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Market guide · Indonesia

Buying property in Indonesia as a foreignerA foreigner cannot own land in Indonesia. Know what you hold.

Indonesia does not let a foreign individual own land outright. What a foreigner can hold is a right to use land, or a lease, for a set term. The first question on any villa or apartment is which of these you are being sold.

3-minute read · checked 9 October 2026

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New home prices in one year
+0.69%
Bank Indonesia, second quarter 2026
New home sales over the same year
−2.36%
Bank Indonesia, second quarter 2026
Top rate of the buyer's acquisition duty
5%
PwC tax guide
Bank deposit for the five-year Second Home Visa
USD 130,000
Directorate General of Immigration

Can foreigners buy property in Indonesia?You buy a right with a term, not the land.

What this means for youAsk the seller to name the title in writing, and how many years are left on it. A lease and a registered right are not the same thing.

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A foreign individual cannot hold freehold ownership of land, called Hak Milik. A foreigner who qualifies can hold a right to use land, called Hak Pakai.

A lease, called Hak Sewa, is a contract with the landowner and not a registered ownership right. An Indonesian company with foreign investment can hold building rights, called Hak Guna Bangunan.

A foreign buyer must also meet conditions on immigration status, minimum price, land area and residential use. A transfer is made by deed before a land deed official and registered at the Land Office.

From: Nusantara Legal Partnership, in the Chambers legal guide

Property taxes in IndonesiaTax is charged on the price, not the profit.

What this means for youThe seller's tax is on the whole sale price, so you pay it even if you sell at a loss. Count it into your exit before you buy.

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The buyer pays an acquisition duty of up to 5% of the taxable value. The seller pays a final tax of 2.5% of the gross sale price.

Rent from land or buildings is taxed at a flat 10%. Yearly land and building tax is at most 0.5% of the assessed value.

There is no inheritance or wealth tax, though acquisition duty can apply to inherited property.

From: PwC tax guide

Indonesia property market in 2026New home prices are barely moving.

What this means for youDo not buy on the expectation of a quick rise. New home prices rose less than 1% in a year, below last year's inflation of 1.9%.

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Prices of new homes rose 0.69% in the year to the second quarter of 2026, and sales fell 2.36%. In the first quarter, sales had fallen 25.67%.

These are Bank Indonesia's national survey figures for new homes. They do not describe resale homes, or any one island.

From: Bank Indonesia; World Bank

Indonesia Second Home Visa and living thereA long stay is possible without buying at all.

What this means for youYou do not need to buy to stay. Compare a USD 130,000 bank deposit with a property purchase before you decide.

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The Second Home Visa allows a stay of up to five years, extendable to ten. It needs USD 130,000 held in a state-owned bank, or an apartment bought for at least USD 1,000,000.

Remote workers employed by a company abroad can get a one-year visa with yearly income of at least USD 60,000.

Advanced medical care is limited in remote areas, where evacuation may be necessary. Tap water is not advised for drinking.

From: Directorate General of Immigration; UK Foreign, Commonwealth & Development Office

Earthquake, tsunami and flood risk in IndonesiaCheck the ground and the coast.

What this means for youAsk what earthquake, tsunami and flood cover is available for the exact address, and what it costs, before you commit.

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Earthquakes, tsunamis and volcanic eruptions are significant hazards. Coastal flooding and rising seas are named as important risks.

Flooding can damage roads and cut power, including in Jakarta and Bali.

From: UK Foreign, Commonwealth & Development Office; Asian Development Bank and World Bank climate risk profile

Questions buyers ask

Buying property in Indonesia: short answers.

Can foreigners own land in Indonesia?

No. A foreign individual cannot hold Hak Milik, the freehold ownership of land. A qualifying foreigner can hold Hak Pakai, a right to use land, or take a lease.

What can a foreigner buy in Indonesia?

A qualifying foreigner can hold a right to use land (Hak Pakai) or a lease (Hak Sewa). An Indonesian company with foreign investment can hold building rights (Hak Guna Bangunan). Conditions apply on immigration status, minimum price, land area and residential use.

What taxes are paid when buying and selling property in Indonesia?

The buyer pays an acquisition duty capped at 5% of the taxable value. The seller pays a final tax of 2.5% of the gross transfer value. Yearly land and building tax is at most 0.5%.

How is rental income taxed in Indonesia?

Income from renting land or buildings is subject to a final income tax of 10%, charged separately from the ordinary yearly rates.

What is Indonesia's Second Home Visa?

The E33 Second Home Visa allows an initial stay of up to five years, extendable to ten. It requires at least USD 130,000 deposited in a state-owned bank, or a condominium purchase of at least USD 1,000,000, and needs no sponsor.

The evidence

What this guide rests on.

Every sourced fact we hold on Indonesia (26)
  • An archipelagic country with extensive coastlines and substantial differences in climate between islands.
  • Life expectancy at birth was approximately 71 years in 2024.
  • The emergency ambulance number listed by FCDO is 118.
  • The E30A education visa covers study at secondary-school level and below.
  • Foreign home purchases are subject to immigration status, minimum prices, permitted titles, land-area limits and residential-use requirements.
  • The World Bank estimates the 2025 population at 285,721,236.
  • Economic output, measured by gross domestic product (GDP), was approximately USD 1.45 trillion in 2025.
  • Advanced medical care is limited in remote areas, where medical evacuation may be necessary.
  • GDP per person was USD 5,059.60 in 2025; this measures output per resident, not household income.
  • Dengue, malaria and rabies are identified health risks; risk varies by location.
  • The economy grew by 5.1% in 2025 after adjusting for price changes.
  • FCDO advises against drinking tap water.
  • Consumer-price inflation averaged 1.9% in 2025.
  • E30A applicants need a sponsor and an acceptance letter specifying their course duration.
  • E30A offers one-year or two-year stays from arrival, with extension available.
  • Aceh applies Sharia law to Muslims and non-Muslims.
  • The new criminal code penalises sex or cohabitation outside marriage when specified immediate-family members make a complaint.
  • The E33 Second Home Visa allows an initial stay of up to five years, extendable to a total of ten years.
  • The E33 investment commitment must be maintained throughout the residence permit’s validity.
  • E33G applicants need an employment contract with a company established outside Indonesia.
  • The E33G Remote Worker Visa permits a one-year stay and can be extended.
  • E33 applicants do not need an individual or company sponsor.
  • Flooding can disrupt the toll road serving Soekarno-Hatta International Airport and other main roads in Jakarta.
  • Volcanic ash clouds can disrupt regional airport operations.
  • Electricity access reached 99.9% of the population in 2024.
  • Internet users represented 73% of the population in 2024.

Asian Development Bank and World Bank · World Bank · UK Foreign, Commonwealth & Development Office · Directorate General of Immigration · Nusantara Legal Partnership / Chambers, checked 10 September 2026

How a review works

The same six steps, in every market.

  1. DefineClarify intended use, decision participants, timing and constraints.
  2. MapIdentify the property, proposed right and jurisdiction-specific route.
  3. OrganiseAssemble the available title, project, contract, payment and cost evidence.
  4. SeparateLabel what is known, missing, concerning or requires professional confirmation.
  5. CoordinateKeep legal, tax, valuation, immigration and engineering conclusions attributed.
  6. DecidePresent a plain-language record so you can proceed, compare, pause or walk away.

This guide is general. What applies to you depends on your nationality, where you pay tax and the property itself, and that is what a review of your own purchase in Indonesia establishes.

Already have a property in mind? Get it reviewed.

Last checked 9 October 2026.

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