The Ultimate Guide to Expat Living in Bali

What do Brad Pitt, Madonna, Mick Jagger, and the Obamas have in common?

They’re all devotees of the tropical paradise of Bali.

A refuge of the rich and famous for many decades, Bali’s nature, awe-inspiring landscapes and year-round 30-degree temperatures are a major draw for travellers from all locations and every walk of life.

Known as the ‘Island of the Gods’ for its ancient mysticism, Bali has become something of a mecca for bohemians, surfers and sun-seekers.

So much so that the late, great David Bowie once said, ‘Bali is an oasis of calm in a frantic world’.

In this in-depth guide, you can delve through our valuable insights for expats looking to find their own little slice of paradise in this bucket list destination. 

Is Expat Living in Bali Right for You?

Bali draws high-net-worth expats seeking a blend of adventure and tranquility.

While the island, and all of Indonesia, aren’t particularly popular for any great tax advantages, getting residency is quite simple for both investors and retirees.

Beyond that simplicity, Bali is ideal for those who appreciate lush landscapes and serene beaches alongside a pretty lively social circle.

You will find yourself brushing shoulders with expats from all over the world with a passion for everything from arts and culture. It is especially ideal for those interested in learning about and indulging in the island’s deep spiritual culture, which you’ll find embodied in numerous temples and ceremonies.

While Bali is generally more affordable than many Western countries, it suits those who are adaptable, as you will likely encounter varying infrastructure and local regulations. Other factors to consider include:

Pros

• Natural Settings: Bali’s world-renowned beaches, verdant rice terraces and lush jungles create an idyllic setting that you’ll love if you want to escape the hustle and bustle of bigger cities like Bangkok or Singapore.
• Strong Expat Community: Because of its popularity, the island is home to a thriving expat community, meaning you’ll have numerous opportunities for socialising and networking with like-minded individuals.
• Affordable Living: While housing costs have risen post-pandemic, Bali can still offer a more cost-effective living environment compared to many places in the West.

Cons

• Inconsistent Infrastructure: Power outages and water supply issues can occur outside major tourist areas.
• Traffic: Roads are often narrow and congested, especially in popular areas near Canggu, which can make moving around the island quite difficult at times.
• Cultural Differences: Like many popular expat destinations in Asia, culture and traditions in Bali are very different from what most Westerners aren’t used to. We don’t believe this is a ‘con’. It just means you will need to be more open-minded and flexible than in a place like Portugal or Mexico.

Indonesia – Country Guide

One of the most striking things about Indonesia is how much it is overlooked by the rest of the world. 

For a country with a population of over 280 million, the fourth largest behind China, India and the US, Indonesia’s scale is vastly underappreciated. 

In fact, Indonesia is the largest archipelago nation in the world, with over 17,500 islands. 

The country is located between the Pacific and the Indian Oceans and is considered transcontinental in that it spans Asia and Oceania. 

Indonesia also shares Borneo, the third-largest island in the world, and is the sovereign ruler of three other large islands – Sumatra, Sulawesi and Java. 

The sheer size of Indonesia is apparent when you consider that the island of Java is home to 56% of the Indonesian population. 

This relatively small strip of land holds more people than Japan or Russia in an area of around 124,000 square kilometres, which isn’t even 1% of Russia’s total landmass. 

With 1,100 people per square kilometre, Java has one of the highest population densities in the world.

Setting the scene for exploring Bali, an island province in southern Indonesia considered part of Southeast Asia, you may be surprised to learn that it has a population of around 4.4 million. 

Put in context, that’s ten times the population of the Bahamas. 

While Indonesia’s topography is stunningly beautiful, with lush rainforests and steep volcanic mountains, it’s also one of the most volatile regions in the world for earthquakes. 

Most of the country is part of the infamous ‘Ring of Fire,’ where 90% of all earthquakes happen, and 75% of all active volcanoes on the planet are located.

Indonesia is located at the cross-section of several tectonic plates and lies between two continental plates, the Australian and the Eurasian, and between the two oceanic plates, the Pacific and the Philippine Sea plate. 

Since 2000, the area has suffered 18 earthquakes of strength 7.5 or higher on the Richter scale, the same power as the massive natural disaster that hit Turkey in 2023. 

In 2004, the joint second-strongest earthquake ever recorded happened off the coast of Sumatra, causing a massive tsunami that left colossal destruction in its path. 

With 147 volcanoes, 76 of which are active, Indonesia pays a heavy price for the paradise it inhabits. 

Bali’s Sheer Natural Beauty 

Speaking of beautiful places, one of the world’s most famed resort spots is Bali, an Indonesian tropical island with amazing weather and stunning beaches. 

With the equator cutting through several Indonesian islands, the climate is consistent throughout the year with only two seasons: the dry one from April to October and the rainy season from November to March. 

However, the humidity is high and remains consistently above 75%. 

