Indonesia, particularly its picturesque island of Bali, attracts foreign real estate buyers with its stunning landscapes, developed infrastructure, and affordable prices.
The Procedure for Buying Property in Indonesia: Everything Foreigners Need to Know
This guide will walk you through all the important aspects of acquiring property in Indonesia, including the rights and obligations of foreigners, property search procedures, transaction processes, taxes, and additional costs.
Rights of Foreign Nationals in Indonesia
Since 2022, Indonesia has implemented the "Second Home Visa" program, which allows foreigners to obtain a residence permit (KITAS) for 5-10 years through investing in real estate or depositing at least 2 billion Rupiah (approximately 130,000 USD). Foreigners can also obtain residency under the following conditions:
-
Entrepreneurship
- Retirement
- Digital nomadic lifestyle
When purchasing property, foreigners are required to pay all associated fees. Property owners must pay land and building tax (hak milik, hak guna). Income generated from renting out property is subject to income tax (withholding tax, PPH). Foreigners residing in Indonesia for more than 183 days per year become residents and are subject to income tax.
Finding Property in Indonesia
The best way to start looking for property in Indonesia is to browse real estate databases on reputable property portals. You can filter properties by important parameters, save your favorites, and subscribe to alerts for new listings.
Another option is to apply for a property selection service tailored to your criteria. Realtors will send you selections of suitable options. It is recommended to research the local real estate market before purchasing.
Taxes and Additional Costs
Buying property in Indonesia involves several taxes and additional costs:
-
Property transfer tax (PPN): 1-5% of the property value
- Land tax (PBB): Annual tax on land plots
- Building tax (IMB): Tax on the construction of new buildings
- Realtor's commission: Typically 2-5% of the property value
- Additional costs: Notary fees, registration fees, and legal services
Conclusion: Indonesia is an attractive real estate market for foreign buyers. Purchasing property in the country grants foreigners the right to reside and is a profitable investment. The property buying process is relatively simple and transparent, but it is important to conduct research and secure the support of an experienced realtor to ensure a smooth transaction.
Properties in Indonesia
Catalogue
Special offers
- € 5 100 000
- House, For sale
- ID: CY-208-140692
- Cyprus, Paphos, Pegeia
Luxury villa in an elite complex at the sea
- € 420 000
- Apartment, For sale
- ID: AE-34-123931
- UAE, Dubai, IMPZ
Modern three-room apartment with interest-free installments for 5 years!
- € 1 820 000
- Golf real estate, For sale
- ID: ME-197-129547
- Montenegro, Lustica, Lustica
Luxury townhouse for sale in Montenegro
- € 670 000
- Apartment, For sale
- ID: AE-74-73313
- UAE, Dubai, Dubai Marina
One bedroom apartment in an ultra premium complex on Bluewaters Island
- € 345 000
- House, For sale
- ID: ID-160-72120
- Indonesia, Bali, Jimbaran
Premium villa in Bali at a luxury resort
- € 2 500 000
- House, For sale
- ID: LV-126525
- Latvia, Jurmala and region, Melluzi
Brand new private villa in the quiet area of Jurmala for sale
- € 430 000
- Apartment, For sale
- ID: OW-OAE-133859
- UAE, Dubai, Business Bay
Beautiful apartment in one of the top buildings by premium developer Select Group called the Edge.
- € 1 450 000
- House, For sale
- ID: IT-39-129710
- Greece, Aegean Islands, Alonisos
MODERN STYLE VILLA FOR SALE ON ALONISOS ISLAND, GREECE
- € 3 500 000
- House, For sale
- ID: ES-92-57881
- Spain, Costa Brava, Sant Antoni de Calonge
Modern villa in Torre Valentina, Sant Antoni de Calonge, Costa Brava, Spain