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Everything you need to know before buying real estate is included in our Indonesia Property Pack
If you are a foreigner thinking about buying residential property in Surabaya in 2026, you are probably wondering what you can actually own, what legal hoops you will need to jump through, and how much it will all cost.
This guide breaks down the ownership rules, visa requirements, buying process, and taxes in plain language so you can make confident decisions without needing a law degree.
We keep this article updated with fresh data and official sources, so you are always looking at the current rules for Surabaya's property market.
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 Surabaya.
Insights
- Foreigners in Surabaya must spend at least 5 billion rupiah (around 310,000 USD) to buy a landed house, which is roughly double the minimum threshold in Bali.
- Buying property in Indonesia does not automatically grant you residency or a path to citizenship, so do not treat a Surabaya purchase as a "golden visa" shortcut.
- The most common legal trap for foreigners in Surabaya is using a nominee structure where an Indonesian holds the title "for you," which can leave you with no legal claim if the relationship sours.
- Bank Indonesia's benchmark rate sat at 4.75% in late 2025, but foreigners in Surabaya typically see mortgage rates between 9% and 12.5% after promotional periods end.
- Surabaya's buyer acquisition tax (BPHTB) is 5% of the property value minus a 90 million rupiah exemption, making closing costs land around 6.5% to 8.5% of the purchase price.
- Annual property tax (PBB-P2) in Surabaya uses a bracketed system with rates from 0.05% to 0.30%, so two homes at the same price can have very different tax bills depending on their assessed value.
- Unlike Jakarta or Bali, Surabaya's residential market is dominated by large planned townships in the west (like Citraland and Pakuwon Indah) and established neighborhoods in the east, not vacation villas.
- Rental income from Surabaya property is taxed at a flat 10% final rate on gross rent, which tenants often withhold and remit on your behalf.
What can I legally buy and truly own as a foreigner in Surabaya?
What property types can foreigners legally buy in Surabaya right now?
As a foreigner in Surabaya in January 2026, you can legally buy landed houses (rumah tapak) and apartment units (satuan rumah susun), but only through a specific ownership right called Hak Pakai rather than full freehold.
The most important limitation is that you must meet minimum price thresholds set by the government: 5 billion rupiah (about 310,000 USD) for a landed house and 2 billion rupiah (about 125,000 USD) for an apartment in East Java province, which includes Surabaya.
In practice, this means if your budget falls below those amounts, your only realistic option in Surabaya is long-term renting rather than buying, since there is no legal structure that lets foreigners own cheaper residential property.
For apartments specifically, you also need to confirm that the building's underlying land rights (either Hak Pakai or Hak Guna Bangunan) and strata documentation are structured in a way that allows foreign ownership, which your notary should verify before you sign anything.
Finally, please note that our pack about the property market in Surabaya is specifically tailored to foreigners.
Can I own land in my own name in Surabaya right now?
No, as a foreigner you cannot own land under freehold title (Hak Milik) in your own name in Surabaya, but you can hold a registrable right called Hak Pakai that is recorded in your name at the land office.
If someone offers you "freehold in your name" or suggests putting the property in an Indonesian friend's or spouse's name while you control it, that is almost certainly a nominee arrangement, which is the classic high-risk trap that can leave you with zero legal protection if the relationship changes.
The legally safe alternative is to structure your purchase as Hak Pakai from the start, which gives you a real, enforceable right (just not the same as Indonesian freehold) that can be renewed and even inherited under certain conditions.
As of 2026, what other key foreign-ownership rules or limits should I know in Surabaya?
As of January 2026, beyond the price thresholds, Indonesian law also limits foreigners to owning only one landed house plot and one apartment unit, and the property must be used for residential purposes only (not commercial).
There is no formal "foreign quota" for apartments in Surabaya the way some countries cap the percentage of foreign owners in a building, but in practice, not all strata developments have their paperwork structured for foreign eligibility, so you must verify this case by case.
