Bali vs Vietnam Property for Foreign Investors

Both Bali and Vietnam restrict foreign buyers to leasehold arrangements, but the terms and caps differ. Vietnam's Housing Law 2023 (effective August 2024) grants foreigners a 50-year ownership certificate for apartments or houses in projects specifically licensed for foreign ownership. That term is renewable once for another 50 years, giving a potential maximum of 100 years. Bali leaseholds typically run 25 years with a 25-year renewal option, reaching 50 years direct. Through a PT PMA foreign-owned company, a buyer can access HGB title in Bali for up to 80 years under Government Regulation PP 18/2021. Neither market offers foreigners freehold title in their own name. Our ownership guide explains each Bali structure in detail.

Vietnam imposes strict foreign ownership quotas: 30 percent of units in any apartment building and 250 landed houses per administrative ward. Bali sets no equivalent cap. Vietnam's licensed foreign-ownership developments are predominantly condominiums in cities such as Da Nang and resort areas such as Phu Quoc. Bali's established foreign investment format is the private villa with a pool, which typically commands higher nightly rates than a comparable apartment and feeds into an active short-term rental market on platforms like Airbnb and Booking.com.

The yield difference is meaningful. Da Nang apartments generated roughly 4.8 to 5.7 percent gross on long-term rental in recent market surveys; short-term resort properties in Phu Quoc can produce higher figures in peak periods. Bali villas in Canggu and Uluwatu are cited by established agencies at 8 to 15 percent gross for short-term rental. Net returns in both markets are considerably lower after management fees, taxes, maintenance, and vacancy. These are market-range estimates and not a guarantee of returns. This is not financial advice.

Vietnam's rental income tax is 5 percent VAT plus 5 percent personal income tax, totalling 10 percent of gross rent above the local annual threshold, under Vietnam's Law on Personal Income Tax. Bali charges non-resident landlords 20 percent final withholding under Article 26 of Indonesia's Income Tax Law. On exit the rates are close: Vietnam sellers pay 2 percent of the gross sale price, while Bali sellers pay 2.5 percent PPh final tax. See our Bali capital gains guide for the full seller's position.

Vietnam's Housing Law 2023 improved liquidity by permitting foreigner-to-foreigner resale for the first time; previously, resale required a Vietnamese citizen or overseas Vietnamese buyer, which limited exit options. Bali leasehold assignment to a new buyer has been standard practice for longer, and a PT PMA share transfer adds a second exit route. Neither country grants a residency permit from property ownership alone. A buyer in either market needs a separate visa to stay long term. For the Bali visa options open to property owners, see our visa guide. For further market comparisons, see Bali vs Thailand and Bali vs Mexico.