Like the rest of Indonesia, due to its fertile climate, Bali has high biodiversity levels with a wealth of plant and animal species.

While Bali’s fauna and flora are similar to those of other Indonesian islands, it is home to several unique species: 

• The giant teak trees
• The sadly now-extinct Balinese tiger 
• Four different monkey species 
• Wild pigs, deer and an array of coral and marine life. 

Of course, the island also has a large selection of pristine beaches where locals and tourists gather to soak up the sun, surf and admire its famous sunsets. 

Bali consists of eight regions. The capital, Denpasar, is home to around 1.1 million people, and Singaraja, the former colonial capital on the north coast, has a population of around 150,000 people.

Bali has an estimated 100,000 expats, primarily based in the resort towns of Kuta, Sanur, and Seminyak.

According to Bali’s Ministry of Justice, most of the foreign population comes from Australia, the US, Russia, the UK, Japan, Germany and France.

Living in Bali – Affordability 

Naturally, as growing numbers of foreigners flock to the island, it has undergone significant change. 

This is particularly evident in the rising costs of living there. While the island is still affordable compared to the West, the situation has changed dramatically over the past few years due to the influx of new people.

Looking at real estate, for example, it is estimated that prices have risen between 10% and 20% in the last 12 months alone. So, taking a selection of property types:

• A mid-size one-bedroom studio in Canggu, a coastal village on the southwest coast, will cost 27 million Indonesian Rupees (IDR) per month, the equivalent of about US$1,650
• A large three-bedroom, fully furnished villa in Canggu is priced at around US$3,350 or IRD 55 million per month
• A smaller two-bedroom villa in the North Kuta district will set you back IDR 32 million or US$1,950 a month. 

Of course, these properties are secure, well-equipped and modern, with access to swimming pools and other facilities, but they’re not exactly inexpensive. 

In contrast, however, dining out and drinking in Bali remains cheap. 

The average cost of a meal is around US$5 per person, with a high-end dining experience running to around US$25. 

Cocktails are priced between U$S5 and US$10, with a large bottle of local Bintang beer costing US$3.50.

Having said that, if you’re on a backpacker’s budget, hostels are cheap at around US$10 per night, and street food like satay, nasi goreng and betutu are available for a few dollars.  

Culture and Traditions

English is one of the island’s main languages, along with Indonesian and Balinese. Therefore, should you run into a dispute over pricing, you won’t have many issues communicating on the island. 

And with the locals generally welcoming and tolerant of foreigners, that’s unlikely to happen.

It’s worth remembering that Indonesia is the most populous Muslim-majority state, with nearly 87% of the population following its teachings. Alongside Islam, about 10% of the population is Christian. 

Does that mean Bali is strict? 

Not really. The island is well-accustomed to revellers and partygoers and has a tolerant attitude. 

However, foreigners should be careful to observe public decency rules and respect local customs, religious ceremonies, and sacred sites. 

Southeast Asia, in general, has a strict no-tolerance policy when it comes to drugs, and Bali is no exception.

Holiday and surfer vibes might entice some people to partake, but Bali is not afraid to make examples of lawbreakers, especially foreigners. 

The possession of drugs may result in the death penalty. Arguably, the most famous case of this kind is that of the Bali 9 – who were each sentenced to jail for 16 years for drug offences. 

Although their crimes were of a serious nature, even minor possession can result in deportation or worse.  

Cultural conditions aside, living in Bali is no different from living in other expat destinations in terms of schooling and healthcare. 

At last count, there were over 20 international schools in Bali. The private education system caters to all ages, from preschool to officially recognised universities.

Bali’s public health system caters to expats, as the government’s attempts to improve the nation’s healthcare have borne fruit so much so that Bali has become a significant destination for medical tourism, with clinics and hospitals of the highest international standards. 

A consultation with a doctor costs around IDR400,000 (US$28), but expats and visitors should have their own health insurance plan in place to cover emergencies and more complex procedures.

If conventional medicine just isn’t your thing, Bali is also something of a Mecca for spiritual healing, well-being and serenity.

Bali – Where to Visit

This Indonesian island is home to various cultural hotspots, natural wonders and popular tourist destinations and attracts millions of visitors annually. 

Ubud

Known as the cultural centre of Bali, Ubud offers rice terraces, traditional Balinese temples and delicious local cuisine.

The town is located in the island’s central hills and is a place to escape the hustle and bustle, and visitors can explore the many art galleries and museums, such as the Neka Art Museum. 

The Ubud Royal Palace and the Ubud Market are also must-see attractions where you can immerse yourself in the local culture and traditions.

Uluwatu

Uluwatu is one of the most popular surf destinations in Bali. 

If you’re not a fan of surfing, you can take a leisurely walk along the cliffs and admire the ocean views. Its cliffside temple offers traditional Balinese dances during sunset.

