A foreigner may consider that buying the house or property in Indonesian is cheaper. However, you have to realize that there are several additional costs that you must pay in it. By knowing this condition, you will be able to get the things that you need in no time. It includes property tax, home insurance, and many more that you should pay more for the property. Below is the explanation about the additional property cost.
When you are having property, you must obey the condition to pay the property tax and property cost. The tax cost is approximately 0.5% of the property’s value. It is determined by using the percentage as follow:
- property cost 40% to be used for forestry and plantation land
- property cost 20% to be used for mining land
- property cost 40% to be used for land which has sale value more than IDR 1 Billion
- property cost 20% to be used for land which has sale value less than IDR 1 Billion
There is a tax that you have to pay through buying and selling the property. For each of them, you have to pay for 5%. Make sure that you are aware of the amount on the sales contact available in it. Somehow, it is a good idea to ask about how much tax you have to pay before you buy the land. As you can see it might surprise you if you buy the land without knowing how much amount of tax you have to pay. You will surprise with the amount once it is added.
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There is home insurance that you may want to consider. As you can see that there are many things that can happen for your property, for example, natural disaster, tsunamis, earthquake, and many more, it is all for your property cost. It can make your house destroyed in no time.
For that reason, it is a good idea to looking for the best home insurance that can cover or protect your house. In order to get a premium selection of insurance, you may have to pay for 700 USD. One thing for sure, you have to make sure that you use the best insurance service that can get you fully covered. Don’t forget to keep asking them about what type of insurance service that can be covered.
Stamp Duty For Document Purpose
Don’t forget that you have to pay property cost more for stamp duty. In order to make an official document about the property, you have to attach the blue stamp in it. With this blue stamp, your document will be considered as a legal. Then, the person must sign the stamp to make it legal. A document which doesn’t have blue stamp and your sign will still be considered as non-legal. You can buy a blue stamp with the amount of IDR 6,000.
WorkLivingIndonesia provides useful information for a foreigner about how to prepare to live in Indonesia. The reference consists of property, health care, VISA, and any other useful information.