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Buying property in Makassar as a foreigner means preparing for costs beyond the purchase price, including local transfer taxes, notary fees, and potential VAT.
This guide breaks down every tax, fee, and hidden cost you should expect when purchasing residential property in Makassar in 2026.
We constantly update this blog post to reflect the latest regulations and market conditions in Makassar.
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 Makassar.
Overall, how much extra should I budget on top of the purchase price in Makassar in 2026?
How much are total buyer closing costs in Makassar in 2026?
As of early 2026, total buyer closing costs in Makassar typically range from 6% to 8% of the purchase price for resale properties, which means on a Rp2 billion home (around $125,000 or €115,000) you should prepare an extra Rp120 to 160 million ($7,500 to $10,000 or €7,000 to €9,400).
The minimum extra budget for closing costs in Makassar when keeping expenses to the bare legal minimum is around 5.5% to 6.5% of the price, covering just the mandatory BPHTB transfer tax and a basic notary package, which would be roughly Rp110 to 130 million ($6,900 to $8,100 or €6,500 to €7,600) on a Rp2 billion property.
The maximum extra budget buyers should realistically plan for in Makassar can reach 10% to 15% of the purchase price when VAT applies to a new build, you hire a buyer's agent, and you add translations, inspections, and tax advisory services, potentially totaling Rp200 to 300 million ($12,500 to $18,750 or €11,800 to €17,600) on that same Rp2 billion home.
The main factors that determine whether your closing costs fall at the low end or high end in Makassar are whether you're buying resale or new-build (VAT eligibility), whether you qualify for the 2026 government VAT incentive, how much professional support you need as a foreigner, and whether you pay buyer-side agent fees.
What's the usual total % of fees and taxes over the purchase price in Makassar?
The usual total percentage of fees and taxes over the purchase price in Makassar for most foreign buyers targeting standard residential property is around 6% to 8% for resale homes and 1.5% to 7% for new builds that qualify for the 2026 VAT incentive.
The realistic low-to-high percentage range that covers most standard property transactions in Makassar spans from about 5.5% on the lean side to 15% for complex deals involving VAT, full professional support, and buyer-side agent fees.
Within that total percentage in Makassar, government taxes (mainly the 5% BPHTB transfer tax) typically account for the largest share, while professional service fees like notary, legal checks, and translations usually add another 1% to 3% depending on complexity.
By the way, you will find much more detailed data in our property pack covering the real estate market in Makassar.
What costs are always mandatory when buying in Makassar in 2026?
As of early 2026, the mandatory costs when buying property in Makassar include the BPHTB transfer tax (5% of the taxable value after subtracting the Rp80 million exemption), the PPAT/notary conveyancing fee (legally capped at 1% of the deed price), and basic registration and document administration fees.
Optional but highly recommended costs for foreign buyers in Makassar include independent legal due diligence on the title and permits, professional translation services so you understand every document you sign, a building inspection even for newer properties, and a tax advisor if you plan to rent out or have complex funding arrangements.
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What taxes do I pay when buying a property in Makassar in 2026?
What is the property transfer tax rate in Makassar in 2026?
As of early 2026, the property transfer tax (called BPHTB) in Makassar is 5% of the taxable acquisition value, calculated after subtracting a non-taxable threshold of Rp80 million, so on a Rp2 billion purchase you would pay 5% on Rp1.92 billion, which equals Rp96 million (around $6,000 or €5,600).
There are no extra transfer taxes specifically for foreigners in Makassar's BPHTB regulation, though foreign buyers often face additional process costs like document translations, legalization, and tax number setup that can feel like extra fees even though they are not a higher tax rate.
VAT on residential property purchases in Makassar applies mainly to new builds from VAT-registered developers, but in 2026 the Indonesian government is covering 100% of VAT on the first Rp2 billion of the price for eligible first transfers under the PPN DTP incentive, meaning many new-build buyers pay zero effective VAT if they qualify.
Stamp duty in Makassar (called meterai) applies to signed legal documents and is typically a small fixed amount handled within your document administration costs at signing, making it minor compared to BPHTB and notary fees.
Are there tax exemptions or reduced rates for first-time buyers in Makassar?
The main tax relief visible in Makassar's local regulation is the NPOPTKP exemption of Rp80 million, which reduces your taxable base for BPHTB, and for new builds in 2026 the big relief is the PPN DTP incentive where the government covers 100% of VAT on the first Rp2 billion of eligible purchases.
Buying property through a company in Makassar does not change the headline BPHTB rate, but corporate purchases typically increase complexity, add accounting requirements, and raise professional advisory costs, so individual buyers should expect higher overall fees if they go the company route.
