Living in Bali as an Expat: Visa Options, Banking and Property Rules

Bali has become one of the world's most sought-after destinations for digital nomads, lifestyle-driven expats, and internationally mobile retirees. Its extraordinary natural beauty — volcanoes, rice terraces, beaches, and tropical forests — combined with a rich Hindu culture, outstanding food and wellness scene, and a cost of living far below Western norms, has made it a lifestyle benchmark for the globally mobile generation.

As of 2026, estimates suggest 60,000–80,000 Western expats live in Bali at any given time, with many more rotating through on various visa arrangements. The expat hotspots — Seminyak, Canggu, Ubud, Uluwatu, and Sanur — have developed sophisticated communities with coworking spaces, international schools, high-quality healthcare clinics, and a full range of financial services.

But Bali is in Indonesia — a complex developing nation with strict foreign property ownership rules, a developing banking system, and a visa framework that is less mature than the UAE or EU alternatives. Understanding these realities before committing to life in Bali is essential.

Visa Options for Living in Bali

Indonesia introduced the Second Home Visa (Visa Rumah Kedua) in 2022, alongside other visa reforms — including a dedicated remote-worker (digital nomad) route — that significantly broadened options for long-term expat residence.

Second Home Visa (Visa Rumah Kedua)

The Second Home Visa allows foreign nationals to live in Indonesia (including Bali) for up to 5 or 10 years, renewable. It is currently one of the most flexible long-stay options available.

Requirements:

• Minimum deposit of IDR 2 billion (approximately £100,000 as of 2026) in an Indonesian bank account — this is held throughout the visa period and cannot be withdrawn
• Passport valid for at least 36 months
• Proof of health insurance
• Property or accommodation in Indonesia
• Clean criminal record

The Second Home Visa does not restrict employment — holders may invest and manage their own affairs. Working for an Indonesian employer requires a work permit (KITAS) instead.

Digital Nomad Visa (Remote Worker Visa)

Indonesia's visa for remote workers — effectively a modification of the social and cultural visa category — allows stays of 60 days, extendable up to 180 days. It is designed for those working remotely for foreign employers/clients, with no Indonesian employment or income.

As of 2026, this visa provides six months per visit rather than a multi-year arrangement and is suited to those spending part of the year in Bali rather than committing full-time.

KITAS (Temporary Stay Permit)

For those working for an Indonesian company or running an Indonesian business, the KITAS is the standard work-based residence permit. It requires sponsorship by an Indonesian legal entity.

Tourist Visa

A common informal approach for shorter-term expats has historically been visa runs — spending 30 days on a tourist visa, leaving to Singapore or Australia, and returning. Indonesia has cracked down on this practice, and it is not a recommended long-term strategy. Visa-on-arrival is available for 30 days, extendable once for a total of 60 days.

Indonesian Tax Residency and the 183-Day Rule

Individuals who spend more than 183 days in Indonesia in a 12-month period become Indonesian tax residents and are subject to Indonesian income tax on worldwide income.

Indonesian personal income tax rates:

• IDR 0–60,000,000 (approximately £2,650): 5%
• IDR 60,000,001–250,000,000: 15%
• IDR 250,000,001–500,000,000: 25%
• IDR 500,000,001–5,000,000,000: 30%
• Above IDR 5,000,000,000: 35%

For most Western digital nomads working remotely, these rates are not particularly onerous — but they do apply to worldwide income if residency is established. The tax system is administered by Direktorat Jenderal Pajak (DJP), and compliance among foreign residents has historically been patchy, though enforcement is increasing.

Practical advice: Those using the Second Home Visa and spending most of the year in Bali should take professional advice on Indonesian tax residency. Those on the digital nomad visa spending under 183 days are generally not Indonesian tax-resident.

Under the Indonesia-UK DTA (the UK and Indonesia have a double taxation agreement), relief from double taxation is available for many income categories. UK pension income, employment income from UK sources, and rental income from UK property each have specific DTA treatment.

Banking in Bali and Indonesia

Opening a local Indonesian bank account is relatively straightforward for those with a KITAS or Second Home Visa. The main Indonesian banks used by expats include:

• Bank Central Asia (BCA): The largest private bank, widely regarded as the most reliable and user-friendly
• Bank Mandiri: Large state-owned bank with good coverage
• Bank Negara Indonesia (BNI): State-owned; extensive branch network
• CIMB Niaga, Permata Bank: Other options popular with expats

Requirements for account opening:

• Valid KITAS or Second Home Visa (tourist visa is generally insufficient)
• Passport copies
• NPWP (Nomor Pokok Wajib Pajak — Indonesian tax number); required for accounts above certain thresholds
• Proof of address

For day-to-day transactions in Bali, most expats use a combination of a local Indonesian account (BCA is the most recommended) for rupiah expenses, and keep their main wealth offshore — in UK accounts, offshore bonds, or Singapore/Hong Kong investment accounts — for international transactions and investment management.

