Moving to Bali?
When people discuss moving to Bali as digital nomads
Many people have fantasized about taking a one-way flight to Bali and abandoning their old lives to experience the tropical lifestyle and overall quality of life as digital nomads. There is a rush in the idea of going to Bali, even for a short time, because there is so much to explore and experience. After a few months, you’ll be wondering where the time went. Whatever you intend to do in Bali while living here, the topics and tips listed below will help you get off to a good start.
Bali is a popular destination for Digital Nomads for good reason.
Because of the covid constraints, remote working for another firm has expanded in general, and more and more companies enable, or even encourage, their employees to work from “anywhere.” And studies reveal that people are highly open to the idea of escaping the chains of an office job at home and would contemplate working somewhere else for at least a few months per year. Furthermore, companies such as upwork, fiverr, and others have made it much easier for freelancers to find employment and manage projects from anywhere in the world. As a result, an increasing number of “self-employed digital nomads” are now able to make a living and generate a steady income.
Then there’s Bali, which offers a very convincing and appealing package of tropical life style, quality of life, moderate living costs, thriving communities, tolerance, and millions of things to do and explore.
Are you ready?
Due to tax considerations, visa regulations, and medical insurance coverage, relocating to Indonesia (or any foreign country) and choosing a life as a self-employed digital nomad is not easy. You will come across enthusiastic individuals, “influencers,” communities, and specialized websites and apps who openly advocate the “digital nomad life” while oblivious to or purposely ignoring the details and potential traps that still exist today. They give the impression that there are no laws to observe. That may work for a while and for some, but it can rapidly turn into a nightmare.
The New Visa for Digital Nomads
THE MUCH ANTICIPATED DIGITAL NOMAD VISA IS AVAILABLE END OF 2022
However, foreigners will have to provide proof of funds of roughly USD 140,000.
For several years, Indonesia has been preparing to issue a long-term visa for digital nomads and investors, and there have been numerous pronouncements about when this visa will be available and what the criteria would be. The Directorate General of Immigration issued a new regulation (Circular Number IMI-0740.GR.01.01) on October 25, 2022, officially announcing that the new Second Home Visa will be available by the end of 2022. (60days after the decree has been passed). This new Visa will be known as the Second Home Visa rather than the “Digital Nomad” Visa.
The goal is clear. Indonesia recognizes and cherishes the contributions of remote employees, staycation seekers, and investors, and wishes to establish a visa that allows these types of foreigners to stay legally in Indonesia. Until today, there was no obvious and simple way for foreigners to stay longer in Indonesia while working overseas without violating visa requirements or fiscal laws.
For more information regarding this visa, please visit
the official Indonesian Immigration website: imigrasi.go.id
What type of Visa is best for Digital Nomads and Remote Workers?
1.) Visa on Arrival – if you intend to stay for fewer than 60 days. Valid for 30 days and can be extended ONCE for an additional 30 days (available for many nationalities – more info on VoA here).
2.) The Visit Visa B211A, commonly known as the Social Visa or Cultural Visa (which is not really technical correct anymore). It is valid for 60 days and can be renewed twice for another 60 days each, for a total of 180 days without leaving the country. After 180 days, you can apply for a B211A Business Visa ONSHORE (while still in Indonesia) and extend it twice.
Both the Visa on Arrival and the B211A Visa now cover the following travel purposes: tourism, government duties, business discussions, purchasing items, and meetings.
Read more about B211A here: How to get a Bali visa +Which visa do you need? (2022)
Tax in Indonesia
You cannot be compensated in Indonesia or work as a “digital nomad” with or for an Indonesian company.
Yes, the “typical digital nomad” works and lives in Indonesia, but they offer freelance services to clients outside of Indonesia and are compensated outside of Indonesia. They lack a formal framework (a corporation and a tax identification number) and a work permit (Investor KITAS etc).
In terms of revenue, the “remote worker” who is employed officially abroad and also works for that company while in Bali is a lot clearer case and less critical than being a self-employed digital nomad.
