What are all the property taxes and fees in Surabaya?

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 Surabaya. 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 Surabaya, Jakarta, and Bali. 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 transaction affects your tax obligations?

Your tax obligations in Surabaya depend entirely on the specific type of property transaction you're undertaking.

If you're buying new property directly from a developer, you'll pay VAT (PPN) at 11%, plus BPHTB acquisition duty at 5% of the value above IDR 90 million threshold. For existing properties bought from individual sellers, VAT doesn't apply, but you still pay the same BPHTB rate.

Commercial properties trigger higher PBB-P2 annual tax rates compared to residential properties, while luxury properties above IDR 30 billion face additional luxury goods tax (PPnBM) at 20%. Land-only purchases have different NJOP assessments than properties with buildings.

As a buyer, you're responsible for BPHTB, notary fees, land office registration costs, and ongoing annual PBB-P2 tax. Sellers pay PPh Final income tax at 2.5% of the sale price or NJOP, whichever is higher.

How is the official assessed value determined for your Surabaya property?

The official assessed value (NJOP) per square meter varies significantly by location within Surabaya, ranging from IDR 1.274.000 to IDR 6.195.000 per m² in areas like Kali Rungkut.

NJOP is updated annually by the Surabaya government based on comparable property transactions and market conditions. The current non-taxable threshold (NJOPTKP) in Surabaya is IDR 15.000.000 per taxpayer for 2025.

To find your property's NJOP, check your annual tax notice (SPPT) or visit the Surabaya Revenue Agency website. The NJOP determines both your annual PBB-P2 tax calculation and serves as the minimum value for transaction taxes like BPHTB.

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What's your annual PBB-P2 tax calculation and payment schedule?

Annual Land & Building Tax (PBB-P2) in Surabaya follows a progressive rate structure based on your property's NJOP value.

The calculation formula is: (Total NJOP - NJOPTKP IDR 15.000.000) × applicable rate. Rate tiers are: 0.05% for NJOP IDR 100-200 million, 0.1% for IDR 200 million-1 billion, 0.15% for IDR 1-2 billion, 0.2% for IDR 2-10 billion, 0.25% for IDR 10-50 billion, and 0.3% for properties above IDR 50 billion.

For example, a property with NJOP IDR 500 million pays: (IDR 500.000.000 - IDR 15.000.000) × 0.1% = IDR 485.000 annually. Payment is due by September 30 each year, and you'll receive an annual tax notice (SPPT) showing the exact amount.

Late payments incur penalties, so ensure timely payment to avoid additional costs.

How much BPHTB acquisition duty will you pay as a buyer?

BPHTB (duty on acquisition) is charged at a flat 5% rate on the taxable portion of your property purchase in Surabaya.

The calculation is: 5% × (market value - NPOPTKP). The current NPOPTKP (non-taxable threshold) in Surabaya is IDR 90.000.000 for 2025. This means only the amount above IDR 90 million is subject to the 5% tax.

For a IDR 1 billion property purchase: BPHTB = (IDR 1.000.000.000 - IDR 90.000.000) × 5% = IDR 45.500.000. The buyer pays this tax before the notary can complete the title transfer.

Payment must be completed before deed signing at the Land Office. Surabaya periodically offers BPHTB discounts of 5-50% during certain promotional periods, which can provide significant savings.

Does VAT apply to new property purchases from developers?

VAT (PPN) applies at 11% when buying new property directly from registered developers in Surabaya.

As of September 2025, Indonesia offers significant VAT incentives: properties up to IDR 2 billion are completely exempt from VAT from January-June 2025, with 50% exemption July-December 2025. Properties between IDR 2-5 billion pay 11% VAT only on the amount exceeding IDR 2 billion.

For example, a new IDR 1.8 billion apartment bought in March 2025 pays zero VAT. A IDR 3 billion property bought in September 2025 pays: 11% × (IDR 3 billion - IDR 2 billion) = IDR 110 million VAT.

Secondary property sales between individuals don't trigger VAT. The developer typically includes VAT in their advertised price, but verify this before signing contracts.

When does luxury goods tax apply to your purchase?

Luxury goods tax (PPnBM) only applies to properties with sale prices of IDR 30 billion or higher in Surabaya.

The tax rate is 20% of the total sale price when triggered. This threshold means virtually all residential properties, apartments, and commercial buildings in Surabaya fall well below this limit.

Given Surabaya's property market, even premium apartments and houses rarely exceed IDR 10 billion, making PPnBM irrelevant for most buyers. Only ultra-luxury developments or large commercial complexes might approach this threshold.

If your property does exceed IDR 30 billion, factor in an additional 20% cost (IDR 6 billion on a IDR 30 billion property) paid by the buyer at closing.

What seller income tax obligations apply?

Sellers in Surabaya must pay PPh Final (final income tax) at 2.5% of the sale price or NJOP, whichever is higher.

