Bali Indonesia Revises Luxury Tax

Christopher Zenios18/09/20192min
Following the revision of the luxury goods tax policy by the Indonesian government, Bali is set to attract international property buyers.

President Joko Widodo announced the threshold for luxury tax at 20% for properties would be raised to 30 billion rupiahs (US$1.4 million) from 20 billion rupiahs.

Also under revision is permits for foreign buyers, currently under a 30+20+30-year scheme Indonesian developers are calling for an 80-year permit for foreign homebuyers.

This new tax essentially makes it easier and cheaper for oversea buyers/investors to acquire a property. One Chinese real estate owner commented,

This is a big change. Foreigners have the right to possess property for up to 80 years and are much less likely to pay 20% sales tax when selling. We expect demand to increase

This beneficial change has been in response to a slow luxury property market since 2017. However, following this announcement, it is predicted that property developers will focus on creating luxury homes that will now be in high demand due to the reasonable prices.

These new revisions are being made in an attempt to make Indonesia more appealing for international investors. Shan Saeed, economist commented,

Policies from the Indonesian government are becoming more investor-friendly, forward-looking and market-driven. The government is now opening up to foreign investors and providing a level-playing field to all stakeholders. That gives a signal for global investors who are looking at the region from a strategic perspective.

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC. Contact Christopher at +357-22029786 ext: 6110 or by email at [email protected] for editorial related questions.

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