Legal and Immigration Guidance

-Bali-

"Santai saja," - (JUST RELAX)

Bali expat visa guide tourist and retirement visa options Visa types for Bali expats tourist business and retirement visas

Tourist Visa (TR)

Purpose:
The Tourist Visa (TR) allows visitors to enter Bali for short-term tourism purposes. It’s intended for travelers who want to explore Bali's beaches, cultural landmarks, and attractions.

Eligibility:
To qualify for a Tourist Visa in Bali, visitors must have:

  • A passport valid for at least 6 months beyond the intended date of entry.

  • Proof of onward travel, such as a return ticket or a flight to another destination.

  • Sufficient funds to cover their stay in Bali.

For more details on visa extensions and other visa options, [click here].

Visa on Arrival (VoA)

Purpose:
The Visa on Arrival (VoA) allows nationals of certain countries to enter Bali for short stays, typically ranging from 15 to 30 days. This visa is ideal for tourists or business travelers who prefer to obtain their visa upon arrival in Bali.

Eligibility:
To qualify for the Visa on Arrival, travelers must have:

  • A passport valid for at least 6 months from the date of entry.

  • Proof of onward travel, such as a return flight or other onward journey documentation.

  • Proof of accommodation during their stay in Bali.

For a complete guide on the VoA process and eligible countries, [click here].

Non-Immigrant Visa

The Non-Immigrant Visa is designed for individuals entering Bali for purposes other than tourism. It includes options for business, education, and family-related stays, each with its own specific requirements.

Types of Non-Immigrant Visas:

  • Non-Immigrant B Visa:
    For those traveling to Bali for business or employment purposes. Applicants must provide an employment contract or relevant business documentation from an Indonesian company.

  • Non-Immigrant ED Visa:
    Issued to individuals pursuing education or training in Bali. Applicants will need proof of school enrollment or acceptance into an educational program.

  • Non-Immigrant O Visa:
    Designed for those visiting Bali for family visits, volunteering, or retirement. This visa is suitable for expats seeking long-term personal stays, including retirees or those accompanying family members.

Eligibility:
Eligibility depends on the specific visa type and the purpose of stay. Generally, applicants must provide:

  • A passport valid for at least 6 months.

  • Documentation related to their purpose of stay, such as an employment contract, school enrollment, or proof of family relations.

For detailed information on Non-Immigrant Visa categories and the application process, [click here].

Retirement Visa (Non-Immigrant O-A)

Purpose:
The Retirement Visa (Non-Immigrant O-A) is designed for individuals aged 50 and above who wish to retire in Bali. This visa provides retirees with long-term residency in Indonesia, offering a renewable visa option for those looking to settle down in Bali.

Eligibility:
To qualify for the Retirement Visa, applicants must:

  • Be 50 years or older.

  • Demonstrate financial stability by showing proof of sufficient funds or monthly income.

  • Submit a medical certificate to confirm good health.

  • Provide a police clearance from their home country to verify a clean legal record.

For a detailed guide on applying for a Retirement Visa in Bali, [click here].

Elite Visa

Purpose:
The Elite Visa offers long-term stays with exclusive VIP privileges in Bali. This visa is tailored for individuals seeking a premium lifestyle with benefits such as expedited processing, access to exclusive services, and extended residency options.

Eligibility:
To qualify for the Elite Visa, applicants must:

  • Pay a membership fee, which varies depending on the chosen package.

  • There are no age restrictions, and the program is open to individuals of all nationalities.

For more information on Elite Visa packages and benefits, [click here].

SMART Visa

Purpose:
The SMART Visa is designed for highly skilled professionals, investors, executives, and startup entrepreneurs in key industries. This visa supports Bali’s growth in innovation and business development, targeting sectors like technology, tourism, and environmental sustainability.

Eligibility:
Eligibility for the SMART Visa is based on:

  • Qualifications and experience in targeted industries.

  • Certification of employment or investment from a recognized company or government agency.

  • Meeting specific industry requirements in technology, sustainability, or other priority sectors.

For full details on the SMART Visa program and qualifications, [click here].

Visa Extensions

Purpose:
Visa extensions allow travelers to extend their stay in Bali beyond the original visa duration. Depending on the visa type, extensions can be requested either through in-country applications or by doing border runs to re-enter Indonesia with a new visa.

Eligibility:
Eligibility for visa extensions depends on the original visa type and the purpose of the extension. Common factors include:

  • Tourist Visas: Extensions are typically granted for an additional 30 days.

  • Non-Immigrant Visas: Extensions vary depending on the visa category (e.g., business, education, retirement) and the applicant's reasons for extending.

  • Extensions must align with the original purpose of the visa and require supporting documentation.

For detailed steps on extending your visa in Bali and eligibility, [click here].

Pathways to Permanent Residency

Long-Term Visa Options:
Bali offers several long-term visa options that can lead to permanent residency, including:

  • Retirement Visa: Available for individuals aged 50 and above, providing a renewable visa for long-term stays.

  • Spousal Visa: For foreigners married to Indonesian citizens, this visa provides an opportunity to apply for permanent residency after fulfilling certain conditions.

Criteria for Permanent Residency:
To apply for permanent residency in Bali, applicants generally need to:

  • Hold a long-term visa, such as a retirement or spousal visa.

  • Show financial stability, often requiring proof of regular income or substantial savings.

