Moving to Bali for retirement

Why choose to retire in Bali, and what are the visa and tax issues to bear in mind? This article explores the environment of your future retirement destination, and answers your practical questions.

Expatriate to Bali: Between culture, dream landscapes and the gentle way of life

An idyllic setting

From the popular beach of Seminyak, through the seafood restaurants of Jimbaran beach, to the tranquil white sands of Sanur, Bali’s reputation is well established. The island has been ranked the world’s #1 destination by TripAdvisor in 2021, thanks in particular to the quality of its hotels, restaurants and activities.

Its tropical climate guarantees pleasant temperatures all year round, and there are two seasons: the dry season (April to October) and the rainy season (November to March). Its warm turquoise waters are ideal for swimming, diving and surfing.

Unique landscapes

Bali is known not only for its beaches, but also for its magnificent landscapes and monuments.

For example, Pura Lempuyang – Bali’s oldest Hindu temple – nicknamed “The Gates of Paradise” is a must-see in the east of the island, atop Mount Lempuyang.

To the west of Bali, you can admire the 600 hectares of Jatiluwih rice terraces, built into the hillside.

Finally, hikers will appreciate the spectacular viewpoint at the summit of Mount Batur, an active volcano at 1,717m altitude from which you can admire the sunrise and the volcanic land below.

Tradition and a rich artistic culture

Bali is the heart of Hinduism in Indonesia. Nicknamed the “Island of the Gods”, its rich culture is reflected in its arts, cuisine, architecture and many aspects of the daily lives of its inhabitants.

To retire in Bali is to choose a tropical and pleasant lifestyle, full of cultural and artistic opportunities. Balinese Hinduism is characterized by respect for the spirits of nature, volcanoes, mountains… Religious ceremonies, as well as dances, theater and festivals, are very common, and foreign visitors are welcome to attend and sometimes participate in these traditional activities.

Cost of living in Bali

In terms of day-to-day living, general costs are much lower than in Europe. Here are some examples of average prices in Bali:

Power supply

• A meal in a local restaurant or “street food”: €1.60
• A meal for 2 in a mid-range international restaurant: €20
• A 33cl bottle of water: 0.20€.
• Espresso coffee: €1.70

Travel

• Bus ticket: €0.22
• Cab fare (minimum fare): €0.44

Entertainment

• Gym membership: €52/month
• Cinema ticket: €3.2

Average rates given as a guide, based on the experience of visitors to Bali in 2022.

Source : https://hikersbay.com/prices/indonesia/bali?lang=en

As far as housing is concerned, Bali is gradually moving into apartments. You’ll find mainly villa offers, from 2-bedroom villas at €200,000* to large 6-bedroom luxury villas at €780,000*. Bali homes generally all have a private swimming pool and at least one small garden.

The gentle way of life, combined with the idyllic landscapes and cultural richness of the Isle of the Gods, make for a retreat from the dreariness of Europe. But be careful before you expatriate: find out as much as you can about your visa requirements, your health needs and current tax legislation.

Practicalities: Visas, Health and Taxation

Retiree Visa

If you’re over 55 and coming to live in Bali for the long term, you’ll need a retiree visa. This is subject to a number of conditions, and we advise you to check with your nearest Indonesian embassy or consulate.

Here – among others – are the main conditions:

• Over 55 years of age
• Commitment not to work
• A pension of approx. 1.500€/month minimum
• Proof of health insurance covering your medical expenses and death benefits
• Undertake to hire an Indonesian person for domestic needs (housekeeping / chauffeur…)
• Proof of purchase or rental of a suitable property

You’ll need a specialist visa agent to guide you through every stage of your application. The sponsor must provide you with a letter of sponsorship to validate your visa.

The retiree visa is initially valid for 1 year, then renewable every year at a cost of around 430€/year*. After 5 years on a retirement visa, you can apply for a permanent residence permit.

Health

It is advisable to take out international health insurance that covers at least hospitalization in a private hospital and repatriation, not forgetting outpatient/dental care depending on your situation.

Private hospitals are preferable, even if they are more expensive. These have English-speaking doctors with better service and resources than public hospitals.

Although Bali is not historically renowned for its hospitals in the same way as Bangkok or Singapore, hospital infrastructures are becoming increasingly developed, notably with the construction of the Bali International Hospital in Sanur, scheduled to open in 2024. It will be run in partnership with the American medical research center Mayo Clinic. (source : Bloomberg Dec. 2021) and will enable expatriates to benefit from even higher quality care.

Taxation

Taxation in Bali is attractive for expatriates. There are no taxes on capital or its transfer, and no wealth tax or inheritance tax.

A tax treaty exists between France and Indonesia to avoid double taxation. If you receive a retirement pension, it will be taxable in France only.

On the other hand, all income generated in Bali – or more broadly in Indonesia (including rental income from real estate investments) – is subject to Indonesian income tax, which is progressive, ranging from 5% for taxable income of around €3,800*, to 30% for taxable income between €32,000* and €320,000*. Beyond that, the tax rate will be 35%.

Source : https://taxsummaries.pwc.com/indonesia/individual/taxes-on-personal-income

Have you decided to retire to Bali? Osiris Investissement, your French real estate expert in Bali, is available to provide you with more information and help you purchase your new home.

Don’t hesitate to contact us to receive our best villa offers to suit your needs.

* Conversions in € are for information only, based on the exchange rate at the time of writing. Original amounts in IDR.