Buying property in Lombok from the UK

Why UK buyers are looking at Lombok

• Winter escape: Lombok is warm all year. Many UK owners plan to spend part of the British winter there and rent the villa out the rest of the time.
• Retirement or a second home: some buyers want a place to spend longer stretches later in life. Check the visa rules first, as below.
• Remote work: Lombok is eight hours ahead of the UK, or seven during British Summer Time. Your mornings overlap with a UK afternoon, which suits some remote jobs better than others.
• Price: land and villas generally cost less than in comparable parts of Bali. Read Lombok vs Bali for the trade-offs.

How you'll hold the property

UK citizens can't own freehold land in Indonesia, and buying through an Indonesian friend's name is a trap. Most UK buyers take a long lease in their own name, usually 25–30 years with an extension option. It needs no Indonesian residency and can be held while you live in the UK. Read leasehold in Lombok for what to check in the lease.

The alternatives are Hak Pakai, which needs an Indonesian residence permit, and an Indonesian company (PT PMA), which suits larger rental businesses. Read can foreigners buy property in Lombok? and land titles explained.

Tax in the UK

If you're a UK tax resident, you're generally taxed on your worldwide income and gains. So rent from a Lombok villa goes on your Self Assessment return as foreign property income, converted to pounds.

• Expenses: management fees, maintenance and some other running costs may be deductible under UK rules. The rules on loan interest and furnishings differ from a buy-to-let at home, so check with your accountant.
• Foreign tax credit relief: if you've paid Indonesian tax on the same income, you can generally claim credit for it against the UK tax, so you aren't taxed twice. The credit is capped at the UK tax on that income.
• Selling: UK capital gains tax can apply when you sell or assign the lease, worked out in pounds. A lease also loses value as it runs down, which affects the calculation.
• Non-doms and new arrivals: the old remittance basis ended in April 2025. If you've moved to the UK recently, or used to claim it, ask an adviser how the new rules apply to you.
• Records: keep the lease, payment receipts, exchange rates on the day of each payment, and management statements. You'll need them for both countries.

Tax in Indonesia

Indonesia taxes rental income from Indonesian property, even when the owner lives overseas. In practice it's often handled through the rental management company or your ownership structure, and the rate depends on how the property is held and rented. The UK–Indonesia double taxation agreement decides which country can tax what, and how much of the Indonesian tax the UK will credit.

Ask the developer or manager, in writing, exactly what tax they withhold or pay on your behalf, and get the tax slips. Then have both a UK accountant and an Indonesian tax adviser look at your setup before you sign. It's much cheaper to set up correctly than to fix later.

Moving money

• Use a specialist transfer service: on large payments, transfer services and currency brokers usually beat the high-street banks' exchange rates by a wide margin. Compare before each stage payment.
• Pay only into a company or notary account: never into a personal account. Check the account details by phone before every transfer, because email payment scams target property buyers.
• Watch the currency: Lombok villas are usually priced in US dollars or rupiah, and your income and savings are in pounds. A falling pound during a staged off-plan payment plan raises your real cost. Some buyers lock in part of the amount with a forward contract.
• Keep records: banks may ask where large sums come from. Keep the paperwork for every payment.

Borrowing

UK lenders generally won't lend against property in Indonesia, and Indonesian banks rarely lend to foreigners. Most UK buyers use savings, or release equity from a UK home. If you borrow at home, ask your accountant how the interest is treated, and remember the loan is in pounds while the property is not.

Getting there

There are no direct flights from the UK to Lombok. Most people connect through Singapore, Kuala Lumpur, Jakarta or Bali, then take a short flight to Lombok International Airport. From Bali you can also take a fast boat across the strait. From the airport, the south coast is about half an hour to an hour by car.

UK citizens can get a 30-day visa on arrival, or apply online before they fly. It can be extended once, for another 30 days. If you apply online, make sure the visa is approved before you land. Read visas for property owners if you plan longer stays or want to retire there.

Viewing from the UK

Lombok is a long trip from Britain, so many buyers start with a video-call tour of the site and the area, run by the developer, then visit before signing. Don't pay more than a small refundable reservation without seeing the land, or having someone independent inspect it for you.

Estate planning

Make sure the lease says it passes to your heirs. Check that your UK will, or an Indonesian will, covers the property. Leases held in two names, such as a couple, need clear wording on what happens if one of you dies.

Since April 2025, UK inheritance tax depends on long-term UK residence rather than domicile. If you've been UK resident for at least 10 of the last 20 tax years, your Lombok lease can generally form part of your estate for inheritance tax, and that can continue for some years after you leave the UK. Indonesia may also have its own rules on inherited property, so take advice in both countries.

Your checklist

• Read the off-plan checklist and the costs of buying
• Engage your own Indonesian notary (PPAT), independent of the developer
• Talk to a UK accountant and an Indonesian tax adviser before signing
• Set up a transfer service, and check every account by phone
• Stress-test the rental income in pounds, at low occupancy and a weaker pound
• Update your will, and ask about inheritance tax
• Visit, or arrange an independent inspection, before paying more than a reservation

Looking at Lombok from the UK? Tell me what you're after, and I'll arrange a video-call tour with the developer and send the details.

This guide is general information, not tax or financial advice. UK and Indonesian tax rules change and depend on your situation. Talk to a qualified adviser in each country.