Indonesia's new digital nomad visa allows tax free living

[Hydrogen]

Indonesia is hoping to entice more remote workers to the country with a new digital nomad visa.

The proposed visa seeks to incentivise digital nomads to work from popular destinations like the island of Bali.

Indonesia’s tourism minister Sandiaga Uno said the new permit was part of a move away from sunseeker tourism towards a more sustainable model.

What do we know about Indonesia’s new digital nomad visa?

The planned digital nomad visa will be valid for five years. It will allow remote workers to live in the country tax-free, as long as their income derives from businesses based outside of Indonesia.

The special permit is designed to be a simple solution for foreigners wanting to work in the Asian country. A more streamlined application process and a greater frequency of flights to the archipelago aim to lure employees with work from anywhere policies.

The five-year visa would become the longest digital nomad visa available compared to other countries.

As yet, guidelines on when and how you can apply for the visa have not been announced.

Current visas for remote workers in Bali

Bali is already a favourite destination for remote workers with its warm climate and low living costs. But current visa rules don’t facilitate long-term stays.

At the moment, digital nomads can apply for a temporary visa to work from Indonesia. Options include the Visa on Arrival (VoA), which is valid for 30 days, the tourist visa, which can be renewed to last a total of 60 days, or a business visa that can be extended to 180 days.

Visitors staying longer become local tax residents requiring them to pay Indonesia’s tax rates on earnings from overseas.

In 2021, an idea for a digital nomad visa was already in the works but plans were derailed when the pandemic forced the island to close borders and restrict visitors.

Bringing sustainable tourism to Bali

The remote working visa comes as part of a push for a different kind of tourist in popular destinations like Bali.

“In the past, the three S was: sun, sea and sand. We’re moving it to serenity, spirituality and sustainability. This way we’re getting better quality and better impact to the local economy,” Uno told Bloomberg.

The minister said the country hopes to see 3.6 million overseas travellers returning to the country next year. The digital nomad visa along with a greater emphasis on eco-tourism and spiritual retreats aims to bring higher spenders who stay longer.

https://www.euronews.com/travel/2022/06/24/balis-new-digital-nomad-visa-means-foreigners-can-live-and-work-in-indonesia-tax-free

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This caters to remote workers. No word on whether crypto traders might also qualify for zero taxation status.

The digital nomad lifestyle is becoming a legitimate trend recognized around the world as boosting local economies and creating jobs. Which in theory, trickles down to elevate local standards of living.

Indonesia is not the 1st to offer these terms. Vanuatu, the philippines and others have offered zero taxation status for crypto investors and travellers who earn digital income.

Zero taxation is an interesting concept to encourage the opposite of capital flight. Where encouraging big(ger) spenders to immigrate into the country and spend their wealth towards the local economy can be deemed of greater value than potential collected taxes.

Perhaps what we see here is a glimpse of what the future will look like.

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[Lucius]

This topic was on the agenda at the end of last year (and maybe even earlier), and as far as I can see this is some kind of news recycling because we still don't know if this law will cover business related to cryptocurrencies, nor is it known how and where to apply for this visa. It would be good for the matter to finally be finalized and for the authorities in that country to start behaving like professionals, and not for us to read every year about how there are plans - so this is not planning a mission to Mars with a human crew

Indonesia's 0% Tax on foreigners and digital nomads

[fiulpro]

This is not something new, my partner is half Indonesian and according to him, right now buying a property or investing in Indonesia might be a huge thing since they are planning on changing their capital soon so this would lead to further profits in those investments as well, therefore if you do have a good amount of money and do want to live in a beautiful tropical country full of natural resources you should look no further. But be careful and understand that it is developing, therefore you won't be able to find all the resources there but I think Indonesia might be having the next big metropolitan city in the charts even with the tourism that they attract I hope they don't go forth and spoil their natural resources its one of a kind.

[jackg]

I wonder if this has been fully thought through or why they'd do this... Does it not promote domestic companies to move and incorporate themselves elsewhere? I'm not sure how easy those loopholes would be to plug and if you're a big company predominantly offering online services it surely encourages setting up your company in a country without corporation tax and employing people in Indonesia). Thst being said, there will still be restaurants and shops taking income and having to pay tax locally but I don't know if they'll fully agree with the tax bourdon placed on them (such as having to put their rates up to fund a higher tax bracket for them - since more people's money may be spent there instead of taxes).

