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.
Selling depends on how you hold it
| You hold | What you sell | How |
|---|---|---|
| Leasehold in your name | The remaining years of the lease | Assignment of the lease to the buyer, before a notary |
| HGB through a PT PMA | The title, or the company itself | Transfer of the HGB before a land deed official (PPAT), or a sale of your shares |
| Hak Pakai | The right of use | Transfer before a PPAT to a buyer who qualifies to hold it |
If you're still choosing a structure, see can foreigners buy property in Lombok? and buying through a PT PMA.
Selling a leasehold
Most foreign-owned villas in Lombok are leasehold, so most resales are a transfer of the remaining lease. Whether that's easy depends on the lease you signed:
- Right to assign: the lease should let you transfer it without the landowner's consent, or with consent that can't be unreasonably refused.
- Transfer fee: some leases give the landowner a fee or a percentage on resale. Know it before you buy.
- Extension: a buyer will pay much more if the extension, at a fixed price or formula, passes to them with the lease.
- Rental rights and management: a buyer who wants rental income will check that the lease allows it, and whether they're tied to a particular manager.
The leasehold guide covers these clauses in detail.
Remaining years and price
A lease loses value as it runs down. A villa with 25 years left sells for much more than the same villa with 10, even if the area has risen in value. In practice:
- Leases with 20 or more years left, or with a secure extension, are the easiest to sell.
- Below about 15 years, the pool of buyers shrinks quickly, and the price reflects the rent a buyer expects over the years left.
- Extending before you sell, if the lease allows it at a known price, can add more than it costs.
Taxes and costs
Rules change, and the treatment depends on the structure, so take advice before agreeing a price. As a general guide:
- Sale of a registered title (HGB, Hak Pakai, SHM): the seller usually pays a final income tax of 2.5% of the transfer value, and the buyer pays transfer duty (BPHTB) of 5%, less a small allowance.
- Assignment of a lease: the tax depends on how the transfer is structured, and whether you're treated as resident in Indonesia. Ask an Indonesian tax consultant.
- Notary or PPAT fees for the transfer deed.
- Agent commission if you use an agent, commonly a few percent of the price. Agree it in writing.
- Your home country: you may owe capital gains or income tax there too. See the guides for buyers from Australia, the UK and Singapore.
- Closing a PT PMA if you no longer need it, which takes time and its own fees.
Finding a buyer
Lombok's resale market is still small compared with Bali's. Allow time: months, not weeks. The buyers you're most likely to find are other foreigners looking for a ready-built villa, Indonesian buyers if the title allows, and investors buying for rental income who'll want to see your figures.
What helps a sale:
- A complete document file: the lease or certificate, permits, building permit, tax receipts and the deed history.
- Real rental history: booking statements, occupancy by month and costs.
- A well-maintained villa, with real photos.
- Furniture and management that can transfer with the sale.
- A clear answer on what happens when the lease ends.
Getting the money out
Sale proceeds can generally be sent abroad through the banking system once tax is paid. Keep records of the money you brought in for the purchase, every tax payment and the signed transfer deed. Your bank and your home tax office may both ask for them.
Plan your exit before you buy
- Can the lease be assigned without the landowner's veto, and is a fee due?
- Does the extension pass to a buyer, and at what price?
- Will the property still have 20 or more years left when you expect to sell?
- Is the title, permit and licence file complete enough for a buyer's notary?
- Who could buy it from you, and why would they?
Selling a property in Lombok? I introduce screened buyers to owners as well as developers. See list your property.
This guide is general information, not legal or tax advice. Confirm the tax on your sale with an Indonesian tax consultant and your notary before you agree a price.
Common questions
Can a foreigner sell a leasehold villa in Lombok?
Yes, if the lease allows you to assign the remaining years to someone else. The transfer is done before a notary. Check whether the landowner must approve it and whether a fee is due.
What taxes are due when selling property in Lombok?
On a sale of land and buildings with a registered title, the seller usually pays a final income tax of 2.5% of the transfer value and the buyer pays a 5% transfer duty (BPHTB). The tax on assigning a lease depends on how it's structured, so ask a tax consultant before you agree a price.
How long does it take to sell a villa in Lombok?
It varies a lot. Lombok's resale market is still small, so allow months rather than weeks, and longer for an unusual property or a short remaining lease.
Can I take the money from a sale out of Indonesia?
Generally yes, through the banking system, once tax is paid. Keep records of the money you brought in and the taxes you paid, because your bank and your home tax office may ask for them.