Bali has long been a destination for expats and digital nomads

Bali has been a favorite of expats and backpackers for many years. Canggu, Bali has become one of the digital nomad hotspots of the world in recent years.

Like many countries, Indonesia has been talking up the introduction of a new “digital nomad visa”.

And now the visa is here.

While it is often referred as the Bali digital nomad visa, it is officially called the Second Home Limited Stay Visa. And it’s available throughout all of Indonesia.

The new Bali digital nomad visa

The Second Home Visa is allows foreigners to stay in Indonesia for 5 years and can be extended for a further 5 years.

The total cost including the application fee and visa registration fee is 21,000,000 Indonesian Rupiah (IDR). Although there may be additional fees if you use a visa agent to apply on your behalf.

There is also an option to sponsor your family (for an additional fee) to come with you.

Does the Second Home Visa allow you to work in Indonesia?

The answer is yes, kind of, it depends…

You can’t work for an Indonesian company or conduct business that provides services to people who are in Indonesia. For that you will need a work permit.

But you can conduct business that provides services to people who are outside of the country.

And you are allowed to work remotely for companies that are located outside of Indonesia.

Obviously at a practical level this is almost impossible to enforce. And frankly, foreigners working online in Indonesia has been tolerated by the authorities in the past. But these are the rules.

What are the eligibility requirements?

There are two main eligibility options:

Option 1 – Provide proof of funds of IDR 2,000,000,000 (approx. $130,000).

The funds have to be deposited into an Indonesian state owned bank. You’re not allowed to touch the funds while your visa is current. Although you can earn interest on your cash while it sits there.

You get your money back when the visa expires.

Option 2 – Ownership of luxury property in Indonesia.

The property must have a status of hak pakai. This is a renewable form of ownership not to be confused with the more common hak sewa (leasehold property).

The property must be owned outright with no mortgage. Luxury property is defined as property with a minimum value of IDR 2,000,000,000.

Other requirements:

  • 36 months validity on your passport
  • Copy of your CV (curriculum vitae)
  • Fully vaccinated for Covid-19
  • Health insurance

If you’re looking for low cost travel and medical insurance that is designed specifically for digital nomads and remote workers, check out SafetyWing. Their Nomad Insurance is a global travel medical insurance that covers people from all over the world, while outside their home country – COVID-19 coverage included. It works as a monthly subscription that can be switched on and off for whenever you need it.

Will foreigners have to pay tax in Indonesia?

The Indonesia Second Home Visa is essentially a residency permit. And therefore you will be a tax resident of Indonesia, if you are indeed residing in the country.

Generally, Indonesian tax residents are taxed on worldwide income. But there are some exemptions available and double taxation agreements with other countries can come into play.

For example you may be exempt from paying tax on overseas income for the first four years if you meet certain skill requirements.

You will be required to lodge a tax return if you earn over 54 million IDR in a calendar year.

The individual tax rate starts at 5% for income up to IDR 60 million and increases on a marginal scale to 35% for income above IDR 5 billion.

International taxation is a complex field. Any information in this article is made on a general basis only and is not tax advice. Talk to us if you need taxation advice.

Who is the Indonesia Second Home Visa good for?

The Second Home Visa is aimed at investors, travelers and retirees.

Although initially branded as a digital nomad visa, it is better suited to more established entrepreneurs and expats who already have some money behind them, and are willing to tie up capital for the entire visa period.

The main competition in the region is the Thailand Long Term Resident Visa. And dollar for dollar the Indonesian Second Home Visa is a much more accessible option.

It is a good Plan B for people looking to diversify away from the West. It is good for people looking to expand their business interests in Asia. And of course it is good for people who simply want to live in paradise.

There is talk of the Second Home Visa superseding the existing retirement visa. If this is confirmed, it will become difficult for less wealthy long term expats and retirees to remain in the country.

Bali and Indonesia is an incredible and beautiful place to call home. People have been flocking here for many years and for many different reasons.

It has a booming economy and many people have come here, built a life here, and built successful businesses here.

Talk to us if you would like help to make this happen for you.

Thanks for reading.