Moving to Indonesia (Bali) in 2026: long-stay visas and a low cost of living

The Indonesian Directorate General of Taxes clarified the definition of tax resident in a 2025 regulation. An individual is resident if they have their domicile in Indonesia, stay there for more than 183 days³ within a twelve-month period, or, during a tax year, stay there with the intention of residing.

The same text sets out the method of calculation: the length of stay is assessed on a continuous or split basis, and any part of a day counts as a full day. This rule is strict and works against taxpayers who make frequent trips back and forth.

This is the point that remote workers based in Bali most often underestimate. A stay of more than more than 183 days⁴ within twelve months entails Indonesian tax residence, whatever the visa held and wherever the income comes from.

An exception applies to certain qualified foreigners. Since 2020 (Job Creation Law, Regulation PMK 18/PMK.03/2021), a foreigner who has become a tax resident and holds recognised expertise — an employee in one of the positions defined by regulation, or a researcher — is taxed only on Indonesian-source income for 4 years⁵, counted in tax years, provided they give up the benefit of a tax treaty.

The tax scale

The scale introduced by the 2021 Tax Harmonisation Law has five brackets. It starts at 5%⁶, rises to 15%⁷, then to 25%⁸, then to 30%⁹, and reaches 35%¹⁰ in the top bracket.

Indonesia is therefore not a low-tax country for high earners: its top marginal rate is comparable to that of many European states. The image of a Balinese tax haven does not survive a reading of the scale.

We do not publish the thresholds of each of these brackets in euros: the statutory amounts are denominated in Indonesian rupiah and their value in euros varies with the exchange rate. They must be converted at the date of the calculation.

Companies and dividends

Tax on the profits of resident companies and permanent establishments has been set at 22%¹¹ since the 2022 financial year.

Small businesses fall under the UMKM regime: a final tax of 0.5%¹² on gross turnover replaces tax on profit, for annual turnover ranging up to IDR 4,800,000,000¹³, of which the first IDR 500,000,000¹⁴ is not taxed for a sole proprietor. According to the Directorate General of Taxes, Regulation PP 20/2026, in force since 22 April 2026, removes any time limit for individuals and single-member companies, but excludes newly registered PTs and CVs.

Dividends paid to a resident individual are subject to a final withholding tax of at most 10%¹⁵. Since the 2020 Job Creation Law, dividends reinvested in Indonesia for three years are exempt.

For a French national, the rule remains: the Indonesian connection has an effect only after an actual transfer of residence, and the France–Indonesia tax treaty determines the allocation of taxing rights in cases of dual residence.

Indonesia has substantially overhauled its immigration law in recent years, multiplying the visa categories intended for investors, retirees and remote workers.

The so-called second home visa, intended for foreigners with substantial financial means, and investor visas coexist with more conventional permits tied to employment or marriage. A scheme for remote workers has also been announced and then clarified in stages.

Unless a dated indication is given below, we do not publish the financial thresholds, durations or conditions of these visas: they have been amended several times and, in their current version, do not appear in the official sources we were able to consult and verify. They must be established with the Directorate General of Immigration before any project is undertaken.

The second home visa does, however, have an established tax effect: according to the Directorate General of Taxes, its holder becomes an Indonesian tax resident. The 2022 rules required funds from IDR 2,000,000,000¹⁶, or a property in Indonesia, for a stay of 5 years¹⁷ or up to 10 years¹⁸; their current version remains to be confirmed.

This instability is in itself a fact to bear in mind. Conditions announced by the press or by intermediaries have often preceded their actual implementation by several months, and some have been changed before even being applied.

One point, however, is constant and decisive: working for an Indonesian employer or Indonesian clients requires a work permit, which the visas intended for wealthy foreigners or visitors do not include. Carrying on a locally paid activity without the appropriate permit exposes the person to penalties and deportation.

The gap between the practice observed in Bali and the applicable law is real, and checks have tightened. Building a project on de facto tolerance is a gamble, not a strategy.

Indonesian land law reserves full ownership to nationals. A foreigner can hold only a right of use or a right to build, titles that are distinct from ownership and granted for limited, renewable periods.

This rule is constitutional in principle and cannot be circumvented. Arrangements under which a property is acquired through an Indonesian nominee are unlawful: Indonesian case law penalises them, and the foreigner then loses everything, with no effective recourse.

This is the most serious and most frequent risk in Bali projects, and it is systematically played down by intermediaries. A real estate investment in Indonesia is structured exclusively through a properly granted right of use or through a foreign investment company set up for that purpose.

The Bali market is moreover highly dependent on tourism, and its liquidity varies considerably from one area to another. Questions of urban planning, access to water and building compliance have become sensitive there, as the local authorities have begun checks on undeclared accommodation.

We do not publish the statutory durations of rights of use, transfer duties, or the taxation of Indonesian rental income: they do not appear in our extracts.

The cost of living in Indonesia is far below European levels, and it is the main driver of relocation to Bali. The gap is particularly marked for services, labour and local food.

We do not publish a typical monthly budget: we have not found an official Indonesian series measuring a basket of expenses comparable to that of an expatriate.

The currency is the Indonesian rupiah, whose value against the euro fluctuates. Income received in euros benefits from this difference, but assets built up locally are exposed to it.

Three items shape a budget. The first is housing in the sought-after areas of Bali, where rents have risen sharply because of foreign demand and can no longer be compared with the rest of the country. The second is healthcare, as local facilities often require evacuation to Singapore for major procedures. The third is international schooling, which is expensive and concentrated in a few places.

Two quality-of-life constraints are hard to gauge from a distance: road congestion in southern Bali, which considerably lengthens journeys, and pressure on water supply and waste treatment, which have become a local public issue. They weigh on daily life more than on the budget.

1. Check the current conditions of the intended visa with the Directorate General of Immigration, as the rules have changed a great deal;
2. count days of presence precisely, since any part of a day counts as a full day;
3. never use a nominee to acquire property: the arrangement is unlawful and the loss is total;
4. make sure that any paid activity carried out locally is covered by a work permit;
5. deal with your departure from France according to your own circumstances and under the France–Indonesia tax treaty.

The second point deserves particular attention. The Indonesian counting rule is stricter than most equivalent rules: a one-day round trip counts as a full day of presence, which means the threshold is crossed faster than an intuitive calculation would suggest.

We do not publish processing times: we have no official Indonesian source that is both quantified and dated.

• The top marginal rate reaches 35%¹⁰: Indonesia is not a low-tax destination for a high income.
• The 183 days³ threshold is assessed including parts of a day, each part counting as a full day.
• Full ownership of land is reserved for Indonesian nationals: a foreigner holds only a right of use.
• Nominee arrangements are unlawful and expose the buyer to a total loss of the property.
• Visa conditions have been amended several times: any documentation must be dated and verified.

Finally, Bali is the destination where the gap between the story and the law is the widest of all those covered by this site. The cost of living and the quality of life are real; legal certainty, however, is weak for a foreigner, both on land and on the right to work. A serious Indonesian project is built with a local notary and a local tax adviser, accepting a right of use rather than ownership, and counting one's days. Those who proceed otherwise expose themselves to losses that neither the climate nor the cost of living can offset.