In both cases, the digital nomad would be required to file taxes in the country where they are still formally registered as a citizen. Of course, Indonesia cannot and will not exert control.
The Tax Identification Number, or NPWP, is used to identify both Indonesian and non-Indonesian residents, as well as any business established in Indonesia (Nomor Pokok Wajib Pajak). The NPWP is required in order to submit taxes. You will be able to pay your monthly income taxes, file annual tax returns, and more once you have your own NPWP.
An NPWP is required in order to:
- Get your driver’s license.
- Create a local bank account.
- Get a credit card from a local bank.
- Vehicle purchase
- Constructing a property
- Transfer funds from an Indonesian bank account to a foreign bank account.
Who is considered an Indonesian tax subject?
According to the Indonesian Income Tax Law, non-Indonesian residents are considered resident tax subjects if they stay in the country for more than 183 days in a 12-month period or fiscal year. If you earn a living in Indonesia, own a business, or work for an Indonesian corporation, you must pay income taxes, dividend taxes, and other taxes on all money earned in Indonesia.
For four years, foreigners with a Work KITAS (Temporary Stay Permit) are domestic tax subjects in Indonesia, meaning they will only be taxed on money earned within the nation, not their global income. The “omnibus legislative program” recently updated tax laws to encourage expats.
FAQs about the International Driving Permit (IDP) for Bali
Do I need an International Driving Permit for Bali?
Absolutely, Everyone who rents a motorized vehicle (such as a Scoopy, Vespa, or Honda Vario) MUST HAVE NOT ONLY A NATIONAL DRIVING LICENSE, BUT ALSO AN INTERNATIONAL DRIVING PERMIT.
Your national license is not enough. A car license is acceptable for driving a scooter up to 150cc; you do not need a motorcycle license for these types of motor scooters.
Do I get fined if i do not have an International Driving Permit?
If you are stopped by the traffic police in Bali, you will usually be required to provide your vehicle registration papers (car or motorcycle, for example), your national driving license, and your International Driving License.
If you did not bring them, you will very certainly be fined (could be IDR 300,000 to 500,000 per missing document).
Other offenses that could result in a fine include:
Of course, he was not wearing a helmet.
Driving topless and t-shirtless
The lights are not working.
Operating an unregistered vehicle.
What is an International Driving Permit?
The International Driving License functions similarly to an official translation of your national driving license. In certain countries, the government agencies that handle national licenses also handle foreign licenses, usually for a fee.
Governments in several countries have hired private or semi-private companies to provide foreign driver’s licenses (basically an approved translation). This allows them to provide this “official translation service” for licenses that were not issued in their home country but are held by foreigners.
You can now apply for your International Driving Permit online at internationaldriversassociation.
PLEASE ENSURE YOU WEAR YOUR HELMET.
Wear a face mask if necessary (depending on the regulation status)
Carry a valid driver’s license, an international driver’s license, and car papers with you.
Drive gently and cautiously so that you do not injure yourself or others.
Only rent automobiles that meet road safety regulations.
You can rent a scooter or motorbike in Bali directly here, with the highest quality and service. Drive carefully!
Travel Insurance and Health Insurance
If you intend to visit Bali or perhaps relocate here for business, work, or retirement, you must obtain adequate medical coverage. The Balinese healthcare system and infrastructure have improved over the years, and there are now decent hospitals and doctors available, as well as Singapore, which is relatively close. However, it is necessary to be able to settle the costs – either here in Bali or in other countries if you require treatment outside of Bali.
Digital Nomads may have purchased travel insurance separately, as part of their national health care plan, or when paying for a trip with a credit card. These travel insurances often cover medical expenses in countries other than your home nation and have restrictions on what they cover and under what conditions they pay for medical bills incurred while in Bali.
If you decide to travel for more than 30 or 60 days, you may be out of their coverage. It is critical that you read the terms and conditions and understand what your travel insurance covers.
When you remain in Bali for a period of time that exceeds what is termed “traveling,” you should consider purchasing medical insurance to cover your expenses. There are numerous insurance companies that provide “International Health Insurance.”