Buying a villa in Bali is often just the first step in a much larger plan: spending several months a year on the island, working remotely, preparing for retirement, or relocating with your family. But before even signing a purchase agreement, several important questions need to be addressed: Which visa should you choose? What residency status is most suitable? Can you open a local bank account? What type of health insurance do you need?
Here are the key points to understand before making Bali your new home.
What Visa Do You Need to Live in Bali as a Foreigner?
Indonesia offers several visa categories for investors, second-home residents, retirees, and remote workers (digital nomads). Your ability to acquire and hold property in Bali is influenced by both your immigration status and the length of your stay in the country.
As Indonesian immigration regulations are subject to change, it is essential to rely on up-to-date information from official sources, such as the Indonesian Directorate General of Immigration.
Temporary Visas to Explore Bali and Refine Your Plans
For most people, their first experience of Bali begins with a tourist stay.
- The Visa on Arrival (VoA) and its electronic version, e-VoA, allow visitors to stay for 30 days, renewable once for a maximum stay of 60 days. This option is commonly used by those visiting properties, meeting local agencies, or exploring different areas of the island before making an investment.
- The C1 Tourist Visa (formerly B211A) is better suited for those planning a longer stay from the outset. It grants an initial stay of 60 days and can be extended for up to 180 days. This visa is particularly attractive for individuals who wish to take the time to explore Bali thoroughly before committing to a long-term relocation.
- Pre-investment visas, such as the D12 Visa, offer an additional option for foreigners with a specific business or real estate project in Indonesia. These visas make it significantly easier to travel back and forth between your home country and Bali while researching, planning, and structuring your investment.
Traveler’s Note: Since 2024, all international visitors have been required to pay the mandatory “Love Bali” tourist levy, currently set at IDR 150,000 per person. This contribution helps fund initiatives aimed at preserving Bali’s natural and cultural heritage.
Long-Term Visas for Living in Bali
If you plan to live in Bali for several years, a tourist visa will no longer be sufficient. In such cases, Indonesian authorities offer various temporary and long-term residency options.
- The KITAS (for investors, remote workers, retirees, and other eligible categories) remains the most common temporary residence permit among expatriates. It can be obtained for several purposes, including retirement (for individuals over 55), business creation, investment, employment, or family reunification.
- The Second Home Visa is designed for foreign nationals who wish to make Bali a long-term second residence. It allows holders to stay in Indonesia for an extended period (typically 5 or 10 years), subject to financial requirements such as maintaining substantial funds in a local bank account or making a qualifying high-value property investment.
As part of a real estate or business venture, some investors choose to establish a foreign-owned company known as a PT PMA. This structure allows foreigners to conduct certain commercial and property-related activities in Indonesia, but it also comes with specific tax, administrative, and accounting obligations.
Beyond simply determining how long you can stay in Indonesia, your choice of visa directly affects your legal status in the country and many aspects of daily life, including opening a local bank account, accessing administrative services, understanding your tax obligations, and, of course, securing appropriate health insurance coverage.
Property Ownership in Bali as a Foreigner
Property ownership in Bali does not operate in the same way as it does in Europe and is governed by strict legal principles. Full ownership rights (Hak Milik) are reserved exclusively for Indonesian citizens. However, several legally recognized structures are available for foreign buyers.
Leasehold (Hak Sewa): The Most Common Option
Leasehold is by far the most widely used property ownership structure among foreigners in Bali. Comparable to a long-term lease agreement (typically 20 to 30 years) secured through a notarized contract, it grants the investor the right to use both the property and the land for the duration of the lease, with extension options often available depending on the terms of the agreement.
One of the main advantages of the leasehold structure is that it is accessible to foreigners holding a temporary stay visa, unlike other ownership models that require official residency status. Its relatively straightforward process, well-established legal framework, and flexibility for rental investment projects have made it the dominant structure in Bali’s thriving short-term villa rental market.
Hak Pakai (Right of Use) for Long-Term Residents
Hak Pakai, or Right of Use, is an excellent alternative to a corporate ownership structure for expatriates who intend to live in Bali in their own home. Registered with the Indonesian land authorities, this title grants a genuine long-term right of use over a property.
However, obtaining a Hak Pakai requires a valid residency status, such as a KITAS or KITAP. It is also subject to specific regulations, including a potential limitation to one property per individual and minimum purchase price thresholds set by the government, which vary depending on the location of the property.
PT PMA: A Structured Solution for Larger Investment Projects
A PT PMA (foreign-owned company) is designed for investors looking to develop a significant real estate or business venture in Indonesia. It enables foreigners to operate certain commercial and property-related activities under the Hak Guna Bangunan (HGB) title structure.
