The Safest Ways To Legally Purchase A Bali Villa
Anyone contemplating starting a tourist rental business will have many hurdles to overcome before booking guests. These include finance for the investment, property management, and how to market the villa to attract guests. However, before any of that can happen, they need a villa to rent to tourists, which can provide the biggest hurdle of all.
It is a difficult hurdle to overcome because, in Bali, which is governed by Indonesian law, it is illegal for a foreign individual to purchase land or property. Before you tear up your plans for your Bali villa business, let us state that there are workarounds, some of which are perfectly legal and sound, and some which, whilst legal, carry huge risks. Here are some of your options based on first-hand knowledge from the professionals at Luxury Villas Bali.
Use A Nominee
By far, it is the riskiest option, which needs massive due diligence and care. The nominee is an Indonesian citizen with the right to buy property in Bali. What happens is you fund the purchase, but the title for the property goes into their name. To protect yourself, you would have a notary draw up an agreement between you and the nominee, but these are far from watertight, and if the nominee goes rogue on you, it can be a costly experience.