New Conditions for Tax-Free Housing in 2026
From January 1 to December 31, 2026, Indonesia is implementing a new VAT exemption program for property purchases. According to the Ministry of Finance Regulation No. 90 of 2025, buyers can receive a full VAT exemption on property prices up to 2 billion Rupiah. This measure aims to boost purchases of new homes and apartments.
To participate in the program, the property must be ready for occupancy and must not have previously benefited from tax exemptions. The maximum property value eligible for the relief is 5 billion Rupiah.
Both Indonesian citizens and foreigners can be buyers, but each person is limited to purchasing only one property unit under this program. Property sellers are required to register the property transfer deed and submit reports on the program’s implementation.
These changes are a significant step in alleviating the tax burden on property buyers, encouraging more active development of the housing market in the country.
