Purchasing property in Indonesia as a foreign citizen involves a well-structured and tightly regulated legal process. This process involves both passport/visa holders and Limited Stay Permit Card (KITAS) or Permanent Stay Permit Card (KITAP) holders. Despite differences in the types of residency permits, the property acquisition process shares significant similarities, with several key points distinguishing these two groups.
Both groups, passport/visa holders and KITAS/KITAP holders, must meet legal requirements for valid presence in Indonesia. The first step is to contact the property seller to establish a Purchase Order and sign a Sale and Purchase Agreement before a Notary. Following this, property-related taxes such as Value-Added Tax (VAT) and Land and Building Acquisition Fee (BPHTB) must be paid as per the applicable regulations. The certification process by a Land Deed Official (PPAT) is followed by submitting documents to the National Land Agency (BPN) to obtain the property ownership certificate. This certificate serves a dual role as proof of ownership and a prerequisite for obtaining a Second Home Visa or Stay Permit, applicable to both passport/visa holders and KITAS/KITAP holders.
Despite the similarities in the property acquisition process, there are important differences between passport/visa holders and KITAS/KITAP holders. Passport/visa holders have limited stay permits based on their visa type, while KITAS holders have temporary stay permits with specific time limits that need to be periodically extended. On the other hand, KITAP holders possess permanent stay permits in Indonesia. KITAP holders also enjoy stronger legal security compared to passport/visa holders. Certain types of properties or specific locations might have differing regulations depending on the type of residency permit, so it's crucial to understand the applicable rules in the area before deciding to purchase property. By understanding these differences, residency permit holders can follow the necessary steps to obtain property ownership clearly and in accordance with the prevailing laws.
Source: Guidelines on Foreigners’ Property Ownership in Indonesia
