Retirement in Indonesia
 

Hi,
We've been getting conflicting info, so hoping we can get answers straight from the horses mouth so to speak;)

We're retired and currently "homeless":p Just travelling around Asia. We have MM2H but love Bali. If we go for the retirement visa, are we liable for tax on our pensions (which are paid into a Dutch bank account). Also we would consider buying a lease property - how does taxation work on this?

Would really appreciate any answers:thumbsup:

Re: Retirement in Indonesia
 

Hi Fenella
I've been called a 'horses-arse' but never the 'horses-mouth' :lol: but may have some answers for you.
To get a retirement visa to stay in Indonesia requires age over 55 and an agent...there are many but they charge whatever they think their client can afford. Generally it will be around IDR 8-9 Million a year including a (now) mandatory multi-exit re-entry pass (MERP)....about EUR 5,000. <correction edit: EUR 500>
In law Indonesia taxes anyone resident for more than 6 months on world-wide earnings but I've been here for years and never paid anything...even the agent says don't even apply for a tax ID. The only people I know that pay taxes are employees whose wage tax is deducted and withheld until they declare annually on an NPWP tax ID.
As a retiree is not permitted employment it becomes moot...I have 2 UK pensions (RAF and OAP) and 2 small incomes from Canada and declare nothing. However, I do pay 20% on earnings from FD's in an Indonesian bank in Rupiahs but the current interest rate is over 8% anyway... so can't complain.

I'm not too familiar with purchasing lease property but believe there is a transfer tax of 10% to be split between buyer/seller. Property purchase in Indonesia is something that requires detailed legal information...I'm but an amateur that has some knowledge therefore recommend seeing a lawyer/notary before getting serious about buying property.

I live in Bali, and occasionally in Jakarta where we have an apartment, so can probably guide you if you have any specific questions on lifestyle in Indonesia.

Re: Retirement in Indonesia
 

Hi Davita,

Thanks for the info:thumbsup: I was hoping you would reply!
We may start looking into the retirement visa seriously now (we're 55 & 56).

I'm sure we'll have loads of questions and I'll avoid any reference to horses in the future:lol:

Re: Retirement in Indonesia
 

Cannot edit my previous but my xchange rate was finger trouble...the annual price for a retirement visa should be about EU500-600.

Getting a retirement visa is a commitment but many live in Indonesia on simpler visas for some years...yours truly included.

The Social Budaya (Sosbud) is a useful visa but requires an Indonesian friend (or agent for a fee) to provide an invitation/sponsor letter. I can provide a sample if needed. They will also need to show a recent bank statement.
The Sosbud can be applied for at any foreign RI Embassy/Consul...I've had a few issued in KL, Singapore and once in Hong Kong.

Sosbuds are issued initially for 60 days but can be extended 4X30 days up to 182 days then leave and get another....using an agent in Singapore it can be done same day and return.

Re: Retirement in Indonesia
 

We are considering the social visa too. It does sound easier. We're currently in Ubud so will pop into a visa agent office and see what they have to say.

Thanks for your help Davita!