What are all the property taxes and fees in Makassar?

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Makassar. If you'd like to learn more about us, you can check our presentation page.

What taxes and fees apply when buying, owning, renting out, and selling property in Makassar?

Property transactions in Makassar involve several taxes and fees with specific official names and designated payers.

For property acquisition, buyers pay BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) at 5% of the purchase price minus IDR 60 million threshold, PPN (Value Added Tax) at 11% for new properties from developers, notary/PPAT fees typically 0.5-1% of transaction value, land registration fees at 0.2% of price, and stamp duty (Materai) at IDR 10,000 per document.

Sellers are responsible for PPh Final (final income tax) at 2.5% of the sale price and real estate agent commission typically 2-3% of the sale price if using an agent. Property owners pay annual PBB (Pajak Bumi dan Bangunan) at 0.1% of the assessed property value minus a non-taxable threshold.

For rental properties, landlords pay PPh Final on rental income at 10% for Indonesian residents and 20% for non-residents. Tenants typically withhold this tax from rental payments and remit it to tax authorities on behalf of the landlord.

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What are the one-time acquisition taxes and fees with their exact rates and calculation formulas?

The main acquisition taxes and fees in Makassar follow specific calculation formulas and rate structures.

BPHTB (Land and Building Acquisition Duty) is calculated as 5% × (Purchase Price - IDR 60,000,000 non-taxable threshold). This means for a IDR 500 million property: 5% × (500,000,000 - 60,000,000) = IDR 22,000,000. For properties above IDR 60 million, the full 5% rate applies to the excess amount.

PPN (Value Added Tax) applies only when buying directly from developers at 11% × Purchase Price. For a IDR 1 billion new property: 11% × 1,000,000,000 = IDR 110,000,000. This tax does not apply to second-hand property purchases between individuals.

Notary/PPAT fees are typically 0.5-1% of the transaction value, though this can be negotiated. Land registration fees are calculated at 0.2% of the property value or fixed amounts capped by local regulations, usually resulting in IDR 1-4 million for most transactions. Stamp duty is a fixed IDR 10,000 per required legal document, typically totaling IDR 20,000-30,000 for most transactions.

How much would buyers pay at closing for properties priced at IDR 500 million, IDR 1 billion, and IDR 2 billion?

How is annual property tax calculated and what would owners pay for these property values?

Annual property tax in Makassar is called PBB (Pajak Bumi dan Bangunan) and is calculated at 0.1% of the taxable property value.

The taxable value is based on NJOP (Nilai Jual Objek Pajak), which is the assessed value determined by local government officials. For new properties, NJOP is typically set close to the actual transaction price. There is a non-taxable threshold (NJOPTKP) of IDR 10,000,000 that is deducted before applying the 0.1% rate.

The calculation formula is: PBB = 0.1% × (NJOP - NJOPTKP). For the example properties: IDR 500 million property would pay 0.1% × (500,000,000 - 10,000,000) = IDR 490,000 annually. IDR 1 billion property would pay 0.1% × (1,000,000,000 - 10,000,000) = IDR 990,000 annually. IDR 2 billion property would pay 0.1% × (2,000,000,000 - 10,000,000) = IDR 1,990,000 annually.

PBB bills are issued annually and payment is typically due by the end of September each year. Property owners can pay at designated banks, post offices, or through online platforms.

Is VAT charged when buying from developers and how does this affect the total costs?

VAT (PPN - Pajak Pertambahan Nilai) is charged at 11% only when purchasing new properties directly from developers in Makassar.

PPN applies to the full purchase price without any deductions or thresholds. The calculation base is the complete transaction value, making it one of the largest costs for buyers of new properties. For a IDR 500 million new property, PPN would be 11% × 500,000,000 = IDR 55,000,000. For IDR 1 billion, the PPN would be IDR 110,000,000. For IDR 2 billion, the PPN reaches IDR 220,000,000.

This tax significantly increases the total acquisition cost. When buying from developers, total buyer costs including all taxes and fees reach approximately 16-17% of the purchase price. When buying second-hand properties between individuals, PPN does not apply, reducing total acquisition costs to approximately 6-7% of the purchase price.

The PPN is paid by the buyer at closing and must be remitted by the developer to tax authorities. This tax cannot be avoided or reduced through any standard exemptions when purchasing new residential properties from registered developers.

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What does the seller owe at closing and how much would that be for each example price?

Sellers in Makassar are primarily responsible for PPh Final (final income tax) and real estate agent commission if using an agent.

PPh Final is calculated at 2.5% of the final sale price for all sellers, whether individuals or companies. This tax is withheld at closing and cannot be avoided. For a IDR 500 million sale, PPh Final would be 2.5% × 500,000,000 = IDR 12,500,000. For IDR 1 billion, the tax is IDR 25,000,000. For IDR 2 billion, it reaches IDR 50,000,000.

Real estate agent commission typically ranges from 2-3% of the sale price, though this is negotiable and only applies if using an agent. For the IDR 500 million property, agent commission would be IDR 10,000,000 to IDR 15,000,000. For IDR 1 billion, it would be IDR 20,000,000 to IDR 30,000,000. For IDR 2 billion, agent commission reaches IDR 40,000,000 to IDR 60,000,000.

Total seller costs range from 2.5% to 5.5% of the sale price depending on whether an agent is used. These costs are significantly lower than buyer costs, making the Indonesian system relatively seller-friendly compared to some other countries where transfer taxes are split more evenly.

What are the notary, land registration, survey, and stamp duty costs?

Notary and PPAT (Land Deed Official) fees are typically percentage-based at 0.5-1% of the transaction value, though these can sometimes be negotiated as fixed amounts.

