Bali's new digital nomad visa means foreigners can live and work in Indonesia tax free

Indonesia is hoping to entice more remote workers to the country with a new digital nomad visa.

The proposed visa seeks to incentivise digital nomads to work from popular destinations like the island of Bali.

Indonesia’s tourism minister Sandiaga Uno said the new permit was part of a move away from sunseeker tourism towards a more sustainable model.

The planned digital nomad visa will be valid for five years. It will allow remote workers to live in the country tax-free, as long as their income derives from businesses based outside of Indonesia.

The special permit is designed to be a simple solution for foreigners wanting to work in the Asian country. A more streamlined application process and a greater frequency of flights to the archipelago aim to lure employees with work from anywhere policies.

The five-year visa would become the longest digital nomad visa available compared to other countries.

As yet, guidelines on when and how you can apply for the visa have not been announced.

Bali is already a favourite destination for remote workers with its warm climate and low living costs. But current visa rules don’t facilitate long-term stays.

At the moment, digital nomads can apply for a temporary visa to work from Indonesia. Options include the Visa on Arrival (VoA), which is valid for 30 days, the tourist visa, which can be renewed to last a total of 60 days, or a business visa that can be extended to 180 days.

Visitors staying longer become local tax residents requiring them to pay Indonesia’s tax rates on earnings from overseas.

In 2021, an idea for a digital nomad visa was already in the works but plans were derailed when the pandemic forced the island to close borders and restrict visitors.

The remote working visa comes as part