Investing in Padang Padang: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Padang Padang.
Who can buy in Padang Padang
Indonesian land law reserves Hak Milik (freehold) for Indonesian citizens. Foreigners can hold Hak Pakai (right to use, up to 80 years residential), Hak Sewa (lease, 20-25 years), or Hak Guna Bangunan via a PT PMA company (80 years). Commonly applies in Bali and other provinces.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Indonesian Citizen | Yes | Freehold (Hak Milik) | UnrestrictedApproval: BPN registration |
| Foreign National (residential) | Conditional | Hak Pakai | Right to use: 30 + 20 + 30 years up to 80 totalApproval: BPN registration |
| Foreign National (lease) | Yes | Leasehold (Hak Sewa) | 20-25 years renewable by agreementApproval: Notary agreement |
| PT PMA Company | Yes | HGB (Right to Build) | Up to 80 years via foreign-owned companyApproval: BKPM + BPN |
Indonesia rule, applies in Padang Padang.
Stamp duty and registration in Bali
In Indonesia, stamp duty (Bea Materai) is a tax levied on certain legal documents, including sale and purchase agreements, to ensure their legal validity.
| Property value | Stamp duty | Registration |
|---|---|---|
| Any document exceeding Rp5,000,000 in value | Rp10,000 (flat rate) | N/A |
| Property Value (Buyer) | N/A | 5% (Bea Perolehan Hak atas Tanah dan Bangunan - BPHTB) |
Bali rule, applies in Padang Padang.
Capital gains on a sale
In Indonesia, capital gains from the sale of land and buildings are subject to a final income tax. For Indonesian tax residents, this is generally 2.5% of the gross selling price.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| N/A | Sale of Land & Buildings (Resident) | 2.5% (final tax on gross selling price) | No |
| N/A | Sale of Land & Buildings (Non-Resident) | 5% (final tax on gross proceeds, unless DTA applies) | No |
Indonesia rule, applies in Padang Padang.
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
Frequently asked questions about Padang Padang
With conditions. Right to use: 30 + 20 + 30 years up to 80 total
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