Frequently Asked Questions

Can foreigners legally buy property in Indonesia?

Yes, foreigners can legally buy property in Indonesia but there are restrictions. They can only buy certain types of property, and the property must meet a certain minimum price that varies by region.

Do I need a special structure like a trust or corporation to buy property in Indonesia?

No, you do not need a trust or corporation to buy property in Indonesia. However, some foreigners choose to set up a foreign investment company to purchase land.

Do I own the property outright as a foreigner in Indonesia?

As a foreigner, you can own properties under the "Right to Use" (Hak Pakai) or "Right to Build" (Hak Guna Bangunan) categories. It does not permit full freehold ownership as enjoyed by Indonesian citizens.

What are the closing costs and taxes when buying property in Indonesia?

Closing costs usually range from 5% to 10% of the property’s price. These include the deed of sale cost, notary fee, and land and building transfer fee. Also, there is a progressive tax on luxury properties.

Do I need to hire a lawyer when buying property in Indonesia?

It’s not mandatory, but it is highly recommended to hire a lawyer when buying property in Indonesia to ensure all legal procedures are followed and your interests are protected.

Can I get a mortgage in Indonesia as a foreigner?

Getting a mortgage as a foreigner in Indonesia is challenging. Most banks do not offer mortgages to foreigners, although some might under certain conditions.

Are there annual property taxes in Indonesia?

Yes, there are annual property taxes in Indonesia. They generally amount to a small percentage of the assessed value of the property.

Can I rent out my property in Indonesia for income?

Yes, foreigners can rent out their property in Indonesia. However, it is important to report this income to the tax authorities.

Is the buying process safe and transparent in Indonesia?

The process can be safe and transparent if it's done correctly. It's essential to hire a reputable real estate agent and lawyer to ensure that all transactions are conducted legally and ethically.

Do I get residency or visa benefits by buying property in Indonesia?

No, buying property in Indonesia does not automatically grant you residency or visa benefits. However, property ownership might make it easier to get a limited stay visa.