Bali vs Costa Rica Property for Foreign Investors

Costa Rica lets foreigners own property outright with freehold title registered in their own name, while Bali requires either a leasehold or a company structure. That single difference shapes almost everything else in the comparison.

Outside Costa Rica's maritime zone, any foreigner can register property in the Registro Nacional with no minimum purchase and no residency requirement, holding the same rights as a citizen. The coastal maritime zone is the main exception: the seaward 50 meters is public land, and the next 150 meters can only be held via a municipal concession. Under Ley 6043, foreigners must have resided in Costa Rica for at least five years before holding a concession share, so beachfront titles near tourist towns are often leasehold-style arrangements rather than freehold. In Bali, foreigners cannot hold freehold (SHM title) under any circumstances. Options are a personal leasehold of 25 to 30 years, extendable, or a Hak Guna Bangunan title via a PT PMA company structure.

On rental yields, both markets reward investors in tourist zones, but Bali can run higher. Gross rental yields in Costa Rica average 7.63% nationally and reach 8 to 12% in beach destinations like Guanacaste and Tamarindo (Global Property Guide, Q2 2026). Short-term occupancy in Guanacaste beach towns averages 45 to 55% annually. Bali short-term rentals in Canggu, Seminyak, and the Tabanan corridor target 8 to 15% gross in well-managed properties. Neither figure is guaranteed; actual returns depend on location, management quality, and seasonality. This is not financial advice.

Transaction and holding costs differ meaningfully. In Costa Rica, buyer-side purchase costs run roughly 3 to 5%, covering transfer stamps, registration, and notary fees, with an annual property tax of 0.25% of assessed value. Non-resident rental income is taxed at 15% of gross receipts under the simplified capital income regime. In Bali, all-in purchase costs typically reach 10 to 12%: BPHTB acquisition duty of 5%, the seller's PPh income tax of 2.5% (often absorbed into the asking price), and legal or notary fees. Indonesian rental income tax for foreign-owned property is a 10% final withholding on gross rental receipts.

Residency options also differ. Costa Rica's Inversionista visa lets any foreigner who invests USD 200,000 or more in property registered personally apply for legal residency; maintaining status requires just one day per year in-country. Indonesia offers a Second Home Visa backed by a USD 130,000 deposit in an Indonesian state bank, or an investor KITAS through a PT PMA directorship. For US-based investors, Costa Rica also has the geography advantage: Guanacaste is 5 to 6 hours from the US East Coast by direct flight, compared to 21 hours or more for Bali via a connection.

For a US investor who wants freehold title, straightforward legal ownership, a lower purchase tax burden, and close proximity to home, Costa Rica is a strong comparison point. Bali suits investors who are comfortable with a leasehold or company structure and are targeting higher gross yields in a Southeast Asian market driven by global tourism and digital nomad demand.