Bali — Second Home Visa & E33G Remote Worker

The Second Home Visa (Izin Tinggal Terbatas – KITAS kategori Investor/Properti) was redesigned in 2021 to attract high-net-worth individuals seeking long-term lifestyle residence in Bali, Jakarta, or other Indonesian cities. Holders deposit a minimum USD 130,000 in Bank Indonesia, Bank Mandiri, or another state-owned institution, or purchase property of equivalent value; both options must remain frozen/held for the visa's 5+5-year validity. The visa includes spouse and dependents under 18 at no additional deposit, permits multiple entries, and imposes no quotas or waiting lists. It does not grant work authorisation for Indonesian employers but allows passive income management, property rental, and consultancy for offshore entities. The E33G Remote Worker Visa (KITAS E33G) launched in late 2023 under Presidential Regulation 48/2021, targets digital nomads, freelance consultants, and remote employees of foreign firms. Applicants must evidence USD 60,000+ annual income from non-Indonesian sources (payslips, contracts, bank statements), obtain local sponsorship (typically a visa agency or co-working space registered as sponsor), and hold travel insurance covering USD 50,000 medical costs. The permit is valid for one year, renewable once for a further 12 months, after which the holder must exit and reapply or convert to another visa category (e.g., investor KITAS if opening a PT PMA). E33G holders may bring spouse and children (separate applications, same income threshold applies per family). Both pathways avoid Indonesian taxation if the holder remains <183 days per calendar year; over that threshold, worldwide income becomes taxable at progressive rates (5–35%). OECD BEPS Pillar Two implications are minimal—Indonesia has adopted CbC reporting but domestic minimum-tax rules remain embryonic; however, US founders must consider GILTI on any Indonesian holding company (25% PT PMA ownership = CFC), and UK founders under the CFC regime may face apportionment if the Indonesian entity lacks genuine economic substance. Neither visa path leads to permanent residence or citizenship—Indonesia prohibits dual nationality and has no investor-naturalisation track—making these programmes purely lifestyle/operational residency tools. The Second Home Visa suits founders parking liquidity, acquiring Bali real estate, or establishing a family base; the E33G appeals to solo founders, consultants, or early-stage teams testing Southeast Asia with minimal capital outlay and maximum flexibility.

Second Home Visa: (1) Deposit USD 130,000 in a designated Indonesian state-owned bank (Bank Indonesia, Bank Mandiri, BNI, BRI) or purchase property of equivalent value (freehold leasehold for foreigners typically 25–30 years, renewable); the deposit/property must remain locked for the visa's 10-year term. (2) Clean criminal record (certificate from country of residence, apostilled or legalised). (3) Health insurance covering Indonesia, minimum USD 50,000 medical coverage. (4) Passport valid ≥18 months. (5) Proof of offshore income or pension (bank statements, investment portfolios) demonstrating self-sufficiency—no fixed threshold, but immigration officers typically expect USD 2,000+/month passive income. (6) Local sponsor (property developer, law firm, or visa agent) files the application with DJIM (Directorate General of Immigration). Spouse and children under 18 are included on the same deposit; adult children or elderly parents require separate deposits. E33G Remote Worker Visa: (1) Documented annual income ≥USD 60,000 from non-Indonesian sources (employment contract, freelance invoices, payslips, client letters, bank statements covering 12 months). (2) Local Indonesian sponsor—typically a registered co-working space (e.g., Dojo Bali, Outpost), visa agency (licensed PPJK), or employer registered as sponsor; the sponsor submits the KITAS application. (3) Health/travel insurance with ≥USD 50,000 medical coverage valid for the visa period. (4) Clean criminal record (apostilled certificate). (5) Passport valid ≥18 months. (6) Proof of remote-work arrangement: employment letter from foreign company, service agreement with offshore clients, or portfolio evidence (for freelancers). The sponsor charges USD 500–1,500 in processing fees; government levy is ~USD 100. Dependents (spouse, children) require separate E33G applications, each meeting the USD 60,000 income test or relying on the primary holder's income (interpretations vary by immigration office; conservative approach is one income threshold per family). Tax and compliance: Both pathways trigger FATCA reporting for US persons (Indonesian bank accounts >USD 10,000 aggregate must be disclosed on FinCEN 114; Second Home deposits certainly exceed this). US holders of PT PMA entities (often opened after initial residency) must file Form 5471 annually. UK founders claiming remittance basis must not remit the Indonesian deposit or E33G earnings to the UK; post-April 2025, the four-year deemed-domicile rule may force worldwide taxation, requiring careful structuring (offshore holding company, treaty relief under UK-Indonesia DTA). Neither visa permits employment by Indonesian firms without converting to a work KITAS (sponsor = Indonesian employer, separate process). Self-employment via a PT PMA (foreign-owned company) is permissible under Second Home if the company sponsors a director KITAS; E33G does not permit local invoicing—income must originate offshore.

