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
Medan is North Sumatra's largest city and Indonesia's third-biggest urban center, which makes it one of Southeast Asia's more underrated destinations for foreign property buyers.
As a foreigner, you can legally own residential property in Medan, but the rules around title types, minimum prices, and required paperwork are specific enough that you need to understand them before you start looking at listings.
We constantly update this blog post to reflect the latest rules and market conditions, so the information you're reading reflects the situation as of early 2026.
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 Medan.
What can I legally buy and truly own as a foreigner in Medan?
What property types can foreigners legally buy in Medan right now?
In Medan in early 2026, foreigners can legally buy residential property, including landed houses and apartment units, but only through specific legal structures that are different from the full freehold ownership Indonesian citizens hold.
The most important limitation is that you cannot hold standard freehold land title (called Hak Milik or SHM) in your own name as a foreigner, so every purchase must be structured around an alternative land right recognized by Indonesian law.
For a landed house in Medan, the legal structure you'll typically use is Hak Pakai (right of use), which is a registered title in your name and gives you real legal protection, but it comes with defined durations and renewal requirements rather than perpetual ownership.
For apartments and condos in Medan, you're buying a unit under the post-2021 strata-title framework for foreigners, and the legal readiness of the building's underlying paperwork matters just as much as the unit itself, so confirming this with your notary early is essential.
Finally, please note that our pack about the property market in Medan is specifically tailored to foreigners.
Can I own land in my own name in Medan right now?
No, as a foreigner in Medan in early 2026 you cannot hold freehold land ownership (Hak Milik/SHM) in your own name, which is the title type most Indonesian buyers hold.
The clearly legal alternative is holding land under Hak Pakai (right of use), which is a formally registered right in your name at the land office and gives you genuine legal standing, though it differs from freehold because it has a defined duration structure rather than indefinite ownership.
Under the PP 18/2021 framework, Hak Pakai for foreigners is typically described in practice as a 30-year initial period with the possibility of extension and renewal, so it is a durable right but one you need to actively manage at renewal points.
As of 2026, what other key foreign-ownership rules or limits should I know in Medan?
As of early 2026, one of the most concrete additional constraints in Medan is the minimum purchase price threshold that applies specifically to North Sumatra: for a landed house (rumah tapak), foreigners must pay at least IDR 2 billion (roughly USD 125,000 or EUR 115,000), which means lower-priced properties in Medan are simply off-limits regardless of how well structured the transaction is.
For apartment units in Medan, the specific minimum price threshold falls under national categories set by the ATR/BPN ministerial decree, and you should confirm the exact figure with your notary or PPAT before proceeding since it is distinct from the landed-house threshold.
There is no specific upfront government approval step solely for foreigners buying property in Medan, but your notary and PPAT will require clean and complete immigration documentation as part of the transaction because eligibility is tied to valid immigration status under PP 18/2021.
There are no major regulatory changes that came into force specifically for Medan foreign buyers in 2025 or early 2026 beyond the framework already established by PP 18/2021 and the ATR/BPN decree, but Indonesia does periodically revise implementing regulations, so staying current is important.
What's the biggest ownership mistake foreigners make in Medan right now?
The single biggest mistake foreigners make in Medan right now is using a nominee structure, where an Indonesian national holds the SHM title on paper while the foreigner has a side agreement, which feels like a workaround but is legally fragile and widely done in the Medan landed-house market.
If you use a nominee and the relationship breaks down, the nominee dies, or a legal dispute arises, you have very limited enforceability because you are not the registered owner, and recovering your investment can be extremely difficult and costly.
Beyond nominee arrangements, other common Medan-specific pitfalls include buying apartment units in buildings where the developer's land right or permits are not properly in place, skipping a BPN title check on properties with multiple family transfers in older neighborhoods, and not accounting for the IDR 2 billion minimum price requirement before making an offer.
Which visa or residency status changes what I can do in Medan?
Do I need a specific visa to buy property in Medan right now?
