Bali's villa market may be booming, but the legalities of acquiring land remain complex.
With foreign individuals and companies banned from acquiring freehold titles in Indonesia, the easiest option is to obtain a lease.
However, if you want returns from capital appreciation there are ways around the ownership laws.
Property experts said although buying through a third party was always risky, a nominee structure was the most popular way. An Indonesian buys the land on your behalf, with contracts showing you loaned the nominee the value of the land, and giving you full authority to independently deal in the land and occupy it.
Another option is to set up a foreign investment company (PMA), which can be 100 per cent foreign-controlled and through which you can acquire a Right to Build (HGB) title, giving you ownership of the property you build on the land.
However, a PMA involves more paperwork and an HGB title is valid for only 30 years. Extensions are subject to negotiations with the local government that are 'often the subject of much argument and frustration', according to Elite Havens.