Indonesia — Taxes

A residence base — read the tax rules first Unlike the region’s territorial hubs, Indonesia in principle taxes its tax-residents on worldwide income, at progressive rates up to 35%. VAT is 11%. There is a new-resident regime that can, for qualifying skilled individuals, limit tax to Indonesian-source income for the first four years — a real benefit, but conditional and not automatic for a passive investor.

What the visas are The Second Home Visa grants a five- or ten-year stay for a refundable deposit of about 130,000 USD in a state-owned bank, or qualifying property. The Golden Visa (E28) grants five or ten years for a passive investment of 350,000 USD or 700,000 USD in government bonds, listed shares or funds, with higher business routes above. Both are residence.

The citizenship reality Indonesia does not allow dual citizenship. These visas are not a path to an Indonesian passport; treat them as a long-stay residence and lifestyle base in a large, fast-growing market.

Residency, tax residence and duties elsewhere Whether Indonesia taxes your worldwide income turns on becoming tax-resident there — broadly, presence and intent — not on merely holding the visa, and the visa does not remove obligations to a country that taxes on citizenship, such as the United States. Compare it with the territorial route of Thailand and the zero-tax Gulf option of the UAE, read our residency hub and tax hub, and see how each figure is checked in our methodology.