Authored by the expert who managed and guided the team behind the Indonesia Property Pack
Everything you need to know before buying real estate is included in our Indonesia Property Pack
Buying property in Indonesia as a foreigner comes with a unique set of costs, taxes, and fees that can catch first-time buyers off guard.
This guide breaks down exactly what you need to budget for when purchasing residential real estate in Indonesia in 2026, from mandatory government taxes to negotiable professional fees.
We constantly update this blog post to reflect the latest regulations and market conditions in Indonesia.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Indonesia.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
Overall, how much extra should I budget on top of the purchase price in Indonesia in 2026?
How much are total buyer closing costs in Indonesia in 2026?
As of early 2026, total buyer closing costs in Indonesia typically range from 6% to 10% of the purchase price, which means on a property worth IDR 2 billion (around USD 125,000 or EUR 114,000), you should expect to pay between IDR 120 million and IDR 200 million (USD 7,500 to USD 12,500, or EUR 6,800 to EUR 11,400) in additional fees and taxes.
The minimum extra budget possible in Indonesia is around 5.5% to 6.5% of the purchase price (roughly IDR 110 million to IDR 130 million, or USD 6,900 to USD 8,100, or EUR 6,300 to EUR 7,400 on a IDR 2 billion property), but this assumes you are buying a resale property, the seller covers their own taxes and agent fees, and you skip optional professional services.
The maximum extra budget you should realistically plan for in Indonesia is 12% to 16% of the purchase price (IDR 240 million to IDR 320 million, or USD 15,000 to USD 20,000, or EUR 13,700 to EUR 18,300 on a IDR 2 billion property), which applies when VAT is charged on a new developer purchase, you hire a full legal team, and you agree to cover some costs that would normally fall on the seller.
The main factors that determine whether your closing costs fall at the low end or high end in Indonesia are whether you are buying from a VAT-registered developer (which adds significant VAT costs) or a private reseller (no VAT), whether you negotiate for the seller to cover their transfer tax and agent commission, and how much you spend on optional services like independent lawyers, translators, and property valuations.
What's the usual total % of fees and taxes over the purchase price in Indonesia?
The usual total percentage of fees and taxes over the purchase price in Indonesia for most foreign buyers in 2026 falls between 6% and 9% for resale properties, and between 9% and 14% for new builds from developers where VAT applies.
The realistic low-to-high percentage range that covers most standard property transactions in Indonesia is 5.5% at the very lean end (resale with minimal services) up to 16% at the conservative maximum (developer sale with full professional support and cost-sharing agreements).
Of that total percentage in Indonesia, government taxes (mainly BPHTB acquisition duty at around 5% and potentially VAT at 11% effective) typically make up the largest share, while professional service fees (PPAT deed fees, legal due diligence, and valuations) usually account for 1% to 3% of the purchase price.
By the way, you will find much more detailed data in our property pack covering the real estate market in Indonesia.
What costs are always mandatory when buying in Indonesia in 2026?
As of early 2026, the mandatory costs when buying property in Indonesia include BPHTB (acquisition duty at 5% of the taxable value after a local deduction), PPAT deed fees (legally capped at 1% of the transaction value), stamp duty (IDR 10,000, or less than USD 1, per dutiable document), and land office registration fees (a small administrative cost usually bundled with PPAT handling).
Optional but highly recommended costs for foreign buyers in Indonesia include independent legal due diligence (to verify title, encumbrances, zoning, and permits), a certified translator or interpreter for signing day if you do not speak Indonesian, and an independent property valuation to ensure you are paying a fair price and to support your negotiation.
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What taxes do I pay when buying a property in Indonesia in 2026?
What is the property transfer tax rate in Indonesia in 2026?
As of early 2026, the main buyer-side property transfer tax in Indonesia is BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan), which is charged at 5% of the taxable acquisition value after subtracting a local non-taxable threshold called NPOPTKP that varies by city or province.
There are no extra transfer taxes specifically targeting foreigners in Indonesia at the national level, but foreigners buying under the Hak Pakai (right to use) ownership structure must meet minimum price thresholds that vary by province and property type, which often pushes foreign purchases into higher price brackets where VAT and other costs become more significant.
Buyers in Indonesia pay VAT on residential property purchases when buying a new home or unit from a VAT-registered developer, with the effective rate currently at 11% for most transactions under the PMK 131/2024 mechanism, though time-limited government incentives (PPN DTP) can reduce or eliminate VAT on qualifying purchases that meet specific price caps and delivery conditions.