Foreign currency and transfers: Indonesia restricts the use of foreign currencies in domestic transactions; all local transactions are in IDR. Bringing money into Indonesia from overseas is unrestricted, but transferring large sums out requires LKPBU (foreign currency service provider) reporting. Currency specialist services (Wise, OFX) are widely used by Bali expats for cost-effective international transfers.

Property Ownership Rules for Foreigners

This is one of the most important and most misunderstood aspects of living in Bali.

Foreigners cannot own freehold land (Hak Milik) in Indonesia. This is an absolute prohibition under Indonesian land law, and attempting to circumvent it through nominee arrangements — where an Indonesian national holds the title on behalf of a foreigner — is illegal and risky. Despite being common in practice, nominee arrangements have no legal protection and have resulted in many foreign "buyers" losing their property without recourse.

Legal property ownership options for foreigners:

1. Hak Pakai (Right to Use): Available to foreigners with valid KITAS. Allows property use for 30 years, extendable by 20 years (total 50 years). Available on residential property only; can be registered in the foreigner's name. Not widely available in practice as most freehold land is Hak Milik and must first be converted.

2. Hak Sewa (Leasehold): Long-term lease agreements for 25–30 years are the most common mechanism for foreign property investment in Bali. Many "villa sales" are actually leases of the land, with the building owned by the lessee. Well-drafted leases include renewal options for an additional 25 years (total 50–55 years). These are legally recognised contracts and provide practical property rights, though not freehold ownership.

3. PT PMA (Foreign Investment Company): A foreign-owned Indonesian company can hold Hak Guna Bangunan (Right to Build) land. Setting up a PT PMA involves minimum investment requirements and Indonesian legal/accounting compliance. It is a legitimate route for investment properties and larger developments.

Due diligence is critical. Many villa developments in Bali are marketed to foreigners in a legally ambiguous way. Ensure you engage a qualified Indonesian lawyer (Notaris) and conduct thorough title checks before any property commitment.

As of 2026, average leasehold villa prices in sought-after areas:

• Canggu: IDR 3–8 billion for a leasehold villa (approximately £130,000–350,000)
• Seminyak/Legian: IDR 4–10 billion
• Ubud: IDR 2–5 billion
• Uluwatu: IDR 3–7 billion

Annual rental returns from villa short-lets are often quoted at 10–15% of purchase price, but these figures are optimistic. Net yields after management fees, maintenance, and vacancy periods are typically 6–9% at best, and significantly lower for poorly located or managed properties.

Healthcare in Bali

Healthcare in Bali ranges from excellent international-standard private clinics in tourist areas to basic public facilities. The main international hospitals/clinics used by expats include BIMC Hospital (Kuta and Nusa Dua), Siloam Hospital Denpasar, and RS Kasih Ibu.

For serious medical emergencies — major surgery, complex conditions — evacuation to Singapore, Bangkok, or Australia may be necessary. Air ambulance insurance (approximately £300–500/year) is strongly recommended.

International health insurance with evacuation cover is essential for Bali-based expats. Plans from Cigna, Aetna, Allianz Care, or Bupa Global typically cost £1,500–4,000/year depending on age and coverage level.

Financial Planning Checklist for Bali Expats

1. Determine the appropriate visa route (Second Home Visa for long-term commitment)
2. Assess Indonesian tax residency risk if spending 183+ days per year
3. Open a BCA bank account (requires appropriate visa)
4. Keep principal investment portfolio and wealth offshore (UK, Singapore, or offshore bond)
5. If buying property: engage a qualified notaris; use only legally recognised ownership structures; avoid nominee arrangements
6. Arrange comprehensive international health insurance with evacuation cover
7. Ensure UK tax obligations are properly managed — HMRC must be notified if you leave the UK
8. Review pension arrangements — UK SIPP or offshore bond may be appropriate
9. Consider a UK or home-country will and an Indonesian will for Indonesian assets
10. Establish a reliable FX strategy for regular IDR/GBP conversions

Compliance Reminder

Indonesian law is complex and enforcement is increasing. The nominee property arrangement situation is legally risky and unenforceable. Indonesian tax rules change. This guide reflects the position as of 2026 and is not legal or tax advice. Seek qualified Indonesian legal and tax counsel for any property or residency matters. Investment and property values can fall as well as rise.

How Global Investments Can Help

Global Investments advises internationally mobile clients who use Bali as a lifestyle base or investment destination. We provide holistic financial planning including offshore investment structures, pension review, international insurance, and estate planning. We coordinate with specialist Indonesian legal and tax advisers for property and residency matters. Contact us for a confidential conversation.