A Foreign Investor's Due-Diligence Checklist for Buying a Villa in Lombok

Due diligence for a Lombok villa should be short and specific. If you can get clean answers to the ten questions below, you have the information a foreign investor actually needs. This is the checklist we walk every Noha buyer through — and every answer is documented in the buyer's file.

1. Is the HGB already issued, or issued after purchase? The HGB (Hak Guna Bangunan) is issued in your PT PMA's name as part of the transaction, on land the developer's PT PMA already holds properly. You leave the transaction with the state-issued certificate in your company's name — not a promise to file later.

2. Who owns the PT PMA? You do. As the buyer, you own 100% of the shares of the PT PMA directly. There is no nominee, no local partner holding shares on your behalf. Your name is on the shareholder register, on the deed, and on the HGB certificate.

3. What does the €950 PT PMA setup fee cover? Company registration with the OSS / BKPM (Indonesian investment authority), NIB (business identification number), notary deeds, tax IDs (NPWP), and the initial share register. All of it in your PT PMA's name.

4. What are the annual PT PMA compliance costs? None billed separately to you. Monthly bookkeeping, monthly tax filings, and the annual return are handled by Noha as part of the 20% property-management fee. If you leave Noha's management, a standard local accountant charges roughly €600–900 per year for the same work.

5. What is the exact rental management agreement? Noha handles marketing, dynamic pricing, bookings, cleaning, laundry, maintenance, 24/7 guest support, monthly financial reports, and tax filings. Fee: 20% of gross rental revenue. Owner keeps 80% of gross less operating costs (utilities, PBB, small repairs).

6. Are returns guaranteed? No — and any developer promising guaranteed returns should be a red flag. Our ROI calculator is illustrative. The occupancy figure we default to (~70%) is drawn from Airbtics and Lombok South short-term-rental data 2024-2025; the Kuta market benchmark has been ~78%. Actual results depend on nightly rate, seasonality, marketing, and market conditions.

7. Can I inspect completed villas before buying? Yes. Our predecessor project Albufera Villas — 10 HGB villas in Kuta — is complete, sold out and operational since 2024. Villa Perry and Terra Villas are also finished and visitable. We arrange in-person tours for serious buyers.

8. What happens if HGB renewal becomes difficult? HGB is governed by Indonesian statute, not a private agreement — the 30-year initial term + 20-year extension + 30-year renewal cycle is the same framework every foreign-owned Indonesian company operates under. It is not a Noha-specific structure and does not depend on our future involvement. When the time comes, renewal is a filing at the National Land Agency (BPN), not a re-negotiation.

9. What taxes will I actually pay? Indonesian corporate tax on the PT PMA's rental net profit is 11% (after operating costs and management fee). Annual property tax (PBB) is a small percentage of the assessed value — typically a few hundred euros. Noha files both on your behalf. See our dedicated tax article for details.

10. How do you handle payments? EUR, USD, or crypto (USDT, USDC, ETH, BTC). Standard payment plan is 50% deposit to secure the villa + monthly instalments during construction. Every payment is documented with standard Indonesian contracts. For a full breakdown, ask us for the investor deck on WhatsApp.