Retirement in Bali is very appealing to many people from Western countries. Retiring in Bali means a daily life in a tropical climate with an affordable cost of living and many things to see and do.
However, before you retire in Bali, you need to understand what retirement in Bali really means, what Bali offers beyond warm hospitality, and how to ensure you meet all your needs when you get here.
That’s why we put together this guide to retiring in Bali, it’s got everything you need to know.
Why Retire In Bali (The Advantages & Disadvantages)
OK, let’s take a quick look at why you might want to retire in Bali and why you might not.
Advantages:
Reasonable cost of living. It’s not as cheap as it once was, but living expenses here are much lower than in the West.
Tropical climate. It’s warm and pleasant all year round.
A varied environment. From beautiful beaches to imposing mountains and live volcanoes, there’s something for everyone in Bali.
Plenty of amenities. There are gyms, golf courses, medical clinics, supermarkets, etc. galore on the island. You won’t have to give up your hobbies here. You may even find new ones.
Disadvantages:
It’s not your home country. Your friends and family are going to be further away than they have ever been.
Not everyone speaks English. You can, of course, learn Bahasa but that’s going to take some time.
The health care system isn’t the same as at home. This can be a big deal when you’re trying to get dental work done or regular dialysis. You can adapt and get what you need done here, but it’s not always easy.
The Basic Requirements To Retire In Bali
If you want to retire here on a retirement visa you need:
An annual income of $3,000/month or $50,000 as a lump sum
To be over the age of 55 years old
To hire one local person as household staff
To have health insurance
To have a lease agreement or rental contract for a home
To agree not to work here in Bali
To obtain a retirement KITAS (we’ll get to this toward the end of the article)
For many Westerners, this will be very easy to comply with.
A Simple Process To Retire In Bali
We talked to several of the island’s retirees about how they thought you ought to approach the process of retiring here and this is what they came up with.
Come & See The Island
Before you start worrying about car rental or property investment, it’s best to come and spend a few months living here in Bali.
We love Bali, it’s why we choose to make it our home, but it’s not for everyone and you don’t want to spend all the time and effort on securing retirement visas if it’s not for you.
When you come, it’s important to live as you would as a retiree, rather than treat it as a luxurious holiday.
You should be looking to decide if the immigration process is going to be attractive to you and the only way to do that is to test the water in the way you intend to live here.
Check Your Bank Account Statement And Make A Financial Plan
You can’t get a local bank account until you have sorted your retirement KITAS (more on this later) but you can assess your financial situation.
Because you need to undertake additional responsibilities in Bali to secure retirement visas, you will need, at least, $1,500 a month to live on. Though given that you must demonstrate an income of $3,000 a month to get the visa, you shouldn’t find this too challenging.
You can’t earn money, legally, in Bali if you are a retiree and that means, if you want even a semi-Western lifestyle, you will need to fund it.
You will also need to meet the minimum income requirements set down by the Indonesian government to secure your visa in the first place.
Get A Place To Live
Once you’re sure you can afford life here on the island and that you want to be here, the next step is to sort out a lease or rental agreement on somewhere to live.
It’s important to realize that only Indonesian citizens can own land in Bali, so while you can buy a property investment here, you won’t be able to purchase the land your “investment” sits on.
We strongly recommend taking legal advice before agreeing to anything more than a rental contract here. We also recommend visiting any building or apartment you intend to rent before signing any paperwork.
Decide How You Will Get Around
If you want to drive in Bali you need an international driving license (actually, international driving permit) and a license from your own country. Once you’ve arranged your visa, you can then get a local driving license. You must do this within 6 months of arriving in Bali as you can only drive short-term using an IDP.
Then, if you do intend to drive, you need to sort out some transport – you can rent a car or a bike or buy one. Make sure to budget for this.
Bali has very little public transportation and that means, if you’re not going to drive, you’re going to be reliant on ride-share apps. It’s a good idea to get an idea of these costs before deciding to save money by living in the middle of nowhere.
Sort Out Some Basic Health Insurance
You’re going to need medical insurance/health insurance while you’re in Bali. While private healthcare is cheaper than it is in most Western countries, there’s no doubt that it can get expensive and fast, when you’re seriously ill.
To choose health insurance, you should talk to several brokers and even engage specialist advice from a financial planner too.
We run the most popular of the world’s beach clubs, we don’t sell insurance or know your medical needs to give you good advice on this front.
Prepare To Hire Your New Employees
To get your visa, you must hire an Indonesian citizen. This could be a private chef, a driver, a housekeeper, a domestic helper, etc. and it won’t be that expensive.
The current minimum wage here in Bali is 2,816,672 IDR per month. As we go to press that’s $173.40 USD or $270.08 AUD.
Do The Documentation
Then, comes the hard part, getting all the documents together to apply for the visa(s) for your retirement here in Bali.
If you’re using an agent, and we strongly suggest that you do it for your own sanity, they will help ensure that you have everything in order to secure a retirement KITAS.