Stamp duty in Indonesia is a flat IDR 10,000 (less than USD 1 or EUR 1) per dutiable document, applied to key legal documents like the deed of sale and other agreements used to evidence civil transactions.
Are there tax exemptions or reduced rates for first-time buyers in Indonesia?
Indonesia does not have a single nationwide first-time buyer tax exemption that reliably reduces BPHTB for everyone, though some local governments offer varying NPOPTKP thresholds that provide a small reduction, and the most meaningful savings typically come from national VAT incentives (PPN DTP) that apply only to qualifying new residential transactions during specific time periods.
Buying property through an Indonesian company (such as a PT) in Indonesia changes your ownership structure options and adds ongoing compliance costs like accounting and annual tax filings, though the headline transaction taxes may look similar to buying as an individual.
There is a significant tax difference between buying a new-build and a resale property in Indonesia because new builds from VAT-registered developers often include VAT (at an effective 11% rate), while resale transactions between private parties typically do not attract VAT at all, though BPHTB still applies in both cases.
To potentially benefit from VAT incentives on new residential purchases in Indonesia, buyers must meet specific conditions set by the government, such as purchasing within a defined price cap, ensuring delivery within a set timeframe, and buying from a registered developer, so you should confirm your eligibility with a notary or tax advisor before assuming you qualify.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Indonesia in 2026?
How much does a notary or conveyancing lawyer cost in Indonesia in 2026?
As of early 2026, the PPAT (Land Deed Official) fee for processing your property deed in Indonesia is legally capped at 1% of the transaction value, with most residential transactions falling in the 0.5% to 1% range, which means on a IDR 2 billion property (around USD 125,000 or EUR 114,000), you would pay between IDR 10 million and IDR 20 million (USD 625 to USD 1,250, or EUR 570 to EUR 1,140).
PPAT fees in Indonesia are typically charged as a percentage of the property price rather than a flat rate, though independent lawyers offering additional services like contract review and title due diligence may quote either a fixed fee or a separate percentage of around 0.5% to 1%.
Translation and interpreter services for foreign buyers in Indonesia typically cost between IDR 1.5 million and IDR 5 million (USD 95 to USD 310, or EUR 85 to EUR 285) for a straightforward signing-day interpreter, with higher costs if you need certified translations of multiple documents.
A tax advisor in Indonesia is not always necessary for a straightforward resale purchase, but if your transaction involves VAT incentives, company structuring, or rental business setup, you should budget between IDR 5 million and IDR 20 million (USD 310 to USD 1,250, or EUR 285 to EUR 1,140) depending on the complexity of your case.
We have a whole part dedicated to these topics in our our real estate pack about Indonesia.
What's the typical real estate agent fee in Indonesia in 2026?
As of early 2026, the typical real estate agent fee in Indonesia ranges from 2% to 5% of the property price, which means on a IDR 2 billion property (around USD 125,000 or EUR 114,000), agent commissions would fall between IDR 40 million and IDR 100 million (USD 2,500 to USD 6,250, or EUR 2,280 to EUR 5,700).
In most residential transactions in Indonesia, the seller pays the agent commission, but this is negotiable, and foreign buyers who hire their own buyer's agent or find themselves in a deal where costs are shifted to the buyer should budget for this expense.
The realistic low-to-high range for agent fees in Indonesia is 0% if you are not hiring your own agent and the seller covers the commission, up to 3% to 5% if you engage a dedicated buyer's representative or the deal structure allocates commission costs to you.
How much do legal checks cost (title, liens, permits) in Indonesia?
Legal checks including title search, liens verification, and permits review in Indonesia typically cost between IDR 5 million and IDR 25 million (USD 310 to USD 1,560, or EUR 285 to EUR 1,430), depending on whether you need a basic certificate verification or a full due diligence review covering zoning, building permits, and encumbrances.
A property valuation fee in Indonesia typically costs between IDR 2 million and IDR 7 million (USD 125 to USD 440, or EUR 115 to EUR 400) for a standard residential valuation report, which helps you confirm you are paying a fair price and supports your negotiation with the seller.
The most critical legal check that should never be skipped in Indonesia is title verification through the land office (BPN) to confirm the seller is the registered owner, the certificate is authentic, and there are no undisclosed encumbrances or disputes attached to the property.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Indonesia.
