Financial planning for Americans living in Bali — clear, calm, and built around your US return.

The lifestyle is real. The financial side is where almost everyone trips. Indonesian tax residency hits at 183 days and pulls your worldwide income onto the local return. Foreigners can't own freehold land. Your US broker may close your account the day you change your address. Medicare doesn't follow you. We sit in the middle of all of it — so Bali stays the chapter you remember fondly, not a surprise tax bill or a villa you can't legally sell.

Cross-border financial planning and US investment management for Americans living abroad, typically with $1M+. Most clients have $1M+ in investable assets; we also work with selected households from $500K.

Written and reviewed by Anthony Walsh, Selanis. Last reviewed 2026-06-25.

Key issues

183-day Indonesian tax residency
US broker closing your account
Foreigners cannot own freehold land
Medicare doesn't follow you
E33G, KITAS & Second Home Visa choices
FBAR & Form 8938 still required

Indonesia taxes residents on worldwide income — and the 183-day line is where it usually goes wrong

If you spend 183 days or more in Indonesia in a 12-month period, or you intend to reside there, Indonesia considers you a tax resident and can tax your worldwide income at progressive rates up to 35%. That includes your US salary, your remote consulting income, IRA and 401(k) distributions, US dividends, capital gains, and rental income from the house back in California. The good news on the US side: there IS a US–Indonesia tax treaty in force (in effect since 1990), so you have a real framework for allocating which country taxes what and tie-breaker rules where residency is contested. The catch: the treaty only helps when it is actively claimed, with the right forms, on both sides. We map your day count, your residency position, and the treaty positions for each income stream before the year turns — not after.

The visa you choose quietly decides your tax exposure for the next five years

Bali has more visa options now than at any time in the last decade — and each one has different tax consequences. The E33G Remote Worker Visa (1 year, renewable) lets you work for a non-Indonesian employer and, when structured correctly, can keep foreign-sourced income outside the Indonesian tax net. The Second Home Visa (5 or 10 years) requires roughly IDR 2 billion (~USD 130k) parked in an Indonesian bank or asset, and is geared toward retirees and high-net-worth families. Investor KITAS routes through an Indonesian company (PT PMA). Each one has different reporting, different rights, different exit mechanics — and each one interacts with US filings differently. We choose the visa around the financial plan, not the other way around.

Bali is genuinely affordable — but cashflow timing across two currencies still needs a plan

A comfortable life in Canggu, Sanur or Ubud for a couple sits in the $2,500–$4,500/month range. A villa lifestyle in Uluwatu, Pererenan or Berawa with staff, a driver and international schools climbs to $5,000–$10,000+/month. Many Americans here genuinely save money compared to their old US life — but only when the inflows are sequenced. Wiring large lump sums from a US brokerage in a tax-resident year, drawing IRAs without a plan, or letting Indonesian-source income build up untracked are the three most common ways the math breaks quietly. We build a simple monthly plan in USD and IDR that knows where every dollar comes from and what it costs you on both returns.

The day you change your address to Bali, your US brokerage may quietly start restricting your account

Many of the large US brokerages have tightened up on US persons with Southeast Asian addresses: no new mutual fund purchases, blocked retirement contributions, trade restrictions, sometimes account closure with 60 days' notice and forced liquidation. Forced liquidation in the wrong tax year can crystallize gains you weren't planning to realize — and the bill lands on your next 1040, and potentially on your Indonesian return too. A small bench of genuinely expat-friendly US custodians still welcomes US persons living in Indonesia. We move you before they move you, and we keep everything US-domiciled so you stay clear of PFIC reporting headaches.

Almost no investing happens inside Indonesia for our clients — and that is the whole point

We deliberately do not run American clients into Indonesian mutual funds, locally-sold structured products, or the offshore 'savings plans' that get pitched in Seminyak and Canggu by Singapore- and Dubai-based brokers. For US persons, foreign mutual funds fall under the IRS's punitive PFIC rules and can wipe out the return; offshore insurance wrappers usually fail US tax tests and lock you in for 15–25 years. The far better answer is almost always to keep the portfolio US-domiciled at a custodian that welcomes US persons abroad, invest through low-cost US-listed ETFs and mutual funds, and let Bali be the place you live — not the place your money lives.

Private healthcare in Bali is decent for routine care — and Singapore is the real backstop

BIMC Kuta and Nusa Dua, Siloam Denpasar, Kasih Ibu and Bali Mandara cover routine and urgent care at fair prices. For complex or serious treatment, most expats fly to Singapore or Bangkok — and many international policies include the evacuation flight when it is medically necessary. The catch on the US side: Medicare almost never pays for care received outside the US, even though you may still be paying Part B premiums. International health insurance for Americans in Bali is reasonable in your 40s and climbs sharply after 65, with most policies refusing new applicants in your 70s. We sequence international cover, an evacuation rider where it matters, and the Medicare Part B decision into the financial plan — not as an afterthought.

