# Indonesia: taxes, residence and cost of living

Source: https://domicile.wiki/places/indonesia/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- Score for a wealthy family: 52 / 100
- Can EU citizens live here?: income of €32,157 a year · Retirement stay permit (E33E Silver Hair / E33F Retirement)
- Can US citizens live here?: income of €32,157 a year · Retirement stay permit (E33E Silver Hair / E33F Retirement)
- Other passports: income of €32,157 a year · Retirement stay permit (E33E Silver Hair / E33F Retirement)
- Tax on a €30M portfolio: €255,840 a year
- Wealth tax: none
- Children inherit: tax-free
- EU member: no
- Currency: IDR
- Capital: Jakarta

## Tax on investments, inheritance and wealth

Indonesia taxes residents on worldwide income at up to 35%. That rate applies to gains on foreign shares and to foreign dividends, unless the reinvestment-in-Indonesia exemptions apply. Indonesian listed shares bear only a 0.1% tax on sale proceeds, and Indonesian dividends a 10% final tax. Foreign experts can be taxed only on Indonesian income for four years, but that needs qualifying work. There is no inheritance, gift or wealth tax. A golden visa exists for large investors (thresholds not verified).

- **Indonesian tax resident**: Worldwide taxation at 5%-35%; final taxes on IDX share sales, Indonesian dividends and Indonesian property.
- **Foreign expert: Indonesian-source taxation (4 years)**: Foreigners who become resident and meet skill requirements are taxed only on Indonesian-source income for their first four years of residence.

## Income tax

Residents pay 5% to 35% on taxable income after IDR 54 million personal relief and a 5% occupational expense deduction (max IDR 6 million a year). Residents are taxed on worldwide income; only certified foreign experts get a four-year territorial treatment. Employees pay about 4% to BPJS.

## How to get residence

No free movement for EU citizens; EU, US and other passports use the same routes. Investors can buy a 5- or 10-year Golden Visa (USD 350,000 in government bonds, or a USD 2.5 million company), or take a Second Home Visa (IDR 2 billion, about USD 130,000, no work). Remote workers (E33G) need about USD 60,000 a year. Retirees need a pension of about USD 3,000 a month. Most official pages could not be opened; figures come from Fragomen, EY, ASEAN Briefing and consultancies.

- **Golden Visa (individual, passive investment route)** (Investor residence; EU citizens, US citizens, other passports; open): Five or ten years of residence for buying Indonesian government bonds worth USD 350,000 to USD 700,000 (secondary sources add listed shares and bank deposits).
- **Golden Visa (individual, own company route)** (Investor residence; EU citizens, US citizens, other passports; open): Five or ten years of residence for an investor who sets up an Indonesian company valued at USD 2.5 million or USD 5 million.
- **Second Home Visa (Rumah Kedua)** (Passive income / retirement; EU citizens, US citizens, other passports; open): Five or ten years of residence without the right to work, for people who show IDR 2 billion (about USD 130,000) in an Indonesian state bank or own qualifying property.
- **Remote Worker Visa (E33G KITAS)** (Digital nomad; EU citizens, US citizens, other passports; open): One-year renewable stay permit for people employed by a foreign company, earning about USD 60,000 a year.
- **Retirement stay permit (E33E Silver Hair / E33F Retirement)** (Passive income / retirement; EU citizens, US citizens, other passports; open): Stay permit for retirees with a pension, no work allowed; one of the few Indonesian long-stay options without an investment.
- **Work KITAS (RPTKA-sponsored)** (Work; EU citizens, US citizens, other passports; open): Employer-sponsored stay permit (KITAS) for foreign employees; needs a manpower plan (RPTKA) approved for the employer.

Citizenship: Citizenship by naturalisation under Law 12/2006 is understood to need age 18+, 5 consecutive years (or 10 non-consecutive) of legal residence, Indonesian language and presidential approval; not confirmed from an official page in this run.

## Inheritance law and trusts

Which law applies depends on religion and community. Under the Civil Code, children and parents have a protected share; Muslims follow Islamic fixed shares and can will at most one third. A foreigner's movables follow their national law but a foreigner cannot hold Indonesian freehold land, and Indonesia has no trust law and has not joined the Hague Trusts Convention.

## Daily life (0-100, higher is better)

- Safety and personal security: 75
- Political and institutional stability: 46
- Corruption and government integrity: 36
- Legal system and property rights: 45
- Healthcare quality and access: 49
- Education quality: 17
- Human development and quality of life: 46
- Infrastructure and connectivity: 63
- Business opportunities and economy: 52
- Cultural fit and lifestyle: 17

## Research notes

### Indonesia — family-office tax dossier

Last reviewed: 2026-10-15
Tax year: 2026
Reviewer: research agent (Claude), unreviewed by a tax adviser

#### Summary

Indonesia taxes residents on worldwide income at up to 35%. That rate applies to gains on foreign shares and to foreign dividends, unless the reinvestment-in-Indonesia exemptions apply. Indonesian listed shares bear only a 0.1% tax on sale proceeds, and Indonesian dividends a 10% final tax. Foreign experts can be taxed only on Indonesian income for four years, but that needs qualifying work. There is no inheritance, gift or wealth tax. A golden visa exists for large investors (thresholds not verified).

