Foreign Buyer Guide · Medan, Indonesia

The Complete Cost of Buying Property in Medan as an Overseas Investor

Every cost explained in plain English. No jargon. No surprises. Two ownership paths — one for condos, one for landed houses — with all costs laid out for each.

First: Why Does the Ownership Structure Depend on the Property Type?

Under Indonesian law (the Basic Agrarian Law and Government Regulation PP 18/2021), foreign nationals cannot own freehold land (Hak Milik). However, the rules differ depending on what you are buying:

Condominiums and strata title apartments — overseas investors can own these directly under a Hak Pakai (Right of Use) title, with no company required. This was formalised under PP 18/2021.
Landed houses and villas — Hak Pakai for landed property requires Indonesian residency. For overseas investors without a residency permit, the legal route is to purchase through a PT PMA (a foreign-owned Indonesian company that you set up and fully control).

Path A — Condo / Strata Title

Hak Pakai direct ownership

No company required. As an overseas investor you can take the title directly in your own name under a Hak Pakai deed. This is the simpler, lower-cost path.

The title is Hak Milik atas Satuan Rumah Susun (HMSRS) — ownership rights over a strata unit. It is a genuine ownership title, not a lease.

Minimum purchase price applies (set by regional government — in North Sumatra approximately IDR 1 billion / ~$63,000 USD at current rates).

Best for: apartment buyers, condo investors, overseas buyers who want simplicity and lower entry costs.

Path B — Landed House / Villa

PT PMA company ownership

A PT PMA company is required. For overseas investors without Indonesian residency, the legal way to own a landed house is through a foreign investment company (PT PMA) that you set up in Indonesia. The company buys and holds the property — you own the company.

The company holds an HGB title (Hak Guna Bangunan — Building Use Rights). This is a 30-year renewable title. You control all decisions: renting, selling, renovating.

One-time setup of ~$2,000. Annual compliance of ~$750/yr.

Best for: house and villa buyers, investors building a property portfolio across multiple assets.

What Is a PT PMA? (Plain English)

PT PMA stands for Perseroan Terbatas Penanaman Modal Asing — Foreign Investment Limited Liability Company.

Think of it like this: because Indonesian law does not allow a foreigner to own a house directly, you set up a small Indonesian company — which you own — and the company buys the house. You own the company. The company owns the house. You make every decision.

Step 1

A notary and lawyer incorporate a PT PMA in your name

Takes 2–4 weeks

Step 2

The company holds an HGB title on the property

30 years + renewable 20 + 30 years

Step 3

You are director and sole shareholder

Full control over all decisions

Step 4

Rent goes to the company bank account

You pay yourself dividends from the company

Advantages

100% foreign ownership
Most legally secure route
Can hold multiple properties
Fully transferable on sale
Clear inheritance path

Costs to know

~$2,000 one-time setup
~$750/yr annual compliance
Annual tax filings required
Indonesian bank account needed

All Buying Costs: Condo vs Landed House

Based on a $125,000 purchase price. Every cost explained below the table.

Cost Item	Path A — Condo	Path B — Landed House
Purchase price	$125,000	$125,000
BPHTB — Acquisition Duty (5%)	$6,250	$6,250
PPh — Seller Tax (2.5%)	$3,125	$3,125
Notary / PPAT Fees (~1%)	$1,250	$1,250
Lawyer Fees	$1,500	$1,500
PT PMA Company Setup	Not required	$2,000
Agency Fee (2%)	$2,500	$2,500
Total Buying Costs	$14,625	$16,625
Total Cash Required Day One	$139,625	$141,625

Every Cost Explained

BPHTB — Acquisition Duty

5% of purchase price

The Indonesian equivalent of stamp duty. Full name: Bea Perolehan Hak atas Tanah dan Bangunan. This is a government tax paid by the buyer every time a property changes hands. It is collected by the regional (not central) government and is non-negotiable. Applies to both condos and landed houses.

PPh — Seller Income Tax

2.5% of purchase price

Full name: Pajak Penghasilan. Legally this is the seller's tax on their income from the sale. In practice it is almost always negotiated into the purchase price and paid by the buyer. It is handled by the notary and paid directly to the tax office at the point of the transaction. Applies to both property types.

Notary / PPAT Fees

~1% of purchase price

Every Indonesian property transaction must go through a licensed notary (Notaris PPAT). The notary prepares and witnesses the sale deed (Akta Jual Beli), checks the title chain, handles all tax payments to the government, and registers the title transfer with the National Land Agency (BPN). Without the notary, the transfer has no legal standing. Applies to both property types.

Lawyer Fees

Fixed ~$1,500

Your own independent lawyer (separate from the notary) reviews all documents in your interest. The notary works for the transaction — your lawyer works for you. They check the title is clean and free of disputes, review the sale agreement, and advise on the ownership structure. Strongly recommended for all overseas buyers.

PT PMA Company Setup

~$2,000 (landed houses only)

The cost of incorporating your PT PMA before or during the purchase. Covers: company name registration with the Ministry of Law, Articles of Association, Business Identification Number (NIB), tax registration (NPWP), and opening a corporate bank account. Not required for condo/strata title purchases — this saving of $2,000 upfront plus $750/yr in compliance is one of the real advantages of buying a condo as your first investment.

Agency Fee

2% of purchase price

The fee paid to the property agent for finding, vetting and negotiating the property. In Indonesia the buyer typically pays this (unlike some Western markets where the seller pays). Covers title verification, seller identity checks, price negotiation and transaction management. Applies to both property types.

Ongoing Annual Costs — The Ones Nobody Mentions

These continue every year you hold the property.

Cost Item	Path A — Condo	Path B — Landed
PBB — Land & Building Tax	~$60–$100/yr	~$80–$150/yr
PT PMA Annual Compliance	Not required	~$750/yr
PPh Rental Income Tax (10%)	~$840/yr	~$840/yr
Property Management (10%)	~$840/yr	~$840/yr
Maintenance & Repairs	~$300–$400/yr	~$400–$500/yr
Building Insurance	~$100–$150/yr	~$150–$300/yr
Condo Service Charge	~$600–$1,200/yr	Not applicable

Note: PPh rental tax and property management are deducted from rental income before your net yield is calculated — they do not come out of your pocket separately.

When You Sell: Exit Costs

PPh Disposal Tax

2.5% of sale price

The seller pays 2.5% of the gross sale price to the tax office. Applies to both condos and landed houses. Handled by the notary at the point of sale.

Agency Fee (if used)

2%–3% of sale price

Negotiable. Avoidable if you sell privately. Applies to both property types.

At a Glance — $125,000 Property

Path A — Condo / Strata Title

Total day one$139,625

Annual fixed running costs~$760–$1,350

Company needed?No

Path B — Landed House

Total day one$141,625

Annual fixed running costs~$1,430–$2,000

Company needed?Yes — PT PMA

Not sure which path is right for you? Talk to our team.

Speak to Our Team See the $125k Scenario