Country guide
Buying property in Indonesia as a foreigner
Rules last checked 29 October 2026 · 13 official sources · Education, not financial, tax, legal or immigration advice.
Indonesia does not allow foreigners to hold freehold (Hak Milik), but a foreigner holding immigration documents may own a landed house or an apartment unit on a Hak Pakai or HGB title above regional minimum prices of IDR 1 billion to IDR 5 billion for houses and IDR 1 billion to IDR 3 billion for apartment units (Decree 1241/2022).
What are you doing with Indonesia?
Returns after tax, what is withheld, and the way out.
A buyer in Indonesia pays a regional acquisition duty (BPHTB) set by each region at up to 5 percent of the value above a non taxable amount of at least IDR 80 million, while the seller pays a 2.5 percent final income tax on the gross transfer value (Law 1/2022; Government Regulation 34/2016). Details
Indonesia charges an annual land and building tax at a regional rate of up to 0.5 percent of the tax base (Law 1/2022 article 41). Details
Questions people in this position often miss
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I borrow locally?Answered below
limited
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- What is changing soon?Not confirmed yet
Bans, tax schedules and visa routes carry end dates, and a purchase often takes months to complete.
Whether a purchase gives a right to live there, and what living there costs in tax.
Indonesia's second home visa allows a stay of up to 5 years, extendable, on proof of IDR 2 billion in a personal bank account or property ownership in Indonesia, with a fee of IDR 21,000,000 and no right to work (immigration eVisa page). Details
Indonesia does not allow foreigners to hold freehold (Hak Milik), but a foreigner holding immigration documents may own a landed house or an apartment unit on a Hak Pakai or HGB title above regional minimum prices of IDR 1 billion to IDR 5 billion for houses and IDR 1 billion to IDR 3 billion for apartment units (Decree 1241/2022). Details
A buyer in Indonesia pays a regional acquisition duty (BPHTB) set by each region at up to 5 percent of the value above a non taxable amount of at least IDR 80 million, while the seller pays a 2.5 percent final income tax on the gross transfer value (Law 1/2022; Government Regulation 34/2016). Details
Indonesia charges an annual land and building tax at a regional rate of up to 0.5 percent of the tax base (Law 1/2022 article 41). Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
Indonesia's second home visa allows a stay of up to 5 years, extendable, on proof of IDR 2 billion in a personal bank account or property ownership in Indonesia, with a fee of IDR 21,000,000 and no right to work (immigration eVisa page).
- What happens if I die, or the family inherits?Answered below
Inheritance transfers of land and building are exempt from the 2.5 percent transfer income tax (Government Regulation 34/2016 exemptions; tax authority page).
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What is changing soon?Not confirmed yet
Bans, tax schedules and visa routes carry end dates, and a purchase often takes months to complete.
Part year stays, the yearly bill, and what the family inherits.
Indonesia does not allow foreigners to hold freehold (Hak Milik), but a foreigner holding immigration documents may own a landed house or an apartment unit on a Hak Pakai or HGB title above regional minimum prices of IDR 1 billion to IDR 5 billion for houses and IDR 1 billion to IDR 3 billion for apartment units (Decree 1241/2022). Details
Indonesia charges an annual land and building tax at a regional rate of up to 0.5 percent of the tax base (Law 1/2022 article 41). Details
Indonesia's second home visa allows a stay of up to 5 years, extendable, on proof of IDR 2 billion in a personal bank account or property ownership in Indonesia, with a fee of IDR 21,000,000 and no right to work (immigration eVisa page). Details
A buyer in Indonesia pays a regional acquisition duty (BPHTB) set by each region at up to 5 percent of the value above a non taxable amount of at least IDR 80 million, while the seller pays a 2.5 percent final income tax on the gross transfer value (Law 1/2022; Government Regulation 34/2016). Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
Indonesia's second home visa allows a stay of up to 5 years, extendable, on proof of IDR 2 billion in a personal bank account or property ownership in Indonesia, with a fee of IDR 21,000,000 and no right to work (immigration eVisa page).
- What happens if I die, or the family inherits?Answered below
Inheritance transfers of land and building are exempt from the 2.5 percent transfer income tax (Government Regulation 34/2016 exemptions; tax authority page).
- What is owed every year, even if the home sits empty?Answered below
Indonesia charges an annual land and building tax at a regional rate of up to 0.5 percent of the tax base (Law 1/2022 article 41).