Second Home Visa investment routes: (A) Bank deposit — USD 130,000 minimum placed in a time-deposit (deposito) account at Bank Indonesia, Bank Mandiri, BNI, or BRI. The deposit is frozen for the visa's 5+5-year validity, earning nominal interest (~2–4% per annum, taxed at 20% withholding if holder becomes Indonesian tax resident). Upon visa expiry or voluntary exit, the principal is released (no gift to the state). Family inclusion: spouse + children <18 covered by the same deposit; additional adult dependents require separate USD 130,000 deposits. (B) Property purchase — acquire Indonesian real estate valued ≥USD 130,000 (leasehold title, typically 25–30 years with renewal option; foreigners cannot hold freehold hak milik land). Property must remain in the holder's name for the visa term. Condominiums in Bali (Seminyak, Canggu, Ubud) or Jakarta are common; developers often bundle visa facilitation. Rental income is permitted but taxed at 10% withholding (non-resident) or progressive rates (resident). E33G Remote Worker Visa costs: (A) Sponsor and government fees — sponsor (co-working space or visa agent) charges USD 500–1,500 (market rate ~USD 800–1,200 Bali, ~USD 1,000–1,500 Jakarta); government KITAS levy ~USD 100; e-VOA or visa-on-arrival conversion ~USD 35. Total first-year outlay: USD 1,000–2,000 per person. Renewal (second year): similar sponsor fee, lower government levy (~USD 50). (B) Insurance — USD 300–800/year for compliant travel/health cover (e.g., SafetyWing, World Nomads, Cigna Global). (C) Operational compliance — income documentation (notarised translations if not in English), apostille of criminal-record certificate (USD 50–150), and periodic reporting to immigration (SIMKIM online check-in every 90 days, no fee). Tax residency and structuring: Holders who remain <183 days per calendar year are non-resident for Indonesian tax purposes—foreign-source income is not taxed. Over 183 days, worldwide income is taxable at 5% (≤IDR 60m), 15% (60–250m), 25% (250–500m), 30% (500m–5bn), 35% (>5bn) [~USD thresholds: 5%≤4k, 15%≤17k, 25%≤34k, 30%≤340k, 35%>340k]. The UK-Indonesia double-tax treaty (2013) and US-Indonesia treaty (1988) provide relief; however, US founders must monitor GILTI on any Indonesian PT PMA (tested-income inclusion at 10.5–13.125% even if dividends not distributed) and report Second Home deposits under FBAR/FATCA. UK founders post-2025 face deemed-domicile after four UK tax years—offshore structures (e.g., holding company in Singapore or BVI owning the Indonesian deposit or property) may defer UK tax, but HMRC anti-avoidance (TAAR, settlements) and the MLI's GAAR require substance (Bali operational office, local directors). OECD BEPS / EU ATAD: Indonesia is a BEPS Inclusive Framework member; CbC reporting applies to groups >€750m revenue, but Indonesia has not yet legislated Pillar Two (15% minimum tax). However, if the founder's parent company is EU or UK-based, the EU ATAD/UK QDTE may top-up Indonesian tax to 15%, reducing arbitrage. E33G holders generating IP or service income should consider whether the Indonesian presence creates a PE under treaty Article 5—most remote-work visas explicitly disclaim PE status, but substance matters: if client meetings, server hosting, or employees are Indonesia-based, treaty protection may fail. Residency renewals and exit: Second Home Visa: 5+5 years; at year 10, re-apply (same deposit/property, updated documents). E33G: 1+1 years maximum; after two years, exit Indonesia or convert to investor/work KITAS (requires PT PMA setup, paid-up capital ≥IDR 10bn ~USD 650k for most sectors, director work permit). Neither grants permanent residence (KITAP) eligibility—KITAP requires continuous KITAS for five years under employment/investor categories, and E33G/Second Home are excluded. Comparison: Second Home suits founders with liquidity, seeking stable 10-year base, family schooling (international schools in Bali/Jakarta accept KITAS dependents), and potential property appreciation. E33G suits lean, mobile founders testing the market, requiring minimal capital, comfortable with biennial renewal admin. Both avoid the bureaucracy of PT PMA formation (nominee directors, annual audit, BKPM reporting) unless the founder later wishes to hire locally or invoice Indonesian clients. Total cost of entry: Second Home ~USD 135,000 all-in (deposit + legal + insurance); E33G ~USD 2,000–3,000 year one, ~USD 1,500–2,500 renewals, making it one of Asia's most accessible remote-work permits alongside Malaysia's DE Rantau (lower income threshold, shorter validity) and Thailand's LTR (higher income, longer term).

