Bali Property Ownership by Foreigners
Thanks for that, very helpful as I'm in the process of trying to secure a small pied a terre in Bali at present. As this was explained to me by my lawyer in Jakarta, it was very common in Bali until recently to set up a PMA with the sole intention of buying a property. The net result was that there were thousand of holiday villas around Bali being rented out without paying any taxes and reducing the tax take from the hotels. This explains why the practise was clamped down on.
Of course, a legitimate PMA with the intention to invest in a villa development project, providing it meets the minimum units requirement, is still OK. Similarly a legitimate PMA with the intention of of doing business other than in property may purchase property but, like any Company this can only be HGB. I guess that Nominee structure you are suggesting would be a HGB atas Hak Milik? I was advised against this as I simply want a holiday home with no intention of doing business and apparently PMA's have to make many reports and get hassled the shit out of by tax department?
Of course, a legitimate PMA with the intention to invest in a villa development project, providing it meets the minimum units requirement, is still OK. Similarly a legitimate PMA with the intention of of doing business other than in property may purchase property but, like any Company this can only be HGB. I guess that Nominee structure you are suggesting would be a HGB atas Hak Milik? I was advised against this as I simply want a holiday home with no intention of doing business and apparently PMA's have to make many reports and get hassled the shit out of by tax department?