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If you are a foreigner looking to buy residential property in Medan in 2026, you need to know exactly how much extra money to budget beyond the purchase price.
This guide breaks down every tax, fee, and hidden cost you will face when buying property in Medan as a foreign buyer.
We constantly update this blog post so you always have the freshest information available.
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.
Overall, how much extra should I budget on top of the purchase price in Medan in 2026?
How much are total buyer closing costs in Medan in 2026?
As of early 2026, total buyer closing costs in Medan typically range from 6% to 10% of the purchase price, which means on a Rp2 billion property (around USD 118,000 or EUR 101,000) you should budget an extra Rp120 million to Rp200 million (roughly USD 7,000 to USD 12,000 or EUR 6,000 to EUR 10,000).
The minimum extra budget in Medan when keeping expenses to the bare legal minimum is around 6% of the purchase price, covering mandatory BPHTB tax and basic notary fees, which on a Rp2 billion home equals roughly Rp120 million (about USD 7,000 or EUR 6,000).
The maximum extra budget buyers should realistically plan for in Medan reaches around 10% of the purchase price when accounting for agent commissions, thorough legal checks, and administrative fees, meaning up to Rp200 million (approximately USD 12,000 or EUR 10,000) on a Rp2 billion purchase.
The main factors that determine whether your Medan closing costs fall at the low end or high end include whether you use a buyer's agent, the complexity of your property's title history, whether you need translation services, and how much independent due diligence you choose to conduct.
What's the usual total % of fees and taxes over the purchase price in Medan?
For a standard residential purchase in Medan in 2026, the usual total percentage of fees and taxes over the purchase price is around 7%, which covers both government taxes and professional services.
The realistic low-to-high percentage range that covers most standard property transactions in Medan spans from about 6% to 9%, depending on your specific situation and negotiation outcomes.
Of that total, government taxes (primarily the 5% BPHTB acquisition tax) typically make up about 5% of the purchase price, while professional service fees including notary, legal checks, and potential agent commissions account for the remaining 1% to 4%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Medan.
What costs are always mandatory when buying in Medan in 2026?
As of early 2026, the mandatory costs when buying property in Medan include the BPHTB acquisition tax (5% of the taxable base minus the Rp80 million tax-free threshold), notary and PPAT fees for the official deed process, stamp duty of Rp10,000 per relevant document, and basic administrative fees for certificate verification and land office registration.
Optional but highly recommended costs for foreign buyers in Medan include independent legal due diligence (especially important for properties with complex histories), professional property valuation, and official translation or interpreter services if you do not read Indonesian fluently.
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What taxes do I pay when buying a property in Medan in 2026?
What is the property transfer tax rate in Medan in 2026?
As of early 2026, the property transfer tax rate (BPHTB) in Medan is 5% of the taxable base, which is calculated as the transaction value or official value (NJOP) minus the tax-free threshold of Rp80 million for first-time ownership.
There are no extra transfer taxes specifically for foreigners buying property in Medan, as the BPHTB rate of 5% applies equally to all buyers, though foreigners must meet minimum property price thresholds set by the government (around Rp2 billion for landed houses and Rp1 billion for apartments in North Sumatra).
VAT on residential property purchases in Medan applies mainly when buying new units directly from VAT-registered developers, and the effective rate can vary due to recent regulation changes and potential government incentives that buyers should verify at the time of purchase.
Stamp duty in Medan is paid when signing legal documents related to your property purchase, and the fixed rate is Rp10,000 per relevant document.
Are there tax exemptions or reduced rates for first-time buyers in Medan?
Medan does not offer a reduced BPHTB rate for first-time buyers, but it does provide a tax-free threshold (NPOPTKP) of Rp80 million that is subtracted from your taxable base for first ownership, effectively reducing your total BPHTB bill.
If you buy property through a company instead of as an individual in Medan, the local BPHTB rate remains at 5%, but your ongoing tax reporting obligations and how rental income is taxed may change significantly.
The main tax difference between buying a new-build versus a resale property in Medan is that new-build purchases from developers often include VAT in the price or invoice, while resale transactions focus primarily on BPHTB for the buyer and transfer income tax for the seller.
To qualify for the Rp80 million NPOPTKP threshold in Medan, buyers must demonstrate this is their first property ownership, which the notary or PPAT will verify as part of the standard transaction process.