For a IDR 1 billion property sale, the seller pays: 2.5% × IDR 1.000.000.000 = IDR 25.000.000. This tax must be paid before the notary can execute the sale and purchase deed (AJB).

The tax applies regardless of profit or loss on the sale, making it a fixed cost for sellers. If the NJOP is higher than the actual sale price, tax is calculated on the NJOP amount instead.

Payment is typically handled through the notary's escrow account, with the tax amount deducted from the seller's proceeds at closing.

What are the notary and PPAT professional fees?

Notary/PPAT fees for property transactions in Surabaya are capped at 1% of the transaction value by professional regulations.

For a IDR 1 billion property, maximum notary fees are IDR 10.000.000. This covers preparation of the sale-purchase deed (AJB), verification of documents, escrow services, and coordination with the Land Office.

Fees vary among notaries but typically range from 0.5-1% depending on transaction complexity. Additional services like power of attorney preparation or document translation may incur extra charges.

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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 Land Office registration costs should you budget?

Land Office (BPN) costs for property registration in Surabaya include several mandatory fees paid by the buyer.

Service	Cost Range (IDR)	Description
Name Transfer (Balik Nama)	1,000,000 - 2,500,000	Official ownership transfer process
Land Measurement/Mapping	2,000,000 - 3,000,000	Survey and boundary verification
Certificate Issuance	800,000 - 1,000,000	New title certificate preparation
Document Verification	500,000 - 1,000,000	Legal document checking
Administrative Processing	300,000 - 500,000	Filing and administrative fees
Expedited Processing	1,000,000 - 2,000,000	Optional faster processing
Miscellaneous Fees	200,000 - 500,000	Stamps, copies, other costs

Total Land Office costs typically range from IDR 4.800.000 to IDR 10.500.000 depending on property size, location complexity, and processing speed preferences.

What mortgage-related fees apply if financing your purchase?

Mortgage (KPR) financing in Surabaya involves multiple upfront costs typically totaling 2-5% of the loan amount.

Banks charge provision/admin fees at 1% of loan amount, appraisal fees of IDR 500.000-3.000.000, and require life insurance plus fire insurance with rates set by regulation. Hak Tanggungan (mortgage right) registration costs 0.25% of 125% of loan value.

For a IDR 800 million loan: provision fee IDR 8 million + appraisal IDR 2 million + Hak Tanggungan IDR 2.5 million + insurance premiums + notary fees for mortgage deed (2-4% of loan limit) = approximately IDR 20-40 million total upfront costs.

Developer booking fees typically range IDR 5-20 million, separate from bank costs. Budget 3-6% of property value for all financing-related expenses.

What developer and building management charges apply?

Developer charges and ongoing building management fees add significant costs to property ownership in Surabaya.

1. **Booking fees**: IDR 5.000.000-20.000.000 required to reserve units2. **Down payment penalties**: Variable rates for late payments (ask developer for specific terms)3. **Handover/fit-out fees**: IDR 3.000.000-5.000.000 at unit completion4. **Legal documentation**: IDR 1.000.000-3.000.000 for various permits and certifications5. **Connection facilitation**: Developer assistance with utility hookups (IDR 2.000.000-5.000.000)

Monthly service charges (IPL) for apartments and gated communities range IDR 500.000-2.000.000 monthly, covering security, maintenance, common area cleaning, and facility management.

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What one-time setup and utility connection costs apply?

New property owners in Surabaya face several mandatory utility connection and permit costs that must be budgeted upfront.

1. **PLN electricity connection**: IDR 1.000.000-3.500.000 (varies by power capacity and prepaid meter installation)2. **PDAM water connection**: IDR 750.000-1.500.000 (includes meter installation and initial deposit)3. **Gas connection**: IDR 500.000-1.500.000 (often bundled with electric/water installations)4. **Internet installation**: IDR 500.000-1.500.000 (major providers like Telkom, MyRepublic, First Media)5. **Building permits (PBG/SLF)**: IDR 1.000.000-3.000.000 (depends on property size and usage type)

Stamp duty (bea meterai) costs IDR 10.000 per document for all legal paperwork. Budget an additional IDR 3.000.000-5.000.000 for miscellaneous documentation, local permits, and unexpected administrative requirements.

Total setup costs typically range IDR 8.000.000-15.000.000 for most residential properties in Surabaya.

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. Kompas - Surabaya PBB-P2 Tax Rates 2025
2. KlikPajak - BPHTB Tax Guide Indonesia
3. VAT Update - Indonesia VAT Property Rules 2025
4. Own Property Abroad - Indonesia Property Tax Guide
5. Lets Move Indonesia - Notary Services Guide
6. Lets Move Group - Indonesian Mortgage Guide
7. Invest in Asia - Indonesia VAT Guide 2025
8. Rumah123 - NJOPTKP Calculation Guide