Get the full checklist for your due diligence in Indonesia
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What hidden or surprise costs should I watch for in Indonesia right now?
What are the most common unexpected fees buyers discover in Indonesia?
The most common unexpected fees buyers discover in Indonesia include outstanding PBB (property tax) arrears attached to the property, unpaid utility bills or building service charges, bundled administrative add-ons inside notary or PPAT invoices (such as courier fees, extra document copies, and legalization costs), and permit or document gaps that require extra legal work to resolve.
Yes, there are unpaid property taxes or debts a buyer could inherit when purchasing in Indonesia, which is why you should always require the seller to provide proof that PBB is paid up to date before closing, otherwise you may end up paying arrears yourself to avoid penalties or complications with the land office.
Buyers in Indonesia can be scammed with fake listings or fake fees through schemes like "pay a deposit to reserve" before title or seller identity verification, fake agents requesting upfront "processing fees," and documents that do not match the registered owner, so you should always pay through traceable channels and let your PPAT or lawyer verify certificates and seller identity before any significant money changes hands.
Fees that are usually not disclosed upfront by sellers or agents in Indonesia include the exact BPHTB calculation (which depends on local NPOPTKP thresholds), any outstanding building maintenance arrears in apartments, and the full scope of notary or PPAT administrative charges beyond the headline percentage.
In our property pack covering the property buying process in Indonesia, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Indonesia?
Extra fees when buying a tenanted property in Indonesia can include handover and settlement costs for utilities and deposits (typically a few million IDR, or USD 100 to USD 500, or EUR 90 to EUR 450), plus potential legal drafting fees if you need to formally assign or terminate the existing lease agreement.
When purchasing a tenanted property in Indonesia, the buyer typically inherits the existing lease agreement, which means you must honor the tenant's rights under that contract, including the agreed rental amount and lease duration, until the lease naturally expires or is renegotiated.
Terminating an existing lease immediately after purchase in Indonesia is generally not possible unless the lease contract specifically allows for early termination, the tenant agrees to leave voluntarily (often in exchange for compensation), or there are valid legal grounds for eviction.
A sitting tenant in Indonesia can affect the property's market value or your negotiating position in different ways: some buyers see it as a discount opportunity because the property is less flexible, while investors may view a reliable tenant as a plus since rental income starts immediately.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Indonesia.
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Indonesia?
Which closing costs are negotiable in Indonesia right now?
The closing costs that are negotiable in Indonesia include who pays the seller's 2.5% transfer income tax (even though it is legally the seller's obligation, buyers and sellers often reallocate this in the price negotiation), PPAT and notary fees (your quote can come in below the legal cap), agent commission (both the rate and who pays), and optional professional services like lawyer scope and valuation depth.
Closing costs that are fixed by law or regulation and cannot be negotiated in Indonesia include the BPHTB rate (5% of the taxable acquisition value), the stamp duty amount (IDR 10,000 per document), and land office registration fees, though the PPAT fee has a legal cap of 1% that practitioners must stay within.
The typical discount or reduction buyers can realistically achieve on negotiable fees in Indonesia ranges from 10% to 30% off quoted professional service fees if you negotiate directly, plus the ability to shift certain seller-side costs like the transfer tax and agent commission back to the seller in a buyer's market.
Can I ask the seller to cover some closing costs in Indonesia?
The likelihood that a seller will agree to cover some closing costs in Indonesia depends heavily on market conditions and the property's time on market, but it is common practice for buyers to request that sellers cover their own 2.5% transfer tax and agent commission, especially in slower market segments or for properties that have been listed for a long time.
The specific closing costs sellers are most commonly willing to cover in Indonesia are the seller-side final income tax on the transfer (2.5%), the real estate agent commission (if the seller engaged the agent), and sometimes minor administrative fees, while buyers typically remain responsible for BPHTB, PPAT fees, and their own due diligence costs.
Sellers in Indonesia are more likely to accept covering closing costs when the property market is slow, the listing has been sitting unsold for several months, the property has documentation issues that reduce its appeal, or when the buyer is making a strong offer and asks for cost-sharing as part of the negotiation.
Is price bargaining common in Indonesia in 2026?
As of early 2026, price bargaining is common and expected when buying property in Indonesia, with most sellers anticipating some negotiation and pricing their properties accordingly, though the amount of discount you can achieve varies significantly by location, property type, and how long the property has been on the market.
