Considering a long-term stay in Indonesia? The Indonesian Second Home Visa provides an avenue for foreigners to reside, invest, and possibly retire in the country for 5 to 10 years. This comprehensive guide delivers straightforward insights into how you can apply for this visa, meet the eligibility requirements, invest in local real estate, and understand the legal implications—everything you need to begin your Indonesian residency journey.
Key Takeaways
- The Indonesian Second Home Visa, targeting affluent foreigners, offers a stay of 5–10 years, promotes economic investment, and allows for cultural immersion across the nation.
- Eligibility for the visa requires financial proof, such as a significant cash deposit or property investment, and includes a straightforward application process involving various personal and financial documents.
- Living in Indonesia with the Second Home Visa involves adhering to local laws and regulations, including tax obligations and compliance with immigration authorities, while providing opportunities for business investments and bringing family members.
Exploring the Indonesia Second Home Visa
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The Indonesian Second Home Visa offers individuals:
- A duration of 5 to 10 years
- An opportunity to live and invest in Indonesia
- A chance to contribute to the local economy
- Immersion in the nation’s vibrant culture
This visa is a strategic initiative designed to bolster foreign investment and stimulate economic growth in Indonesia.
This visa program aims to attract wealthy foreigners from across the globe, providing them with investment opportunities in luxury real estate and potentially retire in Indonesia. But it’s not limited to Bali, the famed island paradise. This initiative spreads across many Indonesian provinces, as part of the government’s plan to develop ‘10 new Bali’s’ to attract wealth to more regions and attract foreign tourists.
What is the Indonesian Second Home Visa?
The Indonesia Second Home Visa, also known as KITAS, is a new type of long-stay visa that allows foreigners to reside in Indonesia for extended periods. It’s not merely a tourist visa that lasts a few months, but a commitment to a new lifestyle in a fascinating country.
This program extends beyond retirees and invites anyone who fulfills the financial prerequisites. The retirement visa is a stepping stone to a wealth of opportunities and experiences that span across the archipelago, from the bustling streets of Jakarta to the tranquil beaches of Bali and beyond.
Benefits for Second-Home Visa Holders
The Second Home Visa paves the way for a wide array of benefits surpassing the conventional tourist visa. It offers an extended duration of stay of up to 5 or 10 years, ensuring long-term residence for eligible individuals such as retirees, ex-Indonesian citizens, and investors.
Another significant advantage is the privilege of sponsoring direct family members. Spouses, children, and parents can share the same duration of stay under the Second Home Family Visa. And while the visa doesn’t grant a work permit, it does cater to the modern work arrangements of digital nomads and extended vacationers, permitting remote or freelance work for overseas entities.
Eligibility Criteria for Prospective Applicants
Although the Second Home Visa offers a lot of opportunities, there are particular eligibility requirements. Prospective applicants must demonstrate financial stability, a requirement that ensures the visa holders’ capacity to live comfortably in Indonesia and contribute to the economy.
Applicants can demonstrate financial stability through a significant cash deposit or an investment in high-end real estate. This requirement not only safeguards the interests of the visa holders but also contributes to the real estate development and overall economic progression of Indonesia.
Proving Financial Stability
Proving financial stability for the Second Home Visa involves more than just a statement of intent. Applicants need to show a bank account statement with a minimum balance of 2 billion rupiahs, roughly equivalent to $130,000 USD. This sum must be deposited in an Indonesian bank account and cannot be withdrawn while the visa remains active, ensuring the visa holder’s continual financial stability.
Property Investment Threshold
For prospective property investors, the Second Home Visa provides an enticing opportunity. To be eligible for the visa, a minimum property investment of IDR 2,000,000,000 (approximately $135,790) in luxury real estate is required. This threshold varies depending on the location of the property.
For instance, in Bali, the property must possess a Hak Pakai certificate and be valued at a minimum of IDR 5 billion (approximately $325,000 USD) to qualify for the Second Home Visa.
