Property tax in Indonesia
See what Indonesia's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in Indonesia, and what it does not.
Free to start. No card. Rules reviewed 25 August 2026.
Modelled here
- Tax on rental income
- Capital gains on a sale
- Duty on purchase (approximate)
- Annual property or land tax
IDR · Rates as at 25 August 2026 · Estimates, not advice
A non resident's rental income is taxed at a flat 20% (or the treaty rate). Foreigners typically hold via leasehold (Hak Sewa) or right to use (Hak Pakai), not freehold. Nationwide, not just in resort areas.
How rental income is taxed in Indonesia
For a resident owner: A flat 10% on gross rent. For an owner living abroad and renting this out: Tax is withheld at source at 20% of the gross rent, before any costs.
Interest and losses
A rental loss brings no relief: it cannot reduce other income, and it does not carry forward.
Capital gains on a sale
The sale is taxed at 2.5% of the SALE PRICE, not of the gain, so it is owed even on a sale at a loss.
Annual property tax while holding
About 0.2% a year, charged not on the market price but on the official assessed value, which is typically nearer 60% of it. Enter the assessed value on the property and the estimate sharpens.
What it costs to buy
Purchase duty here is more than a single rate, and Freeholt prices the published rules rather than an average. Leasehold is bought for a fixed term (often 25 to 30 years, sometimes extendable); freehold (Hak Milik) isn't available to foreigners.
Can a foreign buyer purchase here?
A foreign buyer gets a right to use rather than ownership of the land. No freehold (Hak Milik) for foreigners. Hak Pakai right to use (30 years, extendable to ~80) with a KITAS/KITAP permit, subject to regional minimum prices; or via a PT PMA company.
How Freeholt models Indonesia
Every rate above is priced from Freeholt's own table for Indonesia and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They cannot be edited yet, so a position that differs from the defaults has to be read with that in mind. The estimate assumes an individual owner rather than a company or trust, and where a rule is not modelled it is listed below rather than quietly priced at zero.
What running this property costs
This covers building/estate management fees, maintenance and the low PBB land and building tax. A service cost, not an annual wealth style property tax. Resort properties (Bali, Lombok, Bintan) typically add villa staff and pool upkeep on top.
How borrowing works here
Foreigners generally can't get a local mortgage, so purchases are cash; a leasehold is paid upfront for its term.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
Recent rule changes in Indonesia
- 2027-01-01 An extension of the PPN DTP VAT relief into 2027 was announced by the ministry, but no implementing regulation has been issued, so it is not priced.(proposed only, never priced into your figures)
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- ModelledCapital gains on a sale
- Priced in the year of the sale under the rules of that year.
- ApproximateDuty on purchase
- The published scale is priced from the rules in force, which differ by band and are summarised here.
- ModelledAnnual property or land tax
- Charged every year the property is held.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- Not yetDividends, interest and share sales
- Not modelled for this country yet.
- Not yetRetirement savings
- Not modelled for this country yet.
- Not yetInheritance and what happens on death
- Not modelled for this country yet.
What Freeholt does not model here
- Inheritance and estate tax
- Treaty relief between this country and the owner's country of residence
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare Indonesia with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Indonesia property tax?
- Yes. Rental income tax, capital gains on a sale, duty on purchase and annual property or land tax are priced from Freeholt's own rate table for Indonesia. Duty on purchase carries a simplification that the page names beside the figure. The rates are not editable yet, so one that differs in a particular case cannot be overridden. Every figure is an estimate, not advice.
- How is rental income from Indonesia taxed if I live somewhere else?
- Tax is withheld at source at 20% of the gross rent, before any costs. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Indonesia figures as at?
- The rate table for Indonesia was last reviewed on 25 August 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in Indonesia alongside everything else you own: see the year your portfolio starts paying you back.