Buyers in Indonesia typically negotiate between 3% and 8% below the asking price in normal market conditions, which on a IDR 2 billion property (around USD 125,000 or EUR 114,000) translates to potential savings of IDR 60 million to IDR 160 million (USD 3,750 to USD 10,000, or EUR 3,400 to EUR 9,100), though discounts of 10% or more are possible for overpriced listings, stale properties, or those with documentation issues.
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What monthly, quarterly or annual costs will I pay as an owner in Indonesia?
What's the realistic monthly owner budget in Indonesia right now?
The realistic monthly owner budget in Indonesia varies widely by property type, but for a typical apartment in Jakarta or Bali, you should expect to pay between IDR 1 million and IDR 5 million per month (USD 60 to USD 310, or EUR 55 to EUR 285) just for building service charges (IPL) and sinking fund contributions, plus utilities on top.
The main recurring expense categories that make up this monthly budget in Indonesia are building service charges or IPL (for apartments and condos), annual property tax (PBB, which can be paid monthly or annually), utilities (electricity, water, internet), and general upkeep costs like security, gardening, or pool maintenance for landed houses.
The realistic low-to-high range for monthly owner costs in Indonesia is around IDR 600,000 to IDR 3 million per month (USD 40 to USD 190, or EUR 35 to EUR 170) for a modest apartment with basic services, up to IDR 5 million to IDR 15 million per month (USD 310 to USD 940, or EUR 285 to EUR 860) for a larger villa with staff, pool maintenance, and premium building amenities.
The monthly cost that tends to vary the most in Indonesia is building service charges (IPL) for apartments, which can range from IDR 10,000 to IDR 30,000 per square meter per month depending on the building's age, facilities, and management quality, meaning a 100 square meter unit could pay anywhere from IDR 1 million to IDR 3 million monthly just for this one item.
You can see how this budget affect your gross and rental yields in Indonesia here.
What is the annual property tax amount in Indonesia in 2026?
As of early 2026, the annual property tax (PBB-P2) in Indonesia is set by local governments at rates that are capped at a maximum of 0.5% of the assessed value (NJOP), with most residential properties paying an effective rate of around 0.05% to 0.3%, which means a property with an NJOP of IDR 2 billion might pay between IDR 1 million and IDR 6 million per year (USD 60 to USD 375, or EUR 55 to EUR 340).
The realistic low-to-high range for annual property taxes in Indonesia is roughly IDR 500,000 to IDR 10 million per year (USD 30 to USD 625, or EUR 28 to EUR 570), depending on the property's location, assessed value, and the specific local government's rate setting within the national cap.
Property tax (PBB-P2) in Indonesia is calculated based on the NJOP (government-assessed value), which is typically lower than market value, multiplied by the local tax rate set by the city or regency government within the 0.5% maximum allowed under the HKPD framework.
There are some exemptions and reductions available in Indonesia, such as lower rates or thresholds for certain low-value properties or specific categories defined by local regulations, but foreign buyers generally should not count on qualifying and should budget based on the standard rates.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Indonesia in 2026?
What tax rate applies to rental income in Indonesia in 2026?
As of early 2026, rental income from land and buildings in Indonesia is subject to a 10% final income tax on gross rent under the Article 4(2) regime governed by PP No. 34/2017, which means if you collect IDR 100 million per year in rent (around USD 6,250 or EUR 5,700), you would pay IDR 10 million (USD 625 or EUR 570) in tax.
Because Indonesia uses a final tax on gross rental income, landlords generally cannot deduct expenses like maintenance, repairs, or property management fees from their rental income taxes, so you should treat these operating costs as separate cash flow items rather than tax-reducing deductions.
The realistic effective tax rate for typical landlords in Indonesia remains at 10% of gross rent since this is a final tax system with no meaningful deductions, making tax planning straightforward but also meaning you pay tax on your full rental receipts regardless of your actual expenses.
Foreign property owners in Indonesia pay the same 10% final tax rate on rental income as residents under the current framework, though non-residents should also check their home country's tax rules to understand any additional reporting obligations or tax treaty implications.
Do I pay tax on short-term rentals in Indonesia in 2026?
As of early 2026, short-term rental income in Indonesia is potentially subject to both the 10% final income tax on gross rent and a local accommodation or hotel tax if your rental operation is considered to provide "hotel services," with local tax rates and rules varying by city or regency.
