Taxes

TAXES AND FEES

Taxes and fees in purchasing property by foreigners are:

A. Tax for new property built and/or sold by developers who are taxable entrepreneurs (or called PKP)

a.1. Value added tax or called VAT is 11% and starting in early 2025 it is 12%. VAT tax is collected by PKP entrepreneurs and deposited into the State Treasury.

a.2. Land or building acquisition tax or called BPHTB tax is 5% of the purchase price or validation price set by the local government.

a.3. Luxury Goods Tax or called PPnBM will be imposed if the property purchased is included in the luxury property category with a price above IDR 30 billion. (or according to the provisions of PMK No. 42/PMK.010/2022.)

B. Second property tax is not subject to value added tax (PPN), only subject to Land and Building Acquisition Tax or called PBHTB tax.

C. Taxes imposed on rental properties

Taxes imposed on property rentals are:

1. Value added tax or VAT of 11-12% (this tax should already be included in the rental price)

2. Final income tax or PPh on rental income of 10% is paid by the person renting the property.

D. Costs in managing taxes and changing the name of the certificate

d.1. The cost of checking the land certificate to the Agrarian and Spatial Planning Office of the National Land Agency (ATR Office or BPN) is determined by the Notary, starting from IDR 200 thousand.

d.2. The cost of managing the Land Zone and State Revenue not taxed (ZNT & PNBP) starts from 1% of the transaction price.

d.3. BPHTB Validation Fee if any

d.4. PPH Verification if any

d.5. Registration of the change of name of the certificate to the Agrarian and Spatial Planning Office of the National Land Agency (ATR BPN)

d.6. Management costs at the Regency/City Dispenda Office.

d.7. The cost of making a Deed of Sale and Purchase or Notary and PPAT Office Services starts from 1% -2% of the transaction price or agreement between the buyer and the notary.