What are all the property taxes and fees in Medan?

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

Who is the author of this content?

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 Medan. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Jakarta, Medan, and Surabaya. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What type of property are you buying in Medan and what are the specific details?

The property type you choose in Medan directly determines which taxes and fees apply to your purchase.

Landed houses, apartments, and vacant land each have different tax implications, with new developer properties facing additional VAT charges that resale properties don't incur.

For landed houses, you need to specify both land size and building size in square meters, as luxury tax thresholds depend on these measurements. Apartments require building size details, while land purchases only need total area measurements. New properties from developers automatically trigger 11% VAT, while resale properties from private sellers avoid this additional cost.

The distinction between new and resale also affects your negotiating position, as developers typically price VAT into their asking prices while private sellers may absorb seller taxes differently.

As of September 2025, most Medan transactions involve either landed houses (70-300 square meters typical building size) or apartments (30-150 square meters), with raw land purchases being less common for foreign buyers due to ownership restrictions.

What legal title will you receive and what is your buyer status?

Your legal title type and buyer status fundamentally determine both ownership rights and applicable tax rates in Medan.

Indonesian citizens can obtain Hak Milik (freehold) titles with the most favorable tax treatment, while foreigners typically receive Hak Guna Bangunan (HGB) or Hak Pakai titles with specific duration limits.

Foreign individuals usually purchase through PT/PMA company structures to access HGB titles, which add corporate compliance costs but enable longer-term ownership. Indonesian citizens buying Hak Milik properties pay standard rates, while foreign buyers through companies may face additional administrative fees ranging from IDR 10-50 million annually for corporate maintenance.

HGB titles typically last 30 years with extension options, while Hak Pakai titles are often limited to apartments and carry 25-year terms. The title type affects resale value and financing options, with Hak Milik properties generally commanding higher prices and easier bank financing.

What is the agreed purchase price and official taxable base?

All property tax calculations in Medan use the higher value between your agreed purchase price and the official NJOP (Nilai Jual Objek Pajak) taxable assessment.

The NJOP represents the government's official property valuation and typically ranges from 60-90% of actual market values in Medan's prime areas like Medan Baru and Polonia.

For example, if you agree to pay IDR 2 billion for a house but the NJOP is IDR 1.8 billion, all tax calculations use your IDR 2 billion purchase price as the base. Conversely, if NJOP exceeds your negotiated price (rare but possible in declining markets), taxes calculate on the higher NJOP amount.

This dual-basis system prevents tax avoidance through artificially low reported sale prices, ensuring the government collects appropriate revenue while protecting buyers from excessive assessments.

How much BPHTB acquisition tax will you pay in Medan?

BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) is Medan's primary acquisition tax calculated at 5% of the taxable base minus the local threshold.

Property Value (IDR)	BPHTB Calculation	Total BPHTB Due
500 million	5% × (500M - 60M)	IDR 22 million
1 billion	5% × (1B - 60M)	IDR 47 million
2 billion	5% × (2B - 60M)	IDR 97 million
3 billion	5% × (3B - 60M)	IDR 147 million
5 billion	5% × (5B - 60M)	IDR 247 million

Medan's NPOPTKP threshold stands at IDR 60 million as of September 2025, meaning the first IDR 60 million of any property purchase is exempt from BPHTB.

Does VAT/PPN apply to your Medan property purchase?

VAT (PPN - Pajak Pertambahan Nilai) applies exclusively to new properties purchased directly from developers at the standard rate of 11%.

If you're buying a new apartment from a developer like Podomoro or Agung Podomoro for IDR 1.5 billion, you'll pay IDR 165 million in VAT on top of the base price.

Resale properties from private individuals are completely exempt from VAT, making them potentially more cost-effective despite potentially higher base prices. Some developers offer VAT incentives during promotional periods, reducing the rate to 5-8% for mass housing projects or first-time buyers.

The Indonesian government occasionally implements VAT holidays for affordable housing (under IDR 2 billion) to stimulate market activity, though these programs typically last 6-12 months.

It's something we develop in our Indonesia property pack.

Will luxury goods tax (PPnBM) apply to your property?

PPnBM (Pajak Penjualan atas Barang Mewah) applies to properties exceeding specific size and value thresholds designed to tax luxury real estate.

For landed houses, PPnBM triggers when building size exceeds 200 square meters OR purchase price exceeds IDR 5 billion. For apartments, the thresholds are 150 square meters OR IDR 5 billion purchase price.

The tax rate reaches up to 20% of the purchase price, representing a substantial additional cost for luxury properties. For example, a IDR 6 billion house would incur IDR 1.2 billion in PPnBM tax, doubling your total tax burden.

Many developers structure projects to stay just below these thresholds, offering 199-square-meter houses or pricing units at IDR 4.9 billion to help buyers avoid PPnBM.

Check exact measurements and pricing carefully, as even small overages trigger the full tax on the entire purchase price.

What about the seller's income tax and who pays it?

Seller's income tax (PPh Final) typically amounts to 2.5% of the sale price and is legally the seller's responsibility.