The temple, situated at the southernmost point of the island, is believed to protect Bali against evil and is also home to a sizable population of monkeys. 

Kuta, a popular sun trap, also offers excellent shopping, dining and nightlife. 

Seminyak

Seminyak offers high-end boutiques and resorts. 

The beach is a prime location for surfers of all abilities. Still, if you’re less athletically inclined, you can opt for a leisurely walk along the beach promenade lined with various shops, bars and restaurants.

Kuta

Kuta is also renowned for its nightlife, which includes busy bars and clubs.

Beaches and Beach Towns

Jimbaran, a coastal town, is known for its beachside seafood barbecues and traditional fishing village atmosphere, where visitors can watch the local fishermen land their catch. 

Uluwatu is home to the beautiful Balangan Beach, a secluded spot that offers peace from the island’s more touristy areas.

Canggu is a popular spot for surfers and offers excellent cafes and restaurants. The area is also known for its laid-back bohemian vibe. 

Visitors can enjoy some of the best surf spots in Bali, such as Echo Beach and Batu Bolong Beach. 

Sanur, known for its beautiful beaches, traditional markets and Balinese temples, is a great place to learn about the island’s culture. 

Because of the high influx of people, it feels as though there are too many people in Canggu and Bali.

While the price change may disappoint many people, the thing grinding many people’s gears at the moment is the traffic.

 Bali is a series of narrow roadways with infrastructure that was never planned to grow to this level. 

Getting Residence in Indonesia

Unlike some of Bali’s tropical island counterparts, such as Antigua and Barbuda, St Lucia and St Kitts and Nevis, it’s not possible to gain Indonesian citizenship through investment. 

For those wishing to obtain the country’s passport, the routes to citizenship are marriage, birth, adoption or naturalisation. 

It should also be noted that Indonesia does not allow dual citizenship for those who are successful and have resided in Indonesia for at least five consecutive years (or at least ten years non-continuously). 

So, you would have to surrender any other nationality.

Of course, residence is possible, and here are two options for those who want to establish a permanent base on the island: 

• Investor Visa: Valid for two years, this temporary residence visa allows investors to stay and work in Indonesia in exchange for IDR 100,000,000 or about US$68,000 in an Indonesian company. This can be renewed three times, giving six years of legal residence. After five years, it’s possible to apply for permanent residence. 
• Retirement Visa: This visa is available to those 60 years or older who do not plan to work in the country and can prove at least US$1,500 in monthly income. You must prove you live in Indonesia, have medical insurance and have an Indonesian sponsor.
• Remote Worker Visa: This is a relatively new option, introduced in 2021, and the criteria remain fluid. Those who deposit around US$130,000 into an Indonesian state-owned bank can obtain the right to work in Bali tax-free for up to five years. You will be required to make assurances about your professional acumen and the length of your stay.   

For the investor option, you will be required to submit all relevant paperwork, including company formation, business licences and Articles of Association. 

For all residence routes, you will need standard documents proving your identity, a valid passport, a clean police record, proof of your finances and payment for the visa application fee. 

You should seek professional advice to support you through the process. You’ll need to hire an agent or attorney with specific local knowledge. 

We’ve got you covered. Find out more about Nomad Capitalist’s second residence service here.

Taxes in Indonesia

If you stay in Bali for more than 183 days in a 12-month period, you’re deemed a tax resident and subject to tax on income earned in Indonesia and from abroad.

However, if your country has an applicable double tax agreement with Indonesia, your worldwide income is not taxed twice. 

However, foreigners with a work permit for Bali are only taxed on locally sourced income for four years and not on their worldwide income. 

Those with a work permit are liable to pay taxes on locally earned income that range from 5% on US$3,640 to a top rate of 35% on income over US$303,451. 

Meanwhile, corporations are taxed between 20% and 25% on their profits in Indonesia. 

The Ultimate Guide to Expat Living in Bali: FAQs

Living the Dream in Bali

Whatever your motivations, having a second residence to use now or later as a Plan B, particularly in a place like Bali, can open up a world of possibilities. 

Who doesn’t like the idea of international diversification with all its benefits, plus a healthy dose of lifestyle perfection thrown in? 

With the opportunity to pay lower taxes, start a business, retire to the sun, or set up the ideal remote working scenario, Bali is undoubtedly a place to consider. 

Yes, it may work better for Australians and Kiwis, but the diversity of the island’s expat population speaks volumes for its global appeal. 

As a place to call home, a destination you visit once in a while or a place you stay as part of a trifecta strategy without triggering tax residence, there are few better spots than Bali. 

Whatever your reasons, making Bali part of your to ‘go where you’re treated best’ will take planning. 

That’s where Nomad Capitalist comes in. We help seven- and eight-figure entrepreneurs and investors create a bespoke strategy using our uniquely successful methods.

We’ll help you keep more of your own money, create new wealth faster and protect yourself from whatever happens in just three steps. Become a client today.