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Land For Sale Amed – How To Invest In Bali Real Estate

Investing in land for sale in Amed has become a great way to generate a regular income and long-term capital appreciation. Foreigners can now legally buy, secure and use their Amed land investments in a number of ways.

From land banking strategies, to holiday villa rentals, to villa sales, discover how foreign property investors are capitalizing from the property market boom in Amed.

Table of Contents

Investing in Amed land for sale

Investing in land for sale in Amed is a profitable way to generate regular income from land banking, villa rentals and property sales. Foreigners are looking to capitalize on land investment strategies as Amed enters a property growth boom. 

Land prices and the cost of villas for sale in Amed are rapidly increasing. Prices of land in many locations are consistently returning in excess of 20% per year.

Property investors can capitalize from a number of strategies when looking to buy land in Amed;

  • Land banking
  • Building villas for sale
  • Building villas for rent
  • Building a custom home

Amed land for sale for foreign investors

Investing in vacant land is traditionally a great investment. There are a number of land investment options that can help you to put your capital to work. 

With a prime plot of land in Amed, you can create high income businesses that generate significant cash flows. Below are just a few examples of how foreigners are benefiting from Amed’s property boom.

Aerial view of Mae La Noi rice terraces in Mae Hong Son, Thailand

Amed Land for sale with borders marked out for land banking investment

Land banking investments

Land banking is a strategy where the investor buys land to hold over a period of time. As the value of land appreciates, the investor can sell the land for a profit.

This buy and hold strategy can be very lucrative and is historically a safe investment as land prices in prime locations almost always increase.

Building holiday villas for rent

Developing residential and commercial property on land in Amed as a rental property business. Generate regular income through short and long term rentals.

Tourist demand for private villa rentals in Bali is exploding. Buying land and building in prime locations of Amed can help to maximize your return on investment. As a result, by owning the land and the property you can benefit from the long term appreciation of land values.

Custom Built Villa On Land For Sale Amed

Architect drawings of a custom designed villa built on land for sale in Amed.

Building villas for sale

Buying land and building villas for sale to generate profit as property development business.

To operate as a business in Bali, foreigners are required to set up a PT PMA foreign-owned company. Setting up a business in Bali is a straightforward process and there are many benefits of owning a property investment company.

Building on land for sale

Find your dream location to build a second home or retirement villa in tropical paradise. This is a great way to get exactly what you want in a custom designed home. Buying land in the location of choice and building your own property in Amed is a fulfilling project. Pre-built villas for sale are convenient and hassle free, but they come with restrictions and may not always suit your needs.

Custom built homes as a secure investment

Buying land for sale in Amed to build a custom designed home will save you money in the long run. Controlling the whole process yourself cuts out the middlemen at every stage.

The result is a unique villa, nestled in a desirable location, that stands out from the rest. Building a custom villa is highly rewarding a much more profitable than simply buying a pre-built villa.

Custom built homes as a secure investment

Supply of land for sale in the best locations of Bali is short. Investors are now looking to buy land in emerging locations such as Amed to capitalize on lower prices and long term price appreciation. We can help you to secure a prime plot of land in a perfect location before prices explode. Contact us today to schedule a free consultation with our Amed based real estate specialists.

Can foreigners buy land in Bali?

Ownership of ‘freehold’ land is strictly reserved for Indonesian citizens. As a foreigner you can not own freehold land. However, there are land title certificates that safely allow foreigners to buy land in Bali.

Buying land in Amed has become a much easier and secure way for foreign investment into Bali. Indonesian property laws are clearly defined and allow foreigners to find the perfect land ownership structure to suit their needs.

Below are the main land titles that are related to foreigners looking to invest in land for sale in Amed. The land titles uses are discussed in greater detail in this article about buying property in Bali (what you need to know).

  • Right to Own ‘Freehold’ (Hak Milik)
  • Right to Lease ‘Leasehold (Hak Sewa)
  • Right to Use (Hak Pakai)
  • Right to Build (Hak Guna Bangunan)

Right to Lease (Hak Sewa)

This leasehold structure allows a foreigner to lease an empty plot of land for a fixed period of time. If there is a house or villa on the land then the foreigner can live in it. A lease period is typically 25 years and often comes with an option to extend the lease term.

The title can be sold at any stage of the lease term. However, permission to transfer the lease must be granted by the lessor. There are some risks attached to this title as the foreigner does not have full control of the land deed.

Using a reputable company like Vesica Property Developments makes sure that your requests are respected. We provide full cooperation with the transfer of leases and assist with the legal paperwork to ensure a smooth transition.

Right to Use (Hak Pakai)

This enables a foreigner to use the land, and where permitted, build a property in Bali for residential purposes. The title is granted for a period of 30 years and can be extended for a further 20 years. After this time, the title can be renewed for another 30 year term, making a total term of 80 years.

This title comes with the added security that the foreigner’s name is added to the land title certificate. The title can be sold, transferred and inherited without the need of permission from the lessor. In this respect the title is much more secure than the Right to Lease ‘leasehold’ title.

To qualify for this title, a foreigner must hold a residential status of Indonesia;

  • Limited Stay Permit (KITAS)
  • Permanent Stay Permit (KITAP)

Right to Build (Hak Guna Bangunan)

The Right to Build title is granted to foreign-owned PT PMA companies. Foreign individuals can not own this title. Foreigners looking to acquire land for a real estate business should create a PT PMA company before buying land in Bali.

The Right to Build title is granted for a period of 30 years with option to extend for 20 years. After 50 years, the foreign-owned PT PMA company can apply to renew the title for an additional 30 years.

The application for renewal must be submitted at least two years before the 30 year extension expires. Done correctly, the Right to Build title can last for up to 80 years.

