A Complete Guide to Working Remotely in Indonesia with Its Digital Nomad Visa
When it comes to stunning beaches and cities, Indonesia literally has it all alongside affordable living which makes it a dream destination for working nomads. Finally, with its rich history and friendly culture combined with picturesque landscapes, the Indonesia digital nomad visa must be attractive for remote workers. If you are considering relocating to Indonesia while working, then this visa option is tailored for you.
This blog will walk you through the complete step by step guide for the Indonesia Digital Nomad Visa including all requirements needed, the application process, payment of taxes, and even try to explain citizenship after residing in the country.
What is the Indonesia Digital Nomad Visa?
The Indonesia digital nomad visa is a special visa that was created to include remote employees, freelancers, and other professionals that work in other countries and wish to relocate to Indonesia. It aims to foster a more flexible immigration policy toward remote employees and at the same time help the Indonesian economy by having business experts relocate and invest their skills in the country.
As more remote workers flock to stunning places such as Bali, Ubud, and Jakarta, the new Indonesia visa policy hopes to simplify legal immigration by removing the necessity of a standard tourist or business visa.
Applying for the visa comes with its respective challenges, and meeting all necessary requirements is essential to receiving the visa.
Proof of employment is crucial, and in this case, proof of being an employee, freelancer, or business owner all work. You should be able to demonstrate that your income originates from outside Indonesia.
Documents that can be considered proof include the following:
1.Contracts with foreign businesses
Contracts with freelance workers, including invoices from clients based abroad
Evidence of self-employment (Registered business in your country or tax documents from your country)
2.Most Important Earning Limitations
Another requirement under the Indonesia Digital Nomad Visa is that you must have sufficient monthly income to validate your sustenance while living in Indonesia. The current guidelines suggest that to obtain a digital nomad visa, one should earn no less than 1,500 – 2,000 USD a month.
You also have to back up your claim during your stay in Indonesia with appropriate documents like bank statements, employment contracts, and invoices. Please note that there may be some variation on this amount, so it is recommendable to confirm with the latest guidelines on the official website.
3.Passport Pre-Requisites
All visa processes will require a valid passport. Maybe you intend to go to Indonesia, but there is a catch: You should present a valid passport with at least 6 months before your trip entails. Also, ensure that your passport has at least 1 vacant page for the visa stamp.
4.Health Insurance
It is mandatory for all foreigners in Indonesia to purchase health insurance prior to arriving in the country. While staying in Indonesia, you will need to provide proof of having health insurance. The preferred form of health insurance should be purchased internationally and cover an individual against emergencies, medical treatment, and hospitalization.
5.Criminal Background Check
Like a number of countries, Indonesia may require applicants to submit a criminal background check from their home country. This is done to ensure that you do not hold a major criminal record that would render you a danger while living in the country.
6.Visa Application Fee
The Indonesian Digital Nomad Visa will have an associated fee for its application processing. The fee commonly changes based on your nationality and the type of visa you are applying for, but as a blanket statement, expect to shell out an amount ranging from USD 100 to USD 250.
How to Apply for the Indonesia Digital Nomad Visa
Applying for an Indonesia Digital Nomad Visa differs from most other visas. Here’s a simplified step-by-step guide to help you through the process.
Step 1: Gather All Required Documents
For this specific visa category, it is imperative to collect all primary documents at hand. Following are the requirements needed for this visa:
Remote email freelancing or other employment proof documents (Contracts, invoices, business registration documents)
At least one bank statement or income document proving the minimum income requirement
Passport with validity of at least six months
Health insurance document
Criminal background check from place of residence
Step 2: Fill in the Application Form
Create an account on the official website of the Indonesia Digital Nomad Visa and fill out the digital application form. Personal and work-related information, along with the information of the intended duration of stay in Indonesia, will be required in the application form.
Step 3: Upload Supporting Documents
Once the application form has been completed, upload the required supporting documents on the web portal. It is not enough to simply present the documents; they also may need to be legibly printed and meet other specifications.
