🇮🇩 Moving to Indonesia: tax, residency and cost of living

Key facts

Top income tax

35%

Corporate tax

22%

Capital gains

0%

Wealth tax

No

Inheritance tax

No

Cost of living index

35

Safety

6/10

Internet quality

6/10

Visa-free destinations

80

Foreigners can own property

No

Residency in

0 months

Citizenship in

0 years

Taxes

Indonesia taxes residents (>183 days) on worldwide income progressively from 5% to 35% (top rate since 2022), with a Rp 54m personal allowance (PTKP); there is no wealth tax and no inheritance or gift tax, VAT (PPN) is 11%/12% and corporate tax 22%.

Residency and visas

The Second Home Visa (E33) gives wealthy foreigners multi-year residence against a Rp 2bn deposit or Rp 5bn in luxury property, without an employer or company; naturalisation is possible after about five years of permanent residence, but dual nationality is not allowed.

Property ownership

Foreigners cannot acquire full freehold (Hak Milik) in Indonesia; they rely on the Hak Pakai right of use or ownership through a PT PMA company, and transfers carry a 2.5% duty. For anyone wanting outright ownership that is a clear negative.

Cost of living and quality of life

Indonesia offers low living costs, a tropical climate and established expat hubs like Bali and Jakarta; against that, healthcare and infrastructure quality vary sharply by region and traffic is heavy in the big cities.

Passport and mobility

The Indonesian passport reaches about 80 destinations (moderate) and dual nationality is not allowed for adults, but there is no hard exchange control, so capital moves relatively freely (with central-bank reporting above thresholds).

Residency and visas

• Second Home Visa (E33): meerjarig verblijf voor vermogende buitenlanders tegen een borg van Rp 2 mrd (~USD 126k) op een Indonesische staatsbank of luxe vastgoed van Rp 5 mrd; geen werkgever of bedrijf vereist · €126,000 · Residency in 5 years
• KITAS (werkvergunning): tijdelijk verblijf op basis van een arbeidscontract met een Indonesische werkgever of een eigen PT PMA-vennootschap; verlengbaar, route naar KITAP (permanent verblijf) · Residency in 4 years
• Retirement KITAS: verblijf voor gepensioneerden vanaf 55 jaar met aantoonbaar inkomen en huisvesting; verlengbaar, geen werk toegestaan · €18,000/j · Residency in 5 years
• Naturalisatie: staatsburgerschap na doorgaans vijf jaar aaneengesloten verblijf; Indonesië staat GEEN dubbele nationaliteit toe voor volwassenen, het bestaande paspoort moet worden opgegeven

Why people move to Indonesia

• No wealth or inheritance tax

  Indonesia levies no wealth tax and no inheritance or gift tax, which makes building and passing on wealth attractive, even though it is offset by a progressive income tax up to 35% on worldwide income.

• Worldwide income taxed and no freehold for foreigners

  Residents pay up to 35% on worldwide income and foreigners cannot acquire full freehold (Hak Milik), only a right of use or ownership through a company; those are the clearest negatives for anyone wanting to settle.