Indonesian Government Raises Price Threshold for Tax on Luxury Properties

• 10 July 2019
• Local News
• 1187 Views

Photo by Facts of Indonesia

In an effort to boost its real estate industry, the government of Indonesia is raising the price threshold of luxury sales tax on residential property.

In a reversal of recent policies, a levy of 20 percent will apply to buyers of luxury residential units worth US$2.1 million or more in a departure from housing policies instituted a few years ago when the tax threshold on the value of homes was US$1.4 billion and US$750,000 on apartments.

This raise by the government is expected to stimulate the upper end of the market which has stagnated in recent years amid large-scale capital outflow.

At the end of 2018, the government also lowered minimal mortgage downpayments for first-time buyers to stimulate the lower end of the market.

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