In February 2026, Indonesia does not require a specific "property buyer" visa to purchase residential property in Medan, but you do need valid immigration documentation that your notary, PPAT, and the land office will accept as meeting the foreign-buyer eligibility standard under PP 18/2021.
The most common administrative blocker for buyers without local residency is the difficulty of opening an Indonesian bank account and obtaining an NPWP (tax ID), both of which are practically necessary for the transaction flow even if not always listed as formal step-one legal requirements.
You should expect to need an NPWP before or during the purchase process in Medan, because notaries and PPATs routinely require it for tax-related filings and banks involved in the transaction will ask for it.
A typical document set for a foreign buyer in Medan includes a valid passport, your visa or stay permit, an NPWP, and translated or apostilled documents as required by your notary, with the exact list depending on your specific immigration status and the type of property you are buying.
Does buying property help me get residency and citizenship in Medan in 2026?
As of early 2026, buying property in Medan does not automatically give you residency or citizenship in Indonesia, since immigration status is governed by visa categories that are entirely separate from property ownership rules.
Indonesia does offer a Second Home stay permission framework that provides 5 or 10 years of legal stay, and while it is not strictly a "buy property and get residency" product, property ownership and financial capacity are relevant to the eligibility profile for this category.
For a more direct path to long-term residency in Indonesia, options include holding a KITAP (permanent stay permit) through marriage to an Indonesian citizen or through long-term employment, while Indonesian citizenship through naturalization is a much longer and more complex process that property ownership alone does not accelerate.
Can I legally rent out property on my visa in Medan right now?
In Medan in early 2026, residential property can generally be rented out, and your visa status does not flatly prohibit it, but the specific conditions attached to your Hak Pakai registration and the terms of your deed may affect what is formally allowed, so it is worth confirming with your notary.
You do not need to be physically present in Indonesia to rent out property in Medan, and many foreign owners manage their properties through local agents or property managers, though the practical requirements around bank account flow, tax withholding, and tenant-related disputes do make having a trusted local representative important.
Rental income from land and buildings in Indonesia is governed under a final tax framework established by PP 34/2017, which means the tax obligation is typically withheld and paid at source, and if you are non-resident for Indonesian tax purposes, you may also need to consider whether a tax treaty between Indonesia and your home country applies.
We cover everything there is to know about buying and renting out in Medan here.
How does the buying process actually work step-by-step in Medan?
What are the exact steps to buy property in Medan right now?
The standard sequence to buy property in Medan as a foreigner in early 2026 is: confirm the title type and foreign-eligibility of the property, complete due diligence checks (title, encumbrances, permits, zoning), sign a preliminary agreement and deposit via a notary-drafted document, calculate and pay the relevant transfer taxes, execute the transfer deed (AJB) before a PPAT, then register the transfer and your Hak Pakai right at the Medan land office (BPN).
You are generally recommended to be physically present for the deed-signing and any bank-related steps, but many foreign buyers complete key stages using a notarized power of attorney when they cannot travel, as long as their PPAT and bank accept this arrangement.
The step that makes the deal legally binding for both parties in Medan is the execution of the sale and purchase deed (Akta Jual Beli or AJB) before a licensed PPAT, because this authentic deed is the legal instrument that formally transfers the right.
From accepted offer to final registration at BPN in Medan, the typical end-to-end timeline ranges from around 1 to 3 months for a clean transaction, though this can extend if title history needs additional verification or if the apartment building's strata documentation has gaps.
We have a document entirely dedicated to the whole buying process in our pack about properties in Medan.
Is it mandatory to get a lawyer or a notary to buy a property in Medan right now?
A notary/PPAT is effectively mandatory in Medan because the property transfer relies on an authentic deed (the AJB) that only a licensed PPAT can execute, and the land office will not process your registration without it.
In Medan, the PPAT handles the formal deed execution and coordinates with BPN for registration, while an independent lawyer focuses on reviewing the transaction's legal risk, such as title history, building permits, and contractual terms, so the PPAT gives you procedural validity and the lawyer gives you substantive protection.
