Financial Planning for Expats in Bali & Indonesia

Second Home Visa (E33 KITAS)

The Second Home Visa is the most practical long-term option for remote workers, freelancers, and retirees who do not have a local employer. Key features:

• 5-year duration, renewable for a further 5 years
• USD 130,000 minimum bank deposit in an Indonesian bank
• Permits remote work for overseas employers
• Dependant visas available for family members
• Does not allow local employment (requires separate work permit for that)

KITAS and Retirement KITAS

For those employed by an Indonesian company or organisation:

• KITAS (Temporary Stay Permit) — sponsored by an Indonesian employer
• Retirement KITAS — for those aged 55+ with proof of passive income or pension
• KITAP (Permanent Stay Permit) — available after several years of KITAS
• KITAP holders have broader rights including property use under Hak Pakai

What foreigners cannot do

• Own freehold (Hak Milik) land — only Indonesian citizens can hold freehold title
• Hold property through nominee arrangements — legally risky and unenforceable
• Own agricultural land in any form

What foreigners can do

• Leasehold: Hak Pakai (Right to Use) or HGB (Right to Build) — typically 25–30 years, extendable
• Strata title apartments: foreigners can own individual units under Strata HGB in qualifying developments
• PT PMA company structure: foreign-owned Indonesian company can hold HGB for commercial purposes
• KITAP holders have broader Hak Pakai rights than visa holders

Can foreigners buy property in Bali?

Foreigners cannot own freehold (Hak Milik) land in Indonesia — only Indonesian citizens can hold freehold title. The main options for foreign buyers are: leasehold under Hak Pakai (Right to Use) or HGB (Right to Build), typically 25–30 years with extension options; strata title apartments under Strata HGB (foreigners can hold individual unit titles in certain high-rise developments); or a PT PMA company structure for commercial purposes. Nominee arrangements — where an Indonesian citizen holds freehold title on behalf of a foreigner — are legally risky and not endorsed by Indonesian courts. Any property purchase in Indonesia should involve qualified Indonesian legal counsel.

What is the Indonesian Second Home Visa?

The Indonesian Second Home Visa (issued as the E33 Second Home KITAS) is a multiple-entry stay permit valid for 5 years (extendable, with a 10-year option), renewable for a further period. It allows foreign nationals to reside in Indonesia and work remotely for overseas employers. The key requirement is a minimum bank deposit of USD 130,000 (around IDR 2 billion) held in a state-owned Indonesian bank for the duration of the visa, or ownership of qualifying Indonesian property. Holders can also apply for dependant visas for family members. It does not confer the right to work for Indonesian employers — a separate work permit is required for local employment.

Do I pay Indonesian tax on my UK pension?

Indonesia operates a worldwide taxation system: once you are an Indonesian tax resident (broadly, present more than 183 days in a 12-month period), your worldwide income — including UK pension income — is in principle taxable in Indonesia at progressive rates up to 35%. There is a 4-year foreign-income exemption, but it is NOT automatic: it is available only to certain foreign experts employed by an Indonesian entity in a qualifying specialist role (science, technology, engineering, mathematics or similar) with a knowledge-transfer obligation. Retirees, digital nomads, and ordinary Second Home Visa holders do not qualify for it. Most expats earning foreign pension or remote income should expect worldwide taxation from the point of tax residency, mitigated by the UK-Indonesia double tax treaty. Maintaining a UK NT (nil tax) coding on pension income may help avoid double taxation — take specialist advice on your specific position.

Can I open an Indonesian bank account as a foreigner?

Yes — foreign nationals holding a valid KITAS or Second Home Visa can open an Indonesian bank account. The main Indonesian banks (BCA, Mandiri, BNI, BRI) all accept non-resident account holders with the appropriate visa documentation, passport, and NPWP (Indonesian tax number). ATM and banking infrastructure is good in tourist and urban areas such as Bali and Jakarta. However, Indonesian accounts are generally used for local expenses — maintaining an offshore bank account for savings and international transfers is strongly advisable.

What is the KITAS?

KITAS (Kartu Izin Tinggal Terbatas) is a Temporary Stay Permit Card — the standard work permit for foreign nationals employed by an Indonesian company or organisation. It is sponsored by an Indonesian employer and is tied to that employment. A Retirement KITAS is available for those aged 55 and over who can demonstrate sufficient passive income or pension income. The KITAP (Kartu Izin Tinggal Tetap) is a Permanent Stay Permit available after holding a KITAS for several consecutive years. Unlike the Second Home Visa, KITAS is tied to employment or a specific status rather than a bank deposit.