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
What is owed each year, on rent and on a sale, and what the heirs face.
Indonesia charges an annual land and building tax at a regional rate of up to 0.5 percent of the tax base (Law 1/2022 article 41). Details
A buyer in Indonesia pays a regional acquisition duty (BPHTB) set by each region at up to 5 percent of the value above a non taxable amount of at least IDR 80 million, while the seller pays a 2.5 percent final income tax on the gross transfer value (Law 1/2022; Government Regulation 34/2016). Details
Questions people in this position often miss
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What happens if I die, or the family inherits?Answered below
Inheritance transfers of land and building are exempt from the 2.5 percent transfer income tax (Government Regulation 34/2016 exemptions; tax authority page).
- What happens when I sell?Answered below
A sale of land and building rights in Indonesia is subject to a 2.5 percent final income tax on the gross transfer value, paid before the deed is signed, and transfers by inheritance are exempt (Government Regulation 34/2016).
- What is changing soon?Not confirmed yet
Bans, tax schedules and visa routes carry end dates, and a purchase often takes months to complete.
Who may buy
Choose a nationality to see the rules that apply to it.
Every rule, for every buyer
| Buyer | Property | Reading | Conditions | Applies |
|---|---|---|---|---|
| Citizens of Indonesia | freehold | Open | Freehold (Hak Milik) may be granted to Indonesian citizens and to a short list of designated legal entities (state banks, religious and social bodies designated by the government, agricultural cooperatives), Permen ATR/BPN 18/2021 article 52(1). | from 29 April 2021 |
| Everyone else (not Indonesia) | freehold | Not allowed | Foreigners are not among the holders listed for Hak Milik in Permen ATR/BPN 18/2021 article 52(1). A foreigner's house on land that is Hak Milik or HGB is converted to Hak Pakai (article 187(3)), and a foreigner's apartment unit on HGB or Hak Pakai land receives Hak Milik over the unit only (article 188). | from 29 April 2021 |
| Everyone else (not Indonesia) | residential | Conditions apply |
| from 29 April 2021 |
| Everyone else (not Indonesia) | residential | Conditions apply |
| from 2 February 2021 |
| Everyone else (not Indonesia) | residential | Conditions apply |
| from 12 September 2022 |
| Everyone else (not Indonesia) | commercial | Conditions apply |
| from 2 October 2025 |
| Everyone else (not Indonesia) | agricultural land | Not allowed | No Hak Milik for foreigners (see the freehold rule). Agricultural, plantation, livestock and aquaculture businesses of a PT PMA are subject to the land and building inclusive investment test in the company rule. |
What it costs to buy
Acquisition duty on land and building rights (BPHTB)
- Rate
- Set by each regional regulation up to a ceiling of 5 percent of the acquisition value (Law 1/2022 article 47).
- The tax base is the transaction price for a sale, but not below the NJOP used for land and building tax that year (article 46).
- A non taxable acquisition value is deducted, set by regional regulation at not less than IDR 80 million for a first acquisition in that region, and not less than IDR 300 million for inheritance or bequest to a direct relative one degree up or down or a spouse (article 46(5) and (6)).
- Borne by the buyer and collected by the regional government.
Seller's final income tax on transfer of land and building rights
- Rate
2.5 percent of the gross transfer value (1 percent for simple houses and simple flats, 0 percent for certain government transfers), paid before the deed is signed (Government Regulation 34/2016 articles 1 to 2 and the payment article). Statutory burden on the seller.
What an owner pays each year
Land and building tax (PBB P2)
- Rate
Set by regional regulation at up to 0.5 percent of the tax base (Law 1/2022 article 41(1)); the base is the NJOP less the non taxable NJOP, fixed by the regional government.
Key numbers (1)
| PBB P2 rate ceilingfrom 5 January 2022 | 0.5% |
|---|
What if I own it and let it out?
Tax on the rent
Enter a yearly rent to see the tax on it.
A planning figure under the rules shown, not advice. Rates set by councils, reliefs, treaties and the owner's own circumstances can change it, and income tax on rent is usually settled on a return.