There is a meaningful tax difference between new-build and resale properties in Makassar because resale transactions between individuals typically involve no VAT (just BPHTB and notary fees), while new builds from developers can include VAT, though the 2026 incentive can reduce or eliminate that VAT burden for qualifying buyers.
To qualify for the 2026 VAT incentive on new builds in Makassar, buyers generally need an Indonesian tax number (NPWP), must be purchasing an eligible first-transfer unit priced within the program's cap, and should confirm all conditions with the developer and a tax advisor before signing.
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 Makassar in 2026?
How much does a notary or conveyancing lawyer cost in Makassar in 2026?
As of early 2026, the cost for a PPAT (land deed official) and notary package in Makassar typically ranges from 0.5% to 1% of the transaction price, meaning on a Rp2 billion property you would pay roughly Rp10 to 20 million ($625 to $1,250 or €590 to €1,175), with a hard legal cap that PPAT honorarium cannot exceed 1% of the deed price.
Notary and PPAT fees in Makassar are typically charged as a percentage of the property price stated in the deed rather than a flat rate, though some practitioners quote package deals that bundle conveyancing, document handling, and registration into one price.
Translation and interpreter services for foreign buyers in Makassar vary widely but you should budget a fixed amount ranging from Rp2 to 10 million ($125 to $625 or €118 to €588) depending on whether you need just signing-day interpretation or full document translation with detailed explanations.
A tax advisor is not mandatory for straightforward purchases in Makassar but is highly recommended if you plan to rent out the property, receive funds from abroad, or face unusual deal structures, with typical advisory fees running from Rp3 to 15 million ($190 to $940 or €175 to €880) depending on complexity.
We have a whole part dedicated to these topics in our our real estate pack about Makassar.
What's the typical real estate agent fee in Makassar in 2026?
As of early 2026, the typical real estate agent fee in Makassar ranges from 2% to 5% of the transaction price, meaning on a Rp2 billion property you would see commissions of Rp40 to 100 million ($2,500 to $6,250 or €2,350 to €5,880).
In Makassar the seller typically pays the agent commission, but buyers can end up paying if they hired a dedicated buyer's agent, if the deal is structured as a split commission, or if the price was negotiated net of the agent fee.
The realistic low-to-high range for agent fees in Makassar spans from around 2% on well-priced properties where one agent handles both sides to 5% or more for premium properties or when separate buyer and seller agents each take a cut.
How much do legal checks cost (title, liens, permits) in Makassar?
Legal checks including title search, liens verification, and permits review in Makassar typically cost between Rp3 to 15 million ($190 to $940 or €175 to €880) as a fixed professional fee, depending on property complexity and the depth of due diligence required.
Property valuation fees in Makassar, often required by banks for mortgages or useful for independent price verification, generally range from Rp1 to 5 million ($63 to $313 or €59 to €294) depending on the property type and valuer.
The most critical legal check that should never be skipped in Makassar is the title history verification to confirm the seller has clear ownership, the certificate is authentic, and there are no 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 Makassar.
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What hidden or surprise costs should I watch for in Makassar right now?
What are the most common unexpected fees buyers discover in Makassar?
The most common unexpected fees buyers discover in Makassar include multiplying "admin" line items (document handling, couriers, copies), utility connection or name-change fees for electricity and water, apartment service charges (IPL) and sinking funds for condo units, renovation deposits in managed developments, and sometimes insurance requirements from lenders.
Unpaid property taxes (PBB-P2) or other local dues are a common risk in Makassar that buyers can inherit, so before signing you should always request proof of the latest PBB-P2 payment and have your PPAT verify there are no outstanding obligations attached to the property.
Fake listings and fake fee scams do occur in Makassar, and the safest defenses are paying only through traceable channels, confirming the seller's identity and authority through your PPAT, treating "pay today to reserve" requests as high risk, and never transferring money without proper documentation.
Fees that are usually not disclosed upfront by sellers or agents in Makassar include condo IPL and sinking fund arrears, renovation deposits required by building management, and unofficial "expedite" requests that you can typically refuse.
In our property pack covering the property buying process in Makassar, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Makassar?
Extra fees when buying a tenanted property in Makassar commonly include handover or lease termination negotiation costs if you need vacant possession, deposit return disputes that may require resolution, and documentation of inventory and condition, which together can add Rp5 to 20 million ($313 to $1,250 or €294 to €1,175) in professional and administrative costs.
When purchasing a tenanted property in Makassar, the buyer typically inherits the existing lease obligations, meaning you must honor the tenant's rights under the contract until it expires unless both parties agree otherwise.
Terminating an existing lease immediately after purchase in Makassar is generally not possible unless the lease contract includes early termination provisions or you negotiate a buyout directly with the tenant, so plan to inherit the tenancy if the lease has time remaining.
