Bali is the world’s digital nomad capital. From influencers to vloggers, from social
media managers to remote workers across all sectors and industries, the Island of the
Gods is a top pick as a home away from home for digital nomads.
Moving to Bali will provide you with enough sightseeing gems for a lifetime. From sculpted
rice terraces to ancient temples semi-hidden in the depths of the jungle, beaches with
volcanic black sands and never-ending waves, and lakes high up in the mountains; Bali is
certainly stunning.
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my name is Ahmadreza and here at Persia global we help those who are in search of better
opportunities to work & live or study abroad. But today, I’m going to give you an update
on a new nomad visa for remote workers enthusiasts, as we used to give updates on these types
of visas, so if you have not yet subscribed to our channel, subscribe now and to get informed
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Bali is in many ways an incredibly wonderful place to live and work, and there are many
expatriates from all over the world living in Bali, who have opened businesses and made
a living. Bali is a wonderful place to retire. There is the obvious reason that it is a beautiful
tropical paradise with warm weather all year round, but it also has many other amazing
plus points to consider. For one, the Balinese people are incredibly warm, helpful and welcoming
and almost everybody speaks English. The first thing you need to know is that Bali has excellent
hospitals and high-quality medical care available 24-hours a day. Like many countries, Indonesia
has both public and private hospitals. Housing prices for rent could start from a $300 USD
per month for a simple homestay, and $8000 USD per year for a 2–3-bedroom villa.
Should Indonesia launch a digital nomad visa, it would be one of the first countries in
South East Asia to do so. Thailand have also been trying to implement a remote worker visa
for a few years but is yet to launch. This remote worker visa, known as digital nomad
visa category, is increasing in popularity across Europe, though European nomad visas,
apart from higher living expenses than the Same in Bali, require workers to prove a minimum
income and pay tax locally that brings some problems for remote working applicants. This
visa is totally tax free with of course lower living expenses in stunning Bali.
At present, it is difficult for digital nomads to stay in Bali long term. They must either
find a way to become employed or set up a business or non-profit organization. They
then must go through the costly and arduous process of obtaining a KITAS visa which is
a type of temporary residence visa. Alternatively, they must enter Indonesia on a social or visitor’s
visa which last just 60-days at a time with an extension. This creates a grey area for
many, including immigration staff. However, an Indonesian "digital nomad" visa would regularize
what remote workers in Bali are already doing, without requiring them to extend their visas
every few months, and removing the risk of quick deportation for breaking the rules. Perhaps
the most significant aspect of the remote worker visa is that digital nomads would not
be required to pay tax in Indonesia, provided that their income was being generated overseas.
But, if revenue of any kind were to be generated within Indonesia, then the individual would
need to apply for a business KITAS or the D212 Multiple Entry Visitor Visa which allows
travelers to conduct work-related activities, visit family, and friends, and travel as a
tourist. Currently, visitors can either get a tourist
visa for a maximum of 60 days or jump through numerous legal hoops for a six-month temporary
work permit. But anyone staying in Indonesia for longer than 183 days of a full year, automatically
becomes a local tax resident—which means subjecting overseas income to Indonesia's
tax rates. So, by this visa at hand you can live and work tax free for 5 years without
a need for visa extension. Indonesia's digital nomad visa would also
be longer than every other “digital nomad” visa currently available, in 33 countries
including Germany, Mexico, Barbados, and Estonia. Data compiled by Harvard Business School finds that
most “digital nomad” visas offer stays of one to two years, with the most generous
offering a four-year stay. Indonesia's top tax bracket is a 35% tax
rate at income above about $350,000. While that's a lower tax rate than countries like
the U.S. and the U.K., it's still more than other potential digital nomad hubs.
Dubai, which offers its own one-year renewable "digital nomad" visa, does not charge income
tax at all, whatever the visa type. So, having such a visa, a tax exemption for
income from overseas would lower the tax burden on Indonesia-based remote workers, lowering
the risk of double taxation.
Before the pandemic, Indonesia was weighing up creating a 5-year remote working visa,
especially for digital nomads. The discussion was put on hold when Covid-19 struck but as
the pandemic draws to a close, the topic is up for consideration once again.
A digital nomad visa would lure tens of thousands of remote workers to Bali. It would also support
new digital nomad hotspots to be created. Areas like Lombok, and many more rural parts
of Java and Sumatra have the internet infrastructure, but not the international investment that
Bali has. There is a global shift towards remote working and the benefits to workers’
mental health and business’ profits are telling.
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