PT PMA, Taxes & Costs: The Legal and Financial Guide

    Updated June 2026

    Buying property in Indonesia as a foreigner has a clear legal and financial framework. This guide explains the PT PMA company, the taxes due at purchase, your visa options, and the real ongoing costs of owning a villa or land in Lombok.

    In brief

    • A PT PMA is a foreign-owned company that holds land under an HGB title.
    • Purchase taxes: BPHTB ~5% (buyer) plus PPh ~2.5% (seller).
    • No visa is needed to buy; a KITAS or Second Home Visa is needed to live or manage the property.
    • Realistic minimum budget: €25,000–€35,000 for a small plot, €200,000–€300,000 for a turnkey villa.

    What is a PT PMA and do you need one?

    A PT PMA (Penanaman Modal Asing) is a foreign-owned limited liability company registered in Indonesia. It is the standard legal vehicle for foreigners to hold land and property rights.

    If you plan to buy land or build, you will almost certainly need one. A full-service advisor manages the entire incorporation process for you.

    What taxes will you pay?

    The two main taxes at purchase are BPHTB (the land acquisition tax, typically 5% of the government-assessed value) and PPh (income tax on the seller, usually 2.5%).

    A transparent advisor calculates and discloses all taxes before you commit — there should be no surprises after signing.

    Do you need a visa to buy property?

    No, you do not need a specific visa just to buy — you can purchase with a standard tourist visa.

    However, if you want to live in Indonesia permanently or personally manage the property, the options are: KITAS Investor, KITAS Retirement (from age 55, with provable income), or the Second Home Visa. Full PMA and visa support is available for management and operations.

    What are the service fees and are there hidden costs?

    A complete service typically covers consultation, property selection or verification, full due diligence, legal and tax coordination, PT PMA setup, permit applications, and ongoing support. Post-purchase and construction services are usually available as add-ons with transparent pricing.

    Every cost — taxes, notary fees, permits, company setup, utility connections — should be listed before you commit. If a cost is not yet confirmed, you should be told and given a realistic estimate.

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    What are the annual costs of owning property in Lombok?

    For a villa (around €200,000–300,000): taxes (11% on net profit), insurance (~€500–1,000), routine maintenance (~€3,000–5,000), staff such as housekeeping and maintenance (~€3,000–6,000), utilities (~€1,500–3,000), and management fees if outsourced (20–30% of gross revenue).

    For undeveloped land: only PBB (land tax) plus optional fencing or a caretaker (~€500–1,000 per year).

    What is the minimum budget?

    Realistically, you start from €25,000–35,000 for a small land plot (8–10 are) in emerging zones such as Bumbang or Awang. For a turnkey villa with operational yield, expect €200,000–300,000.

    Below €25,000, options are limited and the fixed costs (PMA, due diligence, notary) disproportionately impact returns.

    Frequently asked questions

    What is a PT PMA in Indonesia?

    A PT PMA (Penanaman Modal Asing) is a foreign-owned limited liability company registered in Indonesia. It is the standard legal vehicle for foreigners to hold land and property rights, typically under a Hak Guna Bangunan (HGB) title.

    What taxes do you pay when buying property in Indonesia?

    The two main taxes at purchase are BPHTB (the land acquisition tax, typically 5% of the government-assessed value, paid by the buyer) and PPh (income tax on the seller, usually 2.5%). A transparent advisor discloses all taxes before you commit.

    Do I need a visa to buy property in Indonesia?

    No. You can buy with a standard tourist visa. If you want to live in Indonesia or personally manage the property, the options are a KITAS Investor, a KITAS Retirement (from age 55, with provable income), or the Second Home Visa.

    How much does it cost to set up a PT PMA in Lombok?

    PT PMA setup typically costs €1,500–€3,000 and takes around one week to incorporate, depending on the size and zone of the property.

    What is the minimum budget to invest in Lombok property?

    Realistically, you start from €25,000–€35,000 for a small land plot (8–10 are) in emerging zones such as Bumbang or Awang. For a turnkey villa with operational yield, expect €200,000–€300,000. Below €25,000, fixed costs disproportionately impact returns.

    What are the annual costs of owning a villa in Lombok?

    For a villa around €200,000–300,000: taxes (11% on net profit), insurance (~€500–1,000), routine maintenance (~€3,000–5,000), staff (~€3,000–6,000), utilities (~€1,500–3,000), and management fees if outsourced (20–30% of gross revenue). For undeveloped land: only PBB plus optional fencing or a caretaker (~€500–1,000 per year).

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