Live in Bali, Pay LOW Taxes?

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Apr 3, 2025

Explore the myths surrounding tax-free living in Bali, where the reality may be more complex than it seems. Discover essential insights on Indonesia's strict tax regulations and a unique tax hack for four-year exemptions. Learn about the subjective tax tests that digital nomads face and the importance of tax compliance for expatriates. Plus, hear comparisons with more favorable tax environments in Southeast Asia and Latin America for high-net-worth individuals. The right country could mean significant savings!

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INSIGHT

Bali Isn't Tax-Free

Many people falsely believe Bali is a tax-free paradise despite being part of Indonesia.
Living legally in Bali means complying with Indonesia's tax laws through residence permits.

INSIGHT

Indonesia's Subjective Tax Residency

Indonesia applies subjective tax residency tests involving intent and presence.
This makes it more complex like some European countries rather than typical emerging markets.

ADVICE

Avoid Indonesian Tax Residency

To avoid Indonesian tax, minimize time spent and avoid showing intent to reside.
Always check residence permits and be aware even tourist visas can trigger tax obligations.

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Many people dream of escaping to Bali without considering the complex tax system in Indonesia. In this episode, Mr Henderson breaks down the biggest myths about tax-free living in Bali, explains why Indonesia might not be as tax-friendly as you think, and reveals a little-known tax hack for a four-year tax exemption. Mr Henderson also discusses other countries in Southeast Asia and Latin America which may offer better, more reliable tax options.

Nomad Capitalist helps clients "go where you're treated best." We are the world's most sought-after firm for offshore tax planning, dual citizenship, international diversification, and asset protection. We use legal and ethical strategies and work exclusively with seven- and eight-figure entrepreneurs and investors.

We create and execute holistic, multi-jurisdictional Plans that help clients keep more of their wealth, increase their personal freedom, and protect their families and wealth against threats in their home country.

No other firm offers clients access to more potential options to relocate to, bank in, or become a citizen of. Because we do not focus only on one or a handful of countries, we can offer unbiased advice where others can't.

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DISCLAIMER: The information in this episode should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Nomad Capitalist can and does not provide advice unless/until engaged by you.