Four ways to hold it, and what each one pays.
The villa is the same and the rent is the same. What changes is whose name it sits in and where the money flows. That decides the tax. We are not tax advisers: this is so you reach yours knowing what you are talking about.
The one figure common to all four
Indonesia withholds 20% of profits from anyone who is not a tax resident there, whether a person or a company. You will see it on every quarterly report, already deducted. Everything else depends on the structure you choose.
The four options at a glance
| Own name | Your company | Indonesian PT PMA | Money kept in Indonesia | |
|---|---|---|---|---|
| Tax in Indonesia | 20% | 20% | 0.5% | 20% |
| Tax at home | Income tax, up to 45-50% | 5% more, up to 25% | Depends how you take it out | Depends on your tax residence |
| On paying a dividend | N/A | N/A | 20% | N/A |
| Cost to set up | None | Low | ~€2,000 + capital | None |
| Annual cost | None | Your company's | ~€2,900 | None |
| Who it suits | Starting out, smaller profits | Simplest and most efficient | Reinvesting inside Indonesia | Living or spending in Indonesia |
The simplest: your own name
You buy as an individual. No company, no accountants, no extra paperwork. In exchange the profit enters your personal income tax, which is progressive and can reach 45-50%. The 20% already paid in Indonesia is credited under the double taxation treaty, so you do not pay twice: you pay up to your bracket.
| €110,000 villa, €13,200 profit | 30% bracket | 45% bracket |
|---|---|---|
| Profit before tax | €13,200 | €13,200 |
| Indonesia withholds 20% | −€2,640 | −€2,640 |
| At home, up to your bracket | −€1,320 | −€3,300 |
| What you keep | €9,240 (70%) | €7,260 (55%) |
The one to look at first: through your company
Your company buys the villa. The profit pays 20% in Indonesia and then your company pays only the difference up to corporation tax at home, roughly 5% more. 20% + 5% = 25% in total. Against personal income tax reaching 45-50%, the difference is obvious.
| €110,000 villa, €13,200 profit | Through your company |
|---|---|
| Profit before tax | €13,200 |
| Indonesia withholds 20% | −€2,640 |
| At home, 5% more up to 25% | −€660 |
| What stays in the company | €9,900 (75%) |
The PT PMA: cheap inside, expensive to keep
A PT PMA is an Indonesian company with foreign capital and no local partner. Inside Indonesia it pays very little, 0.5% on profit in the early years, but the tax arrives when you take the money out: another 20% on paying a dividend. And it has to be maintained: around €2,000 to set up, around €2,900 a year, plus paid-in capital of 2.5 billion rupiah, roughly €123,000, separate from the villa. It does come with an investor visa.
What people ask us most.
What is the total tax in practice?
Through a Spanish company, 25%: 20% in Indonesia plus 5% at home. In your own name, from that 20% up to your personal bracket, which can reach 45-50%.
Do I pay twice on the same income?
No. There is a double taxation treaty between Spain and Indonesia: the 20% paid there is credited against what you owe at home.
Do I need an Indonesian company?
No. You can buy as an individual or through your existing company. A PT PMA makes sense if you plan to reinvest inside Indonesia or want the investor visa.
Are you tax advisers?
No, and we do not pretend to be. This is so you understand the options before sitting down with yours.
The other guides.
Want it with your own numbers?
We show you the villas available, what each one earns today and what would be left for you, with our real figures in front of you. You talk to the developer, not to a salesperson.