Before completing your purchase, your notary will need to confirm your valid immigration documentation (KITAS or KITAP is often preferred), and the transaction must be registered with the local land office (BPN) so your Hak Pakai right is officially recorded.
Indonesia occasionally updates these rules, so always verify the current regulations with a local notary or legal advisor before committing, but no major changes to the Surabaya foreign-ownership framework have been announced for early 2026.
What's the biggest ownership mistake foreigners make in Surabaya right now?
The single biggest mistake foreigners make in Surabaya is buying property through a nominee structure, where an Indonesian citizen holds the Hak Milik title "on your behalf," because this gives you no legal claim to the property and exposes you to enormous risk.
If the nominee dies, gets divorced, faces creditors, or simply decides to sell the property, you have no legal standing to stop them since Indonesian law recognizes them as the true owner, leaving you with nothing but a private agreement that courts may not enforce.
Other classic pitfalls in Surabaya include buying an apartment without verifying that its strata and land documentation actually allow foreign ownership, and purchasing property below the minimum price threshold through creative paperwork that will not hold up under scrutiny.
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 visa or residency status changes what I can do in Surabaya?
Do I need a specific visa to buy property in Surabaya right now?
Legally, the regulation says you need valid "immigration documents" to buy property in Surabaya, which could technically include a valid passport and visa, but in practice most notaries, developers, and banks strongly prefer (or require) a KITAS or KITAP residency permit because it simplifies their compliance checks.
The most common administrative blocker for buyers without local residency is that Indonesian banks are reluctant to open accounts or process mortgages for people on short-term visas, so if you are paying cash you may face fewer obstacles, but still expect extra scrutiny.
While a local tax ID (NPWP) is not technically required on day one, you will almost certainly need one to pay property taxes, file rental income, or set up utilities, so most foreign buyers obtain it early in the process.
A typical document set for a foreign buyer in Surabaya includes your passport, valid visa or residency permit (KITAS/KITAP), NPWP tax ID, and sometimes proof of address or employment, though exact requirements vary by notary and whether you are financing the purchase.
Does buying property help me get residency and citizenship in Surabaya in 2026?
As of January 2026, buying property in Surabaya does not automatically grant you residency or create a direct path to Indonesian citizenship, so do not purchase expecting it to work like a golden visa program.
Indonesia does not currently offer a property-based investor visa the way countries like Portugal or Greece do, meaning your property ownership and your immigration status are handled through entirely separate systems.
If you want to live in Indonesia long-term, you will need to qualify for KITAS (limited stay permit) through employment, marriage, retirement, or investment in a business, and after years of continuous residence you may eventually become eligible for KITAP (permanent stay), though citizenship for foreigners remains very difficult to obtain.
We give you all the details you need about the different pathways to get residency and citizenship in Surabaya here.
Can I legally rent out property on my visa in Surabaya right now?
Yes, if you legally own property under Hak Pakai in Surabaya, you can rent it out regardless of your visa status, but you must treat the rental income as taxable in Indonesia and follow the proper reporting or withholding rules.
You do not need to live in Indonesia to rent out your Surabaya property, and many foreign owners appoint a local property manager or use a notarized power of attorney to handle tenant issues, maintenance, and tax administration while they are abroad.
The key thing to remember is that rental income from land and buildings in Indonesia is subject to a 10% final tax on gross rent, which business tenants typically withhold and remit on your behalf, but if your tenant is an individual you may need to report and pay it yourself.
We cover everything there is to know about buying and renting out in Surabaya here.
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How does the buying process actually work step-by-step in Surabaya?
What are the exact steps to buy property in Surabaya right now?
The standard sequence to buy property in Surabaya is: confirm the property qualifies for foreign ownership and meets price thresholds, have your notary run title and permit checks, sign a preliminary agreement with a conditional deposit, complete deeper due diligence, sign the official transfer deed (AJB) before a notary/PPAT, pay all taxes and fees, and finally register your Hak Pakai right at the land office.