Apply For Your Visa
Finally, it’s time to start the application process and get the retirement KITAS. You can do this inside the country or outside of it. However, you will have to leave and re-enter Bali if you do it from inside the country.
The Retirement Visa (KITAS/KITAP or Second Home Visa?)
Most retirees will choose a retirement visa which is known as retirement KITAS (Kartu Izin Tinggal Terbatas) which is a temporary visa that is valid for a single year (including an unlimited re-entry permit) and then may be extended annually for a period of 5 years in total.
You will be required to demonstrate, each year, that you have:
Financial security of either $3,000/month in income or $50,000 lump sum placed in a state-owned bank
Health insurance
2 x local employees
Pledged not to work in Bali
You must be over the age of 55 to retire in Bali and this requirement is not negotiable.
Alternatively, you can apply for a second home visa. This is not a “retirement” visa but allows you to maintain a residence and reside in Bali.
To get this you must either:
Deposit 2 billion IDR (about $126,000 USD or $180,000 AUD) in a state-owned bank or
Demonstrate that you own a luxury property with a minimum value of 5 billion IDR (that’s $315,000 USD or $460,000 AUD) and that you have a Hak Pakai title on that property
Where To Retire In Bali
We have a full guide on where to retire in Bali but in brief, some popular areas are:
Sanur – a sleepy and peaceful beach town with a great boardwalk along the beach
Candidasa – a pleasant village setting that is super popular with retirees
Canggu – the most happening location on the island with excellent amenities
Nusa Dua – home of luxury resorts and the island’s best golf courses
Jimbaran – is famed for amazing seafood and is slightly less developed than some parts of the country
Ubud – the cultural and spiritual heart of the island where you can enjoy temples, art galleries and more
How Much Will It Cost To Retire In Bali?
That very much depends on you. The visa will cost around $800-$1,000. If you’re bringing a lot of stuff with you, be warned that it could be liable for import taxes as well as expensive freighting costs. You will also need to pay for flights.
Then, there’s medical insurance, the wages of your local staff, rent, food (local warungs serving local foods and street food are going to be cheaper than Western-style establishments), etc.
Will I Pay Taxes In Indonesia If I Retire In Bali?
Yes. Indonesia considers you to be a tax resident if you spend more than 180 days in the country in a calendar year.
This does not apply to KITAS holders, however, who are considered to be tax residents from the day that the visa is issued.
There is a progressive tax scale from 5% to 35% depending on how much income you have to declare.
You will also need to provide proof of a local tax number (an NPWP) to open a local bank account.
Final Note: You Must Respect Local Customs If You Retire In Bali
One thing it’s important to mention is that while the Balinese are very welcoming to foreigners living on the island, it’s on the condition that you are respectful of local customs and traditions.
Make sure to read up on the basic etiquette of life here in Bali.
FAQs
How Much Do You Need To Retire Comfortably In Bali?
This is something of a “how long is a piece of string” question. We’ve gone into the cost of living in Bali in detail on this site. But everyone’s definition of “comfortably” is different.
We’d say that $1,500 USD ($2,250 AUD) is probably enough for most people, assuming they have a relatively modest lease agreement and sensible living expenses but if you want one of the top-of-the-range luxury villas on the seafront and intend to eat at fine dining restaurants daily? You could easily spend that much a week or even on a daily basis!
Can An Australian Retire In Bali?
Yes! Pretty much anyone from any country, including Australia, can retire in Bali as long as they meet the requirements to obtain a retirement visa or other long-term visa like the second home visa.
The only nationals that cannot retire in Bali are citizens of Somalia, Nigeria, Niger, Liberia, Cameroon, North Korea, Israel, Guinea and Afghanistan.
Can You Live In Bali For $1,000 A Month?
Yes. You can live in Bali for $1,000 USD a month, $1,000 AUD would be challenging.
However, the cost of living has risen considerably in the last few years and the local economy is inflating rapidly.
You can’t live like a king on that figure and you may find that over the next decade or so, it becomes very challenging to live on that sum each month here.
Retirees have an additional challenge in that to secure a retirement visa they must employ two Indonesian citizens, which can add substantially to your living expenses each month.
Is Bali Safe To Retire?
Yes! Bali is as safe or, indeed, safer than the vast majority of Western towns and cities. We go into more detail in our article on safety in Bali.
How Much Does A Retirement Visa Cost In Bali?
This can be a little complicated, there is the cost of the visa and then there’s also the cost of the agent that arranges it for you.
Most people will pay between $800-$1,000 USD per year to secure their retirement visa using the services of an agent.
It can be cheaper, in theory, to do it yourself but, in reality, the effort you have to put in would far outweigh the small savings on the cost of the paperwork.
Final Thoughts On How To Retire In Bali
Retirement in Bali can be a dream come true. The Balinese people are kind and welcoming. The island is still a tropical paradise.
Bali offers a higher standard of living and even a luxurious lifestyle when compared to living in the West.
However, life on the island is not for everyone and it’s important to think about how it will suit you before committing to moving here.