Differences between ‘Right to Use’ and ‘Right to Build’

Both titles are secure ways for investors looking at buying land in Bali as an investment. The main difference is in the ownership status of the foreigner.

A foreign individual can acquire land under the Right to Use Title. The individual can also build on the land and live in the property. Under current law, a foreign individual buying land is restricted to one the Right to Use title only. Buying multiple plots of land in Bali under this title is not allowed.

Under the Right to Build title, foreign-owned PT PMA companies can acquire multiple plots of Bali land for sale. The company can choose to develop the land as a real estate business or hold the land as a land banking investment.

Both ownership titles under Right to Use and Right to Build are very secure ways of buying land in Bali. Understanding the the safest way for foreigners to buy property in Bali will help with your investment decision.

Summary of the Right to Use land title

  • Foreign individuals can acquire this title
  • Individual must hold a residency status (KITAS/KIPTAS)
  • The foreigner’s name is printed on the land certificate
  • Buildings are for residential purposes only
  • Foreign individual can not operate a business on this land
  • Individuals are limited to holding one title at any given time
  • Up to 80 years of ownership rights are permitted

Summary of Right to Build land title

  • Foreign-owned PT PMA companies can acquire this title
  • The company’s name is printed on the land certificate
  • A company can use land to operate a business
  • Multiple plots of land can be acquired for business purposes
  • The company can transfer the title to Right to Use
  • Up to 80 years of ownership rights are permitted

Amed land zoning laws

Land for sale in Amed is categorized into three distinctive zones. Each zone has a number of conditions attached to them and they dictate how the land can be used and who it can be used by.

  • Yellow Zone
  • Green Zone
  • Purple Zone

It is important to check the status of any land your may be interested in. Use a reputable legal representative to check the land status on the official land registry.

Yellow Zone

The Yellow Zone is designated as a Residential Zone. This Zone allows foreign individuals to build houses and villas on the land providing the correct title has been acquired. Foreign individuals can not get a business license in a Residential Zone. Running a business as a foreign individual in a Yellow Zone is legally prohibited.

However, it is possible for a foreign-owned PT PMA company to buy land under the Right to Build (Hak Guna Bangunan) title. The foreign-owned company can build houses, villas, offices and shops for business interest purposes.

Green Zone

Green Zone land for sale in Bali is protected land and can not be built on. This is to preserve the natural beauty of Bali and to respect the cultural heritage of the Balinese people.

Examples of Green Zone protected areas include;

  • Forests
  • Rice paddy fields
  • Beach front
  • Riverbeds

It is important the check the status of any land enquiry. Land sellers often do not fully understand the Zoning laws and may tell a potential buyer that the land is safe for a foreigner to buy.

Purple Zone

The Purple Zone is designated as a Tourism Zone. This Zone allows foreign-owned companies to build;

  • Hotels
  • Restaurants
  • Houses
  • Villas (kost-kostan/pondok wisata)
  • Offices
  • Shops

Land used for these purposes are generally business activity related. A foreign-owned PT PMA company is needed to acquire land and appropriate title for use in a Purple Zone area.

Due diligence checks when buying land in Amed

Foreign investors looking to buy land for sale in Amed should take the necessary levels of due diligence before signing documents or transferring money. 

Using a qualified and reputable legal representative at every stage of the land buying process will help to make sure that the purchase is free from future complications once the transaction has completed. Here are a few of the most important due diligence checks to conduct when buying land in Bali.

Verify land ownership

Check the official land certificate to make sure you are dealing with the correct landowner. Asking the land owner to update the land certificate may take some time, however an updated certificate will verify all the land ownership details.

Land zoning check

Make sure that the land you are buying is suitable for your needs. Buying Yellow Zone land as a foreign individual is strictly for residential purposes only and all business activities are prohibited. However, foreign-owned PT PMA companies can operate a business in a Yellow Zone.

Land tax history

Making sure that the land owner has paid all previous taxes the land. Building permits (PBG) can not be issued unless the land tax history is clean.  A land tax check will also give you an estimate of how much tax will be due in the future.

Building permits

Check to see that all building permits are relevant to the land you are purchasing. If there is a building on the land, an PBG permit is required. Without the PBG permit the building may be dismantled by the authorities.

Conclusion

Amed’s property cycle is entering a boom phase as tourist numbers are quickly growing back to pre-pandemic levels.  A trend has emerged where tourists are choosing to stay in private villas instead of in resort hotels. The demand for holiday villas is on the rise and supply is not keeping pace with the demand.

This trend is likely to continue creating an opportunity for investors looking to buy land in Amed. A number of strategies are available to capitalize on the real estate boom. Investment strategies such as land banking can be very profitable as land prices accumulate over time. 

Developing property in Amed for sale or rent can also be a fun and lucrative business as tourist trends change. Contact us for more information on how we can help you to find the best land for sale in Amed.

Looking to Buy Land In Amed?

Buying land in Amed to build a house to live in or a villa rent is a great way to generate significant returns on investment. Based in Amed, we are focussed on connecting foreign property investors with local partners and landowners. Our process makes sure that the land you are buying is a good match for your needs. We conduct routine checks on the land and advise customers on the entire process from buying land to securing building permits.
LAND FOR SALE
Picture of Daniel Hemingway
Daniel Hemingway
Daniel has been involved in property development since 2013. During the past decade his focus has been on buying, renovating, selling and renting single family homes in the London property market. Since the 2019 global pandemic, Daniel has partnered with Richard to focus on developing property in Amed, Bali. In 2023, Vesica Property Developments PT was incorporated where Daniel is responsible for legal and administrative matters allowing Richard to concentrate on operational issues. Daniel currently resides in Hua Hin, Thailand, with his 10 year old son, Sebastien. He remains an avid golfer and spends his time cooking, reading and keeping fit.
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