Retire in Indonesia
Featured city: Bali
US State Dept · Level 2 — Exercise Increased CautionMid-range benchmark for a couple. Use the Matcher for FX- and inflation-adjusted comparisons.
Indonesia's new second-home visa offers 5–10 year residency for qualifying retirees. Bali in particular is famed for its wellness culture, lush landscapes, and well-developed expat infrastructure in Ubud and Canggu.
Second-home visa, tropical lifestyle, wellness culture
- Low Cost
- Warm Climate
- Beach/Coastal
- Easy Visa
- Expat Community
- US State Department advises exercising increased caution — verify current advisory before travel.
- English is not widely spoken outside major cities — plan for a language learning curve.
- Healthcare quality can be uneven outside major urban centers — private international insurance is strongly recommended.
- Infrastructure (roads, internet, utilities) may vary by region — visit before committing to a long lease.
Retirement visa
The "Second Home" Visa requires a bank statement showing approximately $130,000 or high-value real estate.
Cost of living
In Ubud, Bali, a private villa can be rented for $1,200, and dining out is extremely affordable at local warungs.
Numbeo cost indexHealthcare
Expats often travel to Singapore for major procedures, though private clinics in Bali and Jakarta are improving.
Healthcare indexSafety
Indonesia is generally safe, though petty theft occurs in tourist hubs and natural disaster risks are present.
travel.state.govMonthly cost of living in Indonesia
These figures reflect a comfortable expat life in Ubud, Bali's inland cultural hub, which is the classic entry point for foreign retirees alongside coastal Canggu and Sanur. Canggu runs noticeably higher on rent and dining due to its digital-nomad boom; Sanur is calmer and similarly priced to Ubud; outside Bali, cities like Yogyakarta on Java are considerably cheaper but have far less expat infrastructure.
| Expense | USD / mo | IDR / mo |
|---|---|---|
| Rent — 1-bedroom villa, popular areaPrivate pool villa is common at this price point in Bali | $450 | Rp7,000,000 |
| Rent — 1-bedroom, outside centre | $280 | Rp4,350,000 |
| Electricity, water, internetA/C and a private pool pump both add noticeably to the bill | $90 | Rp1,400,000 |
| Groceries (one person)Local warungs and markets are cheap; imported/organic goods cost Western prices | $200 | Rp3,100,000 |
| Eating out (10-15 meals)Local warung meals Rp25,000-40,000, Western cafés Rp80,000-150,000 | $120 | Rp1,870,000 |
| TransportScooter rental is standard; Gojek/Grab for the rest | $50 | Rp780,000 |
| Mobile phone plan | $10 | Rp156,000 |
| Private health insurance (age 65)Should include evacuation to Singapore for anything serious | $280 | Rp4,350,000 |
| Second Home Visa admin (amortised) | $40 | Rp620,000 |
| Leisure and travel fund | $140 | Rp2,180,000 |
About $1,500/month for one person in Ubud or Sanur, or $2,000+ in Canggu.
About $2,300/month for a couple sharing a villa, with utilities and food scaling up.
Figures last reviewed September 2026. Cross-checked against Numbeo cost of living in Indonesia . Currency conversions move — re-check before budgeting.
How much do you need to retire in Indonesia?
Bali's cost of living has risen sharply over the last decade as it's become a global remote-work hub, and villa rental prices in the most popular areas now rival some parts of Southern Europe.
A simple local life away from the tourist core, or on Java or Lombok instead of Bali.
- Basic room or small house outside Ubud/Canggu's premium zones
- Warung meals and local market shopping
- Scooter rental only
- Minimal insurance, using public or lower-cost private clinics
The realistic target: a private-pool villa, eating out often, real insurance with evacuation cover.
- 1-bedroom villa with a private pool in Ubud or Sanur
- Mix of warung and Western café/restaurant dining
- International insurance with Singapore evacuation
- Regular yoga/wellness activities and regional travel
A larger villa in Canggu or Seminyak with a driver and comprehensive care access.
- Multi-bedroom villa with staff (housekeeper, gardener)
- Private driver or car
- Comprehensive insurance covering Singapore treatment
- Frequent international travel and dining out most nights
What the Second Home Visa actually requires
- Visa name
- Second Home Visa, introduced in 2023, Indonesia's first long-stay visa aimed partly at retirees and wealthy foreigners.
- Financial requirement
- A minimum of US$130,000 held as a deposit in an Indonesian state bank, or proof of equivalent property ownership in Indonesia.
- Visa duration
- Issued for 5 or 10 years, renewable, with no minimum stay requirement to maintain it.
- Issuing authority
- Administered by Indonesia's Directorate General of Immigration (Ditjen Imigrasi) under the Ministry of Law and Human Rights.
- Alternative: retirement KITAS
- A separate, older Retirement Stay Permit (KITAS) exists for applicants aged 55+ with roughly US$1,500/month in pension income, though it is less commonly used than the Second Home Visa now.
- Work rights
- The Second Home Visa does not authorise local employment; it's designed for people living on foreign income or assets.