Foreigners cannot own freehold land in Bali — and the workarounds carry real US consequences

Indonesian law reserves freehold ownership (Hak Milik) for Indonesian citizens. Foreigners have legitimate options: Hak Pakai (Right to Use) on a residential property held in your own name for up to 80 years in total when properly extended, long leasehold (typically 25–30 years, often renewable), or ownership via a foreign-owned Indonesian company (PT PMA) which can hold Hak Guna Bangunan (Right to Build) for commercial or villa-rental purposes. The structures Americans must AVOID at all costs are the old 'nominee' arrangements where land is registered in an Indonesian friend's or partner's name — these are unenforceable, illegal under Indonesian law, and the source of most horror stories about expats losing villas. On the US side, rental income lands on your 1040, gains on sale are US-taxable, and a PT PMA can create extra US reporting (Form 5471, GILTI). We model the after-US-tax cost and the exit before you put down a deposit.

Indonesia has reporting, not capital controls — but the paper trail still matters

Indonesia is more open than Vietnam or China when it comes to moving money in and out. The rupiah is largely convertible, and there are no broad capital controls on foreign currency. However, Bank Indonesia requires reporting on foreign exchange transactions above thresholds (currently USD 25,000-equivalent per month for individuals), and inflows above USD 10,000 typically need underlying documentation. Repatriating sale proceeds from a villa, accumulated Indonesian-source earnings, or a business exit is generally straightforward when the original inflow was documented and Indonesian tax was paid properly. Families who arrive without thinking about the paper trail often find themselves reconstructing documentation years later. We document the inflow the day it lands so the outflow is straightforward whenever you decide to leave.

Opening an Indonesian bank account as an American is doable — but FATCA paperwork has slowed things down

Indonesia signed a Model 1 FATCA Intergovernmental Agreement and Indonesian banks report US-person account information to the IRS through OJK. You can still open accounts — KITAS, a Second Home Visa or a long-stay visa makes it materially easier — but expect more questions, more forms, and sometimes a polite no at one branch and a yes at the next. A working Indonesian account is genuinely important for daily life: villa rent, utilities, school fees, paying staff. The easiest path is usually a major international bank with an Indonesia presence (HSBC, Standard Chartered, OCBC, UOB) alongside a local bank like BCA, Mandiri or BNI. We help you sequence the visa, the address and the bank application so the answer is yes.

If you've married an Indonesian national, the US-side estate planning has a quiet gap most families miss

A non-US-citizen spouse changes the US math: the unlimited marital deduction for US federal estate tax does not apply, and a QDOT trust is often the standard tool to defer the US estate tax bill at first death. Annual gifts to a non-US-citizen spouse are also capped (a higher cap, but still capped). On the Indonesian side, since your spouse can own land in her own name, families often structure the home around her — but Indonesian default law treats marital assets as joint property of both spouses, which is why many cross-border families execute a prenuptial agreement (perjanjian pranikah) to preserve the spouse's ability to hold land in her own name. We draft the US plan and coordinate an Indonesian will and prenup with a local lawyer we trust.

International schools in Bali are excellent — and the single biggest line item your plan needs to model honestly

The top international schools in Bali — Green School, Australian Independent School Bali, Canggu Community School, Sanur Independent School, Bali Island School — range broadly per child per year, with capital fees, transport, uniforms and activities on top. For an American family of four planning 5–10 years in Bali, schooling is often the largest non-housing cost in the entire plan, and the one that quietly compounds the most. The good news: there are excellent options at multiple price points, and many families find their kids get a more international, more confident education than they would back home. We model the full ten-year cost in plain numbers so the choice is conscious and the cashflow is real.

Indonesia doesn't touch your US filings — and the IRS still expects every form, on time, every year

FBAR (FinCEN 114) is required if your non-US accounts together ever crossed $10,000 at any single moment in the year — your Indonesian checking, savings, your spouse's joint account, even a small management-fee account on a villa. Form 8938 kicks in at higher thresholds. If you own through a PT PMA, you likely have a Form 5471 obligation and possibly GILTI on retained earnings. State tax residency cleanup (especially California, New York and New Jersey) needs to be done properly so you're not still filing a state return five years later. And the full 1040 with worldwide income is non-negotiable. None of this is hard with the right system — and it's almost always missed without one.

Frequently asked questions

When do I become an Indonesian tax resident?

If you spend 183 days or more in Indonesia in a 12-month period, or you intend to reside there, you are generally an Indonesian tax resident. Residents are taxed on worldwide income at progressive rates up to 35%. Non-residents are taxed only on Indonesia-sourced income, generally at a 20% flat rate. We map your day count and residency position for the year before it becomes a problem.

Is there a US–Indonesia tax treaty?

Yes. The US–Indonesia tax treaty has been in force since 1990. It provides a framework for which country taxes what, tie-breaker rules where residency is contested, and the basis for avoiding double tax on the same dollar. The treaty only helps when it is actively claimed, with the right forms, on both returns — which is the part most families never get right.