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 Medan in 2026?
How much does a notary or conveyancing lawyer cost in Medan in 2026?
As of early 2026, notary and PPAT fees for a typical residential purchase in Medan range from 0.5% to 1.5% of the purchase price, meaning on a Rp2 billion property you would pay approximately Rp10 million to Rp30 million (around USD 600 to USD 1,800 or EUR 500 to EUR 1,500).
Notary and PPAT fees in Medan are typically charged as a percentage of the property price, with the exact rate varying based on transaction complexity and the specific professional you choose.
Translation and interpreter services for foreign buyers in Medan typically cost between Rp2 million and Rp7 million (roughly USD 120 to USD 410 or EUR 100 to EUR 350) for standard purchase documentation and signing-day assistance.
A tax advisor is optional for straightforward purchases in Medan, but if you need one (especially for company structures or rental planning), expect to pay between Rp5 million and Rp20 million (about USD 300 to USD 1,200 or EUR 250 to EUR 1,000) depending on complexity.
We have a whole part dedicated to these topics in our our real estate pack about Medan.
What's the typical real estate agent fee in Medan in 2026?
As of early 2026, the typical real estate agent fee in Medan ranges from 2% to 5% of the sale price, which on a Rp2 billion property equals Rp40 million to Rp100 million (approximately USD 2,400 to USD 5,900 or EUR 2,000 to EUR 5,000).
In Medan, the seller most commonly pays the listing agent's commission, but buyers can end up paying if they hire a dedicated buyer's agent or negotiate a specific arrangement with the seller.
The realistic low-to-high range for agent fees in Medan spans from about 2% (for straightforward transactions with minimal agent involvement) to 5% (for full-service representation including property search and negotiation support).
How much do legal checks cost (title, liens, permits) in Medan?
Legal checks in Medan including title search, liens verification, and permits review typically cost between Rp500,000 and Rp10 million (roughly USD 30 to USD 590 or EUR 25 to EUR 500), with basic checks at the lower end and thorough due diligence at the higher end.
Property valuation fees in Medan typically range from Rp2 million to Rp6 million (about USD 120 to USD 350 or EUR 100 to EUR 300), depending on the property type and whether the valuer needs to travel.
The most critical legal check that should never be skipped in Medan is the certificate verification at the local land office (BPN), which confirms the property's ownership status and reveals any encumbrances or disputes.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Medan.
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What hidden or surprise costs should I watch for in Medan right now?
What are the most common unexpected fees buyers discover in Medan?
The most common unexpected fees buyers discover in Medan include BPHTB recalculations when the declared price is below the official NJOP value, outstanding apartment service charges and utility arrears, document clean-up costs for missing paperwork, and unofficial "administration fees" invented by intermediaries.
Yes, buyers in Medan can inherit unpaid property taxes, most notably PBB-P2 (annual property tax) arrears, which is why you should always require the seller to show recent payment receipts before completing the purchase.
Scams with fake listings and fake fees do occur in Medan, particularly involving fake booking deposits, fraudulent owners, or pressure to pay before seeing original documents, so you should never transfer large sums until your notary has verified both identity and certificate status.
Fees usually not disclosed upfront in Medan include due diligence add-ons, document processing bundles, apartment building arrears, and small stamp and administrative charges spread across multiple documents.
In our property pack covering the property buying process in Medan, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Medan?
Extra fees when buying a tenanted property in Medan can include handover documentation costs, deposit and advance rent reconciliation, and potentially Rp5 million to Rp20 million (roughly USD 300 to USD 1,200 or EUR 250 to EUR 1,000) in compensation if you want the tenant to vacate early.
When purchasing a tenanted property in Medan, the buyer typically inherits the existing lease agreement and must honor its terms until expiration, including respecting tenant rights and maintaining the property according to the lease.
Terminating an existing lease immediately after purchase in Medan is generally not possible unless the lease specifically allows it or you negotiate an early termination settlement with the tenant.
A sitting tenant in Medan typically affects the property's market value negatively if you want vacant possession, but can be neutral or even positive for investors seeking immediate rental income, which gives you some negotiating leverage on price.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Medan.
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 Medan?
Which closing costs are negotiable in Medan right now?