  • Provide a clean legal record from both Indonesia and the applicant’s home country.

  • Meet the minimum duration of stay requirement, which varies based on the visa type.

For more details on how to apply for permanent residency in Bali, [click here].

Citizenship

Process and Eligibility:
Acquiring Indonesian citizenship, which includes Bali, is a long-term process for foreigners who meet the residency and legal requirements. Citizenship provides full rights, including property ownership and the ability to live in Bali without visa renewals.

Citizenship by Marriage:
Foreigners married to Indonesian citizens can apply for naturalization after meeting the following conditions:

  • Must have lived in Indonesia for at least 5 consecutive years after marriage.

  • Proof of financial stability and a valid, legitimate marriage.

  • Demonstrate basic proficiency in Bahasa Indonesia (Indonesian language).

Citizenship by Long-Term Residence:
For those not married to an Indonesian citizen, citizenship can be obtained after:

  • 5 to 10 years of continuous residency in Indonesia, depending on individual circumstances.

  • Passing a language proficiency test in Bahasa Indonesia.

  • Having a clean legal record and understanding of Indonesian laws and culture.

For a detailed guide on applying for Indonesian citizenship, [click here].

Legal Loopholes and Pathways to Residency or Citizenship

Business Investments:
Foreigners can use business investments as a pathway to secure long-term residency and, in some cases, citizenship in Bali. By establishing or investing in a registered company in Indonesia, foreigners can qualify for business visas, which may lead to residency options.

Property Investments:
While foreigners cannot own land outright in Bali, they can invest in leasehold properties or long-term leases, often up to 50 years. Although property ownership does not directly grant residency, demonstrating financial stability through property investment can support residency or visa applications.

Pathways to Citizenship:
In certain cases, making significant contributions to local businesses or investing in key sectors (such as tourism or real estate) may enhance eligibility for permanent residency, which can eventually lead to citizenship.

For detailed strategies on using investments to secure residency or citizenship, [click here].

Business Structures

Legal Structures:
Foreigners looking to establish a business in Bali can choose from several legal structures, including:

  • Limited Liability Company (LLC): This is the most common structure for foreign businesses in Bali, providing limited liability protection to the owners.

  • Partnerships: Foreigners can enter into general or limited partnerships, where responsibilities and liabilities vary depending on the type of partnership.

  • Sole Proprietorship: A structure where a single individual owns the business, but personal liability is not separated from business liabilities.

Key Factors to Consider:

  • Foreign Ownership Limits: Bali, like the rest of Indonesia, allows 100% foreign ownership in certain sectors but restricts it in others, especially in sensitive industries like media and natural resources.

  • Liability and Risk: LLCs offer personal liability protection, while sole proprietorships and partnerships may leave owners personally liable for business debts.

  • Scalability: LLCs are typically more suited for larger operations, while sole proprietorships and partnerships may be ideal for small ventures.

For a full guide on choosing the right business structure in Bali, [click here].

Tax Implications for Businesses

Corporate Tax Rates:
Indonesia’s corporate income tax rate is set at 22% for most businesses. However, small and medium-sized enterprises (SMEs) may qualify for lower tax rates depending on their income levels.

Value-Added Tax (VAT):
The standard VAT rate in Indonesia is 10%, applied to most goods and services. Certain items may qualify for reduced rates or exemptions, especially in sectors like healthcare and education.

Other Taxes:

  • Personal Income Tax: Expats running businesses in Bali are subject to personal income tax, with rates ranging from 5% to 35%, depending on earnings.

  • Withholding Tax: Certain payments to non-residents may be subject to a 20% withholding tax, which can apply to interest, dividends, and royalties.

Tax Minimization Strategies:

  • Double Taxation Agreements (DTAs): Indonesia has DTAs with over 60 countries, allowing expats to avoid being taxed twice on the same income.

  • Tax Incentives: Specific industries (e.g., tourism, technology) may benefit from tax holidays, reduced tax rates, or other incentives.

For a full breakdown of corporate taxes and tax strategies in Bali, [click here].

Navigating Bureaucracy

Registering a Business:
Foreigners looking to set up a business in Bali must register with the Indonesia Investment Coordinating Board (BKPM) or the local Department of Trade and Industry. The steps include:

  • Submitting a business registration application and outlining the company structure.

  • Securing a Tax Identification Number (NPWP) and registering for VAT.

  • Acquiring any specific business licenses based on the industry (e.g., hospitality, retail).

Obtaining a Work Permit:
Expats who plan to work in Bali must obtain a work permit (IMTA) through the Ministry of Manpower. The process involves:

  • Submitting proof of employment or business ownership.

  • Providing relevant qualifications and work experience documentation.

Common Challenges:

  • Lengthy Procedures: The registration and work permit processes can be time-consuming, often involving multiple visits to government agencies.

  • Inconsistent Requirements: Regulations can differ by region or industry, which sometimes creates confusion.

  • Language Barriers: Most legal documents and procedures are in Bahasa Indonesia, making it challenging for non-speakers.

Overcoming Bureaucratic Hurdles:

  • Hire a local consultant or attorney who is well-versed in Indonesian law and business practices to help navigate the system.

  • Prepare all required documents in advance to avoid delays in the process.

  • Keep digital and physical copies of all submissions to ensure everything is in order during renewals or audits.

For a detailed guide on handling bureaucracy when setting up a business in Bali, [click here].