Many enterprises investing in Indonesia have also encountered various land problems, especially in the process of expropriation and development, which are very complicated and beyond the scope of this paper.
There have been some introductions about foreigners buying houses and land before, but the practical significance is not strong. According to the summary of understanding with lawyers and the government, I will share it with you in the form of questions and answers.
What are the land rights in Indonesia?
Answer: Temporary rights such as ownership, reclamation right, building property right, use right, lease right, reclamation right and forest fruit right.
1. Can foreigners or legal entity (PMA) established by foreigners in Indonesia according to Indonesian laws obtain the ownership of Indonesian land?
A: No, according to the provisions on land rights in Indonesia's Basic Agricultural Law, only Indonesian citizens can obtain land ownership in Indonesia.
2. What land rights can foreigners obtain in Indonesia?
Answer: Land use right, construction right, lease right and farming right.
3. What are the basic conditions and requirements for foreigners to purchase land or house use rights in Jakarta and Bali?
Answer: In order to hold a work permit kitas (kitas can be handled by establishing a foreign-funded company, namely PT), the market value of the land or house that can be purchased in Bali must be more than 3M (about 6.5438+0.5 million RMB), and the area is not limited, but only one land can be concentrated, and it cannot be dispersed (for example, a house of 500m2/an apartment of 654.38+0.20m2/). Jakarta's requirement is that the market value should be above 10M rupiah (about 5 million RMB).
4. What are the similarities and differences between the right to use and the right to build land or houses purchased by foreigners in Indonesia as individuals or Indonesian legal persons?
A: Building property right refers to the right to build a house on land, but the ownership of the house does not belong to the builder. Foreigners can only obtain the right to use land or houses in their personal capacity, and cannot obtain the right to build land or houses. The name is limited to the right to use land or houses. As an Indonesian legal person, you can get the right to build land or houses.
The longest period for state-owned land, operating land and independent ownership land to obtain the right to use buildings is 30 years, which can be extended for 20 years for the first time and 30 years after the expiration. The extension needs to apply for extension of land rights two years before the expiration. After the expiration of 80 years, you can re-apply for construction land rights. The purpose of purchase must be clear, and the land purchased must be used effectively and developed reasonably, and the land cannot be abandoned.
The maximum term of the right to use is 25 years, which can be extended for another 25 years if necessary. It shall not be sold, exchanged or transferred unless expressly stipulated in the authorization or agreement;
When used for specific purposes, the time limit can be unlimited, free of charge, charged, or provided with services. Both parties concerned with the right to use cannot intimidate or extort money (such as developers forcibly requisition land, owners extort money, etc.). ).
5. What are the procedures for foreigners to purchase land use rights and building property rights?
A: In order to legally obtain the land use right and construction right, foreigners/foreign-invested companies should check the history of the land, check the land ownership certificate (title deed) presented by the seller, and ensure that the land certification certificate and information passed by the national and local land and resources bureaus before signing the house purchase contract are correct, then go through the legal transfer procedures and seek the assistance of professional land notary offices (Notaris) and law firms.
6. What are the expenses incurred by foreigners in purchasing Indonesian land use right, construction right and lease right?
Answer: (1) Transaction costs; (2) Property tax: 65,438+00% of the transaction amount is used to file tax returns with the Indonesian government (i.e. 5% for the buyer and 5% for the seller); (3) Personal income tax to be paid by the seller: the transaction amount is -65438+ 00% of the final land/house value difference (* The calculation of profit needs to comprehensively consider the prophase value, real-time value of the land, whether the seller changed hands in one hand or many times, and other factors. ); (4) Notary office fees (agency fees that may be generated by the transaction amount (about 2% of the transaction amount).
7. Can foreigners borrow the labor quota of other companies to ensure their jobs? kitas works in Indonesia and buys land or houses?
A: No, it is illegal to borrow the labor quota of another company as a work permit. Once found out, they will face huge fines and long-term detention. Cars, houses and other properties bought with their work signatures will also be disposed of, and companies that lend labor quotas will also be punished.
8. In order to obtain the ownership of land or house, borrow the ID card ktp of Indonesian natives, sign an agreement with the locals, pay their welfare, let the locals take care of it or transfer the ownership of land to foreigners, and then go to a law firm or notary office for notarization. Is it allowed by law? What are the risks?
A: At present, this is a private practice. Foreigners who love land ownership reduce costs through more convenience of local people. But this practice is illegal. According to Indonesian law, only Indonesian citizens can own land in Indonesia. Foreigners can only have the right to use, build and lease. Risk: (1) Even if such a unilateral agreement is notarized, it still has no legal effect; (2) It is easy to get into economic disputes with local people who borrow their identities, because of unpredictable factors such as interest-driven, instigated, and no legal protection, it is easy to lose all one's money and lose more than one's gain; (3) Summary: Borrowing the ID card of a local person, the name on the title deed containing the land ownership/use right/building property right/will also be the name of the local person, only the agreement is not guaranteed. Although there are still many such operations, it is helpless to ask the government if something goes wrong.
9. What are the invalid or abolished land rights in Indonesia?
Answer: (1) The land right expires; (2) The relevant conditions are not in conformity with the regulations (if fraud is found); (3) The owner voluntarily gives up; (4) The need of public interest; (5) The land is barren; (6) the land is destroyed; (7) If Indonesian citizens transfer the land ownership to foreigners, the ownership is invalid; (8) If the recall right and the building property right are transferred to a foreign legal person, the recall right and the building property right are invalid.
10. Other similar precautions except borrowing local ID cards:
Answer: (1) If foreigners acquire land ownership through inheritance or marriage, the ownership will be retained for at most one year, and the land ownership will be reverted to the state after one year; (2) Citizens with dual citizenship of Indonesia and other countries are not allowed to own land ownership; (3) If Indonesian citizens transfer the land ownership to foreigners or institutions, this transaction is illegal and the money paid to the land owner will not be refunded.
1 1. What should I do if I find quality problems after the house is sold? What channels are there for safeguarding rights?
A: In order to avoid this kind of problem, before the transaction, it is necessary to check whether the housing situation is true, draw up the contents of the agreement, especially the solutions in case of disputes, and do a good job of notarization. If it happens carelessly, it can be settled through consultation with the seller first according to the contract. If it is difficult to reach an agreement, it can be arbitrated in the court.
12. Can China people apply for a bank loan to buy a house here? If yes, what are the requirements?
A: Yes. Requirements: Have a work permit in Indonesia and a valid guarantee in Indonesia.
13. If China people buy a house in Indonesia, can they remit money from China to Indonesia for this reason?
A: This question lies in how China arranges payment.
14. Can China people repatriate their profits after buying land in Indonesia and conducting legal business activities?
A: Of course. As long as it is legally operated and taxed, it is legal investment income.