A sitting tenant in Makassar can affect the property's market value and your negotiating position in different ways: some buyers pay less because of the complexity, while investor buyers may pay a premium for a property with proven rental income already in place.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Makassar.
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 Makassar?
Which closing costs are negotiable in Makassar right now?
The closing costs that are typically negotiable in Makassar include PPAT/notary package pricing (within reason), agent commission allocation between buyer and seller, and who pays for specific extras like translations, inspections, and administrative handling.
Closing costs that are fixed by law and cannot be negotiated in Makassar include the BPHTB transfer tax rate of 5% and the Rp80 million exemption threshold, as well as the ongoing PBB-P2 property tax rates once you become the owner.
Typical discounts or reductions buyers can realistically achieve on negotiable fees in Makassar range from 10% to 30% on notary packages and admin items, though agent commissions may have less flexibility depending on market conditions and property demand.
Can I ask the seller to cover some closing costs in Makassar?
The likelihood that a seller will agree to cover some closing costs in Makassar depends heavily on market conditions and the seller's motivation, but in a balanced or buyer-friendly market it is quite common to negotiate the price "net" of certain costs or ask the seller to absorb specific fees.
The specific closing costs sellers are most commonly willing to cover in Makassar include their own final income tax on the transfer (which is legally the seller's obligation anyway), portions of admin fees, and sometimes agent commissions if they are eager to close.
Sellers in Makassar are more likely to accept covering closing costs when the property has been listed for a long time, when it needs renovation, when the seller is relocating urgently, or when the overall market favors buyers over sellers.
Is price bargaining common in Makassar in 2026?
As of early 2026, price bargaining is common and expected in Makassar's residential property market, with most sellers anticipating some negotiation rather than accepting the first offer at asking price.
Buyers in Makassar typically negotiate discounts in the mid-single-digit percentage range, often around 5% to 10% below the asking price, though larger discounts are possible when the property has defects, title complications, or a motivated seller who needs to close quickly.
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What monthly, quarterly or annual costs will I pay as an owner in Makassar?
What's the realistic monthly owner budget in Makassar right now?
The realistic monthly owner budget for a residential property in Makassar ranges from roughly Rp1 to 5 million ($63 to $313 or €59 to €294) depending on property type, covering utilities, security, maintenance, and any condo service charges.
The main recurring expense categories that make up this monthly budget in Makassar include electricity, water, and internet utilities, security and cleaning services (especially in gated clusters), condo service charges (IPL) and sinking fund contributions for apartment units, and a maintenance reserve for repairs.
The realistic low-to-high range for monthly owner costs in Makassar spans from about Rp1 million ($63 or €59) for a modest house with basic utilities to Rp5 million or more ($313+ or €294+) for a larger condo or premium cluster home with full management services.
The monthly cost that tends to vary the most in Makassar is electricity, because air conditioning usage in the tropical climate can swing your bill significantly depending on how often and intensively you cool the property.
You can see how this budget affect your gross and rental yields in Makassar here.
What is the annual property tax amount in Makassar in 2026?
As of early 2026, the annual property tax (PBB-P2) in Makassar uses bracketed rates starting at 0.1% for properties with NJOP (assessed value) up to Rp250 million, rising to 0.2%, 0.3%, and 0.4% for higher value brackets, meaning most mainstream homes pay somewhere in the low millions of rupiah per year, roughly Rp1 to 5 million ($63 to $313 or €59 to €294).
The realistic low-to-high range for annual property taxes in Makassar depends on your property's NJOP, spanning from around Rp250,000 ($16 or €15) for a very modest property to Rp10 million or more ($625+ or €588+) for high-value homes with assessed values in the billions of rupiah.
Property tax (PBB-P2) in Makassar is calculated based on NJOP (the government's assessed property value), with a non-taxable threshold (NJOPTKP) of Rp10 million per taxpayer for one property, and then the bracketed rates (0.1% to 0.4%) apply to the remaining taxable value.
Exemptions or reductions for certain property owners in Makassar are limited, but the NJOPTKP provides a small relief for all taxpayers, and specific hardship exemptions may exist at the local revenue office for qualifying circumstances.
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 Makassar in 2026?
What tax rate applies to rental income in Makassar in 2026?
As of early 2026, rental income from residential property in Makassar is subject to a final income tax (PPh final) of 10% of gross rent under Indonesia's PP 34/2017, meaning you pay a flat 10% on the total rent collected without complex deductions.
Because Indonesia's rental income tax is a final tax on gross rent, landlords generally cannot deduct expenses like maintenance, insurance, or management fees the way they would under normal progressive income tax, so you should plan for 10% of your gross rental receipts going to tax.
