Does Indonesia tax foreign income?

Skilled foreigners: foreign income untaxed for the first 4 years. In one line: first 4 years (experts): 0% on foreign income · up to 35% on local income.

Can I run an online business from Indonesia?

Effective tax about 0% with the cheapest legal set-up, which costs about USD 1,000 a year: E33G: income from foreign employers or clients not taxed (government guidance).

What is the catch in Indonesia?

Check the foreign-income rule for your case.

What residence or citizenship programmes does Indonesia have?

Second Home visa: about USD 132k all-in for one person, ~2 months

Moving to Indonesia: tax, residence and real costs (2026)

Indonesia: first 4 years (experts): 0% on foreign income · up to 35% on local income. The cheapest route to residence is e33G remote-worker KITAS (USD 60k a year income); the second-home visa needs a USD 130k deposit: about USD 1,000 in fees doing it yourself, with no investment, with about USD 5,000 a month of income shown, in about 2 months. Living costs about USD 630 a month for one person in Jakarta, USD 340 in Tasikmalaya, and around USD 320 on a bare-minimum budget.

Key facts

Tax in one line	first 4 years (experts): 0% on foreign income · up to 35% on local income
Foreign income	skilled foreigners: foreign income untaxed for the first 4 years
Gains · dividends	local · local
Wealth · inheritance tax	none · none
Cheapest residence	E33G remote-worker KITAS (USD 60k a year income); the second-home visa needs a USD 130k deposit
Money needed	About USD 1,000 in fees doing it yourself, with no investment
Time	about 2 months
Doable yourself?	Yes, with a checklist
Days you must spend there	183
Citizenship	-
Online business	0% effective, about USD 1,000 a year to run: E33G: income from foreign employers or clients not taxed (government guidance)
Living (one person a month)	Jakarta ~USD 630; bare minimum ~USD 320; family of four ~USD 1,300
Good for	-
Common set-up	Second Home visa

Pros and cons

Pros	Cons
Bali lifestyle cheap Second Home visa long	Tax position of foreigners after 4 years unclear Bureaucracy

Programmes

Programme	All-in, one person	Months	Notes
Second Home visa	USD 132k	2	IDR 2 bn deposit or property; 5 or 10 years.

Questions

How much does residence in Indonesia cost?: E33G remote-worker KITAS (USD 60k a year income); the second-home visa needs a USD 130k deposit: about USD 1,000 in fees doing it yourself, with no investment, about 2 months.
Does Indonesia tax foreign income?: Skilled foreigners: foreign income untaxed for the first 4 years. In one line: first 4 years (experts): 0% on foreign income · up to 35% on local income.
What does it cost to live in Indonesia?: Living costs about USD 630 a month for one person in Jakarta, USD 340 in Tasikmalaya, and around USD 320 on a bare-minimum budget (based on livingcost.org, 2026).
Can I run an online business from Indonesia?: Effective tax about 0% with the cheapest legal set-up, which costs about USD 1,000 a year: E33G: income from foreign employers or clients not taxed (government guidance).
What is the catch in Indonesia?: Check the foreign-income rule for your case.
What residence or citizenship programmes does Indonesia have?: Second Home visa: about USD 132k all-in for one person, ~2 months

Compare

Hong Kong: 0% on foreign income · 15-17% on Hong Kong income · 0% on dividends and gains
Singapore: 0% on foreign income · up to 24% on Singapore income · 0% on gains and dividends
Malaysia: 0% on foreign income (individuals, until 2036) · up to 30% on Malaysian income
Thailand (LTR visa): LTR visa: 0% on foreign income · others: foreign income taxed when brought in · up to 35% local
Philippines: foreigners: 0% on foreign income · up to 35% on local income

Compare all 53 places with your own income and budget →

Sources

https://www.imigrasi.go.id
Living costs: based on livingcost.org (livingcost.org, June 2026), rounded