However, a PT PMA should not be viewed as a shortcut to traditional freehold ownership. Establishing and maintaining a PT PMA generally involves additional obligations, including local accounting requirements, tax reporting, corporate compliance, and ongoing legal support.
Choosing between Leasehold, Hak Pakai, and a PT PMA therefore depends entirely on your long-term objectives, lifestyle plans, and the scale of your investment in Bali.
How Your Residency Status Affects Everyday Life in Bali
The visa you choose—and, by extension, your legal status in Indonesia—determines much more than the length of time you are allowed to stay in the country. It can also have a significant impact on various aspects of daily life, including:
- Opening a local bank account;
- Completing administrative procedures;
- Securing long-term accommodation;
- Accessing local insurance schemes, including health insurance;
- Enrolling children in school;
- Understanding and managing tax obligations.
For expatriates, a successful relocation often depends on having these practical matters properly organized from the outset. Tax residency, in particular, can become an important consideration, whether you are generating rental income from a property investment or planning a long-term move to Bali.
Why Your Residency Status Also Affects Your Health Insurance
In Bali, as elsewhere, the type of stay you plan directly influences the kind of medical coverage you need. For example, an investor who manages villa rentals remotely and only spends a few months a year on the island is generally not eligible for local health coverage. In such cases, a comprehensive travel insurance policy is usually sufficient.
This type of policy typically covers medical emergencies, accidents, and repatriation assistance in the event of a serious incident. It is an ideal solution for short-term stays, but it quickly becomes inadequate when Bali transitions from a holiday destination to a permanent place of residence.
What Health Insurance Should Expats Choose in Bali?
Bali benefits from a number of high-quality private healthcare facilities, mainly located in the southern part of the island, including Denpasar, Kuta, and Nusa Dua. Indonesia’s public healthcare system, JKN (Jaminan Kesehatan Nasional), administered by BPJS Kesehatan, is also available to certain KITAS holders, particularly those employed by local companies.
In practice, however, public coverage is often considered insufficient for complex medical treatments and does not always meet the expectations of expatriates accustomed to European healthcare standards. As a result, many expats prefer internationally recognized private hospitals such as the BIMC Hospital or Siloam Hospitals.
Private healthcare costs can rise quickly, especially in the case of surgery or extended hospitalization, where expenses may equal—or even exceed—those typically seen in Europe. Another important local consideration is that hospitals often require proof of insurance coverage or financial guarantees before admitting a patient for major treatment.
| Medical Service | Cost in IDR | Approx. Cost in EUR |
| Average Private General Practitioner Consultation | 400,500 – 1,000,000 IDR | €20 – €50 |
| Average Private Specialist Consultation | 800,000 – 3,000,000 IDR | €40 – €150 |
| Private Hospital Stay (per night) | 1,600,000 – 20,000,000 IDR | €80 – €1,000 |
| Private Surgical Procedure | Up to 420,000,000+ IDR | Up to €20,000+ |
| Food Poisoning Treatment | 1,300,000 – 2,050,000 IDR | €60 – €100 |
| Medical Evacuation to Singapore | From 200,000,000 IDR | €10,000 – €50,000 |
| Emergency Room Visit | From 1,500,000 IDR | From €70 |
| Travel Insurance (30-year-old) | From €377 per year | — |
| Expat Hospitalization Insurance (30-year-old) | From €1,092 per year | — |
In more complex medical situations, emergency evacuations to regional healthcare hubs such as Singapore, Bangkok, or Kuala Lumpur are not uncommon. These medical evacuations can easily cost tens of thousands of euros, often ranging from €30,000 to €50,000 or more, making adequate insurance essential.
An international health insurance policy allows holders of a KITAS, investor visa, or long-term residency status to:
- Access the best international private clinics and hospitals;
- Benefit from comprehensive coverage for hospitalization in Bali, their home country, and other countries visited temporarily;
- Receive medical evacuation and repatriation assistance to major regional healthcare centers when necessary.
Conclusion
Relocating to Bali involves far more than simply purchasing property. Behind the acquisition of a villa or the search for a rental investment often lies a genuine long-term lifestyle project. Your choice of visa plays a central role in that project, influencing not only the duration of your stay, but also access to administrative services, local banking facilities, investment opportunities, tax obligations, and healthcare coverage.
If your property purchase is part of a broader expatriation plan, your residency status—and therefore your visa choice—should accurately reflect how you intend to live on the island. Taking the time to address these considerations before investing can help you build a secure and sustainable future in Bali.
Whether you are looking for a holiday home, a retirement property, or a profitable investment opportunity, the Bali Exception team is here to guide you through every step of your real estate journey and help you find the property that best matches your goals.