Application Process: Simplified
The path to securing the Second Home Visa commences with the application process. While it may seem daunting, the process is straightforward and manageable with the right guidance. It starts with an initial inquiry on the Ministry of Law and Human Rights website, followed by scheduling an appointment at the Indonesian consulate or embassy.
During this process, applicants must submit the requisite documents, which include:
- A valid passport
- Bank statements
- Proof of property ownership or rental agreement
- Proof of no past criminal record
- A health insurance policy
Once all the paperwork is submitted and the non-refundable visa fee is paid, the application undergoes processing, which can take several weeks.
Online Immigration System Navigation
Previously, applicants could apply for the Second Home Visa through the immigration website. However, it is currently not accessible, indicating that the procedure may be under revision or potentially halted. Despite these changes, rest assured that the application process continues through other avenues.
Previously, the application involved a base fee of IDR 3 million, along with additional costs for permits, totaling IDR 21 million. It remains to be seen how these costs may change once the online system is operational again.
Required Documents Checklist
When embarking on the Second Home Visa application, it is imperative to prepare all necessary documents. First and foremost, applicants must possess a valid passport with at least 36 months remaining before expiration.
Furthermore, proof of funds is required to apply for the visa. This proof can be presented in the form of a bank account statement from an Indonesian bank, showing a deposit or investment of at least 2 billion rupiah (approximately $135,790) within 90 days of applying for the visa. Other necessary documentation includes a recent color photograph measuring 4cm by 6cm and a curriculum vitae that provides a professional background for the applicant.
Living in Indonesia with the Second Home Visa
Residing in Indonesia with the Second Home Visa promises to be a rewarding experience. Here are some of the benefits:
- Residing in a tropical paradise
- Immersing in a vibrant culture
- Exploring business opportunities
- Contributing to the local economy
From investing in upscale real estate to launching a fresh venture, the visa unveils a realm of possibilities. However, it’s critical to understand the regulations and restrictions that come with these opportunities to make the most of your Indonesian journey.
Real Estate and Accommodation
With the Second Home Visa, holders can dive into the property market in Indonesia. In Bali, for instance, visa holders can purchase property with a Hak Pakai certificate, a common form of property title for foreign investors in Indonesia.
However, while you hold a rightful title through Hak Pakai, the visa does not permit leasing out purchased properties. Furthermore, any owned properties can only be used for personal use, restricting the ability to invest in property for commercial purposes.
Business and Investment Opportunities
The Second Home Visa, also known as the digital nomad visa, offers an exciting avenue for business and investment for foreign visitors. While visa holders are not allowed to be employed within Indonesia, they can work remotely or engage in freelance roles for businesses outside of Indonesia.
Additionally, Second Home Visa holders, who are foreign nationals, can invest in local businesses and open bank accounts in Indonesia, which aids in various business and investment endeavors. However, it’s crucial to understand and comply with Indonesian regulations, such as the new tax rules and mandatory BPJS programs for expatriates residing for over six months.
Legalities and Compliance
Residing in Indonesia with a Second Home Visa brings numerous advantages along with a range of legal and compliance obligations. One important aspect is taxation. Second Home Visa holders may become tax residents of Indonesia and are obligated to comply with local tax regulations if they fulfill certain conditions related to their period of stay.
Additionally, visa holders must keep their personal and financial information up-to-date with Indonesian immigration authorities as required under immigration laws. Non-compliance with visa regulations can lead to severe consequences, including fines, cancellation of the visa, or even deportation from Indonesia.
Taxation for Long-Term Residents
As potential tax residents of Indonesia, Second Home Visa holders are subject to taxation on worldwide income, with some overseas income possibly being exempt. As tax residents, visa holders are required to calculate and settle any tax underpayment, as well as submit their Annual Individual Income Tax Return by March 31 or request a two-month extension.
Non-resident taxpayers must have their Indonesian-sourced income subject to a 20% withholding tax if they do not have a tax ID, while tax residents must register for a tax ID, calculate, and report taxes to avoid penalties.
