Creating Freehold Villas

The villas are a hands-off investment. You only have to invest and we take care of everything:

• Your PMA is set up and administered for you. Your PMA, in which you are the sole shareholder, purchases your villa.
• A bank account in the name of your PMA is opened for you and you will have online access to it.
• The villa is built and fully furnished without you having to arrange anything. The furniture is included in the price.
• The rental to tourists is professionally taken care of for you.
• You can also enjoy your villa for free for 3 weeks per year.
• Maintenance and management are fully arranged.
• Designing the Noor Villas brand is done for you.
• You don’t even have to be physically present to sign at the notary, with a power of attorney you can do this remotely if you wish.

In short: no hassle, no worries. This is real hands-off investing with great returns.

A PMA (Penanaman Modal Asing) is a foreign investment structure in Indonesia that allows you to legally own real estate. This is a legal requirement for foreign owners.

In Indonesia you can lease real estate (temporary user) or buy freehold (ownership), for the latter you need a PMA that purchases it on your behalf.

We set up your PMA for you and also administer it for you. The costs for setting up a PMA at the notary are approximately €1,500.

Usually it takes 4-6 weeks to set up a PMA through a Notary. Our buyers are connected to our trusted notary that we work with.

In addition to the purchase price, you as a buyer have the following costs:

• 5% transfer tax, which we will try to reduce at the notary because, for example, you do not have to pay transfer tax on the furniture.
• 1% notary costs
• Approximately €1,500 for setting up your PMA
• Power of attorney costs, if you want to buy the villa remotely. The costs of this differ per notary in the country where you live. This can start from €25,-

Yes, each villa will have insurance against fire and natural disasters (such as earthquakes or floods).

At the moment Allianz is being considered, but this could change. The Property Manager will choose the best one for the owners and this will apply to all villas.

There are two options.

Option 1: Leasehold (Hak Sewa)

• Foreigners can lease land or property for 25 years or longer.

• No Indonesian partner or company is required.

How it works:

• A leasehold agreement is made with the landowner for 25-30 years, with renewal options.

• Foreigners have full rights to develop and start a business or otherwise.

• Leasehold properties can appreciate in value and be resold. Keep in mind that potential buyers may request an extension of the lease period, which will involve additional costs.

• It is crucial that the agreement with the landowner is thorough and legally sound to prevent any issues, such as the landowner terminating the lease after significant investments have been made.

Option 2: Freehold with a PMA (Foreign-Owned Company)

• The safest way for foreigners to own property in Indonesia.

• PMA (Penanaman Modal Asing) allows foreign business ownership.

How it works:

• A PMA company is established in Indonesia.

• The company can purchase and develop property legally.

• Best for: Investors looking to own land, develop commercial properties, or run a rental business legally.

At The Lombok Villas we work with Freehold ownership and arrange the PMA for our buyers at our trusted Notary.

No, all villas are built the same. The construction costs are based on this, so that we can offer competitive sales prices.
After completion, we want the villas to remain the same as much as possible, in order to present ourselves as one resort to tourists and maximize profit.

To ensure a fair distribution of rental income, profits are not allocated per individual villa but are instead shared collectively among all 22 owners. This approach prevents scenarios where some villas are rented out significantly more than others.

The distribution is based on the size of each owner’s land plot. This allocation method ensures transparency and fairness.

For guests, there is no distinction between the villas, they are all presented with the same level of quality and style. This consistent branding helps maintain a unified guest experience and maximizes overall occupancy and profit.