Indonesia Reinstates 100% VAT Incentive for Home, Apartment Purchases up to Rp2 Billion in 2026

• The Indonesian government is reinstating a 100% VAT incentive for home and apartment purchases in 2026, exempting buyers from VAT on property prices up to Rp2 billion.
• The incentive applies to new, ready-for-occupancy landed houses or apartments with a maximum selling price of Rp5 billion, for purchases made between January 1 and December 31, 2026.
• Eligibility requires a notarised sale and purchase agreement, and the incentive can only be claimed once per individual.
• Both Indonesian citizens and eligible foreign nationals can benefit, but properties that previously received a VAT exemption are excluded.
• Sellers must issue tax invoices, report VAT incentive realisation, and register the official handover of the property.

Source: indonesiaexpat.id

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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