Rent from the property
Tax on rent
- Owner living elsewhere
Rent paid to a foreign tax subject (not through a permanent establishment) is subject to withholding of 20 percent of the gross amount by the payer, Income Tax Law (Law 36/2008) article 26(1), or at the treaty rate where a certificate of domicile (DGT form or equivalent, regulation PER 25/PJ/2018) is lodged. The payer remits by the 10th and reports by the 20th of the following month, including where a treaty exempts the income.
- Filing
Withholding by the payer through the e bupot system; treaty relief needs the domicile certificate receipt.
Key numbers (1)
| Withholding on rent paid to a foreign tax subject (before treaty relief) | 20% |
|---|
Selling
Tax on a sale
- Owner living elsewhere
Sale of land and building rights by an individual or entity is subject to a final income tax of 2.5 percent of the gross transfer value (Government Regulation 34/2016). The regulation applies to individuals and entities without distinguishing residence.
- Withholding on the sale
The tax is paid to a bank or post office before the deed, decision, agreement or auction minutes is signed by the authorised official.
- Exemptions
Exempt transfers include:
- an individual below the non taxable income threshold with a gross transfer under IDR 60 million that is not split into parts
- certain gifts to direct relatives one degree, religious, education and social bodies
- transfers by inheritance
- mergers at book value
- build operate transfer arrangements
- and persons who are not tax subjects
An exemption letter (SKB) is processed in three working days.
Key numbers (2)
| Seller final income tax on transfer of land and building rightsfrom 8 September 2016 | 2.5% |
|---|---|
| Gross transfer below which a low income individual seller is exemptfrom 8 September 2016 | IDR 60,000,000 |
What if I sell?
Gain (sale price less purchase price)IDR 100,000
Tax on the sale
No tax on this sale is stated in the verified rules for this case.
A planning figure under the rules shown, not advice. Costs of buying and selling, improvements, reliefs for a home lived in, treaties and the owner's own circumstances can change it, and tax on a gain is usually settled on a return.
Inheritance and gifts
Inheritance and gift tax
- Summary
- Inheritance transfers of land and building are exempt from the 2.5 percent transfer income tax (Government Regulation 34/2016 exemptions; tax authority page).
- A foreign person's dwelling may be inherited by an heir; a foreign heir must hold immigration documents (Government Regulation 18/2021 article 69(2) and (3); Decree 1241/2022 item TWO(a)).
- Regional BPHTB applies to the heir's acquisition with a higher non taxable value for close relatives (Law 1/2022 article 46(6)).
- An Indonesian citizen who marries a foreigner may hold land rights on the same basis as other citizens, and those rights are not joint marital property if a notarial property separation agreement exists (Government Regulation 18/2021 article 70).
From your country
The country of the property is only half of it. The country where you live can limit the money you send, tax the same rent and gain again, and ask for forms of its own.
Choose where you live to see what your own country does when you buy in Indonesia.
Residence through property
second home visa
- Threshold
Official eVisa page:
- stay up to 5 years, extendable
- fee IDR 21,000,000 including stay and entry permit fees
- personal bank account balance of at least IDR 2,000,000,000 or equivalent
- passport valid at least 36 months
- the visa must be used within 90 days of issue
- employment is prohibited
- family members may be included (a child or parent of the holder does not need the deposit)
The Directorate General of Immigration's 28 December 2022 news item states that applicants need proof of funds of IDR 2 billion or proof of property ownership in Indonesia, citing the Job Creation Law article 63(4) and Government Regulation 48/2021 article 103.
- Status
open
Key numbers (3)
| Second home visa proof of fundsfrom 24 December 2022 | IDR 2,000,000,000 |
|---|---|
| Second home visa fee (including stay and entry permit fees, per the eVisa page) | IDR 21,000,000 |
| Second home visa stay (eVisa page: up to, extendable) | 5 years |
Borrowing, banking and other assets
Borrowing
- Can a foreign buyer borrow locally
limited
The usual steps, in order
- Establish eligibility: a foreigner holds valid immigration documents; Hak Milik is closed to foreigners.
- Identify the form of title: a landed house on Hak Pakai (state land, HPL land or Hak Pakai created over Hak Milik) or an apartment unit on Hak Pakai or HGB land, within the luxury category, one plot and 2,000 square metre limits for houses.
- Check the price against the regional minimum in Decree 1241/2022 (the diaspora floor is 75 percent).
