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Bali Digital Nomad Visa: 0% Tax in Indonesia

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bali digital nomad visa indonesia

If there is one place in the world that goes hand in hand with famous digital nomads, it is undoubtedly Bali.

Whether you are already a seasoned tax nomad or have only vaguely heard of the digital nomad phenomenon, I’m sure you are aware of the number of people who enjoy remote working in Bali.

However, Bali’s fame in this sector was not really justified from a tax savings perspective (until now) and was more based on its tourist appeal and social media marketing.

Indonesia’s taxes aren’t the worst, but they certainly weren’t its strong point compared to all the other alternatives and tools available to tax nomads worldwide.

In fact, it wasn’t even a competitive tax residence in Asia, where options like Malaysia, Singapore, Thailand, or the Philippines prevailed.

Moreover, if your desire was to move to Bali and make it your residency for most of the year, Indonesia didn’t make it easy, as 99% of the available visas had a duration of just 30-60-180 days (maximum).

Despite these drawbacks, its culture, nature, and low cost of living have positioned Bali as the second most important destination in the world according to travelers on TripAdvisor.

And now you are going to discover why we believe Bali will easily become the number one destination worldwide for digital nomads and now also for tax nomads.

Apparently, Indonesia has perfectly recognized the weaknesses in its strategy to attract capital and talent to the country, deciding to address them with something never seen before.

The Ministry of Tourism publicly announced in 2022 the development of a new Digital Nomad Visa which they believe will attract a whopping 4 million people to the country.

We believe the Ministry’s forecast will fall short, as the tax benefits of the visa are an absolute game-changer.

Indonesia Digital Nomad Visa Benefits

The proposal from the Asian country is so compelling that it practically requires no analysis.

“Live and work for 5 years in Indonesia paying ZERO taxes”

With this program (still in development phase and without an official launch date yet), Indonesia “kills two birds with one stone”:

  • Firstly, the obvious tax advantage will position the country directly among the top choices globally for virtually any Tax Nomad profile.
  • Secondly, the 5-year residency permit solves the issue of short-term tourist visas and the need for frequent “visa runs” (constantly leaving and re-entering the country to reset visa days).

Both features combined make this visa unique and far superior to all other digital nomad visas currently available, most of which lack tax exemptions and rarely exceed 1 year in duration.

The latter point is particularly relevant as we increasingly see our clients demanding planning and strategies that allow them to settle down and establish a solid tax base.

Additionally, we anticipate that obtaining tax residence certificates under the agreement will be facilitated, which is crucial for severing ties with your original tax hell.

Canggu Bali nómadas digitales

Requirements and Characteristics

At the moment, we are unaware of the detailed requirements and specifications for obtaining the future Digital Nomad Visa.

However, we understand that its characteristics will not differ much from most digital nomad visas or other visas within Indonesia itself. These may include:

  • Proof of minimum income received from abroad.
  • A passport valid for at least 12 months or more.
  • Comprehensive health insurance coverage in Indonesia.
  • Prohibition from working locally (to prevent competition with local workers).

Disadvantages of the digital nomad visa in Indonesia

The only disadvantages we can attribute to this program are:

  1. It’s not yet available.
  2. It has an end date.

On one hand, it’s so good that we can only hope it’s implemented as soon as possible.

On the other hand, we believe its biggest drawback for many will be that its duration isn’t indefinite, and residing in Indonesia for 5 years in no way brings one closer to obtaining citizenship.

Indonesia / Bali visa review

At this point, the only question left is whether Bali is your best option and future paradise.

In this regard, I recommend keeping a clear mind and, if possible, visiting the country before making a final decision.

Certainly, Indonesia will be the best choice for many people, but based on the experiences shared by many Tax Nomads… it won’t be for everyone.

It’s challenging to form a realistic and complete picture of life in a country based solely on what is shown on social media.

Some factors, such as tourist crowds, traffic, inconsistent internet quality in certain areas, stifling humidity, or the rainy season, may tilt the scales towards a negative answer.

teletrabajo bali nomada digital

If in your case you’re not quite envisioning yourself typing away next to a monkey… Don’t worry!

We have many more options for you to pay the least taxes possible and enjoy all the benefits of being a Tax Nomad.

Just keep an eye on our content and reach out to us if you want us to evaluate your situation and fit all the pieces together.

If you want to change your tax residency, set up an offshore company or wish to receive a comprehensive analysis of your situation to discover your best options, simply fill out the form below and let us know your case and needs.

Contact us

The main tax advantage of the new visa is that it allows you to live and work in Indonesia for 5 years without having to pay taxes on income generated outside the country.

The exact requirements to obtain the Digital Nomad Visa in Bali have not been fully detailed yet.

However, they are likely to include demonstrating minimum income received from abroad, possessing a passport valid for more than 12 months, and obtaining comprehensive health insurance coverage in Indonesia.

The official launch date of the new visa for Indonesia has not been announced yet.

However, it is currently in development and will be launched in the near future.

Bali is positioning itself as an attractive destination for digital nomads, especially with the introduction of the new Digital Nomad Visa.

However, whether Bali (or Indonesia in general) is the best place for a digital nomad will depend on various factors, such as personal preferences, quality of life, digital infrastructure, and other aspects that should be individually considered before making a decision.

Where your tax freedom starts

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