Legal · 8 min read ·

Leasehold 25+25: the structure, explained.

How it works, what priority extension means in practice, what to watch for in SPA clauses — and why 25+25 is not the same as 50.

Bali villa architecture

A 25+25 year leasehold is the most common foreign-ownership structure in Bali. The first 25 years are signed up-front with the landowner; the next 25 are contractually guaranteed as a priority extension right — meaning the leaseholder has first refusal to extend at fair market value when the initial term expires.

This is not the same as a 50-year freehold. The right to extend is contractual, not absolute. Extension pricing is negotiated at the time. Independent legal review of the SPA clauses governing this right is non-negotiable before signing.

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