Indonesia's Second Home Visa (B211A) and the newer E33G remote worker permit offer digital entrepreneurs and high-net-worth individuals a renewable five- or ten-year residence pathway without the need to establish a local company. Both routes require proof of offshore income, health insurance, and an Indonesian sponsor (typically an immigration agent or licensed entity). The E33G, introduced in 2023, is tailored for remote workers employed abroad or self-employed founders deriving income outside Indonesia; the older Second Home Visa suits retirees and investors. Applications are lodged at Indonesian embassies or through the online single-submission system, with processing times of four to eight weeks. Approval is conditional on passing background checks and maintaining valid health cover for the duration of stay.

The headline government fee for a Second Home Visa is USD 1,350 (five-year validity) or USD 2,700 (ten-year validity), paid upfront and non-refundable. The E33G remote-worker permit carries similar pricing. These amounts cover the telex approval and initial KITAS issuance; annual KITAS renewals incur a further IDR 3,500,000–4,500,000 (approximately USD 220–280). Sponsor service fees range from USD 500 to USD 1,500 depending on the agent's reputation and whether they include document legalisation, translation, and hand-holding through the Direktorat Jenderal Imigrasi portal. Multi-entry re-entry permits (MERP) cost IDR 500,000 and are compulsory if you intend to travel in and out frequently. Health insurance with Indonesian-compliant coverage (minimum USD 50,000 medical and repatriation) typically runs USD 800–2,000 per annum for a healthy adult; premiums rise sharply for applicants over fifty-five. Document apostille and notarisation fees vary by country of origin but budget GBP 50–150 per instrument. If you choose to engage a full-service relocation firm in Bali, all-inclusive packages start at USD 4,000 for five years and cover sponsor liaison, visa lodgement, local registration, and first-year renewals. Founders with US citizenship must additionally factor in annual FBAR and Form 8938 compliance (typically USD 500–1,000 in accounting fees) if Indonesian bank balances exceed the USD 10,000 and USD 200,000 thresholds respectively.

Indonesia taxes on the basis of residence: individuals present for more than 183 days in any twelve-month period, or who establish a permanent home, become tax residents subject to worldwide-income taxation at progressive rates up to 35 per cent. However, holders of the Second Home Visa and E33G permit typically structure their affairs to avoid triggering Indonesian tax residency by limiting time in-country to fewer than 183 days or by maintaining a tax home elsewhere and filing non-resident returns. Non-residents are liable only on Indonesian-source income; remote work performed for non-Indonesian clients, offshore consultancy fees, and dividends from foreign holdcos are not taxed locally provided no permanent establishment arises. Indonesia has no capital-gains tax on the disposal of shares in non-Indonesian companies, making Bali attractive for founders managing liquid portfolios or preparing exits. The country is not party to the OECD Common Reporting Standard, though it has signed double-tax treaties with thirty-seven jurisdictions (including the UK, Singapore, and Australia); US persons cannot rely on a treaty to reduce US tax liability. US founders remain subject to citizenship-based taxation on worldwide income under Subpart F and GILTI rules; PFIC reporting applies to non-US mutual funds and many offshore investment wrappers, and Form 5471 is required if a controlled foreign corporation is involved. UK founders who claim non-domiciled remittance-basis treatment (abolished for new claimants from April 2025) historically avoided UK tax on unremitted foreign income, but the Second Home Visa does not by itself confer a low-tax residence certificate, so HMRC may challenge UK tax residence under the Statutory Residence Test if the founder retains significant UK ties. For substance purposes, maintaining fewer than 183 days in Indonesia and documented presence in a third jurisdiction—Dubai, Singapore, or Portugal—can preserve the desired residency profile. Indonesia imposes no wealth, inheritance, or gift taxes on non-resident individuals, and there are no exchange controls on outbound transfers. Founders should be aware that OECD BEPS Pillar Two (15 per cent global minimum tax) does not directly affect personal taxation but may influence the structuring of underlying operating entities if group revenue exceeds EUR 750 million. In summary, the Second Home and E33G visas offer lifestyle optionality and portfolio-income efficiency for founders who actively manage their days of presence, remain tax-resident elsewhere, and avoid creating Indonesian permanent establishments through local client work or office infrastructure.

