Living in Bali and Indonesia as an Expat: The Complete Financial Guide

Bali has become one of the world's most visited expat and digital nomad destinations. The appeal is clear: extraordinary natural scenery, a rich cultural heritage, low cost of living, warm climate year-round, and an established international community that has developed its own infrastructure of co-working spaces, international schools, and English-speaking professionals. But Bali is not without complexity. Property ownership is restricted for foreigners, visa options require careful selection, and Indonesian bureaucracy demands patience. This guide sets out the practical picture.

The Bali appeal — and the practical realities

The romanticism of Bali as a lifestyle destination is genuine and well-founded. The landscape is exceptional. The food culture — both traditional Balinese and the international restaurant scene — is outstanding. The cost of a comfortable lifestyle is a fraction of Europe or North America. The Balinese Hindu culture creates a distinctive, ceremonially rich environment that many expats find deeply appealing.

The practical realities require acknowledgement. Indonesia is a country of 270+ million people with a complex bureaucratic system, a legal framework that treats foreigners differently from citizens (particularly regarding property), inconsistent infrastructure outside urban areas, significant traffic in tourist corridors, and periodic flooding in low-lying areas during the rainy season (November to March). The digital nomad community in Canggu specifically has grown to the point where the area has changed significantly from the surf village of a decade ago — whether this is a benefit or a drawback depends on the individual.

Visa options in Indonesia

Indonesia has expanded its visa options considerably since 2021, though the framework evolves and specific conditions should be verified before travel.

B211A Social/Cultural Visa — a 60-day visa, extendable up to four times (maximum 180 days) in Indonesia. The previous entry route of choice for longer-stay visitors. Requires proof of sufficient funds and a sponsor. Does not permit any form of work.

Second Home Visa — introduced in December 2022, this is the main long-stay option for non-employment residents. Valid for five years, renewable for a further five years. Requirements:

• Either ownership of Indonesian property worth IDR 2 billion or a bank deposit of IDR 2 billion (approximately USD 130,000) maintained in an Indonesian bank for the visa duration
• Can include dependants
• Activities are limited to tourism; it does not confer the right to work for Indonesian companies (a KITAS is required for local employment)

KITAS (Kartu Izin Tinggal Terbatas) — a temporary stay permit tied to a sponsor (employer, spouse, or investment vehicle). The standard permit for those working legally in Indonesia. An employment KITAS requires a work permit (IMTA) and must be sponsored by a qualifying Indonesian employer or company.

KITAP (Kartu Izin Tinggal Tetap) — a permanent stay permit, available after five years of continuous KITAS. Does not expire annually but requires periodic reporting. The closest Indonesia has to permanent residency.

Digital Nomad Visa (E33G) — Indonesia launched a specific remote-worker ("digital nomad") visa category, the E33G, in 2024. Terms and conditions have been revised — verify the current status and requirements at the time of application.

Investor KITAS via PT PMA — individuals who establish and invest in a PT PMA company can obtain a KITAS through their company as a director or shareholder.

Property ownership: the rules for foreigners

The most important thing to understand about Bali property is that foreigners cannot own freehold land in Indonesia. Hak Milik (freehold ownership) is exclusively available to Indonesian citizens. This is a constitutional provision and is not circumventable by contract.

Legal options for foreign property interests:

Hak Pakai (Right to Use) — a long-term leasehold interest, typically 25–30 years, renewable. Can be held directly by foreigners (including non-resident foreigners) for residential use. Provides genuine legal title and is enforceable. Widely used for villa ownership. The term at expiry requires negotiation with the landowner; there is no automatic right of renewal.

HGB (Hak Guna Bangunan — Right to Build) — a 30-year right to build and use, renewable for a further 20 years. Foreigners can hold HGB in strata title apartments (Hak Milik atas Satuan Rumah Susun) in specific high-rise developments approved for foreign ownership.

PT PMA company structure — A foreign-owned Indonesian company (PT PMA) can hold property under HGB title. This enables a foreign national to effectively control property through their company, with legal, enforceable title. Costs include company formation (approximately USD 3,000–8,000), annual compliance (accounting, audit, reporting), and a minimum investment requirement. The business activity listed in the PT PMA deed must cover property-related activity.

Nominee arrangements — Some villa sellers and agents have historically used nominee structures, where an Indonesian citizen holds the Hak Milik title on behalf of a foreign buyer. These arrangements are illegal under Indonesian law, unenforceable in Indonesian courts, and carry significant risk of the nominee claiming the property. They are not recommended under any circumstances.

A qualified Indonesian notary (PPAT) and a lawyer specialising in property law are essential for any property transaction.

Indonesian income tax and the new resident incentive

Indonesia operates a worldwide income tax system for tax residents, applying to individuals who have been in Indonesia for more than 183 days in any 12-month period or who have the intention of remaining in Indonesia. Tax rates are progressive from 5% to 35% (above IDR 5 billion, approximately USD 320,000).

A significant provision introduced under Indonesia's 2021 tax reform: certain new Indonesian tax residents with particular expertise may, subject to conditions, be taxed only on Indonesian-source income for the first four years of residency. Where it applies, this provides a material incentive for incoming expats with foreign income — dividends, pension income, UK rental income, and offshore investments would not be taxable in Indonesia during this period. The exact mechanics and qualifying conditions should be verified with an Indonesian tax adviser before establishing residency.

