How to Live in Bali Permanently: Making the Dream a Reality

Every year, over 30,000 foreigners attempt to establish long-term residency in Bali, but fewer than half succeed in staying beyond three years. You’ve probably dreamed of waking up to Bali’s verdant rice terraces and vibrant culture as your permanent reality, not just a vacation fantasy. The path to permanent life on this Indonesian paradise involves maneuvering complex visa structures, understanding property ownership restrictions, and meeting specific financial thresholds. The difference between those who stay and those who leave often comes down to strategic planning and insider knowledge.

Key Points

• Secure long-term residency through KITAS visas for work, retirement, or marriage, with potential transition to KITAP permanent status.
• Invest in property via leasehold arrangements or strata-title apartments, as foreigners cannot directly own land in Indonesia.
• Qualify for retirement visas if you’re over 65 with sufficient income, or pursue the Second Home visa with a substantial deposit.
• Establish tax residency understanding, as staying over 183 days subjects you to Indonesian taxation on worldwide income.
• Budget $1,500-$2,000 monthly for living expenses, plus visa fees, health insurance, and property investment costs.

Understanding Visa Pathways for Long-Term Residence in Bali

While Bali enthralls millions of visitors annually, staying permanently requires maneuvering Indonesia’s complex visa system. You’ll need to move beyond tourist visas, which only offer 60-day stays with a single 30-day extension option.

For longer residency, you’ve got several pathways. The B211A multiple-entry visa lets you stay up to 6 months with proper extensions, though you’ll need agency sponsorship. Those seeking briefer stays can utilize the visa on arrival option, which grants a 30-day stay for eligible nationalities. Visitors should remember to avoid overstaying as this can result in hefty fines of IDR 1,000,000 per day and possible deportation.

For true permanence, work-based KITAS permits require Indonesian company backing, while investors can qualify with $1.2M in local business investments.

Family connections offer another route—marrying an Indonesian citizen enables spouse KITAS applications.

High-net-worth you can pursue the Golden Visa through $5M+ investments or the Second Home program with a $130K property purchase or $2M bank deposit.

KITAS vs. Second Home Visa: Which Option Suits Your Situation?

For most expatriates considering permanent life in Bali, two main visa pathways emerge as frontrunners: the KITAS permit and the Second Home visa.

Your choice depends largely on your circumstances. If you’re coming to work, marry, study, or retire, the KITAS is your go-to option, requiring a sponsor and valid for 6 months to 5 years. You’ll need a passport, sponsor letter, and relevant permits. The KITAS is specifically designed for retirees as a retirement visa option, making it popular among those looking to spend their golden years in Bali.

The Second Home visa targets affluent foreigners seeking hassle-free long-term residence without work requirements. It demands a substantial IDR 2 billion deposit but offers 5-10 year stays with greater lifestyle flexibility. Living permanently requires careful visa planning to ensure you maintain legal residence status throughout your stay.

Consider your financial capacity and purpose for moving. Working professionals typically need a KITAS, while those seeking retirement or leisure might find the Second Home visa’s longer validity worth its investment.

From Temporary to Permanent: The Journey to KITAP Status

Securing permanent residency in Bali requires a strategic shift from temporary permits to the coveted KITAP status. After maintaining your KITAS for the required period, you’ll be eligible to apply for a KITAP, which offers substantial benefits for your life in paradise.

Only specific KITAS types can lead to permanent residency:

• Working, Spouse, and Investor visas provide the clearest pathways to KITAP status.
• You’ll need continuous residency on your valid KITAS before applying.
• Documentation requirements include proof of residency, income sources, and health insurance.
• The process involves multiple steps through immigration authorities.

The KITAP rewards your commitment with five-year renewable residency, multiple entry privileges, and potential family benefits—truly transforming your Bali dream from temporary adventure to permanent lifestyle. US citizens over 65 years old meeting the minimum income requirements may qualify for retirement visas as another pathway to long-term residence in Bali. While pursuing your residency, you might find taking Balinese dance classes enriches your cultural integration and helps build meaningful connections with local communities.