The E33G Remote Worker Visa and Second Home Visa do not confer visa-free travel rights beyond Indonesia's borders; mobility depends entirely on the holder's passport nationality. Indonesian temporary residence permits (KITAS) grant multiple-entry privileges into Indonesia for the permit's validity period—five years for E33G, ten years for Second Home—but offer no consular protection or third-country visa waiver. British nationals holding E33G or Second Home retain access to 192 destinations visa-free or visa-on-arrival under their UK passport, including Schengen (90/180 days), Japan (90 days), and Singapore (90 days); the Indonesian permit functions solely as proof of Indonesian residency for re-entry and reporting compliance. US passport holders enjoy similar global mobility (188 destinations) independent of their Indonesian status. Founders maintaining operational headquarters in London, Delaware, or Singapore will cross borders on their original passport; the Indonesian permit becomes relevant only when re-entering Indonesia or demonstrating legal residence to Indonesian banks and property agents. Neither permit facilitates intra-ASEAN business travel beyond standard passport rules—Thailand, Malaysia, and Vietnam each impose separate visa requirements for remote workers or require letter-of-invitation for business activities. Founders seeking a second passport for true mobility enhancement must pursue separate citizenship-by-investment programmes (Antigua, Malta, Türkiye) or naturalisation after protracted physical residence elsewhere; Indonesia does not permit dual citizenship for naturalised adults, and the temporary permits examined here confer no pathway to Indonesian nationality.

The Second Home Visa explicitly accommodates immediate family—spouse and dependent children under 18—each issued a synchronised ten-year KITAS under the principal applicant's bond and health insurance. Processing fees run approximately USD 1,850 per dependent, and all family members must satisfy the same clean criminal record and health certificate requirements. The E33G Remote Worker Visa historically permitted dependent sponsorship on identical terms, though 2024 Ministry of Law and Human Rights circulars introduced inconsistent provincial interpretation: Jakarta and Bali immigration offices now process spousal and child dependents routinely, whilst Yogyakarta and Sumatra offices occasionally require separate E33G applications for working spouses. Neither permit extends to elderly parents, siblings, or adult children over 18; parents may enter on social-visit or retirement visas but cannot derive KITAS through the principal's E33G or Second Home. Domestic staff or personal assistants require separate employment-based KITAS sponsored by an Indonesian PT PMA (foreign-investment company), which necessitates Ministry of Manpower approval and labour-market testing—impractical for household roles. Founders employing remote assistants must structure those roles as independent contractors invoicing from their home jurisdiction, not as Indonesian employees. Unmarried partners receive no formal recognition; Indonesia does not acknowledge civil partnerships or de facto relationships for immigration dependency. Same-sex married couples face particular difficulty: whilst Western marriage certificates are accepted on file, conservative immigration officers in outer islands may delay or refer applications to Jakarta for discretionary review, adding two to four months to standard timelines.