After the four-year period (or if the election is not made), worldwide income becomes taxable. The UK–Indonesia double tax treaty applies to prevent double taxation on UK-source income.

Cost of living in Bali

Bali is among Southeast Asia's most cost-effective destinations for expat living. Indicative monthly costs for individuals (excluding accommodation):

• Canggu / Seminyak lifestyle — USD 800–1,800 for food, transport, activities, and local services
• Ubud (quieter, more inland) — USD 600–1,400
• Sanur / Nusa Dua (more resort-style) — USD 1,000–2,000

Villa rental is the main cost variable. A private villa with a pool in Canggu: USD 800–2,000/month. A modern serviced apartment in Seminyak: USD 500–1,200/month. Long-term rental (6-12 months) is significantly cheaper than monthly or weekly rates.

Eating out at local warungs (Balinese restaurants) is extremely affordable (USD 2–5 per meal). International restaurants are good value by Western standards (USD 15–30 for two). Imported goods (wine, cheese, European branded items) carry import duties and are expensive relative to local alternatives.

Comparing the Bali neighbourhoods:

• Canggu — the digital nomad and surf hub; busy, well-connected, strong co-working infrastructure, young international community, considerable traffic
• Seminyak — more upscale; designer boutiques, quality restaurants, beach clubs; popular with the lifestyle expat community
• Ubud — inland, cultural heartland of Bali; wellness retreats, rice terraces, quieter pace; less suited to those requiring urban amenity or fast internet

Banking in Indonesia

Indonesian banking operates through a well-developed system. The main banks for expats are BNI (Bank Negara Indonesia), BCA (Bank Central Asia), and Bank Mandiri. Account opening requires a KITAS or Second Home Visa — tourist or short-stay visa holders cannot open standard accounts.

For international transfers, Wise (formerly TransferWise) is widely used by Bali-based expats for EUR, GBP, and USD transfers. Bank wire transfers between Indonesian banks and overseas accounts are subject to IDR to foreign currency conversion at bank rates.

A NPWP (Nomor Pokok Wajib Pajak) — Indonesian tax registration number — is required for most banking and financial transactions and must be obtained if you are employed, run a business, or hold certain assets in Indonesia.

Healthcare in Bali

Bali's healthcare infrastructure has improved substantially, but is still not comparable to European or Australian standards for complex cases. The main international-standard facilities:

• BIMC Hospital (Kuta and Nusa Dua) — the most established international hospital in Bali; handles emergencies and routine care; medevac coordination
• Siloam Hospital (Denpasar and Seminyak) — part of an Indonesian hospital group; reasonable standards
• International SOS — clinics for members; evacuation coverage

For serious conditions, evacuation to Singapore (Raffles Hospital, Gleneagles) or Jakarta is standard practice. This makes International Private Medical Insurance (IPMI) with medical evacuation coverage essential for all expats in Bali. Cigna, AXA, Allianz, and APRIL International all provide Bali-covering IPMI plans.

BPJS Kesehatan — Indonesia's national health insurance — is available to KITAS holders and covers Indonesian public hospitals at low cost. It does not cover private hospitals to a useful standard.

The expat community in Bali

Bali has arguably the most developed expat community in Southeast Asia outside Singapore. The Canggu co-working scene (Dojo, Outpost, and dozens of cafe co-working spaces) is a global reference point for the digital nomad movement. The Ubud wellness and yoga community is internationally known. Seminyak and Petitenget attract a more lifestyle-oriented international population.

International schools are well developed, particularly in Denpasar and southern Bali. Green School Bali (an internationally known alternative education institution), Nord Anglia International School, and Bali International School all serve the expat community. Fees: USD 8,000–20,000+ per year depending on institution and level.

Practical life in Bali

Driving — Most people in Bali travel by scooter or motorbike. Foreigners need an Indonesian driving licence or an international driving permit endorsed for motorcycles. Traffic in Canggu and Seminyak is heavy. Car hire with driver is affordable and practical for families.

SIM cards — Local SIM cards (Telkomsel, XL Axiata) are readily available and inexpensive. Data is cheap. Most villas and co-working spaces have WiFi; speeds and reliability have improved significantly since 2020.

Balinese culture and ceremonies — Bali has a unique Hindu-Balinese culture with frequent religious ceremonies (odalan, cremations, and temple festivals) that affect traffic and daily life. These are genuine cultural expressions and are part of what makes Bali distinctive. Respectful engagement with local culture is both courteous and personally rewarding.

How Global Investments can help

Indonesia and Bali present specific challenges for UK nationals: no current QROPS qualifying schemes in Indonesia, complex property ownership rules, and a tax residency framework that requires careful management of the transition. Our advisers provide: UK SRT analysis and tax exit planning for Bali-bound clients; UK pension strategy (SIPP drawdown with NT coding under the UK–Indonesia double tax treaty); internationally compliant investment portfolios structured for non-UK residents; IHT and estate planning for UK-domiciled individuals living in Bali; international private medical insurance with medical evacuation coverage; and multi-currency banking solutions. For property investment in Bali through a PT PMA structure, we can introduce you to trusted Indonesian legal advisers. Contact us to speak with a Southeast Asia specialist.

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The information on this page is for general guidance only and does not constitute personal financial or tax advice. Indonesian visa rules, tax laws, and property regulations change frequently — always verify current rules and seek qualified professional advice before making financial decisions. The value of investments can fall as well as rise.