Sally1

Member
Jun 8, 2013
83
0
6
I have bought a 25 year lease with an option to renew for another 25 years. I am building some villas for commercial rental and am over 55 years. Can members please advise what would be the most suitable visa. I travel to Bali three times a year
 

samsiam

Member
Feb 2, 2014
860
1
18
Hi Sally...no idea from me on visas, but I want to ask you some questions re villas and rentals etc...as there you are doing exactly what I do not really understand as being sensible......not being negative at all, just wish to get first hand feedback from someone actually doing it if ya dun mind ?

Why do people buy leases ?

and...where does this 25 year extension come from when all I have read and been told...is not binding on the lessors part other than to offer you the lease again, but at their terms I would imagine.

Thanks in advance.
 

samsiam

Member
Feb 2, 2014
860
1
18
By the way...I would have thought the retirement visa would be best shot....but I know nothing yet...just like Klink.
 

Markit

Well-Known Member
Sep 3, 2007
9,389
1,207
113
Karangasem, Bali
I have bought a 25 year lease with an option to renew for another 25 years. I am building some villas for commercial rental and am over 55 years. Can members please advise what would be the most suitable visa. I travel to Bali three times a year

If you wish to be completely legal with all the financially negative implications that that brings with it then you should be going for a business visa linked possibly to your PMA company that owns the villa development.

All other visa options will not allow you to (legally) run your business and upon discovery of your infringement by the police/immigration authorities this will result in you being subject to the full force of the law - possible jail time, a fine and then ejection from Indonesia never to darken its doors again.

BUTT (and I'm told it's a big one) if you don't have anything to do with the rental of your properties and don't officially profit from it in any way then go with a VOA visa on arrival - good for 2 times 30 days or if you need a little longer try the Social visa.

Welcome to the forum and tell us a little about yourself and your project(s).

Markit
 

no.idea

Member
Feb 22, 2011
862
2
16
Sanur
The option is rubbish. Forget about it or pay up front. You have actually not bought nothing! You have leased some land!
 

Sally1

Member
Jun 8, 2013
83
0
6
If you wish to be completely legal with all the financially negative implications that that brings with it then you should be going for a business visa linked possibly to your PMA company that owns the villa development.

All other visa options will not allow you to (legally) run your business and upon discovery of your infringement by the police/immigration authorities this will result in you being subject to the full force of the law - possible jail time, a fine and then ejection from Indonesia never to darken its doors again.

BUTT (and I'm told it's a big one) if you don't have anything to do with the rental of your properties and don't officially profit from it in any way then go with a VOA visa on arrival - good for 2 times 30 days or if you need a little longer try the Social visa.

Welcome to the forum and tell us a little about yourself and your project(s).

Markit
 

Sally1

Member
Jun 8, 2013
83
0
6
Hi Samsiam
foreigners can't own land in Bali. The lease hold is protected by the law and you have to make conditions for the renewal price at the time of signing the lease incorporating fact that the owner has to agree to a renewal in 25 years time.
My information came from engaging both an Indonesian property lawyer and a notary.

Regards

Sally1
 

Sally1

Member
Jun 8, 2013
83
0
6
Thanks Markit, your replies are always helpful. Will apply for a business visa. My intention is to conduct business according to the rules of Indonesia, not cut corners. I abide by the rules in my own country so will of course do the same in Indonesia,

regards
Sally
 

Sally1

Member
Jun 8, 2013
83
0
6
Hi no.idea
just using the terms that the notary and property lawyer used

Regards

Sally1
 

spicyayam

Well-Known Member
Jan 12, 2009
3,595
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83
Do you know if a foreigner can hold more than one lease at a time? I think I remember reading somewhere before.
 

Sally1

Member
Jun 8, 2013
83
0
6
one person can hold a least for 50 years at the most but then a lease can be inherited so another family member can hold the lease for another 50 years
 

Smoke

Active Member
Dec 3, 2011
1,395
1
36
Sanur
one person can hold a least for 50 years at the most but then a lease can be inherited so another family member can hold the lease for another 50 years

but in that span of 100 years could the land title(owner) of land change hands ( due to death or selling it to family or anyone else)and make your possible unpaid leases obsolete?
 

Sally1

Member
Jun 8, 2013
83
0
6
Death does not change the lease and the owner is not by law allowed to sell the land during term of lease. The lease can be extended at any stage during its term, it is all in the leasee's control. The male children of the owner are legally bound by the terms of the lease when their father dies.
 

Sally1

Member
Jun 8, 2013
83
0
6
My pleasure, was clarified for me when I negotiated my lease. Spent many hours doing the negotiation but necessary because the process is quite complicated and even the Indonesian lawyers from Jakarta learnt more intricacies about Balinese property law. Had representatives from the village including the owner at the meeting.
 

samsiam

Member
Feb 2, 2014
860
1
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Out of interest...what was the agreed price to pay for the new option in 25 years...presumably something has to be paid then....no need for $ amount, percentage would be fine.
 

Sally1

Member
Jun 8, 2013
83
0
6
The price of the yield of rice per one are in 25 years at the time of the lease renewal multiplied by the number of are
 

samsiam

Member
Feb 2, 2014
860
1
18
So you're not in seminyak or Canggu then ?

interesting way of doing it...unless you're taking the piss...I can usually tell if someone taking the piss.

Are you taking the piss ?
 

Sally1

Member
Jun 8, 2013
83
0
6
No to all those questions, traditionally the renewal was done according to the commodity price
 

no.idea

Member
Feb 22, 2011
862
2
16
Sanur
The land price being based on rice is a common practice. Sadly sally is getting incorrect advice on the lease renewal. At the end of the first 25 year lot she and the person she leased the land of will more than likely be dead.
Whoever has inherited the land from the owner that did the original lease with Sally will tell who ever has inherited the buildings from Sally to go and shag themselves. It has happened numerous times in the past and will happen again. An unpaid option means absolutely nothing.
S'cape Condo in Sanur is a very good example of this. Those who recently inherited the land borrowed money from the bank and have failed to repay it. The bank moved in and fenced off the property, locking out the westerners who owned the villas on the land.