Negotiable closing costs in Medan include the real estate agent commission (both rate and who pays), notary and PPAT professional fees within legal bounds, and whether the seller or buyer covers the seller's transfer income tax as part of net/gross pricing negotiations.
Closing costs that are fixed by law and cannot be negotiated in Medan include the 5% BPHTB acquisition tax rate and the Rp10,000 stamp duty per document.
On negotiable fees in Medan, buyers can typically achieve discounts of 10% to 30% on professional service fees and can often negotiate agent commissions down by one or two percentage points, especially in slower market conditions.
Can I ask the seller to cover some closing costs in Medan?
In Medan, it is quite common and realistic to ask the seller to cover some closing costs, especially in a slower market where sellers are motivated to close deals.
Sellers in Medan are most commonly willing to cover their own transfer income tax (typically 2.5%), agent commissions, outstanding PBB-P2 property tax arrears, and for apartments, any unpaid service charge arrears.
Sellers in Medan are more likely to accept covering closing costs when the property has been listed for a long time, when the market favors buyers, or when multiple similar properties are competing for the same pool of purchasers.
Is price bargaining common in Medan in 2026?
As of early 2026, price bargaining is very common in Medan, especially on the resale market, and sellers generally expect buyers to negotiate rather than accept asking prices at face value.
Buyers in Medan typically negotiate discounts of 5% to 10% below the asking price in normal conditions, and discounts of 10% to 15% are achievable for properties listed for a long time or needing renovations, which on a Rp2 billion property means potential savings of Rp100 million to Rp300 million (roughly USD 6,000 to USD 18,000 or EUR 5,000 to EUR 15,000).
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What monthly, quarterly or annual costs will I pay as an owner in Medan?
What's the realistic monthly owner budget in Medan right now?
A realistic monthly owner budget in Medan (excluding mortgage payments) ranges from Rp1.5 million to Rp8 million (roughly USD 90 to USD 475 or EUR 75 to EUR 400), depending on whether you own a landed house or an apartment.
The main recurring expense categories in Medan include electricity and water utilities, internet service, routine maintenance reserves, and for apartments, monthly service charges (IPL) and sinking fund contributions.
For a landed house in Medan, expect monthly costs of Rp1.5 million to Rp5 million (about USD 90 to USD 300 or EUR 75 to EUR 250), while apartment owners should budget Rp2.5 million to Rp8 million (approximately USD 150 to USD 475 or EUR 125 to EUR 400) including service charges.
The monthly cost that varies most in Medan is the apartment service charge (IPL), which depends heavily on the building's facilities, age, and management quality.
You can see how this budget affect your gross and rental yields in Medan here.
What is the annual property tax amount in Medan in 2026?
As of early 2026, the annual property tax (PBB-P2) in Medan uses banded rates that range from about 0.1% to 0.3% of the NJOP (official tax value), which for most residential properties results in annual bills ranging from a few hundred thousand to several million rupiah (roughly USD 20 to USD 300 or EUR 17 to EUR 250).
The realistic low-to-high range for annual property taxes in Medan depends heavily on your property's NJOP value, with modest homes paying around Rp300,000 to Rp1 million per year (USD 18 to USD 60 or EUR 15 to EUR 50) and larger properties paying Rp2 million to Rp5 million annually (USD 120 to USD 300 or EUR 100 to EUR 250).
Property tax in Medan is calculated based on the NJOP (government-assessed value), which is typically lower than market value, with progressive rates applied to different value bands as specified in the city's local tax regulation.
Medan does provide a higher tax-free threshold of Rp300 million for inheritance or family gift transfers, and the banded rate structure means lower-value properties pay proportionally less tax.
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 Medan in 2026?
What tax rate applies to rental income in Medan in 2026?
As of early 2026, rental income from property in Medan is subject to a final income tax (PPh Final) of 10% on gross rent for Indonesian tax residents.
Because rental income in Medan is typically taxed under a final tax regime at 10% of gross rent, landlords generally cannot deduct expenses like repairs, management fees, or insurance in the same way as under normal net-income taxation.
The realistic effective tax rate for typical landlords in Medan is essentially the full 10% of gross rent since deductions do not apply under the final tax system.
Foreign property owners in Medan may face different withholding rates on rental income (often higher than 10%), unless a tax treaty between Indonesia and their home country provides a reduced rate, so non-residents should seek professional tax advice.
