Everything buyers ask us about Lombok, answered straight
These are the real questions from our calls with buyers from Germany, Austria and Switzerland. The answers are general information, kept current to the best of our knowledge; the numbers for your specific case always come from licensed lawyers, notaries and tax advisors.
Legal structures, costs, taxes and visa rules in this section are current as of . Indonesian regulation changes. Treat every figure here as a starting point and have your own case confirmed by a licensed notary (PPAT), lawyer and tax advisor.
Owning property in Lombok as a foreigner
Can foreigners own property in Lombok?
Not as Indonesian freehold (Hak Milik), which is reserved for citizens. But three registered, legal structures exist: leasehold (typically 25 to 30 years with fixed extension options, transferable and resellable), Hak Pakai (a personal right-of-use title for foreigners with a residence permit, extendable in stages up to 80 years), and the PT PMA, your own foreign-owned Indonesian company holding an HGB right-to-build title. The full comparison is here.
Which structure is right for me?
A rule of thumb from hundreds of conversations: personal use with a simple setup points to leasehold. Living here long term with a residence permit points to Hak Pakai. Renting out, developing or holding multiple properties points to the PT PMA. The decision has tax consequences at home and in Indonesia, so we always put it in front of our partner lawyers before you commit.
What happens when a leasehold or HGB term ends?
Extensions are the norm, not the exception, but they must be contractually secured from day one: fixed extension windows, agreed pricing mechanisms, registered options. This is exactly the kind of clause we check in due diligence, because a cheap lease with a vague extension clause is worth less than it looks.
Can my family inherit the property?
A PT PMA is a company, so its shares are inheritable like any company shares. Leasehold contracts transfer according to their terms, which is why we insist those terms are explicit. Hak Pakai as a personal title has its own succession rules. If inheritance matters to you, say so in the first call; it changes which structure we recommend.
Making your Lombok villa earn
Can I legally rent out my villa?
Yes, with the right structure. Commercial short-term rental belongs in a PT PMA: the company holds the HGB title, registers the business, pays Indonesian tax on rental income and can distribute profits to you. Renting out on a private leasehold sits in a grey zone; it happens all over the island, but it is not what you build an investment on. We set this up correctly from the start.
What rental yield is realistic in Kuta Lombok?
You will see 12 to 28 percent ROI in ads. Our answer: a well-located, well-managed one or two bedroom pool villa can achieve gross yields in the high single digits on a conservative model with real seasonality, vacancy and management costs. More is possible in good years; promising it in advance is marketing. We show you the conservative model, then let the property beat it.
Who manages the villa when I'm not there?
Lombok Horizon manages the rental if you wish: guest management, staff, pool and garden, maintenance, accounting, and a monthly report with occupancy, income and photos. Management on the island typically costs 15 to 25 percent of rental revenue. You know the people caring for your house by name, and you can visit both them and us any day.
What about Indonesian taxes on rental income?
Rental income earned in Indonesia is taxed in Indonesia; the double taxation treaties with Germany, Austria and Switzerland govern how it is treated at home (in Germany, typically exemption with progression). You will need an Indonesian tax number through your structure. Our partner tax advisors handle the Indonesian side and coordinate with your advisor at home.
Is Lombok the next Bali?
Lombok today sits roughly where Bali sat 15 years ago: land at 60 to 70 percent below comparable Bali locations, state investment through the Mandalika Special Economic Zone, an international airport 20 minutes from Kuta, and growing surf and remote-work communities. The honest counterweight: a younger rental market, sharper seasonality and slower resale. This is an early-stage market, with the risks and the upside that come with that stage.
What life in Kuta Lombok is really like
What does living in Kuta Lombok cost?
A couple lives comfortably on 1,200 to 2,000 francs or euros a month excluding accommodation: local meals from two francs, Western restaurants five to ten, a scooter for 60 to 80 a month, fiber internet and several coworking spaces. The trade: healthcare on the island is basic. For anything serious you go to Mataram or fly to Bali, so good international health insurance is not optional.
What visa lets me stay long term?
Property ownership alone grants no residency. The workable routes: extended visit visas for scouting trips, a KITAS limited-stay permit through investment (as PT PMA shareholder or director), work, retirement (55+) or Indonesia's second-home scheme, and later the KITAP permanent permit. Many of our buyers combine the PT PMA with an investor KITAS: one structure for the villa and the right to stay.
Is Kuta Lombok family-friendly?
Increasingly yes. There is an international school three minutes from our Zula project, a safe small-town feel, beaches and nature instead of nightlife excess. What it is not: Bali-level convenience. Fewer supermarkets, fewer clinics, fewer flights. Families who choose Kuta choose space and community over infrastructure, consciously.
Do I need to speak Indonesian?
English carries you through daily life in Kuta. Bahasa Indonesia is straightforward to learn and opens doors, especially with neighbors, staff and officials, and a few words of respect go a long way in Sasak communities. All our documentation and communication is in English or German; official documents are bilingual through the notary.
The technical questions that protect your capital
What is a "green zone" and why does it matter?
Indonesia's spatial plans (RTRW) assign every plot a permitted use. Land in a protected green zone cannot legally be built on, regardless of the view or the price. The zoning confirmation (KKPR) and building permit (PBG) are part of our standard checks. The classic Lombok mistake is buying beautiful, cheap, unbuildable land; it is also the most avoidable one.
What taxes do I pay when buying?
Roughly: the buyer pays BPHTB transfer tax of around 5 percent of the assessed value, the seller pays 2.5 percent income tax (PPh), and notary fees usually sit between 0.5 and 1.5 percent. Both taxes fall due before the deed of sale (AJB) is notarized, so budget around 7 to 9 percent in total side costs. Treat these as approximate figures that move with the rules and the region; the binding numbers for your purchase come from your notary and tax advisor.
Can a Swiss or German bank finance my Lombok property?
Realistically, no. Swiss and German banks do not mortgage Indonesian property, and Indonesian banks rarely lend to non-residents. Buyers pay with equity, and off-plan projects spread payments across build milestones, which functions as staged financing. We tell you this upfront because a serious plan starts from real numbers, not hoped-for leverage.
What if the developer doesn't finish the build?
Off-plan risk is real, and 2025 brought many inexperienced developers into the market. Our protections: we only represent developers we know personally, payments are tied to verified build milestones rather than dates, we supervise construction on site, and contracts include remedies for delay. That does not make the risk zero; it makes it visible and managed.
Is Lombok safe to buy in, given the fraud stories?
The risks are real and they are avoidable: double-sold plots, forged certificates, nominee traps and sellers with no right to sell. Every one of them is caught by proper due diligence: verifying the certificate at the BPN land office, matching the owner's identity, using an independent licensed notary (PPAT) and paying through escrow. Fraud on Lombok almost always needs the buyer to skip one of those steps.
Why should I trust Lombok Horizon?
Don't, at first. Check us instead: video call us and meet the people behind the name, ask for the verification dossier of any property, talk to our partner notary and lawyers, visit us in Kuta and stand on the land. We live here, we invested our own money here, and every claim on this site is written so that your lawyer can hold us to it. Here is exactly what we check.
A question we haven't answered?
Ask us directly. Uncomfortable questions welcome; we answer in writing, in English or German, within 48 hours.
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