Indonesia offers tax-free visas to expats who move there to ‘work from home’
If you work remotely, consider yourself a digital nomad or expat you could be logging on from Bali and you won’t owe the Indonesian government any tax. Yep, you read that right! This is how it works.
Indonesia is set to become the latest travel destination to offer remote workers the chance to live there tax-free as part of a new visa.
The proposed five-year ‘digital nomad visa’ was announced by Indonesia’s tourism minister, Sandiaga Uno, during the week.
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The visa will mean freelancers, expats , digital nomads or anyone else who is able to work remotely will be able to work from popular destinations like Ubud, Penida, Kuta, Jakarta, Lombok , Gili and Bali – provided their earnings come from companies outside of Indonesia.
Uno said that the country was hoping to bring 3.6 million overseas travellers back to the archipelago in the next year through the remote working visa, as well as placing a greater focus on spiritual retreats and eco-tourism.
“In the past, the ‘three s’ were sun, sea and sand. We’re moving it to serenity, spirituality and sustainability. This way we’re getting better quality and better impact on the local economy,” Uno told the South China Morning Post on Monday.
The minister added that the decision was based on research which showed Indonesia – particularly Bali – was “top of mind” for 95 per cent of remote workers surveyed.
There were earlier plans for a digital nomad visa in 2021, before they were sidelined due to the rising COVID-19 case numbers in Indonesia.
“Now with the pandemic handled and all the ministries getting involved and cooperating from the health side to the immigration office, we believe that this is an opportune time to relaunch this idea,” Uno said.
Currently, temporary visas for remote workers are the Free Visa, Visa on Arrival (VoA), or the Social, Tourist or Cultural Visa – but these only last between 30 and 180 days.
Indonesia had previously retained strict travel rules until they were eased on March 7.
Under the revised rules, double vaccinated travellers can now visit the islands without the need for tests or quarantine, though travel insurance with cover for COVID-19 treatment is mandatory.