1. Direct Ownership:

• Leasehold: The most common option for foreigners.
  • Pros: Affordable compared to freehold, allows for ownership and business setup.
  • Cons: Limited ownership period (typically 25-30 years, renewable), potential for renewal issues, restricted property rights.
• Company Ownership:
  • Pros: More secure ownership as it's a separate legal entity, easier to manage finances and taxes, allows for easier transfer of ownership.
  • Cons: More complex setup, higher initial costs, potential for stricter regulations.

2. Rental Strategies:

• Short-Term Rentals :
  • Pros: High potential income, flexibility in pricing, direct guest interaction.
  • Cons: High competition, strict regulations, potential for guest issues, management workload.
• Long-Term Rentals:
  • Pros: Stable income, less management hassle, lower maintenance costs.
  • Cons: Lower income potential, limited flexibility, difficulty finding suitable tenants.
• Combined Short and Long-Term Rentals:
  • Pros: Combines benefits of both options, flexible income stream, manages occupancy better.
  • Cons: Requires more complex management, potential for overlapping bookings.

3. Business Setup and Operations:

• Limited Liability Company (PT): Recommended for business operations, separate legal entity, tax benefits.
• Visa Requirements: Business visa or retirement visa required for long-term stay and business activities.
• Local Partner: Consider a local partner for navigating regulations and local business practices.
• Management Company: Consider hiring a property management company for day-to-day operations, guest management, and maintenance.

4. Legal and Regulatory Considerations:

• Building Permit: Ensure the villa complies with local building codes and permits.
• Tourism Licenses: Obtain the necessary licenses for short-term rentals and hospitality services.
• Tax Compliance: Understand and comply with Indonesian tax regulations for rental income and business operations.

5. Financing Options:

• Local Banks: Limited access to mortgages for foreigners.
• International Banks: May offer financing options, but require strong credit history and large down payment.
• Private Lenders: Consider private lenders for alternative financing options.

6. Additional Tips:

• Research Thoroughly: Explore available properties, understand legal requirements, and investigate potential risks before investing.
• Consult Professionals: Work with a lawyer, accountant, and real estate agent familiar with foreign ownership regulations and the Indonesian market.
• Build a Network: Connect with other expats and local professionals for guidance and support.
• Market Your Property Effectively: Utilize online platforms, marketing materials, and social media to attract potential customers.

Considering the points discussed above, consulting with a business consultant may reveal additional solutions tailored to your needs.

Remember: It's essential to conduct thorough research and seek professional advice before investing in a leasehold villa in Bali. Understanding local laws and regulations, financial implications, and business practices is crucial for a successful and sustainable venture.

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