Property Rules in Indonesia vs Other Countries, What Are the Differences?

Kisanak, Property is one of the assets that many people are interested in, whether for residential purposes, investment, or business.

However, not everyone can easily own property wherever they want. There are different rules in each country regarding property ownership, especially for foreigners.

For example, in Indonesia, foreigners can only own property with a right-to-use status, which is valid for 30 years and can be extended twice, each for 20 years.

Additionally, there are other requirements that must be fulfilled, such as minimum transaction value, maximum area, residence permit documents, and so on.

Meanwhile, in other countries, property rules can be either more lenient or stricter, depending on the laws and policies in place there.

For instance, in Singapore, foreigners can only purchase apartments or condominiums and must obtain approval from the authorities if they want to buy land or commercial property. There is also a high tax of 18 percent for foreigners purchasing property there.

In Australia, foreigners can buy property with freehold or leasehold status, meaning they can own property indefinitely or for a certain period of time.

However, there are also restrictions on the types of property that can be purchased, such as only being allowed to buy new or under-construction properties, and not being allowed to buy used or existing properties.

There are also taxes to be paid, such as property transfer tax or value-added tax.

From the above comparison, it can be seen that property rules in Indonesia vs other countries have quite significant differences.

This is due to various factors, such as legal systems, economic interests, government policies, and so on.

Therefore, for those who want to buy property abroad, it is important to study and understand the rules that apply in your destination country, to avoid encountering obstacles or problems later on.

Here are some important points to consider when buying property abroad:

1. Determine the location and purpose of purchasing property, according to your needs and investment goals.
2. Study the laws and regulations applicable in the country where the property is located, especially regarding ownership rights, property types, requirements, and restrictions for foreigners.
3. Know the tax rules applicable to non-residents buying property abroad, both in the country where the property is located and in the country where the non-resident resides.
4. Seek professional assistance, such as real estate agents, lawyers, accountants, or consultants, who can help you in the process of buying property abroad, from search, negotiation, agreements, payments, to registration.

That’s the article I’ve written about property rules in Indonesia vs other countries. I hope it’s helpful and entertaining. If you have any questions, suggestions, or criticisms, please write them in the comments section below. Thank you.