For smaller transactions under IDR 500 million, notary fees often range from IDR 2-5 million. For transactions between IDR 500 million and IDR 1 billion, fees typically range from IDR 5-10 million. For larger transactions above IDR 1 billion, notary fees can reach IDR 10-20 million depending on complexity and negotiation.

Land registration fees are calculated at 0.2% of the property value but are often capped by local regulations. In practice, these fees typically range from IDR 500,000 for smaller properties to IDR 4,000,000 for expensive properties. Survey fees, when required, are usually fixed amounts ranging from IDR 500,000 to IDR 2,500,000 depending on property size and complexity.

Stamp duty (Materai) is a fixed cost of IDR 10,000 per legal document. Most transactions require 2-3 stamped documents, resulting in total stamp duty costs of IDR 20,000 to IDR 30,000. This is one of the smallest costs in any property transaction.

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What ongoing holding costs apply beyond annual property tax?

Beyond annual PBB property tax, property owners in Makassar face several ongoing holding costs with varying frequency and amounts.

Title hold renewal costs apply every 20-30 years for Hak Guna Bangunan (building rights) titles, typically costing IDR 3-10 million depending on property value and location. For apartments and condominiums, strata fees or service charges typically range from IDR 500,000 to IDR 1,500,000 per month, covering maintenance, security, and common area upkeep.

Building permits (IMB or SLF) require renewal every 5-10 years, with costs typically ranging from IDR 2-10 million depending on property size and local regulations. Some areas may require additional permits for renovations or modifications, adding IDR 1-5 million to holding costs when applicable.

For properties with swimming pools, gardens, or other special features, additional maintenance and permit costs may apply. Property insurance, while not mandatory, is recommended and typically costs 0.1-0.3% of property value annually.

Annual total holding costs excluding PBB typically range from IDR 2-8 million for houses and IDR 8-20 million for apartments, depending on amenities and services provided.

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What taxes apply to rental income and how much would be due on IDR 60 million and IDR 120 million annual rent?

Rental income tax in Makassar depends on the landlord's residency status and is collected through a withholding system.

Indonesian residents pay PPh Final at 10% of gross rental income. Non-residents pay 20% of gross rental income. The tax is calculated on the full rental amount without deductions for expenses, maintenance, or depreciation. This tax is typically withheld by tenants and remitted to tax authorities on behalf of the landlord.

For IDR 60,000,000 annual rental income, Indonesian resident landlords would pay 10% × 60,000,000 = IDR 6,000,000 in taxes. Non-resident landlords would pay 20% × 60,000,000 = IDR 12,000,000.

For IDR 120,000,000 annual rental income, Indonesian resident landlords would pay IDR 12,000,000 in taxes, while non-resident landlords would pay IDR 24,000,000. These rates are final taxes, meaning no additional income tax reporting is required for most individual landlords.

Corporate landlords may face different tax rates and reporting requirements depending on their tax classification and total annual income. The withholding system helps ensure tax compliance but requires coordination between landlords and tenants for proper remittance.

What exemptions, incentives, or tax holidays exist and how much would they reduce costs?

Makassar offers limited exemptions and incentives for residential property purchases, with most benefits targeting first-time homebuyers and social housing.

First-home buyer incentives may reduce BPHTB by up to 50% in some cases, though eligibility requires that the buyer has never owned property before. This could reduce BPHTB from IDR 22,000,000 to IDR 11,000,000 for a IDR 500 million first home purchase. The exact discount varies by local regulation and property value thresholds.

Social housing programs may offer partial or complete exemptions from BPHTB and PPN for qualifying low-income housing developments. These programs typically apply only to properties under IDR 300 million and require income qualification. Properties must meet specific size and price criteria to qualify for these exemptions.

As of September 2025, no significant temporary tax holidays are active for residential property in Makassar. Previous stimulus programs have occasionally offered reduced rates during economic recovery periods, but these are temporary and unpredictable.

Foreign buyers generally do not qualify for most exemptions and incentives, as these programs primarily target Indonesian citizens for housing policy objectives. Corporate purchases also typically face full tax rates without significant exemptions.

What are the billing dates, payment channels, and late payment penalties?

Property tax billing and payment systems in Makassar follow specific deadlines and penalty structures.

PBB (annual property tax) bills are typically issued in early calendar year with payment due by September 30 annually. BPHTB and other transaction taxes are paid at closing through designated banks, local government offices, or authorized payment centers. Payment channels include major banks (Bank Mandiri, BNI, BRI), post offices, and select online platforms.

Late payment penalties for PBB and BPHTB are calculated at 2% per month, with a maximum accumulation of 24 months (48% total penalty). For example, if BPHTB of IDR 22,000,000 is paid one year late, the penalty would be 24% × 22,000,000 = IDR 5,280,000.

For rental income tax, penalties apply if withholding obligations are not met on time. Monthly withholding deadlines typically fall on the 10th of the following month, with similar 2% monthly penalties for late remittance.

Payment receipts must be retained as proof of payment and may be required for future property transactions. Online payment systems provide electronic receipts, while bank payments provide official stamped receipts.

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What are the total buyer versus seller costs and first year holding taxes for each example price?

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Indonesian Tax Authority - BPHTB Information
2. Ministry of Finance - Property VAT Regulations
3. National Land Agency - Land Registration Procedures
4. Makassar City Government - Property Tax Information
5. Indonesian Notary Association - PPAT Fee Guidelines
6. Bank Indonesia - Property Investment Regulations
7. Financial Services Authority - Real Estate Financing
8. Investment Coordinating Board - Foreign Property Investment