Living in Bali the basics digital nomads employment investing retirement

Digital Nomads & Remote Workers in Bali

Living the Dream in Bali

It is the dream of many, to pack bags, and come to Bali in order to leave behind the old life and settle on this beautiful island. A dream, that thousands of self-employed digital nomads and remote workers have made come true in recent years. The digital nomad life style is attractive; “working online and living on a tropical island, getting paid to a bank account outside of Indonesia, not paying any taxes, having clients from all over the world.” There are several factors that give rise to the “digital nomad phenomena” and Bali has become super popular promising this amazing life style.

Arrange Your Medical Insurance for Short- and Long-Stay Travel

Benefits & Features of Nomad Insurance:

Choose Between Essential & Complete Plan

Essential Plan - Ideal for digital nomads who're looking for emergency coverage only

$0 deductible, meaning you're covered even for the smallest claims
No pre-approval needed, takes 5 minutes to purchase. You can do it the same day you fly out, or even if your trip has already started
Pay as you go subscription, cancel anytime
Coverage from just a few dollars per day
Covers travel delay, lost luggage and trip interruption
Kids under 10 go free with an adult policy, making it great for families on a budget
Covers you in over 180 countries
24/7 online customer care with <1min response time
A travel medical insurance with a medical expense of $250,000
You can add-on electronic theft insurance for up to $3000 worth of electronic valuables

Complete Plan Ideal for expats and long-term travelers looking for comprehensive coverage

Includes all Essential plan benefits
Full coverage in your country of residence
Outpatient services, maternity care and mental health support and complementary therapies like chiropractics
Includes additional coverage for trip or accommodation cancellation, burglary and delayed luggage"

Bali has become a favourite choice for Digital Nomads – for good reasons

Bali, this magical island offers a very convincing and attractive package of tropical life style, quality of live, reasonable costs of living, vibrant communities, tolerance, and millions of things to do and explore. Furthermore, websites such as freelancer.com, guru.com and others, have made it much easier for freelancers and remote workers to find jobs and handle projects, regardless of where they live. This lead to a rising number of “self-employed digital nomads” settling in Bali.

Where to stay in Bali as a Digital Nomad

The strongest digital nomad communities can be found undoubtably these days in Canggu, Ubud, while Uluwatu and Sanur become more popular due to increasing prices in Canggu and Ubud for accommodation.

Digital Nomad means many things

*What Does “Digital Nomad” Really Mean?

The term digital nomad covers a wide range of lifestyles and work arrangements. In Bali, you’ll meet digital nomads who stay for a couple of months before moving on to Thailand, South Korea, or other destinations—fully embracing the nomadic lifestyle of working while traveling.

Then there’s a growing community of young freelancers, coaches, and entrepreneurs who attempt to settle in Bali, staying as long as their finances allow. For many, this is a challenge. Some work in social media for local businesses (which is illegal without the proper visa and work permit), while others try to build an online income (coaching, tutoring, Influencing, and even OF).

Yes, you’ll also find crypto investors working from their laptops in stylish cafés, enjoying life in hotspots like Canggu, Ubud, and Uluwatu.

Additionally, many remote workers — those with employment contracts from companies based outside Indonesia—choose to live in Bali for several months or even longer, sometimes securing a Remote Worker KITAS to extend their stay legally.

The pandemic and the increasing popularity of freelancer websites gave rise to the digital nomad life style; working from anywhere online, getting paid to a bank account outside of Indonesia, not paying any taxes, having clients from all over the world. And there are many people in Bali who do just that. Technically, from the perspective of having a business visa, this is still a very “grey area “and Indonesia has been discussing to issue special visas for digital nomads, but there is nothing official yet.

What is clear is, with the visit visas that exist right now, you CANNOT work in Indonesia and make an income, particularly you cannot be paid in Indonesia or work with an Indonesian company as a client.

The “classic digital nomad”, works and lives in Indonesia on a tourist or business visa, offers freelance services but is not declaring any income, and also not having a legal structure (company and tax number) and has no working permit (Investor KITAS etc). Therefore he/she is at risk of violating quite a few regulations. Many nomads are not aware of that.