[Findingnemo]

Tax free, hmmm!!! Seems like the leaders recently learnt about how Dubai developed from dessert into one of the richest place but Indonesia can reflect the same? Even they didn't have jobs for the locals and most of the work in other countries for very less salary like even for $100 or 200 in my knowledge so they can't convince the rich people to invest there unless they built the infrastructure to begin with.

[Hamphser]

Tax free, hmmm!!! Seems like the leaders recently learnt about how Dubai developed from dessert into one of the richest place but Indonesia can reflect the same? Even they didn't have jobs for the locals and most of the work in other countries for very less salary like even for $100 or 200 in my knowledge so they can't convince the rich people to invest there unless they built the infrastructure to begin with.

We cant really tell but this would really be depending on geographical location and its resources and its overall condition whether it would be ideal for company owners to put up business due to that tax free concern.

We cant really make out some conclusion that they wont really be able to make out some progress on this one but it isnt really that bad to have this kind of change and tending to go with the same step on what Dubai  did but lets see if this one would be effective or not.

Its really just hard to believe on having that tax free living considering on how taxes do plays a big role on economic development of a certain country
and we know that it is really totally opposing on such idea.

[Findingnemo]

Tax free, hmmm!!! Seems like the leaders recently learnt about how Dubai developed from dessert into one of the richest place but Indonesia can reflect the same? Even they didn't have jobs for the locals and most of the work in other countries for very less salary like even for $100 or 200 in my knowledge so they can't convince the rich people to invest there unless they built the infrastructure to begin with.

We cant really tell but this would really be depending on geographical location and its resources and its overall condition whether it would be ideal for company owners to put up business due to that tax free concern.

We cant really make out some conclusion that they wont really be able to make out some progress on this one but it isnt really that bad to have this kind of change and tending to go with the same step on what Dubai  did but lets see if this one would be effective or not.

Its really just hard to believe on having that tax free living considering on how taxes do plays a big role on economic development of a certain country
and we know that it is really totally opposing on such idea.

Dubai is nothing but a desert, yes they have oil resources but their main revenue generation is coming from the tourism than anything if I am not wrong so even in the next few decades we may not have anymore oil but still Dubai is going to exist because they predicted the future and build policies which encourages people to invest but repeating the same idea after few decades then in my opinion chances are less.

[Google+]

Indeed, this is a pretty good step that was developed by Sandia Uno as the minister of tourism to attract tourists from abroad and interestingly, he implemented a digital nomaden in the province of Bali because Bali is a paradise for Indonesia. but will this be successful in attracting investors chasing in Bali properties and dropping their investment in the province of Bali. I believe that before they run this program they should carry out infrastructure development in each province to smooth the economic life of its citizens.

[btc_angela]

Indeed, this is a pretty good step that was developed by Sandia Uno as the minister of tourism to attract tourists from abroad and interestingly, he implemented a digital nomaden in the province of Bali because Bali is a paradise for Indonesia. but will this be successful in attracting investors chasing in Bali properties and dropping their investment in the province of Bali. I believe that before they run this program they should carry out infrastructure development in each province to smooth the economic life of its citizens.

Bali has been the center of their tourism for the last 20 years, so this is nothing new. Specially foreigners who experience how good Bali is as a paradise and wanted to live there.

As for crypto, if I'm not mistaken since Bali has a lot of Westerners, crypto has been a haven there but the Indonesian government has to step in and crack those. Maybe they will have a change of heart or will regulate crypto to attract those digital nomads.

Police, Bank Indonesia to Clampdown on Bali BTC Transactions. This news is 4 years ago.

[AmoreJaz]

Indeed, this is a pretty good step that was developed by Sandia Uno as the minister of tourism to attract tourists from abroad and interestingly, he implemented a digital nomaden in the province of Bali because Bali is a paradise for Indonesia. but will this be successful in attracting investors chasing in Bali properties and dropping their investment in the province of Bali. I believe that before they run this program they should carry out infrastructure development in each province to smooth the economic life of its citizens.