Do I pay tax on short-term rentals in Medan in 2026?
As of early 2026, short-term rental income in Medan is subject to income tax, and depending on how your operation is classified, you may also face local accommodation-related taxes similar to hotel taxes.
Short-term rental income in Medan is generally taxed the same as long-term rental income under the final tax regime, but if your short-term rental resembles a lodging business, additional local taxes and permit requirements may apply.
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If I sell later, what taxes and fees will I pay in Medan in 2026?
What's the total cost of selling as a % of price in Medan in 2026?
As of early 2026, the total cost of selling a property in Medan typically ranges from 5% to 8% of the sale price, with a conservative maximum budget of up to 10% for complex transactions.
The realistic low-to-high percentage range for total selling costs in Medan spans from about 5% (if you sell without an agent and have simple paperwork) to around 10% (with full agent services and any unusual documentation needs).
The specific cost categories that make up selling expenses in Medan include the seller's transfer income tax (typically 2.5% of the gross sale price), real estate agent commission (often 2% to 5%), and notary, PPAT, and administrative fees for closing.
The single largest contributor to selling expenses in Medan is usually the agent commission when you use one, followed closely by the 2.5% transfer income tax.
What capital gains tax applies when selling in Medan in 2026?
As of early 2026, property sales in Medan are subject to a final income tax of 2.5% on the gross transfer value rather than a traditional capital gains tax calculated on profit, meaning you pay this regardless of whether you made a gain.
Exemptions to this transfer tax in Medan may apply in certain specific scenarios under implementing regulations, but you should assume you will pay the standard 2.5% rate unless your notary or tax advisor confirms you qualify for an exception.
Foreigners selling property in Medan do not automatically pay a special surcharge, but your tax residency status and any applicable tax treaty between Indonesia and your home country can affect withholding rates and reporting requirements.
The transfer income tax in Medan is calculated simply as 2.5% of the gross sale price, not as the difference between your purchase price and sale price, which makes it straightforward but means you pay tax even if you sell at a loss.
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 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 |
|---|---|---|
| Medan City Legal Database (Perda No. 1/2024) | Official City of Medan regulation setting local tax rules. | We used it to confirm BPHTB rates, tax-free thresholds, and PBB-P2 rate bands. We treated it as the single source of truth for Medan-specific tax numbers. |
| JDIH BPK RI | Indonesia's official legal document portal for verification. | We used it to cross-check that the Medan tax regulation exists and is correctly referenced. We relied on the Medan JDIH PDF for exact articles and numbers. |
| Indonesia Directorate General of Taxes (DJP) | Official government explanation of stamp duty rates. | We used it to confirm the stamp duty is Rp10,000 for property documents. We included it as a mandatory paperwork cost in our calculations. |
| DJP - PP No. 34/2016 | Official tax authority page for transfer income tax framework. | We used it to confirm the final income tax on property transfers. We combined it with Ministry of Finance rules to explain seller-side costs. |
| Indonesia Notary Law (UU No. 30/2004) | Core law governing notary fees and professional standards. | We used it to justify why notary fees vary and have caps linked to transaction value. We paired it with market ranges to estimate realistic Medan costs. |
| Trade Ministry Regulation (Permendag 51/2017) | Official regulation for property intermediaries and brokers. | We used it as the legal anchor for agent fee discussions. We triangulated fee ranges using major Indonesian property portals. |
| PwC Tax Summaries - Indonesia | Major international tax firm with regularly updated references. | We used it to explain VAT mechanics and headline versus effective rates. We kept the VAT section accurate for early 2026 transactions. |
| KPMG Indonesia VAT Treatment Note | Technical notes tracking recent regulatory updates. | We used it to corroborate how VAT treatment changed starting 2025. We avoided guessing about what VAT rate appears on paperwork. |
| Bank Indonesia Property Price Survey | Central bank benchmark for residential property market context. | We used it to describe early 2026 market conditions and negotiation leverage. We used it for macro context, not for tax rates. |
| Indonesia.go.id Government Portal | Official government portal summarizing policy and incentives. | We used it to flag that VAT incentives for home purchases existed and were extended. We advise buyers to verify if incentives still apply in 2026. |
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