You will likely need to be physically present in Surabaya at least once to sign the transfer deed before the PPAT, though some buyers use a properly legalized power of attorney to have a representative sign on their behalf if they cannot attend.
The step that makes the deal legally binding for both parties is signing the Akta Jual Beli (AJB) before the PPAT, which is the official transfer deed that the land office uses to update the title record in your name.
From accepted offer to final registration in Surabaya, expect the process to take anywhere from 4 to 12 weeks depending on how quickly due diligence clears, how fast taxes are paid, and the current workload at the local BPN office.
We have a document entirely dedicated to the whole buying process our pack about properties in Surabaya.
Is it mandatory to get a lawyer or a notary to buy a property in Surabaya right now?
A notary or PPAT (Pejabat Pembuat Akta Tanah) is functionally mandatory in Surabaya because Indonesian law requires the transfer deed to be executed before a licensed official for the land office to register your ownership, so you cannot complete a legal purchase without one.
The key difference is that a PPAT handles the official deed execution and registration process, while a lawyer provides independent legal advice, reviews contracts for hidden risks, and can represent you if disputes arise, so many foreign buyers use both for complex purchases.
When engaging a notary or lawyer in Surabaya, make sure their scope explicitly includes verifying the certificate authenticity at BPN, confirming the property is eligible for foreign Hak Pakai ownership, and checking for any liens or permit issues before you sign the transfer deed.
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.
What checks should I run so I don't buy a problem property in Surabaya?
How do I verify title and ownership history in Surabaya right now?
The official authority you should use to verify title and ownership history in Surabaya is the Badan Pertanahan Nasional (BPN), which is the national land office with a local branch that maintains all registered property records for the city.
The key document you need to request is the land certificate (Sertifikat Hak Atas Tanah), which shows the certificate number, rights type (Hak Pakai, HGB, etc.), current owner name, plot size, and any recorded encumbrances or notes.
A realistic look-back period for ownership history in Surabaya is at least 10 to 15 years, which helps your notary identify any patterns of frequent transfers, unresolved disputes, or gaps in the chain of title that could signal problems.
A clear red flag that should stop or pause your purchase is finding multiple conflicting claims, unresolved inheritance disputes, or a court notation (sita) on the certificate, any of which could mean years of legal battles before you actually control the property.
You will find here the list of classic mistakes people make when buying a property in Surabaya.
How do I confirm there are no liens in Surabaya right now?
The standard way to confirm there are no liens or encumbrances on a Surabaya property is to have your notary or PPAT request a formal certificate check from BPN, which will show any registered mortgage security rights (Hak Tanggungan) or other burdens against the title.
The most common type of lien you should specifically ask about is Hak Tanggungan, which is the mortgage security right that banks register against the title when the seller took out a loan, and which must be formally released before clean title can transfer to you.
The best written proof of lien status is the Surat Keterangan Pendaftaran Tanah (SKPT) from BPN, which is an official statement confirming the current registered status of the property including any encumbrances, and which your notary should obtain before closing.
How do I check zoning and permitted use in Surabaya right now?
The authority you should use to check zoning and permitted use in Surabaya is the local government's spatial planning office (Dinas Cipta Karya or DPRKPCK), which maintains the city's zoning maps and can confirm whether a property is designated for residential use.
The key document that confirms zoning classification is the Rencana Tata Ruang Wilayah (RTRW) map combined with the property's building permits, and for modern transactions you should also verify that the property has a PBG (Persetujuan Bangunan Gedung) and SLF (Sertifikat Laik Fungsi) to confirm it is legally permitted and fit for use.
A common pitfall foreign buyers miss in Surabaya is purchasing a property that was built under an old IMB permit but lacks the updated PBG/SLF documentation required under current regulations, which can create problems for resale, insurance, or utility connections down the road.