The realistic effective tax rate for typical landlords in Makassar remains at 10% of gross rent since the final tax structure does not allow expense deductions, making the calculation straightforward: if you collect Rp100 million in annual rent, you owe Rp10 million in tax.
Foreign property owners in Makassar do not pay a different rental income tax rate than residents under the standard PP 34/2017 framework, though non-residents should confirm their tax residency status and any applicable treaty provisions with a local tax advisor.
Do I pay tax on short-term rentals in Makassar in 2026?
As of early 2026, short-term rental income in Makassar is taxable and may trigger additional local "hotel-style" taxes depending on how the rental is operated, licensed, and whether it provides services beyond basic accommodation.
Short-term rental income in Makassar can be taxed differently than long-term rental income because operating a property like a guesthouse or through platforms like Airbnb may subject you to local hospitality levies, business licensing requirements, and more complex compliance obligations beyond the standard 10% final income tax.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Makassar.
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If I sell later, what taxes and fees will I pay in Makassar in 2026?
What's the total cost of selling as a % of price in Makassar in 2026?
As of early 2026, the total cost of selling a residential property in Makassar typically ranges from 3% to 8% of the sale price, depending on agent fees, tax obligations, and administrative costs.
The realistic low-to-high percentage range for total selling costs in Makassar spans from around 3% for a straightforward sale with minimal agent involvement to 8% or more when you pay full agent commission, all administrative fees, and any deal-specific costs.
The specific cost categories that typically make up that total in Makassar include the seller's final income tax on the transfer (PPh final), real estate agent commission, PPAT/notary administrative costs, and any early mortgage repayment penalties if applicable.
The single largest contributor to selling expenses in Makassar is usually the agent commission, which can range from 2% to 5% of the sale price, followed by the seller's transfer income tax obligation.
What capital gains tax applies when selling in Makassar in 2026?
As of early 2026, property sales in Makassar are subject to a final income tax on the transfer value under PP 34/2016, which functions like a transaction tax on the sale price rather than a traditional capital gains tax calculated on profit.
Specific exemptions to this transfer tax in Makassar may exist for certain government programs or circumstances, but for typical residential investor sales you should plan as if the standard final transfer income tax applies unless a tax professional confirms an exemption applies to your situation.
Foreigners selling property in Makassar do not pay an extra tax rate or foreigner surcharge under the standard national transfer tax rules, though foreign sellers often face higher process and compliance costs due to documentation and currency transfer requirements.
The taxable amount in Makassar is generally based on the transfer value stated in the deed rather than a capital gain calculated by subtracting your original purchase price and improvement costs, making the math simpler but potentially less favorable than a true gains-based system.
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 Makassar, 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 | Why it's authoritative | How we used it |
|---|---|---|
| Makassar Perda No. 1/2024 | Official city by-law setting local property taxes in Makassar. | We used it to pin down Makassar's exact BPHTB rate, exemption threshold, and PBB-P2 brackets. We relied on it to stay Makassar-specific rather than using Indonesia-wide averages. |
| Ministry of Finance PMK 90/2025 | Legal text of Indonesia's 2026 housing VAT incentive. | We used it to explain when VAT can be reduced to zero for eligible new homes in 2026. We quantified the VAT impact for buyers in early 2026. |
| Directorate General of Taxes (VAT guidance) | Indonesian tax authority explaining the current VAT framework. | We used it to set the baseline VAT framework for 2026 property transactions. We avoided outdated assumptions about VAT rates. |
| PP 34/2016 (seller transfer tax) | Official regulation for final income tax on property transfers. | We used it to explain the seller's tax obligation and its effect on negotiations. We framed realistic cost-sharing scenarios for Makassar buyers. |
| PP 34/2017 (rental income tax) | Official regulation for final income tax on rental income. | We used it to provide the 10% gross rental income tax rate. We separated long-term rental tax from hotel-style short-term levies. |
| PP 37/1998 via BPHN (PPAT fees) | Government legal body publication with the PPAT fee cap. | We used it to cite the hard 1% ceiling on PPAT honorarium. We explained why fees above 1% should be a red flag in Makassar. |
| PP 24/2016 (PPAT framework) | Official government legal portal for Indonesian regulations. | We used it to triangulate Indonesia's conveyancing fee framework. We cross-checked that our fee discussion aligns with regulated PPAT practice. |
| DetikFinance (PMK 90/2025 coverage) | Major national news outlet referencing official policy. | We used it as a secondary cross-check that the 2026 VAT incentive is active. We verified our interpretation of the incentive timeline. |
| DDTCNews (tax specialist coverage) | Specialist tax publication that links to primary legal texts. | We used it to confirm the 100% VAT incentive mechanics are read consistently by practitioners. We reduced the risk of missing key eligibility conditions. |
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