Which visa should I be on — E33G, Second Home, KITAS?

It depends on your situation. E33G (Remote Worker Visa) suits a US-employed remote worker or founder of a non-Indonesian company. The Second Home Visa (5 or 10 years) suits retirees and high-net-worth families willing to park ~IDR 2 billion (~USD 130k). Investor KITAS routes through a PT PMA and suits those building an Indonesian business. Each has different tax consequences. We choose the visa around the financial plan, not the other way around.

Will my US broker close my account when I move to Bali?

Possibly. Many US brokers restrict or close accounts for US persons with Indonesian addresses. A small bench of genuinely expat-friendly US custodians still supports Americans in Indonesia. We move you before they move you, and we keep everything US-domiciled to stay clear of PFIC reporting headaches.

Should I invest through Indonesian funds or local products?

Almost never. For US persons, foreign mutual funds fall under the IRS's PFIC rules and are punitively taxed, and offshore insurance 'savings plans' sold in Seminyak and Canggu usually fail US tax tests and lock you in for 15–25 years. The right answer is almost always to keep the portfolio US-domiciled, invest through low-cost US-listed ETFs and mutual funds, and let Bali be the place you live — not the place your money lives.

Does Medicare work in Bali?

Almost never. US Medicare typically doesn't pay for care received outside the US. You'll want international health insurance, ideally with an evacuation rider given Singapore is the real backstop for complex cases, and ideally arranged before you turn 65 to lock in a lower premium curve. We model whether to keep Medicare Part B, drop it, or delay enrollment.

How much does it actually cost to live well in Bali?

Honest numbers for mid-2026: comfortable in Canggu, Sanur or Ubud for a couple at $2,500–$4,500/month, villa lifestyle in Uluwatu, Pererenan or Berawa with staff and a driver at $5,000–$10,000+/month. International schooling is a meaningful line item per child. We build the real plan in USD and IDR together.

Can I own a villa in Bali as an American?

Yes, but not freehold land. Your three legitimate routes are: Hak Pakai (Right to Use) on residential property in your own name for up to 80 years total when properly extended; long leasehold (typically 25–30 years, often renewable); or ownership via a foreign-owned Indonesian company (PT PMA) holding Hak Guna Bangunan. We model the after-US-tax cost and the exit before deposit.

What about 'nominee' villa structures — should I use one?

No. The arrangement where land is registered in an Indonesian friend's, partner's or lawyer's name is unenforceable under Indonesian law, void if challenged, and the source of most horror stories about expats losing villas. We refuse to structure clients this way on principle. There are legitimate alternatives — Hak Pakai, leasehold, PT PMA — and we use those.

My spouse is Indonesian. What changes for US estate planning?

The US federal estate tax unlimited marital deduction does not apply to a non-US-citizen spouse. The standard tool is a QDOT trust to defer the US tax at first death. Annual gifts to a non-US-citizen spouse are also capped (a higher cap, but capped). On the Indonesian side, marital assets are joint by default, which is why many cross-border families execute a prenuptial agreement (perjanjian pranikah) to preserve the spouse's right to hold land. We draft the QDOT, an Indonesian will and the prenup together with a notaris we trust.

Are there capital controls on getting money out of Indonesia?

Indonesia is more open than Vietnam or China — the rupiah is largely convertible and there are no broad capital controls. However, Bank Indonesia requires reporting on foreign exchange transactions above thresholds (currently USD 25,000-equivalent per month), and inflows above USD 10,000 typically need underlying documentation. We document inflows on day one so outflows are clean later.

Do I need to file US tax returns from Bali?

Yes — every year, on worldwide income, regardless of how long you've been gone. FBAR (FinCEN 114) is required if your non-US accounts together ever crossed $10,000 at any moment in the year. Form 8938 has higher thresholds. If you own a PT PMA, Form 5471 and possibly GILTI come into play. None of this goes away.

What about my state tax — California, New York, New Jersey?

The aggressive states do not easily release you. Domicile change needs to be done properly: physical presence elsewhere, intent documented, the right boxes checked on the way out. We sequence the cleanup so you're not still filing a state return five years later.

Do you actually file my US or Indonesian taxes?

No, deliberately. We coordinate your US CPA and an Indonesian tax practitioner into one strategy and design your investment, healthcare and estate plan around the positions they sign.

What does engagement cost?

We start with a 45-minute Complimentary Fit Conversation, no charge, no pitch. Engagement starts at $3,000 for a focused planning project, with ongoing management on a tiered fee from 1.00% on the first $1M, falling to 0.30% above $10M. No commissions, no retros, no product revenue. Ever — which is why we'll never sell you an offshore savings plan.

Fees

Blueprint $3,000 and Life $8,000 (flat planning fees). Private Wealth Management on a tiered, blended schedule starting at 1.00% on the first $1M and declining to 0.30% above $10M. Fee-only: no commissions, no product payments, no lock-in. All fees

Book a Fit Conversation — Complimentary Fit Conversation (45 min).