Buying real estate in Surabaya can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Surabaya, and on what terms?
Do banks lend to foreigners for homes in Surabaya in 2026?
As of January 2026, yes, some Indonesian banks do lend to foreigners for home purchases in Surabaya, but the pool of willing lenders is smaller than for Indonesian citizens and the requirements are stricter.
Foreign borrowers in Surabaya typically see loan-to-value ratios between 50% and 70%, meaning you should expect to put down at least 30% to 50% of the property price as a down payment, compared to the 80% or higher LTV that locals often receive.
The single most common eligibility requirement is holding a valid KITAS or KITAP residency permit with provable Indonesian-source income or employment, since banks want assurance you will remain in the country long enough to repay the loan.
You can also read our latest update about mortgage and interest rates in Indonesia.
Which banks are most foreigner-friendly in Surabaya in 2026?
As of January 2026, the banks with the best reputation for processing foreigner mortgage applications in Surabaya are Bank Central Asia (BCA), Bank Mandiri, and CIMB Niaga, though BTN, BNI, OCBC NISP, and Maybank Indonesia also have expat-friendly programs.
What makes these banks more foreigner-friendly is that they have established internal procedures for handling foreign documentation, English-speaking staff in key branches, and experience navigating the additional compliance checks that foreigner files require.
Most of these banks will only lend to foreigners who hold KITAS or KITAP residency permits, so if you are a non-resident hoping to buy with a mortgage in Surabaya, you will likely need to either pay cash or establish residency first.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Surabaya.
What mortgage rates are foreigners offered in Surabaya in 2026?
As of January 2026, foreigners in Surabaya typically see promotional fixed rates between 5.5% and 8% for the first one to three years, but after the promo period ends, rates usually reset to 9% to 12.5% depending on the bank's assessment of your risk profile.
Indonesian banks generally offer short promotional fixed-rate periods followed by variable rates tied to their internal cost of funds, so the headline rate you see in marketing is almost never what you will pay over the life of the loan, and you should always request the effective rate in writing before signing.
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 will taxes, fees, and ongoing costs look like in Surabaya?
What are the total closing costs as a percent in Surabaya in 2026?
For a typical resale property purchase in Surabaya in 2026, buyers should budget total closing costs of around 6.5% to 8.5% of the purchase price to cover all taxes, notary fees, and registration expenses.
The realistic range spans from about 6.5% for straightforward transactions with minimal complexity to 8.5% or slightly higher when legal fees run on the higher end or additional document translation and legalization is needed.
The specific fee categories that make up closing costs in Surabaya include BPHTB (buyer acquisition tax), notary and PPAT fees, BPN registration fees, document stamps, and sometimes legal or translation fees for foreign buyers.
The single biggest contributor to closing costs is BPHTB, which is set at 5% of the property's taxable value (minus a 90 million rupiah non-taxable threshold) in Surabaya, and which typically accounts for more than half of your total closing costs.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Surabaya.
What annual property tax should I budget in Surabaya in 2026?
As of January 2026, annual property tax (PBB-P2) in Surabaya varies widely by assessed value, but for a foreign buyer's typical property you should budget roughly 1 million to 15 million rupiah per year (60 to 950 USD or 55 to 870 EUR), with apartments at the lower end and larger landed houses at the higher end.
Surabaya calculates PBB-P2 using a bracketed rate system (ranging from 0.05% to 0.30%) applied to the property's NJOP (assessed tax value) minus a 15 million rupiah non-taxable threshold, so your tax bill depends more on the official assessed value than on what you actually paid for the property.
How is rental income taxed for foreigners in Surabaya in 2026?
As of January 2026, rental income from property in Surabaya is subject to a 10% final tax on gross rent, meaning you pay 10% of whatever rent you receive with no deductions for expenses, and this applies equally to foreign and Indonesian owners.
