Stamp Duty on the Purchase of a Property

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Stamp duty on the purchase of a property is charged at a rate of 0.8% on the higher of the purchase price or VPT (the rateable value, attributed by the tax authorities). The VPT in most cases is much lower than the actual purchase price of the property.

The purchaser must pay this duty, prior to signing the final deed, and proof of payment will need to be provided to the notary.

VAT may be applicable on the purchase of new builds, in particular situations.

Property Transfer Tax
Property transfer tax, namely IMT (Imposto Municipal sobre Transmissões indonesia mobile database Onerosas de Imóveis), is applicable each time ownership is transferred. The tax is required to be paid by the purchaser prior to the final deed of sale being signed (as the original copy of proof of payment needs to be shown to the notary at the time of the property exchange).

The tax paid, is calculated on the higher of the purchase price or the VPT.

The property transfer tax rate is largely dependent on the ultimate use of the property and whether it is your first or second home, with the rates varying between 0% and 6%.

Companies, which have as their principal activity the purchase and sale of properties, enjoy an exemption from property transfer tax, if they can prove that they have sold other properties in the previous 2 years.