Short-term rental income in Indonesia may be taxed differently than long-term rentals because operating like a hotel or guesthouse can trigger additional local taxes, licensing requirements, and reporting obligations that do not apply to straightforward long-term residential leases, so you should confirm the specific rules in your property's location.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Indonesia.
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If I sell later, what taxes and fees will I pay in Indonesia in 2026?
What's the total cost of selling as a % of price in Indonesia in 2026?
As of early 2026, the total cost of selling a property in Indonesia typically ranges from 4% to 9% of the sale price, depending on whether you use an agent and how costs are negotiated between you and the buyer.
The realistic low-to-high percentage range for total selling costs in Indonesia is around 2.5% at the minimum (if you sell directly without an agent and only pay the mandatory transfer tax) up to 9% or more if you engage a full-service agent and cover additional administrative or legal handling.
The specific cost categories that typically make up selling expenses in Indonesia include the seller's final income tax on the transfer (2.5% of gross sale value), real estate agent commission (2% to 5% if used), minor notary or legal handling fees, and any outstanding property tax or service charge arrears that must be cleared before closing.
The single largest contributor to selling expenses in Indonesia is usually the real estate agent commission at 2% to 5% if you use one, followed closely by the mandatory 2.5% seller transfer income tax, which together account for the bulk of your selling costs.
What capital gains tax applies when selling in Indonesia in 2026?
As of early 2026, Indonesia taxes property sale proceeds through a 2.5% final income tax on the gross transfer value under PP No. 34/2016, which functions like a capital gains tax but is calculated on the total sale price rather than on the actual profit you made.
Exemptions to this transfer tax in Indonesia are limited, with certain carve-outs for specific low-value transactions or policy-designated cases, but for most foreign sellers planning ahead, the safest assumption is that you will pay the standard 2.5% final transfer tax when you sell.
Foreigners in Indonesia do not pay an extra or different capital gains tax rate at the national level when selling property, though the more common foreign seller challenge is ensuring the sale is executed correctly under the permitted ownership structure (such as Hak Pakai) and documented properly.
The "capital gain" in Indonesia is not calculated as sale price minus purchase price like in many other countries; instead, the 2.5% final tax applies to the gross transfer value (essentially the sale price), so your actual profit or holding period does not reduce the tax you owe.
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Indonesia, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Directorate General of Taxes (DGT) - Stamp Duty | Indonesia's official tax authority explaining the rule directly. | We used it to confirm the official stamp duty amount of IDR 10,000 per document. We treat this as the baseline document cost in any closing budget. |
| PP No. 34/2016 - JDIH BPK RI | Official government regulation repository for legal texts. | We used it to anchor the seller-side 2.5% final income tax on property transfers. We also referenced it to explain negotiation dynamics around who pays what. |
| DGT - BPHTB Legal References | Official tax authority portal for acquisition duty framework. | We used it to confirm BPHTB as the main buyer-side transfer tax in Indonesia. We combined it with local practice knowledge to estimate realistic costs. |
| PP No. 34/2017 - Rental Income Tax | Official government regulation governing tax on rental income. | We used it to anchor the 10% final income tax on gross rent for landlords. We translated this into simple budgeting guidance for property investors. |
| PwC Indonesia TaxFlash | Top-tier tax advisor citing underlying regulations directly. | We used it to triangulate VAT implementation details and the effective 11% rate mechanism. We also referenced it for understanding potential incentive impacts. |
| PP No. 24/2016 - PPAT Rules | Official legal document portal hosting the regulation text. | We used it to anchor the legal cap on PPAT service fees at 1% of transaction value. We then translated this into realistic budgeting ranges for buyers. |
| ATR/BPN Kepmen 1241/2022 | Published ministerial decree for foreigner purchase thresholds. | We used it to explain that foreigners must meet minimum price thresholds by province. We referenced this to explain why many foreign purchases fall into higher price brackets. |
| Bank Indonesia - Property Prices Survey | Central bank primary dataset on housing market conditions. | We used it for market context on price trends affecting negotiations. We referenced it to support guidance on bargaining expectations in Indonesia. |
| Ortax - HKPD Law Commentary | Widely used Indonesian tax reference site citing HKPD law. | We used it to confirm PBB-P2 rates are capped at 0.5% under the HKPD framework. We translated this into practical annual property tax estimates for owners. |
| PwC Worldwide Tax Summaries - Indonesia | Regularly updated reference summarizing official tax rules. | We used it to explain practical tax administration items like deadlines and penalties. We treated it as a cross-check against primary Indonesian legal texts. |
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