However, market practice in Medan often sees buyers covering this tax as part of purchase negotiations, effectively adding 2.5% to your total acquisition cost.

For a IDR 2 billion property, seller's tax equals IDR 50 million, which sellers frequently demand buyers pay to maintain their net proceeds. This practice is so common that many listing prices assume buyer payment of seller taxes.

Always clarify in your purchase agreement whether the stated price is "net to seller" (you pay additional taxes) or "gross price" (seller absorbs their own taxes).

Some sellers offer slight discounts when buyers agree to cover their tax obligations, creating room for negotiation on total transaction costs.

What are the notary and PPAT fees for your transaction?

Notary (PPAT - Pejabat Pembuat Akta Tanah) fees typically range from 0.5% to 1.0% of the transaction value and cover deed preparation and legal documentation.

For a IDR 2 billion purchase, expect to pay IDR 10-20 million in notary fees, with exact amounts varying based on transaction complexity and property location within Medan.

PPAT fees include deed drafting, legal due diligence, tax calculations, and coordination with various government offices for title transfer. Premium notaries in central Medan charge toward the higher end of the range but often provide faster processing and better coordination.

Additional notary services like power of attorney preparation for foreign buyers or corporate documentation for PT/PMA purchases incur separate fees ranging from IDR 2-5 million per document.

Always request detailed fee quotations in writing before engaging notary services, as rates can vary significantly between practitioners.

What are the land certificate and BPN registration costs?

BPN (Badan Pertanahan Nasional) registration fees cover land measurement, mapping, and certificate issuance with costs varying by property size and complexity.

1. Land measurement and surveying: IDR 500,000 - IDR 2,000,000 depending on plot size2. Certificate processing and issuance: IDR 50,000 - IDR 200,000 per certificate3. Administrative fees and stamps: IDR 100,000 - IDR 500,0004. Mapping and documentation: IDR 200,000 - IDR 1,000,0005. Express processing (if available): Additional 50-100% surcharge

Total BPN costs typically range from IDR 1-5 million for standard residential properties, with larger or more complex properties commanding higher fees.

Processing times vary from 2-6 weeks for standard applications, though express services can reduce this to 1-2 weeks for additional fees.

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.

Are you using a real estate agent and what commission will you pay?

Real estate agent commissions in Medan typically range from 2% to 5% of the purchase price, plus 11% VAT on the commission amount.

For a IDR 2 billion property with 3% commission, you'll pay IDR 60 million in commission plus IDR 6.6 million VAT, totaling IDR 66.6 million in agent fees.

Some agents structure their fees differently, charging flat rates for lower-priced properties or offering reduced rates for cash purchases that close quickly. International real estate firms typically charge higher commissions (4-5%) but provide additional services like legal coordination and financing assistance.

Agent agreements should clearly specify whether commission covers only property identification or includes transaction management, document preparation, and post-closing support.

Many buyers negotiate shared commission arrangements where sellers pay primary agent fees, reducing buyer costs while maintaining professional representation.

What are your ongoing annual and monthly property costs?

Annual PBB (Pajak Bumi dan Bangunan) land and building tax calculates based on NJOP values at rates typically ranging from 0.1% to 0.3% in Medan.

For a property with IDR 1.8 billion NJOP, annual PBB ranges from IDR 1.8-5.4 million, paid annually to local tax authorities.

Apartment owners face additional monthly service charges covering building maintenance, security, and common area upkeep. In Medan's premium developments, monthly service charges range from IDR 15,000-35,000 per square meter.

A 100-square-meter apartment incurs IDR 1.5-3.5 million monthly in service charges, plus separate sinking fund contributions of IDR 500,000-1,500,000 monthly for major building repairs and renovations.

Landed house owners avoid service charges but face individual maintenance costs and private security fees if living in gated communities, typically ranging from IDR 300,000-1,000,000 monthly.

What one-off and financing-related costs should you budget for?

Additional transaction costs can significantly impact your total investment, with various permits, connections, and financing fees adding to purchase expenses.

Cost Category	Typical Range (IDR)	When Due
Building Permit (IMB/PBG)	5-50 million	Before construction/renovation
Electricity Connection (PLN)	2-15 million	Upon property transfer
Water Connection (PDAM)	1-5 million	Upon property transfer
Internet/Cable Setup	500,000-2 million	After closing
Property Appraisal	2-8 million	Before mortgage approval
Mortgage Administration	1-5 million	At loan closing
Fire Insurance Premium	1-5 million annually	At mortgage closing

It's something we develop in our Indonesia property pack.

Late payment penalties for taxes and fees typically charge 2% per month, making timely payment crucial for cost control.

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 - Official Tax Rates and Regulations
2. National Land Agency - Land Certificate and Registration Fees
3. Ministry of Finance - Property Tax Legislation
4. Medan City Government - Local Tax Rates and Thresholds
5. Bank Indonesia - Mortgage and Financing Regulations
6. Indonesian Notary Association - PPAT Fee Guidelines