Transaction Costs |
|
| Who Pays? |
| VAT | 10% | buyer |
| Transfer Tax | 5% | buyer |
| Land and Building Transfer Duty | 5% | buyer |
| Legal Fees | 0.5% - 1.5% | buyer |
| Stamp Duty | IDR6,000/document | buyer |
| Sale and Purchase of Land Deed | 1% | buyer |
| Registration Fee | IDR 25,000 | buyer |
| Real Estate Agent's Commission | 5% | seller |
Costs paid by buyer |
20.50% - 22.50% |
Costs paid by seller |
5% |
ROUNDTRIP TRANSACTION COSTS |
25.50% - 27.50% |
Glossary:
Sales Tax on Luxury Goods (:
A one-time tax applied at the manufacturing level. 20% Sales Tax on Luxury goods is applicable to luxury house. "Luxury Houses" include condominiums with a unit size of more than 150 sq. m. and landed houses with a building size of above 400 sq. m. or electricity of above 6,600 watt.
Value Added Tax:
VAT is 10% imposed on most goods and services. The following are exempted:
- low-cost housing, modest flats and student accommodation services rendered for the construction of low-cost housing, modest flats and places of worship
- leasing services for low cost housing
Transfer Tax:
Transfer Tax of 5% is payable by an individual or corporate entity obtaining rights to land or buildings. The 5% duty is imposed on the transaction value or the assessed value (NJOP), whichever is higher. A notary can not sign a transfer of title deed until tax payemnt has been made.
Legal Fees:
Legal fees are negotiable. Processing fees for legal documents are at around 0.5%-1.5% of the property value.
Stamp Duty:
IDR6,000 per document for notarial deeds and copy (1 original and 1 copy required).
Sale and Purchase of Land Deed:
The execution of the Sale and Purchase of Land Deed is made before Land Officials, namely a notary public appointed by the Head of the National Land Office or a local Head of a District (Camat PPAT). The cost is 1% of the property value.
Registration Fee:
IDR250,000 maximum fee for registration of the Land Deed at the local Land Office.
Real Estate Agent's Commission:
5%, paid by either buyer or seller, but not both.
Land and Building Transfer Duty
In Jakarta, the first IDR60 million is not subject to the Land and Building Transfer Duty (BPHTB) of 5%. It is payable by an individual or corporate entity obtaining rights to land or buildings. The 5% duty is imposed on the transaction value or the assessed value (NJOP), whichever is higher. The tax exempt amount is determined regionally but cannnot exceed IDR60 million. This is different from the Transfer Tax above.
Source:
Global Property Guide
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