One key item that should be explicitly included in your lawyer or PPAT engagement scope for a Medan purchase is the verification of the developer's underlying land right and strata documentation (for apartments) or the clean-chain title check at BPN (for landed houses), since these are the most common sources of post-purchase problems in Medan specifically.
What checks should I run so I don't buy a problem property in Medan?
How do I verify title and ownership history in Medan right now?
In Medan in early 2026, the official authority you use to verify title and ownership history is the local branch of BPN (Badan Pertanahan Nasional), which is Indonesia's national land agency and the keeper of all registered land rights.
The key document you should request is the land certificate itself (the physical sertipikat), and your PPAT should run a formal BPN status check against it to confirm the holder, boundaries, right type, and that the certificate matches the land office's own records.
A realistic look-back for ownership history in Medan is at least the last two to three transfers, which is especially important in older central neighborhoods like Medan Baru or Medan Polonia where properties may have passed through multiple family hands with paperwork that lags reality.
One clear red flag that should pause or stop a purchase in Medan is a discrepancy between the physical certificate and the BPN registry record, or a registered security right (mortgage/encumbrance) that the seller hasn't disclosed, either of which suggests the seller's clean title claim is unreliable.
You will find here the list of classic mistakes people make when buying a property in Medan.
How do I confirm there are no liens in Medan right now?
The standard way to confirm there are no liens or encumbrances on a Medan property in early 2026 is to have your PPAT request a formal encumbrance check (pengecekan sertifikat) through BPN, which reveals any registered security rights or other burdens recorded against the title.
The most common type of lien to specifically ask about in Medan is a Hak Tanggungan (mortgage security right), which arises when a property is used as collateral for a bank loan and must be formally released before a clean transfer can happen.
The best written proof of lien-free status in Medan is the BPN certificate check result showing no encumbrances recorded, combined with a seller-side bank confirmation that any existing mortgage has been discharged, since both documents together give you clear evidence before you sign the AJB.
How do I check zoning and permitted use in Medan right now?
In Medan in early 2026, the authority for zoning and permitted use is the local city government (Pemerintah Kota Medan), specifically through the spatial planning and building permit offices, and your PPAT or lawyer can help you request the relevant information from the correct department.
The document that typically confirms a property's zoning classification in Medan is the land-use designation in the city's spatial plan (Rencana Tata Ruang Wilayah or RTRW), combined with the building permit (IMB or its successor PBG) that authorizes the existing structure.
A common zoning pitfall that foreign buyers miss specifically in Medan is purchasing a property on a street corridor that feels fully residential but is actually zoned for commercial or mixed use, which can create restrictions on renovation, expansion, or long-term residential use, and this is especially relevant in fast-changing corridors around Setia Budi, Gatot Subroto, and areas near the Ring Road.
Can I get a mortgage as a foreigner in Medan, and on what terms?
Do banks lend to foreigners for homes in Medan in 2026?
As of early 2026, Indonesian banks do lend to foreigners for residential property in Medan, but access is selective and typically requires a strong Indonesia footprint including a longer-term stay permit, verifiable local or foreign income, and clean documentation.
Foreign borrowers in Medan most commonly see loan-to-value ratios in the 50% to 70% range, meaning you should expect to fund at least 30% to 50% of the purchase price from your own funds, with higher LTV being harder to obtain without local income documentation.
The single most common eligibility requirement that determines whether a foreign buyer qualifies for a mortgage in Medan is having a valid long-term stay permit (KITAS or equivalent), because most banks use this as the baseline for treating the borrower as a creditworthy Indonesian resident rather than a short-stay visitor.
Which banks are most foreigner-friendly in Medan in 2026?
As of early 2026, the banks most commonly used by foreign buyers for mortgages in Medan are Bank BTN (which specializes in mortgage lending and has the broadest KPR infrastructure), Bank Mandiri, and Bank BCA, all of which have Medan branches with mortgage departments that have experience handling foreign-buyer cases.
