General information, not legal advice. This guide sets out the general rules as I understand them. It has not yet been reviewed by an Indonesian notary, and the rules change. Before you sign or pay anything, confirm every point with your own independent notary (PPAT) or lawyer.
Costs when you buy
| Cost | What it is |
|---|---|
| Notary fees | Drafting, checking and registering the lease or title. Ask for a fixed written quote before you start. |
| Lease tax | Indonesia charges a final tax on lease payments. It is normally the landowner's tax, but check whether it is included in your price or added on top. |
| Independent lawyer | Optional, but worth it to review the contract, especially for off-plan purchases. |
| Due diligence | Land certificate checks, a survey if boundaries are unclear, and a visit or video inspection. |
| Money transfer | Bank fees and exchange-rate margins on large international payments. Specialist transfer services usually cost less than banks; compare before each stage payment. |
Costs at handover
"Fully furnished" rarely means ready to rent. Many developers exclude linen, towels and kitchen equipment, and guests expect more than the basics. Budget for these, plus any upgrades you want, and for professional photos if you plan to rent.
Running costs every year
- Utilities: electricity (air conditioning and pool pumps use a lot), water and internet.
- Staff and services: cleaning, pool care, gardening and security, often bundled into a management fee.
- Land and building tax (PBB): usually modest; check whether you or the landowner pays.
- Maintenance: sun, salt air and humidity are hard on buildings. Set aside money every year for repainting, timber, pumps and appliances.
- Insurance: for the building and contents, and liability if you rent it out.
If you rent it out
- Management: villa managers typically take a percentage of rental revenue for bookings, guests and upkeep.
- Booking platforms: commissions on each booking.
- Licences: short-term rental needs the right tourism business licence.
- Tax: rental income can be taxable in Indonesia and in your home country. Speak to a tax adviser in both.
The rental income guide shows how to put these together into a realistic net figure.
A simple budgeting rule
Before you commit, write down the purchase price, then add your best estimate for every line on this page. Ask the developer and notary to fill in the numbers you don't know. If a developer can't tell you the running costs of villas they already manage, treat that as a warning.
This guide is general information, not tax or legal advice. Costs vary by property and change over time.