Indonesia Foreign
Investor Checklist 2026

Determine which visa pathway matches your investment size and residency intention

For Golden Visa: confirm your investment instrument qualifies (government bonds, IDX-listed shares, mutual funds registered with OJK, or qualifying residential apartment)

For Second Home Visa: confirm property value meets IDR 2 billion minimum OR prepare equivalent bank deposit documentation

Apply through the Directorate General of Immigration (imigrasi.go.id) or authorised immigration consultants

Note: Golden Visa is renewable and does not grant permanent residency. KITAP (permanent stay permit) follows a separate pathway

Investor KITAS holders should verify their visa category is compatible with property ownership activities

Check whether your nationality requires a sponsor letter and which Indonesian authority is the appropriate sponsor for investor visas

Confirm the lease term: minimum recommended is 25 years initial term with a contracted right of renewal for a further 25 years

Verify the renewal clause is explicit, not implied: the renewal price formula must be defined in the original agreement, not left to future negotiation

Confirm the lease is notarised by a qualified PPAT (Pejabat Pembuat Akta Tanah) notary

Understand your registration rights by title type: if utilising Hak Pakai (Right to Use), confirm the title is officially registered with the BPN (Badan Pertanahan Nasional). If utilising a standard Hak Sewa leasehold, ensure the contract is fully notarised by a reputable notary public. Note: standard Hak Sewa agreements are contractual rights under Indonesian civil law (UUPA 1960) and are not recorded directly on the BPN land registry. Full notarisation remains essential for legal enforceability

Verify transferability: the agreement must grant you the explicit right to sell or transfer the lease without requiring the landowner's approval (or with approval not to be unreasonably withheld)

Check for force majeure and government compulsory acquisition clauses: compensation must flow to the leaseholder, not the landowner

Avoid nominee arrangements: these have no legal recognition under Indonesian law and cannot be enforced in Indonesian courts

Confirm PT PMA is registered with BKPM (OSS system) with the correct KBLI codes for your intended property activity

New 2026 requirement: upfront paid-up capital minimum is IDR 2.5 billion (reduced from IDR 10 billion under BKPM Regulation 5/2025). Note: the company must still present a Total Investment Plan of IDR 10 billion per KBLI code. For property investors, the value of land and building acquisition counts toward this 10 billion requirement

Ensure your KBLI registration matches your actual business activity: KBLI 55203 for villa operations, KBLI 55193 for villa rental, or appropriate accommodation codes

Register for Indonesian tax (NPWP) in the PT PMA's name

Open a corporate bank account with an Indonesian bank in the PT PMA's name for rental income receipt

Appoint a local director if required by your business activity classification

Conduct annual compliance: financial reporting, tax filing, and company secretarial obligations

For existing PT PMAs: verify your KBLI codes align with KBLI 2025 classifications by June 2026 (6-month transition from December 2025 publication date)

PBB (Pajak Bumi dan Bangunan, Land and Building Tax): approximately 0.5% of assessed value per year, payable annually

Rental income withholding tax: 10% final withholding tax on gross rental income for properties managed by a licensed operator

Capital gains on sale: approximately 2.5% of gross sale proceeds (BPHTB seller-side tax), payable at the time of sale

BPHTB buyer-side acquisition tax: 5% of the property value above the NJOPTKP threshold, payable by the buyer on purchase

VAT (PPN): applies to new property sales from developers at 12% as of 2026, increased from 11% under the Tax Harmonization Law (UU HPP) and Ministry of Finance Regulation PMK 131/2024. Not typically applicable to resale leasehold transfers

For PT PMA operators: Corporate Income Tax (PPh Badan) applies to net profit at 22%. Annual tax returns must be filed by April 30 each year

Declare Indonesian rental income in your home country tax return: most countries (including Australia, UK, Singapore, and the Netherlands) tax residents on worldwide income

Check your home country's Double Tax Agreement (DTA) with Indonesia: most DTAs allow credit for Indonesian withholding tax paid, reducing or eliminating double taxation

Australia-Indonesia DTA: Indonesian rental income must be declared in Australia. Tax paid in Indonesia is creditable against Australian tax liability under the DTA

Singapore: Indonesian rental income is generally not taxable in Singapore for non-remitted foreign-sourced income, but remittances may be assessable

UK: Indonesian rental income must be declared to HMRC. Foreign tax credit relief applies under the UK-Indonesia DTA

Consult a tax adviser experienced in cross-border property in your home country before purchase: tax treatment varies significantly by residency status and structure

Indonesian banks typically offer loan-to-value ratios of 50% to 70% for foreign borrowers: plan for a minimum 30% to 50% cash deposit

Most Bali property transactions are denominated in USD: factor exchange rate risk into your financial planning if your home currency is not USD

Staged payment plans are standard for off-plan purchases: typically 30% to 40% on signing, with the balance in milestones tied to construction progress

International bank transfer (SWIFT) and major stablecoins (USDT, USDC) are both widely accepted by Bali developers

Ensure your transfer documentation clearly references the property purchase: this forms part of your legal file