Living in Bali (Indonesia) from 2025 – current visa and tax regulations

Indonesia, and Bali in particular, is one of the areas in Asia that attracts the most interest from our clients and readers. Therefore, in today’s article we are going to analyse the current visa and tax regulations in Indonesia, so that you can evaluate the option of living there in the long term. Last year (2024) was a year of great changes for Indonesia, especially in the area of visas.

These are the main changes to Indonesia’s visa regulations:

• New visa codes: All visa subtypes now have new codes to facilitate identification and processing.
• Revised visa types and length of stay: New visa types and length of stay have been introduced for tourism and business purposes.
• Golden visa program: A new golden visa (ITAS) has been created for retirees and investors, allowing stays of up to 10 years.
• EVOA updates: Visa on arrival (EVOA) is now available in two categories: tourist and business.

About Indonesia and Bali

Although you may not know it, because for many people reduce Indonesia to a single island, Bali, Indonesia is an archipelago of more than 17,000 islands. It is a country with a unique charm that captivates travelers from all over the world. From the paradise beaches of Bali to the unexplored jungles of Sumatra, Indonesia offers a great experience combining natural beauty, cultural richness and a hospitality that makes you feel at home.

Entrepreneurs and digital nomads will find Bali an ideal working environment with an abundance of cafes and co-working spaces equipped with stable internet, a vibrant community of fellow nomads for networking and a perfect balance between productivity and a relaxed lifestyle.

The quality of life is exceptional, with an affordable cost of living compared to Western countries, a warm and pleasant climate all year round and breathtaking natural beauty ranging from paradise beaches to lush rice paddies. Bali’s rich cultural heritage offers countless experiences, complemented by opportunities for yoga, meditation and wellness, as well as adventures such as surfing, diving and hiking.

In terms of comfort, Bali offers a variety of accommodation options ranging from luxurious villas to cosy apartments, excellent local and international cuisine, and convenient services such as low-cost cleaning and laundry.

Flexibility and lifestyle are key aspects, with the ability to combine work and exploration.

Another aspect to consider (especially in Bali) is the international community, which creates a welcoming atmosphere.

Indonesia has something for every type of traveler. Adventure seekers can surf the waves of Uluwatu, dive the reefs of Komodo or trek the mountains of Lombok. For those seeking relaxation, the spas of Bali, the quiet beaches of the Gili Islands and the yoga retreats of Ubud offer the perfect escape from the outside world.

In short, what most attracts people to Indonesia is its ability to offer unique and memorable experiences. Whether you are looking for adventure, culture, relaxation or simply to connect with a different way of life, Indonesia has something special to offer you.

The different types of visas in Indonesia

Now that we have talked about the reasons why you might want to be in Indonesia, let’s explain the different visas available to you to spend more or less time there:

• Visa on Arrival (VoA): Travelers from authorized countries can obtain a 30-day VoA on arrival for tourist or business purposes upon arrival. It costs about IDR 500,000 (about USD 30) and can be extended once for another 30 days at immigration offices.
• Electronic Visa on Arrival (e-Visa On Arrival): This option allows you to apply online before arriving in Indonesia. It offers a similar length of stay and extension option to the normal VoA. The eVOA saves waiting time and can also be extended online.
• Single-entry visitor visa (C1, formerly B221a): For longer stays (the de facto “Digital Nomad Visa”), tourists and digital nomads can apply for the C1 visa, which is valid for 60 days and can be extended up to 180 days. Applications must be made from outside Indonesia. You must also be able to prove your financial stability.
• KITAS (Kartu Izin Tinggal Terbatas): This is often considered the best option for long-term residence (without leaving and re-entering the country), and allows you to obtain work permits, bank accounts and property ownership. It is granted for various purposes, including: employment, family reunification, investment, retirement, and education. You need a sponsor who can be an employer, spouse or institution (such as a school). It is valid for 6 to 24 months and is renewable for up to 5 years.
• D12 multiple entry visa: This is issued for 1 or 2 years (the validity of the visa starts with the first entry into the country) and allows stays of up to 180 days per visit (60 days + 2 extensions of 60 days each). The D12 allows multiple entries and exits during the validity period, with each new entry starting a new 180 days period. It is a good option for digital nomads, entrepreneurs and frequent travelers.

