How Foreigners Start a Luxury Villa Business in Bali
September 26, 2025
Are you currently researching how to start a luxury villa business in Bali? Good for
Are you currently researching how to start a luxury villa business in Bali? Good for you, because you’ve come to the right page!
For those who are looking for a way to start a luxury villa business in Bali, you’ve probably come across a lot of advice, such as buying property through an Indonesian nominee, signing leasehold agreements that you don’t even understand, or even relying on informal arrangements. While these may appear inexpensive and tempting at first, they often lead to legal and financial difficulties.
In Bali, there’s only one legal structure that allows foreigners to own and operate a villa rental business, which is the PT PMA (Foreign Investment Company). In fact, setting up a PT PMA not only ensures compliance with Indonesian law but also gives legal protection to your investment.
Keep on reading, we’ll tell you why….
The PT PMA or Foreign-Owned Company is the only business structure legally recognised for foreign ownership in Indonesia. Through a PT PMA, you gain the right to run your Bali luxury villa business entirely within the law. This includes renting out luxury villas to tourists, managing multiple properties under one company, or even expanding into larger hospitality ventures such as boutique resorts.
Running a Bali villa business without a PT PMA—such as under a personal lease, nominee ownership, or on a tourist visa—puts your investment at significant risk. Doing such a thing can result in fines and even shut down unlicensed operations. Additionally, in some cases, deportation may also be a consequence. Therefore, by setting up a PT PMA, you ensure that the right legal framework supports your luxury villa business.
Reading suggestion: Can Foreigners Own Property in Bali?
Bali is more than just a holiday destination; it is a sacred island with deeply rooted cultural practices. That is why building a luxury villa business in Bali is not only about profit—it’s about
Becoming part of an existing ecosystem of culture, community, and nature.
Reading suggestion: Balinese Traditions Every Bali Expat Entrepreneur Should Know
As a business consultant, we highly recommend that our investor clients always respect local customs and regulations, as ignoring these values not only risks damaging community relations but can also lead to legal consequences.
Starting a luxury villa business in Bali with PT PMA is not something you want to approach casually. In fact, the process involves multiple legal steps, cultural sensitivities, and long-term compliance obligations. That’s why we are here.
Usaha Expat is a local business consultant that specialises in guiding foreign investors through every stage of setting up a villa business in Bali—from PT PMA registration, business permits, licensing, and resident stay permit ITAS application, to ensuring sustainable and legally compliant operations. With our support, you can focus on building a profitable and ethical business while we handle the complexities behind the scenes.
Your investment deserves the peace of mind that comes with expert guidance. That’s why Usaha Expat exists to help you lay the foundation for a luxury villa business that is not only profitable but also sustainable!
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