What makes these banks more foreigner-friendly than smaller local banks is their established KPR product infrastructure, the ability to process KITAS-holder applications, and the presence of staff experienced with the specific documentation requirements that apply to non-Indonesian borrowers.
Even these more foreigner-open banks will generally not lend to buyers who are purely non-resident with no valid Indonesian stay permit, so having at least a KITAS or a Second Home stay permission is typically the minimum threshold for a mortgage application to proceed in Medan.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Medan.
What mortgage rates are foreigners offered in Medan in 2026?
As of early 2026, foreigners applying for a home loan in Medan should expect a promotional or fixed introductory rate in the range of roughly 5% to 8% per year for the first few years, followed by a floating rate that typically lands between 10.5% and 14% once the promo period ends, with foreign buyers generally pricing toward the upper end of those ranges.
Fixed-rate introductory periods in Medan are typically 1 to 3 years, after which loans revert to floating rates tied to the bank's internal base rate (SBDK), so the headline promo rate can look attractive but the long-run cost over a 10 to 20 year term is better represented by the post-promo range.
What will taxes, fees, and ongoing costs look like in Medan?
What are the total closing costs as a percent in Medan in 2026?
In Medan in early 2026, total closing costs for a buyer typically land around 6% to 8% of the purchase price across most standard residential transactions.
That range covers the most common scenario for a resale landed house or apartment, while transactions involving a new-build from a VAT-registered developer can push higher if VAT applies, so the 6% to 8% figure is the reliable baseline for secondhand or non-VATable purchases.
The specific fee categories that make up Medan buyer closing costs are the BPHTB (local property acquisition duty), notary and PPAT fees, land office registration fees, and any administrative translation or certification costs for foreign-buyer documentation.
The single biggest cost component in Medan closing costs is the BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan), which is generally calculated at around 5% of the taxable acquisition value after the local non-taxable threshold is applied, making it by far the largest single line item for buyers.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Medan.
What annual property tax should I budget in Medan in 2026?
As of early 2026, for a standard owner-occupied home in Medan valued between IDR 1.5 billion and IDR 3 billion (roughly USD 95,000 to 190,000 or EUR 87,000 to 175,000), a realistic annual PBB-P2 (property tax) budget is around IDR 1.5 million to IDR 5 million per year (roughly USD 95 to 315 or EUR 87 to 290), rising to IDR 6 million to IDR 20 million for higher-end properties in the IDR 4 billion to IDR 8 billion range.
Medan's PBB-P2 uses a tiered rate structure set by Perda No. 1/2024, with rates ranging from 0.125% to 0.280% applied to the NJOP (assessed value), and since NJOP is typically below market value and a non-taxable threshold of IDR 20 million is deducted first, most mainstream residential owners end up paying a few million rupiah per year rather than a percentage of the full market price.
How is rental income taxed for foreigners in Medan in 2026?
As of early 2026, rental income from residential property in Medan is subject to a final income tax under PP 34/2017, and the standard rate applied to gross rental income from land and buildings is 10%, making it a relatively simple flat-rate obligation rather than a graduated income tax calculation.
In practice, this tax is often handled as a withholding obligation when a tenant is a business entity (which pays and remits it on your behalf), but when renting to an individual tenant, the foreign owner or their agent typically needs to ensure the tax is reported and paid directly, and if you are a non-resident for Indonesian tax purposes your home country's tax treaty with Indonesia may also affect your overall liability.
What insurance is common and how much in Medan in 2026?
As of early 2026, for a standard residential property in Medan with an insured value of around IDR 2 billion (roughly USD 125,000 or EUR 115,000), a typical annual premium for combined building and contents coverage falls in the range of IDR 2 million to IDR 6 million per year (roughly USD 125 to 380 or EUR 115 to 350), depending on the insurer, coverage scope, and property type.