[Note: The D12 visa is a multiple-entry visa and is designed for frequent but short visits, with stays of up to 60 days per visit. The KITAS, on the other hand, is designed for longer and continuous stays in Indonesia.]

• Golden Retiree Visa (E33E): Available to people over the age of 60 with a stay of 5 years and the possibility of extension. It requires a minimum deposit of $50,000 in a state bank account.
• Golden Investor Visa (E28B/C): for investors who set up companies or buy bonds/shares. Investment amounts range from $350,000 to $5 million, with a corresponding stay duration of 5 to 10 years. The purchase of property worth $1 million also entitles the holder to a 10-year stay.

The new E33G visa for digital nomads from 2024

Indonesia has introduced a new visa for digital nomads, the E33G visa, also known as the Bali Remote Worker Visa, which will be available from 2024. This visa allows you to stay in Indonesia for up to one year and work remotely for companies outside of Indonesia. These are the main features and requirements:

• Duration: up to 1 year.
• Entry to the country: multiple entries are allowed.
• Family: You can sponsor family members.
• Local services: visa holders can open a local bank account and apply for an Indonesian driving license.
• Costs: The visa costs approximately 1000 dollars.

Visa requirements

1. Employment: You must work remotely for a company outside Indonesia.
2. Income: Minimum annual income of $60,000.
3. Passport: Valid passport with at least six months’ validity remaining.
4. Financial proof: Bank statements showing a minimum balance of $2,000 in the last three months.
5. Employment contract: A current employment contract with a non-Indonesian company.

Tax residency and taxes in Indonesia

You are considered a tax resident if you spend for more than 183 days a year in Indonesia. As a tax resident, you will normally be taxed in Indonesia on your worldwide income. However, double taxation agreements (DTAs) can reduce this burden.

On the other hand, the Omnibus Law has added a rule to the Income Tax Law: If you are a foreigner and become a tax resident in Indonesia, you will only be taxed on your locally sourced income for the first four years, even if the income is paid to you from abroad.

However, this territorial tax system may not apply if you have income from abroad and you benefit from a tax agreement between Indonesia and your country of origin. Indonesian citizens who live outside Indonesia more than 183 days a year and meet certain criteria may be classified as foreign taxpayers.

Non-residents are subject to a general withholding tax of 20% on Indonesian income. However, reductions are possible if a DTA is applied.

The tax rates applied to taxable income are shown below.

Taxable income (IDR)	Taxable income (EUR)	Tax rate (%)
Up to IDR 60 million	3,540 EUR	5
From 60 to 250 million IDR	14,750 EUR	15
From 250 to 500 million IDR	29,500 EUR	25
Over 500 million up to 5,000 million IDR	295,000 EUR	30
Over IDR 5,000 million	Unlimited	35

(Exchange rate: IDR 1 = EUR 0.000059) ​

Personal tax deductions and allowances

Indonesia, like any other country, has a number of tax exemptions and deductions. Here is a list of the most common exemptions:

Deduction	Description	Annual amount (IDR)
Personal exemption (PTKP)	For individuals	IDR 54 million
Spouse exemption	For taxpayers married to a non-professional spouse	IDR 4.5 million
Child deduction	For up to three children	IDR 4.5 million per child
Social security contributions	Health insurance and pension contributions (BPJS)	Variable (depending on income)
Retirement provision	Contributions to retirement provision	Variable, within legal limits
Donations and charity	Donations to government-recognized institutions	Up to a certain percentage of income
Professional training expenses	Training expenses to improve professional qualifications	Variable, if reimbursed by the employer

Tax changes in 2025 and minimum corporate income tax

Indonesia will introduce several tax changes in 2024 and 2025 that are important for companies and investors:

