The costs of buying property in Indonesia

On a resale, the buyer pays an acquisition duty of up to 5% and the seller pays a final income tax of 2.5%, both before the deed is signed. A new unit bought from a developer usually adds VAT. Fees for the land deed official (PPAT), the notary and the land office come on top, and land and building tax runs every year after that.

Two of these taxes are regional: national law sets the caps, and each regency or city sets the detail. Get the actual figures in writing before you agree a price.

The main costs at a glance

Cost	Who pays	Rate or cap	When
Acquisition duty (BPHTB)	Buyer	Up to 5% of the value above a regional threshold	Before the deed
Final income tax on the sale	Seller	2.5% of the gross value in most cases	Before the deed
VAT on a new unit from a VAT-registered developer	Buyer, in the price	11% effective for most homes	With each payment or at handover
PPAT fee	As agreed	Up to 1% of the price in the deed	At the deed
Land and building tax (PBB)	Owner	Up to 0.5% a year of the assessed value	Every year

Taxes on the sale

The duty on acquiring land and buildings (Bea Perolehan Hak atas Tanah dan Bangunan, BPHTB) is a regional tax under Law 1 of 2022. Each regency or city sets its rate, capped at 5%, and a non-taxable threshold of at least IDR 80 million, or IDR 300 million for an inheritance. The base is the price or the government’s assessed value (NJOP), whichever is higher. Under the 2022 law, BPHTB on a sale falls due when a preliminary sale agreement (PPJB) is signed, if there is one, so ask the PPAT how your region collects it at that stage.

The regional revenue office validates the BPHTB payment before the deed. A joint circular from the home affairs and land ministries, announced in August 2026, gives it three days, after which the payment counts as validated. It was set to start at 17 land offices on 17 August 2026 and to reach 76 regencies and cities within three months.

The seller’s final income tax comes from Government Regulation 34 of 2016. It’s 2.5% of the gross value, 1% for simple houses and simple flats sold by a business whose main activity is property, and 0% on sales to the government for public-interest projects. The base is the price or the government-determined value, whichever is higher. The seller pays it before the deed, and the PPAT may sign only after seeing proof of payment checked by the tax office. A developer pays it on each instalment it receives.

Don’t agree to a deed price below the real price. The tax office can assess the difference, and the deed is your record of what you paid.

VAT on new property

A developer registered for VAT adds VAT to a new house or apartment. The headline rate has been 12% since 1 January 2025, but for most goods it’s charged on a base of 11/12 of the price, which works out at 11%. The full 12% applies only to certain luxury goods. On an off-plan purchase VAT is due as you pay, not only at handover. A resale by a private owner who isn’t registered for VAT carries no VAT.

In recent years the government has borne part or all of the VAT on qualifying new homes (VAT borne by the government, PPN DTP). Each round is set by a finance ministry regulation with a fixed window for handovers and its own conditions on price and type of unit, and foreign buyers with a tax number who meet the ownership rules have been eligible. Whether a round covers your unit depends on the handover date, the price and the unit being new, so confirm it with the developer at the time and make sure the tax invoice is in your name. Buying from a developer covers the rest of that process.

Fees

The PPAT’s fee, including the witnesses, can’t exceed 1% of the price stated in the deed under Government Regulation 24 of 2016. That’s a ceiling, not a standard rate. A notary charges separately for notarial deeds such as a PPJB or a power of attorney, and the land office charges fees set nationally for checking the certificate and registering the transfer. Agree each fee, and who pays it, before the work starts.

A mortgage adds the bank’s costs and the deed that registers its security. A foreign buyer’s purchase usually includes converting the land right to a right to use (Hak Pakai), which is another land office process, explained in buying property as a foreigner.

Every year after

Land and building tax (PBB) is a regional tax, capped at 0.5% a year under Law 1 of 2022. The region applies it to a share of the assessed value, after deducting a non-taxable amount of at least IDR 10 million, and sets the details by regional regulation. The owner pays it each year on a bill (SPPT) in the owner’s name, so have the bill transferred to you after the sale. Arrears stay on the property’s tax record, so settle them before the deed. If you let the property, rent has its own final tax, covered in leasing land and buildings.

Before you sign

• Ask the PPAT for a written statement of every tax and fee, the base used for each and who pays it.
• Check the assessed value on the latest PBB bill, because both sale taxes use the higher of that value and the price.
• On a developer purchase, ask whether VAT is in the price, whether an incentive covers your handover date and when BPHTB will be collected.
• Keep the receipts for BPHTB, the seller’s tax and VAT, and the validation records. The land office and any later buyer will ask for them.