Financial Requirements and Investment Options for Expats

Exploring the financial landscape of Bali as an expat requires both careful planning and strategic investment choices. You’ll need $1,500-$2,000 monthly for comfortable living, covering accommodation, food, transportation, and leisure activities. Healthcare, utilities, and lifestyle choices can considerably impact your budget. Living costs vary significantly based on your chosen location, with areas like Candi Dasa and Amed offering more affordable options compared to upscale Seminyak or Ubud. Many first-time visitors are surprised to discover that Bali offers varied price points depending on your travel style and preferences.

For permanent residency, several investment pathways exist. The Second Home KITAP requires maintaining $313,000 in property ownership, while the Investment KITAP needs a $50,000 deposit in a state-owned bank plus $3,000 monthly income. Business investors must demonstrate active operations and tax compliance.

Consider hidden costs like visa agent fees ($500-$2,000), annual KITAS renewals ($300-$1,000), and mandatory health insurance ($1,000-$2,000 annually). Remote work remains popular among expats, as local employment often doesn’t match foreign income levels.

Navigating the Indonesian Immigration System Successfully

Successfully establishing permanent residency in Bali requires maneuvering Indonesia’s multi-tiered immigration system with patience and meticulous attention to detail.

You’ll need to progress from temporary permits (KITAS) to permanent status (ITAP) through one of several pathways.

Key strategies for immigration success:

• Secure proper sponsorship—almost all visas require an Indonesian guarantor (individual or company)
• Use the online Merpati portal for applications and track your documents meticulously
• Stay compliant with reporting requirements; notify immigration when changing addresses
• Prepare for financial commitments, including visa deposits and potential tax obligations

Remember that each visa type has specific requirements, from the retirement KITAS for those over 55 to the marriage-based path that offers ITAP eligibility after two years. Converting to a KITAP requires having the same sponsor for 5 years to avoid rejection of your application.

Overstaying results in steep daily fines of IDR 1M.

Many expats choose to settle in Nusa Dua area for its luxurious amenities and infrastructure while navigating their residency journey.

Property Ownership Rules for Foreigners in Bali

While Bali’s property market entices many foreign investors with its tropical allure, ownership rules for non-Indonesians create a complex landscape you’ll need to navigate carefully.

Bali beckons investors but demands careful navigation through complex foreign ownership regulations.

As a foreigner, you can’t directly own land (Hak Milik) in Indonesia, but you have several viable alternatives.

Your most straightforward options include leasehold agreements (typically 25-30 years, extendable to 80 years total), strata-title apartment ownership, or establishing a PT PMA company with minimum investment of IDR 10 billion to obtain HGB rights. Construction costs typically range from USD 500-1500 per square meter depending on your villa specifications and location.

Whatever path you choose, thorough due diligence is essential. Verify certificates through the National Land Agency, check zoning permissions, search for encumbrances, and have contracts reviewed by Indonesian legal professionals. Avoid illegal nominee systems that can result in property loss and significant financial repercussions.

Remember that agricultural land conversions require government approval, and all agreements need proper notarization.

Tax Implications for Long-Term Residents

Understanding your tax obligations becomes essential when you settle in Bali long-term, as your residency status considerably impacts what you’ll owe to Indonesian authorities.

If you stay more than 183 days in any 12-month period or hold a KITAS or similar visa, you’ll likely be classified as a tax resident, making your worldwide income taxable in Indonesia.

Key tax considerations for Bali residents:

• Indonesian tax residents face progressive rates from 5% to 35%, while non-residents pay a flat 20% on Indonesian-sourced income
• Digital nomads with the E33G visa must understand how their tax residency status affects global income reporting
• Capital gains are generally taxed at 0.1% for individuals, plus applicable VAT
• Double taxation agreements exist with many countries to prevent paying taxes twice on the same income

While focusing on tax compliance, always prioritize your personal safety when transferring money or visiting government offices in unfamiliar areas of the island.