If your tenant is a company or registered business, they are usually required to withhold the 10% tax and remit it to the tax office on your behalf, but if your tenant is an individual, you may need to report and pay the tax yourself through the standard tax filing process.
What insurance is common and how much in Surabaya in 2026?
As of January 2026, a standard property or fire insurance policy in Surabaya typically costs between 0.10% and 0.25% of the insured building value per year, which translates to roughly 2 million to 5 million rupiah (125 to 310 USD or 115 to 285 EUR) annually for a property insured at 2 billion rupiah.
The most common coverage Surabaya property owners carry is fire and basic perils insurance, which protects against fire, lightning, explosion, and sometimes riot or strike damage, with optional add-ons for flood or earthquake depending on the insurer.
The biggest factor that raises or lowers your premium in Surabaya is the building construction type and age, since older buildings or those with non-standard materials typically face higher rates, while newer construction in managed estates often qualifies for lower premiums.
Get the full checklist for your due diligence in Surabaya
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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 Surabaya, 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 18/2021 | It's the binding national law that defines which property rights foreigners can legally hold. | We used it to define the only ownership rights foreigners can hold for residential property in Surabaya. We also extracted the immigration document requirements and built-in limits on price, size, and unit count. |
| Ministerial Decree 1241/2022 | It sets the official minimum price thresholds foreigners must meet by province. | We used it to provide the exact East Java minimum prices for landed houses (5 billion rupiah) and apartments (2 billion rupiah). We also noted the diaspora discount rule at 75% of threshold. |
| Surabaya Perda 7/2023 | It's the city-level tax law that determines BPHTB acquisition tax and annual PBB-P2 property tax. | We used it to calculate buyer closing taxes at 5% BPHTB with the 90 million rupiah exemption. We also used its bracketed rates to estimate annual PBB-P2 for Surabaya properties. |
| DJP NPWP Registration Page | It's the official tax authority's checklist for obtaining a tax ID in Indonesia. | We used it to explain when foreign buyers typically need NPWP in Surabaya. We also referenced it to keep document requirements precise and accurate. |
| DJP PPh Final Article 4(2) Guidance | It's the tax authority's official instruction on the final rent tax mechanism. | We used it to set the rental income tax rate at 10% of gross rent. We also explained who withholds and pays based on tenant type. |
| Ministry of Finance PP 34/2017 | It's the legal basis for final income tax on rental of land and buildings. | We used it to anchor the "rental income is final-taxed" claim in regulation rather than informal sources. We confirmed the gross basis calculation method. |
| Immigration Directorate KITAS Explainer | It's the official immigration authority's explanation of limited stay permits. | We used it to explain what KITAS is and why banks and notaries in Surabaya often require it. We also clarified the difference between stay entitlement and property entitlement. |
| Bank Indonesia Rate Decision (Dec 2025) | It's the central bank's official announcement of the benchmark interest rate. | We used it to anchor the interest rate context for January 2026 with BI-Rate at 4.75%. We then built realistic mortgage rate estimates for foreigners from this baseline. |
| BPS Credit Interest Rates Table | It's Indonesia's official statistics agency publishing lending rate data from Bank Indonesia. | We used it to triangulate real-world lending rates as a sanity check on mortgage pricing. We kept our foreigner mortgage estimates within a defensible range based on this data. |
| OJK SBDK Disclosure Page | It's the banking regulator's framework requiring banks to disclose how rates are formed. | We used it to explain why headline mortgage rates differ from effective rates. We advised readers to request written offering letters showing true costs. |
| OJK Regulation 13/2024 | It's the enforceable rule requiring banks to disclose rate formation transparently. | We used it to support our explanation of promotional versus effective mortgage rates. We encouraged readers to demand APR-equivalent figures before signing. |
| Government Regulation PP 16/2021 | It's the national framework behind current building documents like PBG and SLF. | We used it to justify the due diligence checklist items that prevent buying problem properties. We ensured permit terminology matched current Surabaya requirements. |
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.
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