then you will need to have your finances pre-arranged and ready to go. All property transfers are done by a local public notary or lawyer.
Fractional ownership at Bamboo Village works as you purchase the property on long term lease.
The property and any return on its rental are yours for the duration of the contract as is a share in the profitability of the resort as a whole.
Bobi Smith Investments looks after the management of the villa and the facilities at the resort and makes sure that it is well marketed to achieve the best occupancy results.
Villa ownership can be an expensive proposition. A luxury property can be a sizable investment. In addition to the cost of a long-term lease, you have operating expenses such as taxes, ongoing maintenance, and the management of renting it out while you are not in residence.
With fractional ownership, you gain the right to stay there for one month of the year, and all the management responsibilities fall to the management company.
Yes, absolutely, you can buy more than one villa if you desire.
If you are a non-resident for Australian tax purposes, then the Australian tax office is only going to be interested in your overseas investment property once you return to Australia or become an Australian resident for tax purposes again. While you remain a non-resident for Australian tax purposes, you will be taxed following the relevant laws in Indonesia.
Australian residents for Australian taxation purposes, need to declare their global income from all sources. Therefore, if you are a resident for Australian taxation purposes, you will need to declare your rental income from your Bali investment property on your Australian tax return. If you are earning an income from the foreign property, then you will also be able to claim tax deductions associated with netting that rental income.
If you are going to be a fractional owner in Bamboo Village Wellness and Eco Resort, then you don’t need a visa. For some of the property ownership/leasehold categories in Balinese law, you do need to have a KITAS. For example:
- Hak Guna Bangunan stands for ‘the right to build,’ and it is meant for foreigners who want to start a business in Indonesia. You will also need to have a PT PMA (foreign investment company). Usually, this title gives foreigners a fixed period (can be up to 35 years) and it is extendible for another 25 years.
- Hak Pakai gives foreigners ‘the right to use.’ It may not be as strong as ‘right of ownership,’ but Hak Pakai gives you the ‘right to use’ and it is the closest foreigners can get to owning property in Bali and Indonesia. Hak Pakai comes with some restrictions and conditions:
- a) The foreigner needs to obtain a resident stay permit usually a KITAS
- b) The Bali property cannot be used for business.
- b) Foreigners can only have one property.
Hak Sewa is widely agreed to be the best option for foreigners wanting to own a Bali villa. This title gives visitors the right to lease. Moreover, with the particular type of agreement, you can legally stay in the property for a month a year and rent it out on a return for the rest of the year. The Owner’s Hak Milik will be legally transferred to Hak Sewa, and the leasehold usually has an initial period of up to 25 years, extendable up to 70 years.