Indonesia — Southeast Asia's largest economy, home to 17,000 islands and a population of 280 million — has become a serious destination for internationally mobile HNW individuals, particularly since the introduction of the Second Home Visa in 2022. Bali remains the focal point for lifestyle-driven expats and digital nomads, while Jakarta draws corporate assignees and regional business executives. This guide sets out the financial planning essentials for anyone considering or already living in Indonesia.
The Indonesia Second Home Visa
Launched in 2022 and refined through 2023–2025, the Second Home Visa (B213 Vitas and ITAS) is Indonesia's flagship offering for foreign nationals seeking long-term residency without an employer sponsor.
Key features (as of 2026):
- Valid for 5 years (or a shorter 1-year version available)
- Available to nationals of most countries, subject to diplomatic relations
- Allows multiple entries and re-entries
- No work rights — you may not be employed by an Indonesian entity, though remote work for foreign clients is widely practised
- Dependants (spouse and children) can be included
Financial requirements: To qualify for the 5-year visa, you must demonstrate proof of funds of at least USD 130,000 (approximately £103,000 as of 2026) in a bank account, or evidence of ownership of property in Indonesia valued at IDR 2 billion or more (~£100,000+). The 1-year variant has a lower threshold of USD 35,000.
The Nomad Visa (separate): Indonesia also operates a Digital Nomad Visa for remote workers, valid for 60 days (extendable to 180 days). It does not provide the same long-term stability as the Second Home Visa.
Practical note: Indonesian visa administration can be complex and documentation requirements occasionally shift. Working with an Indonesian immigration specialist or visa agent is strongly recommended.
Tax Residency and Personal Income Tax
Indonesia taxes worldwide income for tax residents. You are a tax resident if you are present in Indonesia for 183 days or more in any 12-month period, or if you intend to reside indefinitely in Indonesia.
Individual income tax rates (2026):
| Annual income (IDR) | Approximate GBP | Rate |
|---|---|---|
| Up to 60,000,000 | ~£3,000 | 5% |
| 60,000,001–250,000,000 | ~£12,500 | 15% |
| 250,000,001–500,000,000 | ~£25,000 | 25% |
| 500,000,001–5,000,000,000 | ~£250,000 | 30% |
| Over 5,000,000,000 | £250,000+ | 35% |
These rates apply to worldwide income for tax residents — including overseas dividends, rental income, interest, and capital gains.
Territorial exception for new residents: Indonesia has historically offered a "non-taxable foreign income" treatment for new tax residents for the first four years of residency in certain circumstances, provided income is not remitted to Indonesia. As of 2026, the rules around this are still evolving following the Omnibus Law tax reforms; specialist advice is essential before relying on this treatment.
Indonesia–UK DTA: A double taxation agreement between Indonesia and the UK exists. It provides relief (generally via the credit method) for income taxed in both jurisdictions, but does not provide a territorial exemption for overseas income.
VAT: 11% (raised from 10% in 2022). Applies to most goods and services.
Banking in Indonesia
Banking access for foreigners has improved but remains more bureaucratic than in Singapore or Hong Kong.
Opening an account: Most major Indonesian banks (Bank Mandiri, BNI, BRI, BCA) will open accounts for foreigners with a valid passport and KITAS (stay permit). A Second Home Visa KITAS makes account opening significantly easier.
Transfer controls: Bank Indonesia (the central bank) imposes reporting requirements on large foreign currency transfers. Transfers above USD 25,000 require supporting documentation. Outward transfers of investment income, dividends from Indonesian companies, and property sale proceeds generally require tax clearance certificates.
International banking: Singapore is the natural offshore banking partner for Indonesia-based expats. HSBC, Standard Chartered and DBS all have both Indonesian and Singaporean operations. Citibank recently reduced its Indonesian retail presence but private banking services remain. Maintaining a Singaporean or other offshore account for wealth storage is essential planning.
USD accounts: Dollar accounts are widely available at Indonesian banks and are used heavily in Bali for property and lifestyle transactions.
Property Ownership for Foreigners
Foreign property ownership in Indonesia has long been restricted and remains so, despite periodic reform discussions:
Foreigners cannot own freehold (Hak Milik) land or property — this is restricted to Indonesian citizens.