- Where the land is Hak Milik or HGB, the title is converted to Hak Pakai (Permen article 187(3)); a Hak Pakai over Hak Milik needs a land deed official's deed with the owner.
- The seller pays 2.5 percent final income tax before the deed; the buyer pays BPHTB set by the regional regulation, up to 5 percent of value above the non taxable amount.
- Sign the deed before the land deed official and register the transfer at the land office.
- Track the right's term: 30 years, extension up to 20, renewal up to 30 on state or HPL land; 30 years renewable only by new deed over Hak Milik.
- For business property, a PT PMA is set up through the online business licensing system (OSS) with at least IDR 2.5 billion paid up capital held for 12 months and the investment test.
Questions people ask
What if a foreigner wants to own land in Indonesia?
Freehold (Hak Milik) is held by citizens and designated entities. A foreigner with immigration documents may hold a landed house on Hak Pakai or an apartment unit on Hak Pakai or HGB land within the limits and minimum prices, and a PT PMA can hold business property rights.
How does Hak Pakai work for a foreign homeowner?
On state or HPL land it runs 30 years, extendable up to 20 and renewable up to 30. Over a private owner's Hak Milik it runs up to 30 years and is renewed only by a new deed. If the holder stops qualifying, the right must be transferred within one year or it lapses.
What if the foreign owner dies?
The dwelling may be inherited by an heir who qualifies, and a foreign heir must hold immigration documents. Inheritance transfers are exempt from the 2.5 percent transfer income tax, and BPHTB has a higher non taxable amount for close relatives.
How do the minimum prices for foreign buyers work?
Decree 1241/2022: landed houses IDR 5 billion in Jakarta, Banten, the three Java provinces, Yogyakarta and Bali, IDR 3 billion in West Nusa Tenggara, IDR 2 billion in four named provinces and IDR 1 billion elsewhere. Apartment units IDR 3 billion in Jakarta, IDR 2 billion in Banten, the three Java provinces, Bali and Yogyakarta, IDR 1 billion elsewhere. Diaspora: 75 percent.
How does the tax on a sale work?
The seller pays 2.5 percent final income tax of the gross transfer value, and the buyer pays regional BPHTB, capped by law at 5 percent, on the value above a regional non taxable amount.
How does tax on rent paid to a foreign owner work?
20 percent of gross rent is withheld by the payer, or the treaty rate where a certificate of domicile is lodged.
What if a foreigner wants a residence permit based on owning property?
The second home visa accepts proof of IDR 2 billion in a personal bank account or property ownership. The eVisa page states a stay up to 5 years, extendable, with no employment.
What if the rules for foreign apartment ownership changed in 2025 or 2026?
The company regime changed on 2 October 2025: the minimum paid up capital of a PT PMA is now IDR 2.5 billion, down from IDR 10 billion, and the IDR 10 billion investment test continues. Decree 1241/2022 is the latest instrument on foreign dwelling ownership listed on the land ministry's regulation portal on 29 October 2026.
What is still open
These points could not be confirmed from an official source yet, so they are not stated as rules.
- Whether a foreigner holding only a short stay visa can complete a purchase in practice could not be confirmed from an official source yet.
- The list of special economic zones, free trade zones and industrial estates that Government Regulation 18/2021 article 71 refers to for apartment units could not be confirmed from an official source yet.
- The meaning and current threshold of the luxury house category could not be confirmed from an official source yet.
- The sector lists and licensing rules for foreign owned hotels, villas and rental businesses held through a PT PMA could not be confirmed from an official source yet.
- Notary and land deed official fees, registration fees, and the BPHTB and land and building tax rates actually applied in each region could not be confirmed from an official source yet.
- Bank lending to foreigners, loan to value limits and capital controls could not be confirmed from an official source yet.
- Whether the land and building tax differs for an owner living elsewhere, how a non resident seller's tax is collected and whether a gift tax applies could not be confirmed from an official source yet.
- The reported May 2026 restrictions on new foreign investors in a licensing category in Bali are not stated as a rule because only secondary sources describe them.
Sources
See what this does to your own numbers
Add a property in Indonesia next to everything else you own, and see the income and net worth that follow after tax, year by year.
Free to start. No card. Rules checked 29 October 2026.
This is education, not financial, tax, legal or immigration advice. Rules change and depend on the buyer's own facts. Advice from a licensed professional in the country concerned is what settles a particular purchase.