What Are the Extra Fees to Expect When Buying Property in Lombok?

Buying property in Lombok can feel straightforward at first. You see the land price or villa price, do the conversion in your head, and think: That’s manageable.

But here’s the part many buyers underestimate:

The purchase price is not the final price. There are some extra fees to consider.

Like anywhere else, buying property in Lombok comes with additional fees. Some are mandatory. Some depend on how you buy. And some can surprise you if no one explains them upfront.

In this guide, we break down all the extra fees you should expect when buying property in Lombok, so you can budget properly and avoid unpleasant surprises.

You can also download the full checklist below:

Quick Overview: How Much Extra Should You Budget?

As a general rule, you should plan for 10%–15% on top of the purchase price to cover fees, taxes, and legal costs.

The exact amount depends on:

• Whether you’re buying land or a villa
• The ownership structure
• The transaction value
• Whether the property is freehold, leasehold, or HGB

Let’s go through each cost, one by one.

1. Notary Fees (PPAT)

Expected cost: ~1% of the transaction value

The notary (PPAT) plays a central role in Indonesian property transactions. They:

• Draft and register the sale agreement
• Verify ownership documents
• Handle title transfer
• Register the transaction with the land office

Notary fees are usually split between buyer and seller, but this can be negotiated. In practice, buyers should budget for the full amount unless stated otherwise.

2. Transfer Tax or Buyer’s Tax(BPHTB)

Expected cost: 5% of the transaction value (after deductions)

This is the buyer’s tax when purchasing property in Indonesia.

It’s calculated as:

5% × (transaction value – non-taxable threshold)

The non-taxable threshold varies by region but is usually relatively small compared to property prices.

This tax must be paid before the title transfer is finalized.

3. Legal Due Diligence Fees

Expected cost: USD 800–2,000+ depending on complexity

Legal due diligence is not mandatory — but skipping it is one of the biggest mistakes buyers make.

A proper due diligence review checks:

• Land title authenticity
• Zoning compliance
• Boundary consistency
• Road access
• Encumbrances or disputes

For foreigners or first-time buyers, this step is essential.

At Nour Estates, we always recommend legal checks before any deposit is paid.

4. Land Measurement & Survey Fees

Expected cost: USD 300–1,000

If boundaries are unclear, or if the land hasn’t been recently measured, a licensed surveyor may be required.

This helps avoid:

• Boundary disputes
• Overlapping claims
• Incorrect land size assumptions

This cost is usually paid by the buyer.

5. Ownership Structure Setup Costs (Foreign Buyers)

Foreigners cannot directly own freehold land, so a legal structure is required.

Depending on the setup, costs may include:

• Company (PT PMA) setup
• Nominee structures (not recommended)
• Hak Pakai or HGB arrangements
• Legal drafting and approvals

Expected cost: USD 1,800–3,000+ depending on structure

This is a one-time setup but must be done correctly to avoid future issues.

6. Building Permit & Licensing Fees (If You Build)

If you’re buying land and plan to build, you’ll need to budget for:

• PBG (building approval, replaces IMB)
• Architectural drawings
• Engineering plans
• Environmental or zoning approvals (if applicable)

Expected cost: 2%–5% of construction cost

This is often forgotten when buyers focus only on land price.

7. VAT (PPN) – For New Villas Only

If you’re buying a new villa from a developer, VAT (called PPN in Indonesia) may apply.

Current rate: 11%
Applies to:

• New villas sold by a registered developer
• Off-plan villas
• Newly built villas sold for the first time

VAT is calculated on the sale price and is usually paid by the buyer, unless stated otherwise in the agreement.

Important things to know:

• VAT does not usually apply to resale villas bought from private owners
• Not all developers are VAT-registered — always check
• Sometimes VAT is included in the advertised price, sometimes it’s not
• This must be clarified before signing or paying a deposit

This is one of the most common surprises we see with first-time buyers. A villa that looks well-priced can suddenly be 11% more expensive if VAT hasn’t been discussed upfront.

Nour Estates tip:
Always ask if the price is VAT-inclusive or VAT-exclusive, and make sure it’s clearly written in the sale agreement.

8. Agent / Advisory Fees

This depends on who you work with.

At Nour Estates, buyers pay 0% commission on standard listings.
For off-market deals, structuring, or complex negotiations, a separate advisory or introduction fee may apply — always disclosed upfront.

9. Bank & Currency Transfer Fees

If you’re transferring funds internationally, don’t forget:

• Bank wire fees
• Exchange rate margins
• Compliance checks

These can add up, especially on large transactions.

Summary Table: Extra Fees When Buying Property in Lombok

Important notes for buyers

• VAT is the biggest surprise cost and applies only to new villas
• Always ask whether prices are VAT-inclusive or exclusive
• Due diligence is optional legally—but essential – we recommend to never skip it!
• Budget 8–15% extra on top of the purchase price to be safe

Common Mistakes Buyers Make

• Assuming the listed price is “all-in”
• Not clarifying who pays which tax
• Skipping legal checks to save money
• Forgetting permit and structure costs
• Not budgeting a buffer for surprises

A Nour Estates Perspective

Most problems we see don’t come from high fees — they come from unexpected fees.

When buyers understand the full picture from the start, the process is smooth. When they don’t, stress appears quickly.

Our role at Nour Estates is to make sure there are no surprises:

• Clear cost breakdowns
• Transparent structures
• Honest advice before you commit

Final Thoughts

Buying property in Lombok can be a great decision — as long as you budget properly.

Plan for the extra fees.
Ask the right questions early.
Work with people who explain the full picture, not just the price.

That’s how good investments start.

Need a Clear Cost Breakdown for a Specific Property?

We’re happy to walk you through it — no pressure, no obligation.

🌐 www.nourestates.com
✉️ hello@nourestates.com

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