Step 4: Make The Payment
Complete the process by paying the processing fee, which can only be done online. The payment will take place on the website via a secure online payment system.
Step 5: Track your Visa Status
The processing time after Virginia has submitted your application usually is around 4-6 weeks. Once you receive notification of your visa approval, you may start making arrangements for relocation to Indonesia.
Step 6: Traveling to Indonesia
A visa confirmation letter will be provided after your visa has been processed. Once you land in Indonesia, the immigration authority will affix your visa to your passport, allowing you to remain in the country for the duration of the Visa validity.
Taxes related to the Indonesia Digital Nomad Visa
To ensure that you do not face any unexpected problems during your stay, it is expedient to understand the taxes related to the Indonesia Digital Nomad Visa. Taxation in Indonesia is governed by the tax residency rules, and there are nominal schemes for digital nomads.
1.Tax Residency
Users who remain within the borders of Indonesia for over 183 days out of the year are considered residents/future residents of Indonesia. If you are a tax resident, you are liable to pay Indonesian income tax on all income you earn, no matter where you earn it.
For individuals that spend less than 183 days in Indonesia, you will not be a tax resident, and you will only pay taxes on income that you earn from Indonesia.
2.Tax Liabilities
Like many countries in Asia, Indonesia employs a progressive tax system where higher taxes are paid on greater earnings, with the nominal range being 5% to 30%. For foreign sources of income, tax residents are liable to pay, while non-tax residents are not.
Regardless of your situation, it’s always good practice to seek out the guidance of a tax specialist to ensure that you remain compliant with the law and know how the regulations affect you personally.
3.Double Taxation Agreements
In comparison to other countries, Indonesia has some agreements to avert double taxation. If your country of residence has a Double Taxation Agreement with Indonesia, then you would receive relief from being taxed on the same earnings multiple times.
Indonesia Digital Nomad Visa to Citizenship
In the instance that you fall in love with Indonesia and would like to spend the rest of your days there permanently, the Indonesia Digital Nomad Visa to Citizenship might spark your interest. And while it is tempting to acquire citizenship, it is imperative to know that the process is lengthy and complicated.
The procedure to obtain Indonesian citizenship is not linked to the digital nomad visa. Instead, to qualify for citizenship, you must reside in the country for several years with permanent residency status. This is how it works in broad strokes:
Permanent Residency:
After living within the country for a continuous period of five years, you may qualify to apply for permanent residency.
Citizenship:
After holding permanent residency status for a further five years, you become qualified to apply for Indonesian citizenship.
This suggests a maximum waiting period of ten years prior to applying for citizenship which may be problematic for most digital nomads, but permanent residency is a feasible middle-term solution to residing in the country.
Indonesia Digital Nomad Visa Reddit
For those who wish to apply for the Indonesia Digital Nomad Visa, Reddit has proven to be an invaluable resource. A multitude of digital nomads discuss their experiences and offer guidance related to living in Indonesia in different subreddits like r/digitalnomad or r/IndoExpats. Here, you will find touching areas like local culture, visa application procedures, cost of living, and other vital informations about Indonesia.
Never hesitate to look through Indonesia Digital Nomad Visa Reddit threads for fresh information and insights from fellow remote employees.
Conclusion
For remote employees, freelancers, and entrepreneurs, the Indonesia Digital Nomad Visa provides an outstanding opportunity to work and live in one of the most beautiful hotspots. With low costs of living, breathtaking scenery, and a developing digital nomad community, Indonesia is quickly emerging as one of the leading countries for remote work.
By fulfilling the criteria for the Indonesia Digital Nomad Visa, following the application step-by-step, and considering the tax aspects, you can make your remote working experience seamless while fulfilling all needs in Indonesia. Remember to always check the official Indonesia Digital Nomad Visa website for the latest updates and visit communities such as Reddit to meet and interact with other digital nomads.
For those seeking to travel to an exotic yet affordable place, Indonesia is a strong contender.