Bali has been the center of their tourism for the last 20 years, so this is nothing new. Specially foreigners who experience how good Bali is as a paradise and wanted to live there.

As for crypto, if I'm not mistaken since Bali has a lot of Westerners, crypto has been a haven there but the Indonesian government has to step in and crack those. Maybe they will have a change of heart or will regulate crypto to attract those digital nomads.

Police, Bank Indonesia to Clampdown on Bali BTC Transactions. This news is 4 years ago.

for sure they will change their approach towards bitcoin as a lot of these digital nomads may be into crypto already. they need to cater the needs of these tourists so it will be very attractive for their tourism businesses.
maybe, 4 years ago their approach to crypto was different because they didn't have the good grasp about btc market. and now, if they are seeing top companies that are exploring crypto market, then, more then likely they will have a change of heart on this matter.

[dansus021]

i am from indonesia but i didnt hear this news yet till this day after I do some news search here is what I found https://www.liputan6.com/lifestyle/read/4997656/visa-digital-nomad-upaya-genjot-target-15-juta-wisman-berwisata-ke-bali meaning this tax free living to raise digital nomad or tourism to goto bali after covid hit the market very hard (so the foreign can take long time to stay that drive the spending aswell)

and this still not yet realized but its on final stage

[edgycorner]

Damn, but I am sure they will bring in indirect taxation(like visa will be very expensive, or you will have to incorporate some company, which will have its own annual fees). Just like UAE and many other tax havens.
it will end up being a good deal for only "rich" digital nomads. Then again, why would anyone rich go to Indonesia?
Maybe I will be wrong, most probably not.

[oHnK]

it will end up being a good deal for only "rich" digital nomads. Then again, why would anyone rich go to Indonesia?
Maybe I will be wrong, most probably not.

If you are a rich nomads then you could live a luxury life in Indonesia with cheaper cost compare to all other country in Europe. It is a good deal for most people because in general Indonesian salary is around $300 a month or even less for most citizen there so if you only earn around $1000-2000 a month then you could live luxury life in Indonesia but that's not enough to live in some country like Dubai

[edgycorner]

it will end up being a good deal for only "rich" digital nomads. Then again, why would anyone rich go to Indonesia?
Maybe I will be wrong, most probably not.

If you are a rich nomads then you could live a luxury life in Indonesia with cheaper cost compare to all other country in Europe. It is a good deal for most people because in general Indonesian salary is around $300 a month or even less for most citizen there so if you only earn around $1000-2000 a month then you could live luxury life in Indonesia but that's not enough to live in some country like Dubai

yea, $2000 will definitely not be sustainable in Dubai. It's utterly expensive for no good reason.

Indonesia does have beautiful islands. If they do make it happen, and keep a reasonable registration price. Then I will definitely look into it with serious intent.

[wmaurik]

Indeed, this is a pretty good step that was developed by Sandia Uno as the minister of tourism to attract tourists from abroad and interestingly, he implemented a digital nomaden in the province of Bali because Bali is a paradise for Indonesia. but will this be successful in attracting investors chasing in Bali properties and dropping their investment in the province of Bali. I believe that before they run this program they should carry out infrastructure development in each province to smooth the economic life of its citizens.

It could be successful because if you look at Bali in Indonesia there are always tourists who come from abroad to visit there, especially some new things such as world motor racing are also already in Indonesia so that it will increase foreign enthusiasts to visit Indonesia. And that can also be a benefit for Indonesia itself to become famous in the eyes of the world with its various unique features.

[Zlantann]

If you are a rich nomads then you could live a luxury life in Indonesia with cheaper cost compare to all other country in Europe. It is a good deal for most people because in general Indonesian salary is around $300 a month or even less for most citizen there so if you only earn around $1000-2000 a month then you could live luxury life in Indonesia but that's not enough to live in some country like Dubai

This visa is just to attract financially stable digital nomads to boast the tourism sector of Indonesia that have been badly devastated by Covid-19. Low earners would find this visa very unattractive because the intention of the government is to make money from indirect tax and not to provide employment. But Indonesia would be a very good location for Bitcoiners because although the Central Bank of Indonesia discourages banks from engaging in crypto transactions but the government have an open door policy on crypto currencies.