Note that cryptocurrency investors should be prepared for volatile tax legislation that began in 2022 and includes a 1.1% VAT on transactions.

Employment and Business Opportunities While Living in Bali

Beyond understanding tax obligations, securing a sustainable income stream forms the backbone of your permanent life in Bali. The island offers diverse employment pathways across multiple sectors.

Financial sustainability isn’t optional for expat life—it’s the foundation upon which your Balinese dream stands.

You’ll find hospitality roles requiring multilingual skills, particularly in hotel management and the booming $1.3B wellness tourism market. Digital nomads thrive with 100+ Mbps internet speeds and co-working spaces like Dojo Bali offering visa support. Online job platforms provide access to 100 foreign jobs available with varying salary ranges from entry-level to high-paying positions.

Teaching positions at international schools like BIS recruit native English speakers annually, while creative industries seek foreign expertise in graphic design and digital marketing.

For entrepreneurs, restaurant ownership through PT PMA licenses requires just $70k investment, while export businesses benefit from Bali’s free trade zone advantages.

Consider specialty agriculture or co-living development to capitalize on Bali’s unique market opportunities. The island’s thriving tourism sector also offers opportunities to work in adventure activities like water sports instruction, guided hiking tours, and outdoor expedition planning.

Healthcare Considerations for Permanent Residents

Securing adequate healthcare remains a critical factor when planning your permanent move to Bali, as medical infrastructure differs considerably from Western standards.

After six months of residency with proper documentation, you’ll qualify for the BPJS Kesehatan public healthcare scheme, though many expats opt for private coverage due to quality concerns.

Your healthcare planning should include:

• Budgeting for private health insurance that covers both local treatment and medical evacuation
• Understanding that serious medical conditions may require transport to Singapore or beyond
• Confirming your eligibility for BPJS Kesehetan based on your visa status (KITAS/KITAP holders qualify)
• Setting aside emergency funds for unexpected medical costs not covered by insurance

Don’t underestimate healthcare planning—it’s often the difference between a dream lifestyle and unexpected complications.

Private facilities like BIMC Hospital Bali and Bali Royal Hospital offer high-quality care with internationally trained medical professionals, making them preferred options for expatriates.

When considering areas to settle, Nusa Lembongan Island offers unique advantages with its more relaxed healthcare environment compared to busier regions of Bali.

Cultural Integration: Building a Fulfilling Life in Bali

While obtaining visas and healthcare form the practical backbone of your Bali relocation, truly thriving on the island demands meaningful cultural integration beyond the expatriate bubble.

Start by learning basic Indonesian phrases and understanding Balinese Hindu traditions. Respect religious ceremonies, dress appropriately at temples, and participate in community events like gotong-royong to build meaningful connections. Learning a few essential Balinese phrases will significantly enhance your daily interactions and show respect for the local culture.

Remember that family obligations often supersede individual priorities in Balinese culture.

Avoid the common pitfall of isolating yourself in expatriate enclaves. Instead, support local businesses, volunteer for environmental projects, and consider studying traditional arts. These efforts demonstrate your commitment to becoming part of the community rather than just another tourist.

The Balinese are generally characterized by their warmth and hospitality, often greeting visitors with welcoming smiles despite potential cultural differences.

Be mindful of economic disparities and practice sustainable living to align with Balinese values. Cultural integration requires patience and genuine curiosity, but yields the most authentic island experience.

Last Words

Living permanently in Bali isn’t just about paperwork and investments—it’s about creating a life that honors both your dreams and local culture. Stay informed about visa changes, manage your finances wisely, and build genuine connections with your Balinese neighbors. Remember, “home is where you hang your hat,” but making Bali truly feel like home takes planning, respect, and commitment to the journey.