What Are Private Island Purchasing Costs?
Purchasing transaction costs for private island and land investments in Anambas typically range between 12% and 15%. These expenses include several key components, explained below.
Transfer Tax (BPHTB) – 5% of the Sale Price
The Acquisition of Land and Building Rights (Bea Perolehan Hak atas Tanah dan Bangunan, or BPHTB) applies when property ownership changes hands. In some regions, rates vary between 1% and 5% of the property value. In Anambas, however, the tax is fixed at 5%.
Notary Fee – 1.5% to 2.5%
Notary services ensure all legal aspects of the property transfer remain valid. The fees depend on the property’s value and the complexity of the transaction. Higher land values often incur lower percentage fees.
Land Certificate Fee – About 1%
When you buy a property, you need a new land certificate in your name. This fee typically amounts to around 1% of the sale price, although rates can fluctuate based on local regulations.
Legal Fees
Legal expenses may include consultations, due diligence, and administrative tasks tied to the transaction. These costs vary depending on the complexity of the deal and the services you need. If you choose our affiliate legal panel, we can provide cost estimates for your investment.
Mortgage Fees
If you plan to finance the purchase through a mortgage, you will likely pay for loan processing, appraisal, and mortgage registration. These charges can differ from one financial institution to another.
Strategic Considerations
When you purchase land in the stunning Anambas Islands, you should always begin with your end goals in mind. For instance, the corporate structure of your initial purchase might impact future plans if you decide to sell part of the project, subdivide lots, or invest in an entire island and then sell portions later. It is crucial to discuss your long-term strategy from the start so you can set up the most cost-effective and seamless corporate and legal framework. Also don’t forget to check out part 1 of Kepri Estates Private island due diligence guide for more information on sourcing exceptional private island investments.
If you need further information on these costs or any aspect of the investment process, please email us directly at sales@kepriestates.com.
Further information on the investment process, transaction costs and corporate establishment processes can be found below.
- Corporate Establishment for private island purchasing
- Private island investment process
- Private island purchasing costs
Check out the video below for a deep dive into private island investment due diligence.