1. Global minimum corporate income tax: From 2025, Indonesia will introduce a 15% corporate income tax on profits to comply with international standards. This measure was adopted as part of a global agreement aimed at limiting competitiveness between countries. In this context, tax exemptions for certain investments, which previously could last up to 20 years, will also be extended.
2. Pro-investment adjustments: To mitigate the impact of the new minimum tax, the Indonesian government plans to create additional incentives for companies investing in certain sectors. This is to ensure that investment remains attractive even under the new tax framework.
3. Progressive income tax: The current tax rate for individuals remains progressive, starting at 5% and capped at 30%. However, the exact impact of the global minimum tax on individual taxpayers has not yet been clarified.
4. Extension of tax exemptions: The Indonesian government has announced that it will extend the tax exemption policy for certain investments in order to mitigate the impact of the 15% global minimum corporate tax. Companies investing a minimum of IDR 500 billion (approximately US$32 million) in Indonesia will continue to be eligible for a corporate income tax exemption for up to 20 years.
5. Tax administration reform: Various measures are being taken to broaden the tax base and improve the efficiency of tax collection, including the digitalization of the tax administration and improving the accuracy of tax data. A new mobile tax filling application, M-Pajak, is planned to be introduced to facilitate the process for taxpayers.
6. CO2 and environmental taxes: As part of a long-term strategy to finance sustainable development, the introduction of CO2 taxes is also being discussed. These taxes will help to generate revenue for environmental projects and to align fiscal policy with global climate objectives.
7. Simplified tax returns for micro-enterprises: The aim is to simplify the tax return for micro-enterprises in order to encourage taxpayers to comply with tax rules and, at the same time, increase government revenue.

Frequently Asked Questions

What happens if I’m not in Indonesia all year?

If you travel during the period of your visa, you must ensure that it remains valid. In the event of a prolonged absence, you may need to apply for a re-entry visa. You should also be aware of the time limits for reporting you return to Indonesia.

What is the difference between the ITAS (temporary residence visa) and the ITAP (permanent residence visa)?

The main difference is that the ITAP visa is a long-term residence permit for up to 5 years, while the ITAS visa is valid for a shorter period (6 to 12 months) and must be renewed periodically.

Are there alternatives if I don’t have the necessary financial means?

Yes, you can also prove that you have a regular income that meets the minimum requirements. For example, you can provide payslips or bank statements.

Do I have to be retired to apply for a retirement visa?

No, you don’t have to be retired, but you must be at least 55 years old and be able to prove that you have the necessary financial resources (for example, a bank deposit or a regular income).

What happens if I am not in Indonesia at the time of renewal?

If you wish to extend your stay, you must do so before your current visa expires. If you don’t, you may have to leave the country and apply for a new visa.

Can I work in Indonesia with a retirement visa?

No, you cannot work in Indonesia with a retirement visa. To obtain a work permit, you need a work visa (KITAS) or to set up a company.

How do I get a work permit?

To obtain a work permit, you must be employed by an Indonesian company or set up your own company. The company must have the appropriate licenses and permits.

Which visa is right for me?

Choosing the right visa depends on your purpose, age, financial resources and length of stay. There are different visas for tourists, retirees, business travelers and workers. You can use our consulting service to clarify these issues.

How does the 30-day notice work?

If you are staying in Indonesia for more than 30 days, you have to register within 30 days of your arrival. If you have an ITAS visa, you have to report it every 6 months. Otherwise, you may be fined.

Can I change my visa to a different category?

Yes, you can change your visa to another category as long as you meet the requirements for the new visa. Note that you may lose the remaining time on your current visa.

Do I have to pay taxes in Indonesia with the retiree visa?

If you are in Indonesia for more than 183 days a year, you will be subject to tax. Your worldwide income may be taxed if it is earned or remitted in Indonesia.

Can I bring my family with me on my visa?

Yes, this is possible for many visa categories. However, for the retiree visa, family members must also meet certain requirements, such as a minimum age.

If you would like to know more, book a consultation or get in touch with us and we will help you.