Inheritance in Bali for foreigners: what a foreign heir can keep.
// Short answer
A foreigner can never keep Indonesian freehold (Hak Milik). A will that leaves it to a foreigner is void at once and the land falls to the State; a foreigner who acquires it on intestacy or through marital property must give it up within a year. A foreign owner's home held on Hak Pakai can be inherited, by an heir with a valid immigration document. Inheriting a registered right pays land acquisition duty (BPHTB) of up to 5% after an allowance (0% for close family in Badung); a lease passes with no BPHTB, and no income tax on the transfer.
Rules and rates as of October 2026. This explains the rules and where they are written; it is not legal advice on an estate.
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Can a foreigner inherit Hak Milik (freehold) in Bali?
Not to keep. Only Indonesian citizens can hold Hak Milik. A will that passes it to a foreigner is void by law and the land falls to the State (Agrarian Law article 26). A foreigner who acquires it without a will, or through marital property, must give it up within one year, or it lapses to the State (article 21).
This is why foreigners hold Hak Pakai (right of use), which the Agrarian Law allows to foreigners resident in Indonesia, or a lease. End of a lease on death: Bali leasehold, end of term and inheritance.
Can a foreigner's Bali home be inherited?
Yes. When a foreign owner dies, their house or apartment can be inherited by their heirs; a foreign heir must hold a valid immigration document, such as a visa, a stay permit or a passport, (Government Regulation 18/2021, article 69).
A Hak Pakai holder who no longer qualifies must release or transfer the right within one year, or it lapses (article 50). Foreign home ownership also carries minimum price, area and number limits (article 72).
Bali estate pack
Own a villa in Bali? What your heirs will face, worked out
A lease passes with no acquisition duty; Hak Pakai in Badung costs family 0%. Why a will cannot hand freehold to a foreigner, the one-year deadlines, the five ways to prove who the heirs are, and a 7-point checklist.
What tax is due on inheriting property in Bali?
Land and building acquisition duty (BPHTB) applies when a registered right, such as Hak Pakai, is acquired by inheritance, at up to 5% set by the regency. A lease (Hak Sewa) is not a taxable right, so it passes with no BPHTB. The final income tax on property transfers does not apply to inheritance.
For a spouse and direct-line relatives one degree apart the untaxed value is at least IDR 300 million; other heirs get the general allowance of IDR 80 million. Badung, which covers Canggu, Seminyak and Uluwatu, charges 0% on inheritance by a spouse, parents or children. Yearly taxes as owner: Bali property tax for foreigners.
Sources
Frequently Asked Questions
Can a foreigner inherit freehold land in Bali?
Can my heirs inherit my Hak Pakai home in Bali?
Is there inheritance tax in Bali?
Do heirs pay income tax on inherited property in Indonesia?
Header photo: Unknown, CC0, via Wikimedia Commons. All credits: image credits.