US citizens: US citizens pay US tax on top; the Indonesia-US treaty (1988) gives credits.

#### Residence and eligibility

Resident if residing in Indonesia, present more than 183 days in any 12-month period, or present during a fiscal year with intent to reside. Treaty tie-breakers apply.

- **Golden Visa (investor) and other KITAS/KITAP permits** (EU, US, OTHER): Indonesia introduced a golden visa for investors in 2023 with 5- and 10-year terms and investment thresholds in company investment or government bonds (amounts not verified). Retirement and second-home visas also exist (not researched).

#### Capital gains

##### Indonesian tax resident (`standard`)

Residents are taxed on worldwide income. Capital gains are ordinary income at the progressive rates (5%-35%; 35% above IDR 5 billion), except sales of shares on the Indonesia Stock Exchange (0.1% final tax on proceeds) and transfers of land and buildings (2.5% final tax on the gross transfer value). Gains on foreign listed shares are therefore taxed at up to 35%, with a foreign tax credit.

- **Exemptions and thresholds:** None for securities. Gains from mutual funds are exempt (PwC).
- **Important exceptions, statute references and announced changes:** Foreign experts who become resident may elect to be taxed only on Indonesian-source income for their first four years (Omnibus Law; special regime, needs qualifying skills). Founder shares on IPO: optional 0.5% on listing value.
- **Tax year / confidence / verification:** 2026 / medium / partially_verified (checked 2026-10-15)
- **JSON numbers:** headline 35% (0.35); listed domestic 0.2% (0.002); listed foreign 35% (0.35); private business sale 35% (0.35); local real estate 5% (0.05); foreign real estate 35% (0.35).
- **How derived:** Foreign shares, private company shares and foreign property: top progressive rate 35%. Proceeds-based final taxes converted to a rate on the gain assuming the gain is half of the proceeds: IDX shares 0.1% of proceeds -> 0.2% of the gain; Indonesian land and buildings 2.5% of gross value -> 5% of the gain.
- **Holding period:** None.
- **Trader recharacterisation:** Trading as a business is taxed as business income at progressive rates; IDX sales remain under the 0.1% final tax.
- **Foreign assets:** Worldwide taxation with credit for foreign tax (per-country limit; not detailed by PwC).

##### Foreign expert: Indonesian-source taxation (4 years) (`foreign_expert_territorial`)

Foreign gains are not taxed for the first four years; Indonesian gains as standard.

- **Tax year / confidence / verification:** 2026 / medium / partially_verified (checked 2026-10-15)
- **JSON numbers:** headline 35% (0.35); listed domestic 0.2% (0.002); listed foreign 0% (0.0); private business sale 35% (0.35); local real estate 5% (0.05); foreign real estate 0% (0.0).
- **How derived:** Foreign-source gains 0; Indonesian-source as standard.

#### Dividends

##### Indonesian tax resident (`standard`)

Dividends from Indonesian companies bear a 10% final tax, or none if the resident individual reinvests them in Indonesia within the prescribed period. Foreign dividends are taxed at the progressive rates up to 35% with credit for foreign tax, unless they qualify for the reinvestment exemption for foreign dividends introduced by the 2020/2021 tax laws (not verified).

- **Important exceptions, statute references and announced changes:** Foreign dividends: exemption if invested in Indonesia within a set period (for listed foreign companies the dividend itself; for unlisted, at least 30% of after-tax profit) under the Omnibus/HPP amendments to Income Tax Law Art. 4(3) (general knowledge, not verified).
- **Tax year / confidence / verification:** 2026 / medium / partially_verified (checked 2026-10-15)
- **JSON numbers:** headline 35% (0.35); domestic 10% (0.1); foreign gross 35% (0.35); foreign tax relief: credit.
- **How derived:** Domestic: 10% final (0 if reinvested in Indonesia). Foreign: top progressive rate 35% before credit, assuming no reinvestment in Indonesia.
- **Outbound withholding:** 20% WHT on dividends to non-residents, reducible by treaty (corporate summary; not opened).
- **Treaty network:** Around 70 treaties including the US and most EU states (count not verified; PwC treaty page opened).
- **Holding companies:** CIT 22%; foreign dividends received by Indonesian companies exempt if reinvested (not verified).

##### Foreign expert: Indonesian-source taxation (4 years) (`foreign_expert_territorial`)

Foreign dividends are not taxed for the first four years; Indonesian dividends 10% final as standard.

- **Tax year / confidence / verification:** 2026 / medium / partially_verified (checked 2026-10-15)
- **JSON numbers:** headline 10% (0.1); domestic 10% (0.1); foreign gross 0% (0.0); foreign tax relief: exemption.
- **How derived:** Foreign-source dividends 0; domestic 10% final.