The E33G and Second Home programmes suit distinct founder archetypes. E33G fits digital operators with portable service businesses—SaaS founders, consultants, content creators, fund managers—who require no Indonesian corporate substance and derive all revenue from non-Indonesian customers through offshore entities (UK LLP, US LLC, Singapore Pte). The USD 2,000 monthly income threshold is trivial for venture-backed founders but must be documented via six months of bank statements in the applicant's name; opaque holding structures or trust distributions complicate evidencing. Second Home appeals to older founders seeking lifestyle residency without active sponsorship renewals: once the USD 130,000 bond is placed and initial KITAS issued, the holder need only complete annual in-person reporting and exit Indonesia briefly every six months to maintain validity. Neither programme requires Indonesian tax residency—crucial for UK non-doms managing remittance basis or US persons avoiding worldwide reporting complexity—but overstaying 183 days in a calendar year triggers Indonesian tax residence, subjecting worldwide income to local rates up to 35 per cent and mandating NPWP registration. The permits suit founders satisfied with Indonesia's banking and healthcare infrastructure; those requiring frequent same-day access to London (14–17 hours, one stop minimum via Singapore or Doha) or New York will find timezone and connectivity friction. The programmes do not suit founders needing EU, UK, or US immigration optionality for investors, co-founders, or exits; Indonesian residency holds no reciprocal recognition in Western visa systems and may complicate US visa renewals (heightened ESTA scrutiny, mandatory embassy interview for B-1/B-2).

Four structural weaknesses warrant attention. First, both permits forbid local employment or revenue derived from Indonesian sources; founders who later wish to sell services to Indonesian customers or hire local staff must establish a PT PMA (foreign-investment company) and convert to a work-permit KITAS, forfeiting the low-touch E33G structure and incurring minimum USD 50,000 setup plus annual compliance. Second, neither permit creates a path to permanent residence or citizenship—Indonesia reserves naturalisation for exceptional cases (marriage, long-term investment exceeding USD 20 million) and prohibits dual nationality, rendering the permits perpetual temporary status. Third, enforcement consistency remains poor: immigration offices in Denpasar, Jakarta, and Surabaya interpret E33G income-source rules differently—some accept UK LLP invoices, others demand employer letters—and the Second Home bond-refund mechanism upon departure has no published case history beyond pilot participants. Fourth, US persons face FBAR and FATCA complications: Indonesian bank accounts holding the bond or operational funds count toward the USD 10,000 aggregate foreign-account threshold, and local banks' FATCA compliance is inconsistent, occasionally triggering account freezes when US indicia surface post-opening. UK founders maintaining non-dom remittance basis must ensure no Indonesian-source income and avoid remitting offshore gains into Indonesian accounts, as doing so may trigger UK tax on remitted amounts and disqualify split-year treatment.

No legislative amendments to E33G or Second Home eligibility were enacted in 2025 or early 2026, though Ministry of Law and Human Rights circulars introduced procedural tightening. January 2025 guidance mandated that E33G applicants provide notarised employer letters (for remote employees) or client contracts spanning at least six months (for self-employed), replacing earlier practice of accepting bank statements alone—complicating applications for founders with diversified revenue streams or discretionary trust distributions. The Second Home programme remains limited to nationals of 37 pilot countries; Indonesia has not expanded the list since 2023, despite sector advocacy for including China and India. No announced plans exist to increase the USD 130,000 bond threshold, though inflation and rupiah depreciation (15,800 IDR/USD in March 2026 versus 14,200 in 2022) effectively raise local-currency carrying costs. Provincial immigration offices in Bali and Jakarta introduced online renewal portals in late 2025, reducing in-person reporting to annual rather than biannual visits for Second Home holders—E33G renewals still require physical attendance. OECD BEPS Pillar Two has no immediate impact; Indonesia's corporate tax rate remains 22 per cent, below the 15 per cent global minimum, and the permits confer no Indonesian corporate nexus. UK founders should note that HMRC's April 2025 remittance-basis reforms (abolished for new arrivals after April 2025, four-year transitional for existing non-doms) do not affect Indonesian residency per se, but the 183-day Indonesian tax-residence trigger may create dual-residence requiring treaty tie-breaker analysis if UK ties remain strong. US persons see unchanged exposure: Indonesian residence alone does not trigger Subpart F or GILTI unless a controlled foreign corporation is established locally. Regulatory stability appears likely through 2026; Indonesia prioritises high-net-worth and digital-nomad inflows to offset tourism volatility, and both programmes enjoy Cabinet-level sponsorship.