Get to Know Our Guidelines
A step-by-step guide to purchasing your dream propertyYes, foreigners can own property in Indonesia, but there are certain restrictions on specific types of property ownership rights available to them.
- Decide on the type of property you want to purchase (e.g., residential, commercial, or industrial).
- Choose the location or region where you want to buy property.
- Learn about the types of property ownership rights available to foreigners, such as Right to Use (Hak Pakai), Right to Build (Hak Guna Bangunan), and Leasehold (Hak Sewa).
- Ensure that you meet the visa and residency requirements to own property in Indonesia.
- Check if there are any specific requirements for foreign buyers in the chosen region.
- Conduct a property search to find the right property.
- Perform due diligence on the property to verify ownership, check for encumbrances, and ensure there are no legal disputes or issues associated with the land.
- Work with a qualified legal expert is experienced in property transactions.
- Right to Use (Hak Pakai): The Right to Use title allows foreigners to use and build on land in Indonesia for a specified period, usually ranging from 25 to 80 years. This right is typically granted for residential, commercial, and industrial properties. It can be extended or renewed based on government regulations.
- Right to Build (Hak Guna Bangunan): The Right to Build title permits foreigners to construct and own buildings or structures on land, including state-owned land (Tanah Milik Negara), Freehold land (Hak Milik), and land with Hak Pengelolaan titles. This title is commonly used for residential, commercial, and industrial properties. The initial duration is often up to 30 years, with potential extensions and renewals.
- Leasehold (Hak Sewa): Foreigners can lease land or property through a Leasehold title, granting them the right to use and develop the property for a specified period, typically around 25 years. Extensions can be negotiated. Leasehold rights are available for various property types, including residential, commercial, and industrial properties.
- Foreign Investment Company (PMA): To invest in certain types of property or for commercial purposes, foreigners can establish a foreign investment company, known as Penanaman Modal Asing (PMA). The PMA can hold property and is a common approach for foreign investors in Indonesia.
- Non-subsidized residential properties situated on land with a Right of Use title.
- Strata-title apartment units located on land with a Right of Use title.
- Vacant land with a Right of Use title.
- Non-Subsidized Houses on Land with Right of Use Title (Hak Pakai),
- Strata-Title Apartment Units on Land with Right of Use Title (Hak Pakai),
- Vacant Land with Right of Use Title (Hak Pakai).
Location is imperative when purchasing property, not only for yourself but especially if it’s for investment reasons. We personally recommend buying as close to the ocean as possible. Due to the uncontrollable development in popular areas such as Seminyak and Petitenget which has only shot the prices through the roof on Hotels and Villas, we also recommend looking at areas such as Canggu, Bukit/Uluwatu, Ubud and Lovina as these places are really good bang for your buck.
Yes, individual foreigners can rent out their property in Indonesia. Renting out a property as a foreign individual is typically allowed, but it's essential to comply with local regulations and tax requirements.
- Visa Status: Foreigners need a valid visa to purchase property in Indonesia. The type of visa required may depend on the intended use of the property. Common visas include tourist visas, social visas, business visas, and retirement visas.
- Residence Permit: In many cases, foreigners must hold a valid residence permit, such as a Temporary Stay Permit (KITAS) or a Permanent Stay Permit (KITAP), to own property. The specific permit required may vary by location and property type.
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Property Acquisition Tax (BPHTB - Bea Perolehan Hak atas Tanah
dan
Bangunan):
BPHTB is a tax imposed on the transfer of rights to land and buildings. It is typically paid by the buyer. The tax rate varies by region but is commonly between 5% and 6.5% of the property's transaction value. -
Value Added Tax (VAT - Pajak Pertambahan Nilai):
VAT may apply to the sale of new or luxury properties. The standard VAT rate is 10% of the property's transaction value. -
Land and Building Tax (PBB - Pajak Bumi dan Bangunan):
PBB is an annual property tax based on the property's assessed value. The rate varies depending on the region and the property's assessed value. The local government assesses and collects this tax. -
Income Tax (PPh - Pajak Penghasilan):
If you are a foreigner and earn rental income from your property, you may be subject to income tax. The rate depends on the income amount and your tax status.
To calculate the Property Acquisition Tax (BPHTB) and the Value Added Tax (VAT), you typically use the property's transaction value:
BPHTB Calculation: Property Transaction Value x BPHTB Rate
VAT Calculation: Property Transaction Value x VAT Rate
- Notary Fees (Biaya Notaris): Notary fees are associated with the legal documentation and authentication of the property transaction.
- Legal Fees (Biaya Hukum): Legal fees cover the cost of legal services, including conducting due diligence on the property, reviewing contracts, and providing legal advice.
- Registration Fees (Biaya Pendaftaran): These fees are associated with registering the property transaction with the Land Office.
- Stamp Duty (Bea Materai): Stamp duty is a tax on property documents, including sale and purchase agreements.
Yes, we do. Acquiring property or land in Bali involves navigating a complex landscape of regulations, and it is crucial to engage a seasoned professional team capable of guiding you through every phase of the process while overseeing the acquisition of permits and licenses. Meet with us to stay updated on the most current property ownership regulations in Bali.
Yes, we do offer assistance with property inspections and viewings for international clients. Our team is dedicated to ensuring a smooth and productive property search experience, and we are here to help you through the process, whether you're based in Indonesia or abroad. Please feel free to get in touch with us to discuss your property inspection and viewing needs.
No! When you hold a leasehold title, it is officially registered in your name, providing you with exclusive property rights. Therefore, it's crucial to ensure that you seek assistance from experienced legal professionals to guarantee that your property ownership is established in full compliance with the law. This will help you avoid any potential legal issues and ensure that your ownership is legitimate and secure.
Yes, it is possible to designate a representative to sign the deed transfer on your behalf through a power of attorney. This process is relatively uncomplicated. You can select a reliable person, such as a friend or your legal counsel, to carry out this responsibility on your behalf.