There are thousands in Bali who enjoy this lifestyle and make their money abroad while living here. And the authorities do not at this point or maybe cannot control this. They are also aware that regulations are not in place to provide a proper and reliable structure.
The least you can do, is to have a B211A Visa with business purpose and make sure, you don’t work for anybody in Indonesia and don’t receive money in Indonesia.

Then there is the remote worker who is employed officially abroad and also still works for that company while in Bali. They come to Bali for a staycation, and instead of being in a home-office they are in Bali. That’s less critical than being a self-employed digital nomad in relation to the visa status. And nobody can or does check wether these remote workers are on a long holiday or doing a sabbatical. But, also here, it’s a grey area and usually nobody gets into trouble.

Devil is in the Detail

Relocating to Indonesia and choosing the life as a self-employed digital nomad, is not that simple due to tax implications, visa regulations and medical insurance coverage.

There is no limit to “good advise”

You will encounter enthusiastic individuals, “influencers”, communities, and dedicated websites & apps, who boldly promote the “digital nomad life” while naively or deliberately overlooking the details and potential traps that are still existing today (Visa, Tax, cost of living, health insurance, etc). They make it seem, as if there are no laws to follow. That might work for a while, and has worked for many, but the moment something goes wrong, or the immigration office checks on you, it can turn into a nightmare rather quickly.

Reliable International Medical Insurance for Nomads and Expats

This is what you should not do as a digital nomad…

DON’T…

blindly trust other nomads or agencies without double checking what kind of “visa solutions” and general advice they have in store for you
get a “Fake” employment KITAS from one of the many agents. Technically this type of KITAs is connected strictly to this company and the type of work they applied the KITAS for. And it has income tax implications.. Very risky.
get an Investor KITAS (shareholder KITAS) with the help of an agent, if you are not really an investor in that company. Some agents offer this service and make you a shareholder of an existing company, just to get you the KITAS. But being an Investor and shareholder in a PT PMA comes with legal and fiscal obligations AND you are liable on many levels. Not a good idea in the long run, and the immigration officers are more and more checking on those agents and their clients get into trouble.
work for Indonesian companies or entities without being actually employed
get paid in Indonesia
become a yoga teacher, DJ, life coach, interior designer, facilitator running retreats and workshops in Bali while getting paid and only having a C-Type Visa (211A) or B-type Visa on Arrival. Again, you are not allowed to make any money here.
or advertise to sub-lease rooms in Facebook etc. The officials are regularly going through these Facebook groups and they regard this activity like running a business and creating an income, which can lead to deportation
Stay in Bali without a Medical Insurance. There simply are too many risks, and medical treatments can get quickly very expensive. (Medical Insurance)

Paying Taxes in Bali?

You cannot be paid in Indonesia or work with or for an Indonesian company as “digital nomad”.

The “classic digital nomad”, works and lives in Indonesia, yes, but they offer freelance services to clients outside of Indonesia, get paid abroad. They don’t have a legal structure (company and tax number) and have no working permit (Investor KITAS etc).

The “remote worker” who is employed officially abroad and also still works for that company while in Bali is a much clearer case and less critical than being a self-employed digital nomad in relation to income.

In both scenarios the “nomad” would technically have to declare their taxes in the country they are still officially registered as a citizen. Of course, Indonesia cannot and would not control that.

More info on Tax Liability in Indonesia (by PWC)

Important to Know

Selection of some of the Best Co-Working Places in Bali

Co-working spaces in range from cafes and restaurants where digital nomads are welcomed to sit and work to places that are highly customised to cater to the needs of remote workers, from private meeting rooms, complimentary coffee, super-strong internet, cloud services, community networking, and consulting for start-ups. Whatever the setting, these hubs are just the place to find like-minded people and dive into the vibrant digital nomad scene in Bali.

Selection of some of the Best Co-Living Places in Bali

Living in modern villas may have its perks, but lodging together and sharing the life with a tight-knit community can be even better. Not only does a shared space allow you to easily socialize, it also allows you to be able to connect and share ideas with people of different backgrounds you might have never met otherwise.