#### Inheritance and gifts to children

##### Indonesian tax resident (`standard`)

Indonesia has no inheritance, estate or gift tax. Property acquired by gift is exempt income for the recipient (PwC lists it as exempt; under the Income Tax Law the exclusion covers gifts between direct-line relatives of one degree), and undivided inheritances are not income. The heir pays land and building acquisition duty (BPHTB, up to 5% above a regional threshold that starts at IDR 300 million for inheritances) on Indonesian real estate.

- **Important exceptions, statute references and announced changes:** BPHTB on inherited Indonesian property is not reflected in other_transfer_cost_rate because the family's estate is mostly securities; foreigners can hold only use rights (Hak Pakai) to land.
- **Tax year / confidence / verification:** 2026 / high / partially_verified (checked 2026-10-15)
- **JSON numbers:** basis `none`, children `fully_exempt`, scope `worldwide`, exemption 0 IDR, brackets (marginal): none; other transfer costs 0% (0.0); deemed disposal 0% (0).
- **Gifts:** No gift tax; gifts to children are excluded from the recipient's income. BPHTB up to 5% applies to transfers of Indonesian land and buildings, including by gift and inheritance. (same as inheritance: True; tax-free after years: None)
- **Foreign assets:** No tax.
- **Residence/domicile rules:** Not applicable.
- **Business relief covers listed shares:** False

##### Foreign expert: Indonesian-source taxation (4 years) (`foreign_expert_territorial`)

Same as the standard regime.

#### Wealth tax

##### Indonesian tax resident (`standard`)

No net wealth tax.

- **Tax year / confidence / verification:** 2026 / high / partially_verified (checked 2026-10-15)
- **JSON type:** `none`
- **Property tax (not a wealth tax):** Land and buildings tax (PBB) annually at up to 0.5% of the government-determined value; BPHTB acquisition duty up to 5% on purchases; 2.5% final tax for the seller.

##### Foreign expert: Indonesian-source taxation (4 years) (`foreign_expert_territorial`)

Same as the standard regime.

#### Special regimes

##### Foreign expert: Indonesian-source taxation (4 years) (`foreign_expert_territorial`)

Foreigners who become resident and meet skill requirements are taxed only on Indonesian-source income for their first four years of residence.

- **Eligible citizenships:** EU, US, OTHER
- **Eligibility:** Foreign national who becomes tax resident and has qualifying expertise/skills (implemented by regulation; requires work in Indonesia). Not available where a treaty is used for foreign income.
- **Duration (years):** 4
- **Requires qualifying activity:** True

#### Company taxation (kept separate from personal tax)

Headline CIT rate: 22% (0.22). 22% flat CIT; 19% for listed companies meeting a 40% free-float test; small-business reductions. Worldwide taxation of resident companies.
Special zones/regimes: Special Economic Zones and tax holidays for pioneer industries (not researched).

#### Cost of living notes

Not researched in this pass (no quickly verifiable sources).

#### Open questions

- Only PwC was opened; Income Tax Law (as amended by the Omnibus Law and the HPP Law) not read.
- Golden visa investment thresholds not verified.
- (standard.dividends) Conditions of the foreign dividend reinvestment exemption were not read from the law or regulations.

#### Sources

- Indonesia - Individual - Income determination (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/income-determination
- Indonesia - Individual - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/other-taxes
- Indonesia - Individual - Taxes on personal income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/taxes-on-personal-income
- Indonesia - Individual - Foreign tax relief and tax treaties (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/foreign-tax-relief-and-tax-treaties
- Indonesia - Individual - Residence (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/residence
- Indonesia - Corporate - Taxes on corporate income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/corporate/taxes-on-corporate-income

#### Change log

- 2026-10-15: initial research.


## Residence and succession sources

- [Indonesia: Golden Visa Program Introduced (updated 13 January 2026)](https://www.fragomen.com/insights/indonesia-golden-visa-program-introduced.html) — Fragomen
- [EY: Indonesia introduces new golden visa route](https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/tax/tax-alerts-pdf/ey-indonesia-introduces-new-golden-visa-route.pdf) — EY
- [Indonesia's Second Home Visa: What are the Requirements?](https://www.aseanbriefing.com/news/indonesia-to-issue-second-home-visa-what-are-the-requirements/) — ASEAN Briefing (Dezan Shira & Associates)
- [Remote work visa KITAS E33G](https://www.letsmoveindonesia.com/remote-work-visa-kitas-e33g/) — Let's Move Indonesia
- [Retirement visa Indonesia](https://emerhub.com/indonesia/visas/retirement-visa/) — Emerhub
- [Work Visa Indonesia: 2026 Guide to KITAS, RPTKA & E33G](https://employsome.sda.company/?p=7991) — Employsome
- [HCCH status table: Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law
- [Legitieme portie dalam hukum waris Islam di Indonesia](https://jurnal.hukumonline.com/a/5cb4a12e01fb73001038d34b/legitieme-portie-dalam-hukum-waris-islam-di-indonesia/) — Hukumonline
- [Wasiat limit under the Compilation of Islamic Law (Jatiswara)](https://jatiswara.unram.ac.id/index.php/js/article/download/283/238/912) — Universitas Mataram