- Family inclusion
- Spouses and children can typically be included on the same application with proportionally higher combined financial thresholds.
Indonesia's Second Home Visa is relatively new and rules have been refined since introduction. Confirm current thresholds and bank requirements with Ditjen Imigrasi or a licensed visa agent before transferring funds.
Compare retirement visas across countries →Taxes for retirees in Indonesia
- Tax system
- Worldwide
- When you become tax resident
- Tax resident after 183 days in any 12-month period.
- Income tax rates
- Progressive 5–35%.
- Capital gains, wealth & inheritance
- Capital gains at ordinary rates (0.1% for listed shares); no wealth tax; no inheritance tax; land and building tax modest.
- How your foreign pension is treated
- Residents are taxed on worldwide income including pensions; certain new foreign residents can be taxed on Indonesian income only for four years under the skilled-worker rule.
- US tax treaty
- No US income tax treaty — relief usually comes from the US foreign tax credit instead.
Tax incentives for retirees
- No inheritance tax.
- Second Home Visa holders can structure affairs so foreign pensions stay outside Indonesia.
- Listed-share disposals taxed at a flat 0.1% of proceeds.
General information only, not tax advice. Rates, thresholds and special regimes change frequently and your outcome depends on your citizenship, residency history and treaty position — confirm with a cross-border tax adviser before you move money or change residence.
Retiring in Indonesia: common questions
How much money do you need to retire in Bali or Indonesia?
A lean life away from Bali's tourist core runs about $1,100/month, a comfortable private-pool villa in Ubud or Sanur with real insurance runs about $1,900/month, and a larger Canggu or Seminyak villa with staff runs $3,200+/month. The Second Home Visa itself requires a separate US$130,000 deposit in an Indonesian bank or equivalent property, which is a capital requirement rather than a monthly income test.
What is Indonesia's Second Home Visa and is it good for retirees?
It's a 5- or 10-year renewable visa introduced in 2023 that requires holding US$130,000 in an Indonesian state bank or owning equivalent property, with no minimum stay obligation to keep it valid. It doesn't require ongoing monthly pension proof the way Thailand's or Malaysia's visas do, which suits retirees with savings rather than a formal pension. An older retirement KITAS route also exists for those 55+ with roughly $1,500/month in pension income.
Can foreigners own property in Indonesia, including Bali villas?
Foreigners cannot own freehold land in Indonesia. Most foreign 'villa ownership' in Bali is actually a long-term leasehold (commonly 25-30 years) on the land, or use of an Indonesian nominee company structure (PT PMA) — the latter carries real legal risk and has led to disputes when relationships or structures break down. Anyone buying in Bali should use an independent Indonesian notary and lawyer and understand exactly which structure they're entering.
Is healthcare good in Bali for retirees?
Bali International Medical Centre (BIMC) and Siloam hospitals handle routine and moderately complex care well and are used to treating foreigners. For serious conditions — major surgery, cancer treatment, complex cardiac care — most residents plan to fly to Singapore, which is about 2.5 hours away, so insurance with medical evacuation is close to essential rather than optional.
Do retirees pay Indonesian tax on a foreign pension?
Tax residents (generally present 183+ days) are taxed on worldwide income including pensions at progressive rates up to 35%, though there is a limited four-year exemption for certain skilled foreign workers that doesn't typically apply to retirees. There is no US tax treaty, so any relief for US citizens comes through the foreign tax credit rather than a treaty; get specific advice before assuming your pension is untouched.
Ubud, Canggu or Sanur — which is best for retirees?
Ubud offers a cooler inland climate, a large wellness- and culture-oriented expat community, and moderate prices. Sanur is calmer, closer to the airport and hospitals, and popular with older retirees specifically for that reason. Canggu is the trendiest and most expensive, dominated by younger digital nomads, with heavier traffic and less peace and quiet.
Is Bali safe for retirees?
Violent crime against foreigners is rare, and most retirees feel safe walking around Ubud or Sanur. The bigger practical risks are road traffic accidents involving scooters, occasional petty theft and bag-snatching, and periodic flight disruption from volcanic ash (Mount Agung and others). Belief in generally low crime shouldn't extend to relaxed scooter safety — helmet use and sober riding matter.
How is air quality and the environment in Bali for retirees with health conditions?
Bali's air quality is generally good compared with mainland Southeast Asian and Indonesian cities, though localised burning of rubbish and agricultural waste can cause temporary smoke problems in some areas, particularly the dry season. Jakarta and other major Java cities have far worse chronic air pollution and are a poor choice for anyone with respiratory conditions. Water quality also varies by area — most residents filter tap water or use bottled/refillable gallon water.
Still deciding? Ask retirees in the forum or read the retirement visa guide.
Ready to compare with your budget?
Run the calculator or open the Destination Matcher to see how Indonesia fits.
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Educational content only — not immigration, tax, legal, or financial advice. Visa, golden-visa, and citizenship-by-investment rules change frequently. Verify with the official government source above and a licensed professional before making any relocation, investment, or citizenship decision.