The most common policy type for residential property owners in Medan is a fire and extended perils policy (asuransi kebakaran) that covers the building against fire, lightning, explosion, and related risks, with contents coverage often added as a rider.
The single biggest factor that makes premiums higher or lower for the same property type in Medan specifically is whether earthquake coverage is included, since North Sumatra sits in a seismically active zone and adding earthquake riders can meaningfully increase the annual cost, making it worth comparing 2 or 3 quotes from major Indonesian insurers or your mortgage bank's insurance partner before committing.
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 Medan, 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 |
|---|---|---|
| Government Regulation PP No. 18/2021 (JDIH BPK) | This is the core national regulation that defines land rights and foreign ownership rules after Indonesia's Job Creation Law reform. | We used it to establish which title types foreigners can legally hold in Medan and what duration rules apply. We also used it to anchor all due-diligence and registration guidance throughout the article. |
| Official regulation portal peraturan.go.id (PP 18/2021) | This is Indonesia's government portal for published regulations, providing official texts for cross-referencing. | We used it as a second official anchor for PP 18/2021 to verify wording and scope when secondary sources disagreed. We also used it to confirm the Notary Law (UU No. 2/2014) text. |
| ATR/BPN Ministerial Decree No. 1241/SK-HK.02/IX/2022 | This is the ministerial decree that sets the minimum purchase prices foreigners must meet to buy property in each Indonesian province. | We used it to confirm that minimum price thresholds exist at the national level. We then triangulated the North Sumatra figure with a national newspaper explicitly citing this decree. |
| detikProperti (citing PP 18/2021 and Decree 1241) | This is a major national outlet that explicitly cites the underlying regulations and lists province-by-province price thresholds including North Sumatra. | We used it to extract the Sumatera Utara minimum-price figures in a readable format and as a practical bridge between the regulation text and real-world application. We verified consistency with the decree itself. |
| City of Medan Perda No. 1/2024 (JDIH Medan) | This is Medan's official local regulation setting PBB-P2 property tax brackets and the NJOP non-taxable threshold, published on the city's official legal portal. | We used it to extract the tiered PBB-P2 rates (0.125% to 0.280%) and the IDR 20 million non-taxable amount. We applied these to produce realistic annual tax budget ranges for Medan homes. |
| Medan Revenue Office Bapenda PBB-P2 page | This is the city's official tax authority website, confirming Perda 1/2024 as the active PBB-P2 reference. | We used it to cross-check that the perda cited in the PDF is the one currently in force. We also used it as a public-facing confirmation of the tax rules for Medan residents. |
| Directorate General of Taxes DJP (PP 34/2017 rental income) | This is the national tax authority's official regulation page for the final tax framework on rental income from land and buildings. | We used it to define how rental income from Indonesian property is taxed and to explain the withholding mechanism. We also used it to frame tax obligations for non-resident foreign owners. |
| JDIH BPK database entry for PP 34/2017 | This is a trusted official legal database that confirms the identity, date, and current validity of the rental income tax regulation. | We used it to verify PP 34/2017 as a cross-check against the DJP page. We confirmed the regulation text and scope before drawing conclusions on rental tax treatment. |
| DJP official PDF of PP 34/2016 (transfer income tax) | This is an official DJP-hosted document of the regulation governing income tax on property transfers, relevant to seller-side closing costs. | We used it to explain the seller-side final income tax that applies on property transfers in Medan. We used it to build accurate closing-cost expectations showing who pays what. |
| DJP press release on VAT policy 2025 | This is the national tax authority communicating how VAT rules apply in practice from 2025, directly relevant to new-build property transactions. | We used it to describe when VAT applies in Medan property purchases. We combined it with property-transaction type logic to clarify when VAT is and isn't relevant for buyers. |
| DJP official NPWP registration requirements page | This is the tax authority's official checklist for tax ID registration, including the specific documents foreigners must submit. | We used it to confirm that foreign buyers in Medan need an NPWP and what documents they must provide to register. We also used it to keep the paperwork guidance practical and accurate. |
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