Staying Compliant with Indonesian Laws
Following Indonesian laws is a critical aspect of residing in the country with a Second Home Visa. For instance, visa holders are not allowed to engage in employment or generate income in Indonesia, including from property rental.
During the visa application process, holders must submit a Commitment Statement affirming their understanding and agreement to adhere to Indonesian laws and financial, ideological, and social obligations. Immigration authorities have the authority to audit visa holders to verify compliance with their Commitment Statement and can impose sanctions, including permit cancellation and administrative actions for violations.
Bringing Family to Indonesia
A prominent benefit of the Second Home Visa is the allowance to relocate family members to Indonesia. Spouses or children of Second Home Visa holders are eligible to obtain a dependent KITAS for relocating to Indonesia.
In order to sponsor family members, holders of the Second Home Visa are required to provide evidence of their family ties and adhere to Indonesia’s sponsorship procedures.
Dependent Visa Eligibility
The dependent home family visa itas is available for the spouse, children, or parents of the primary second home visa holder. Children up to 18 years old are eligible for the dependent KITAS, as long as they are dependents of the primary KITAS holder.
When sponsoring family members for a Second Home Visa, the primary visa holder must provide documentation such as marriage certificates for spouses and birth certificates for children to prove their familial ties.
Documenting Family Relationships
Proving a family relationship for the Second Home Visa requires specific documentation. Marriage certificate and birth certificate documents must be translated into Bahasa Indonesia by an official translator if they are not in English, to be used as proofs of relationship for the Indonesia Second Home Visa.
Transitioning to Indonesia: Tips and Advice
Though adapting to life in Indonesia can prove to be fulfilling, it does demand a degree of cultural adjustment. Indonesia is a country of over 300 ethnic groups, each with its own unique cultural practices. Acknowledging this diversity and showing respect for different cultural practices can facilitate a smoother adjustment.
From social norms to marketplaces, understanding the nuances of Indonesian life can enhance your experience. Indonesians value indirect communication and maintaining harmony, and learning Bahasa Indonesia can facilitate meaningful interactions.
Embrace the family-oriented nature of Indonesian culture and get accustomed to the traditional marketplaces ('pasar'), which play a central role in the daily acquisition of food and goods.
Summary
Indonesia’s Second Home Visa is more than just a long-term residency permit. It’s a golden key that opens the door to a tropical paradise, offering a wealth of opportunities for investment, cultural immersion, and a chance to make Indonesia your second home.
The journey to obtaining the visa may seem daunting at first glance, but with a clear understanding of the eligibility criteria, application process, and compliance requirements, it’s a path worth exploring. So why wait? Step into a world of possibilities where long-term residence, family sponsorship, and remote work opportunities await. Your tropical paradise is just a visa away.
Frequently Asked Questions
How do I get a second home visa in Indonesia?
To obtain a second home visa in Indonesia, you will need a valid passport with at least 36 months' validity, proof of funds of at least IDR 2,000,000,000, and a recent color photograph on a white background.
What is proof of funds for a second home visa in Indonesia?
To obtain a second home visa in Indonesia, you need to show proof of funds of at least IDR 2 billion ($130,000) in an Indonesian bank account or proof of ownership of luxury real estate in Indonesia. A recent colored photograph with a size of 4 cm by 6 cm and a white background is also required.
Can a US citizen live in Indonesia?
Yes, a US citizen can live in Indonesia by obtaining a residence permit, such as an entry visa (VITAS) and a temporary stay permit (ITAS). This will allow them to live and work in Indonesia long-term.
What is the duration of the Indonesia Second Home Visa?
The Indonesian Second Home Visa allows for a long-term stay of up to 5 or 10 years, providing a significant duration for those looking to reside in the country.
What are the benefits for Second Home Visa holders?
Second Home Visa holders can enjoy benefits such as extended stay duration, the ability to sponsor direct family members, and permission to work remotely for overseas entities. This offers a great opportunity for a more flexible and extended stay experience.
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