Available rights for foreigners:
- Hak Pakai (Right to Use): The primary mechanism. Foreigners can hold Hak Pakai for residential property, initially for 30 years, extendable for a further 20 years and then a second 30-year extension (total potential 80 years). As of 2026, Hak Pakai is being promoted more actively following Second Home Visa reforms.
- Long-term lease (Hak Sewa): Leases of 25–30 years (occasionally longer with extension options) are the most common structure for villa ownership in Bali. These provide occupation rights but not ownership.
- Nominee structure (high risk): Some foreigners historically used Indonesian nominees to hold Hak Milik. This is not recommended — it is legally risky, exposed to nominee fraud, and has been specifically targeted by Indonesian authorities as contrary to law.
Bali property market (2026): Bali remains one of Asia's most attractive lifestyle property markets. Villa prices in prime areas (Seminyak, Canggu, Ubud, Uluwatu) typically range from USD 300,000 to USD 3 million+ for quality freehold-adjacent leasehold villas. Rental yields from short-term holiday rentals can be very high (15–25% gross in peak seasons) but net yields after management, maintenance and vacancy are typically 8–12%.
Minimum price thresholds: The Indonesian government has set minimum price thresholds for foreign property purchases: IDR 5 billion (£250,000) for apartments in major cities, and IDR 2 billion (£100,000) in other areas. These figures are periodically revised.
Due diligence: Indonesian property due diligence is complex. Title searches, zoning verification (Bali zoning is particularly nuanced), and structuring advice from an Indonesian-qualified lawyer are non-negotiable before any commitment.
Healthcare in Indonesia
Healthcare quality varies enormously by location.
Jakarta: International private hospitals including Pondok Indah, Siloam Hospitals (international class), and Rumah Sakit Medistra provide good care for most conditions.
Bali: BIMC Hospital (Kuta and Nusa Dua), Siloam Bali, and Prima Medika are the preferred facilities for expats. For complex conditions, evacuation to Singapore is standard.
BPJS Kesehatan (national health insurance) is available to foreigners with a KITAS but provides limited benefit at private facilities.
International private medical insurance with strong Indonesia coverage and medical evacuation to Singapore is essential. Do not plan to rely on local public healthcare.
Cost of Living
Bali: A comfortable expat lifestyle — villa rental in Canggu or Seminyak, regular dining, transport and leisure — costs approximately £2,000–£4,000 per month for a single person. Families with international schooling should budget £5,000–£9,000 per month.
Jakarta: Corporate assignments typically attract higher costs; a comparable lifestyle runs £3,500–£6,000 per month without schooling.
Key Risks and Compliance Caveats
- Indonesian tax law is undergoing significant reform. The 2021 Omnibus Law (Harmonisation of Tax Regulations) changed several rules; further changes are expected. Professional advice is essential before establishing Indonesian tax residency.
- Property ownership law for foreigners is complex and frequently misunderstood. Never purchase Indonesian property without advice from a locally-qualified lawyer.
- Bali is in an active volcanic and seismic zone. Insurance must account for natural disaster risk.
- Indonesia's IDR has historically experienced periods of significant volatility against USD and GBP. Currency risk is a serious consideration for GBP-denominated investors.
- Investments can fall as well as rise. The Bali property market is subject to tourism cycles, regulatory risk and natural disaster risk.
- Corruption risk exists in permitting and regulatory interactions. Work only with reputable, established advisers and developers.
How Global Investments Can Help
Bali and Indonesia feature in many of our clients' international portfolios. Global Investments covers Bali directly as one of the international markets we work in. Our team can assist with:
- Bali property investment — curated opportunities through vetted developers with clear leasehold structures
- Second Home Visa facilitation — connecting you with immigration specialists and ensuring your financial profile meets requirements
- Tax residency mapping — reviewing your worldwide tax position as you move from UK or another high-tax jurisdiction to Indonesia
- Offshore wealth management — portfolio management based in Singapore or Isle of Man, appropriate for Indonesia-based clients
- Healthcare and insurance — international PMI introductions with strong Indonesia and evacuation coverage
Contact us to discuss your Indonesia plans.
All information correct to the best of our knowledge as of June 2026. Tax, visa and property laws change regularly. This guide does not constitute professional advice. Always seek qualified advice tailored to your circumstances.
This guide is for general information only and does not constitute financial, legal or tax advice. Rules, fees and regulations change frequently; verify current requirements with a qualified adviser before acting.