Indonesia Second Home and Retirement Visa Programmes

For foreigners who want to live in Indonesia long-term without working — typically retirees, financially independent long-stayers, or part-time residents who spend several months a year in Bali — there are two main visa pathways: the Retirement KITAS (E33F) and the newer Second Home Visa (E33D). Both exist alongside the more common work KITAS and family-sponsored options, but neither requires employment or a marriage to an Indonesian citizen. This article walks through the two programmes in detail and helps you decide which one fits.

Retirement KITAS (E33F)

The retirement visa has been in place for many years and is the standard route for retirees from countries with pension income.

Eligibility:

• Aged 55 or over (a hard threshold; younger applicants are not eligible)
• Proof of regular pension or income, typically USD 18,000/year (about USD 1,500/month) — varies slightly by embassy
• Health insurance valid in Indonesia, with at least USD 25,000 coverage
• Proof of accommodation in Indonesia — either a rental agreement (minimum USD 35,000/year value in Jakarta, USD 7,000 elsewhere, per some interpretations) or property
• Employment of an Indonesian (often a domestic worker; sometimes interpreted loosely)
• A signed statement that the applicant will not engage in paid work

Duration:

• Initial period: 1 year
• Extendable for 4 successive 1-year periods
• After 5 years on the retirement KITAS, eligible to apply for KITAP (permanent residence, 5-year card, indefinite renewals)

Cost:

• Government fees: roughly USD 500-1,000 (varies by year and route)
• Agent fees (most applicants use one): USD 1,500-2,500 for the initial application, USD 500-1,000 for annual renewals
• Health insurance premium: USD 1,000-3,000/year depending on age and coverage

Process:

1. Engage a retirement visa agent in Indonesia (most common path)
2. Provide documentation: passport, pension proof, bank statements, health certificate, police clearance from home country, marriage certificate if applicable
3. Agent submits application for VITAS at an Indonesian embassy in your home country
4. With VITAS in hand, travel to Indonesia
5. Within 30 days of arrival, immigration office issues the KITAS card
6. Annual renewal procedure each year before expiry

Restrictions:

• No paid work in Indonesia
• Cannot directly own freehold land (Indonesian restriction applies to all foreigners)
• Must maintain the eligibility criteria — pension income, health insurance, accommodation — throughout the visa period

The retirement KITAS is well-established and the documentation requirements are routine. Most applicants find the process straightforward through an agent.

Second Home Visa (E33D)

The Second Home Visa is a newer programme, launched in 2022 as part of an effort to attract high-net-worth long-stayers. It is broader than the retirement visa in two important ways: no minimum age requirement, and longer initial visa duration.

Eligibility:

• No age requirement (open to applicants of any adult age)
• Either:
  • Funds of at least IDR 2 billion (about USD 126,000) deposited in an Indonesian state bank, OR
  • Ownership of Indonesian property of equivalent value
• Health insurance valid in Indonesia
• Proof of accommodation
• Application via an Indonesian Second Home visa agent

Duration:

• 5 years or 10 years (choice at application)
• Renewable

Cost:

• Government fees: about USD 200-400
• Agent fees: USD 2,500-4,000 for initial application
• The underlying USD 126,000 deposit or property cost
• Health insurance premiums

Process:

1. Engage a Second Home visa agent
2. Provide documentation
3. Either deposit IDR 2 billion in an Indonesian state bank (Bank Mandiri, BRI, BNI, BTN) or purchase qualifying property
4. Submit application through the agent
5. Receive 5 or 10 year residence permit

Restrictions:

• No paid work in Indonesia (same as retirement visa)
• Cannot own freehold land (same as all foreigners)
• Must maintain the qualifying deposit or property throughout the visa period
• Funds in the Indonesian bank deposit earn local interest (typically modest)

The Second Home Visa is conceptually similar to programmes in Malaysia (the MM2H), Thailand (the Elite Visa), the UAE (the Golden Visa), and elsewhere. Uptake has been moderate, partly because the deposit requirement is high relative to some competing programmes and partly because the property option faces practical complications (foreigners can't own freehold land, only Hak Pakai leaseholds, which complicates the "ownership" definition).

Comparing the two

| Factor | Retirement KITAS (E33F) | Second Home Visa (E33D) | |---|---|---| | Age requirement | 55+ | None | | Financial requirement | Pension income ~USD 18,000/year | Deposit/property ~USD 126,000 | | Initial duration | 1 year | 5 or 10 years | | Total stay | Up to 5 years before KITAP | Same with renewal | | Path to KITAP | After 5 years on E33F | After 5 years on E33D | | Annual renewal hassle | Yes | No (within initial term) | | Cost over 5 years | ~USD 12,000-18,000 (fees + insurance) | ~USD 5,000-8,000 (one-time) + deposit | | Work permitted | No | No |

The trade-off is roughly:

• Choose Retirement KITAS if: you're over 55, have pension income, prefer to keep your capital invested abroad
• Choose Second Home Visa if: you're under 55, OR you're comfortable with a large Indonesian deposit, OR you want to minimise annual renewal hassle

For many qualifying applicants, the Second Home Visa is the better deal economically — the deposit earns interest, the visa lasts 5-10 years without annual renewal, and the total fee cost over the period is lower. But the deposit threshold is a real friction.

Family considerations

Both visas allow dependent KITAS for spouses and children. The dependents have the same restrictions (no work) but can reside long-term.

For Indonesian-spouse situations, the family KITAS (E31) is usually the better option — no deposit or pension requirement, lower fees, and a clearer path to KITAP.

Property ownership context

A persistent question for both retirement and Second Home visa holders is: can I actually own a place in Bali (or Jakarta, or wherever)?

Indonesian law distinguishes several land rights:

• Hak Milik (Right of Ownership / freehold) — restricted to Indonesian citizens only
• Hak Guna Bangunan (HGB) (Right to Build) — held by Indonesian citizens or PT PMA companies; allows building ownership for 30 years (renewable to 80)
• Hak Pakai (Right of Use) — available to foreigners with KITAS; allows use for 30 years initially, extendable

For practical purposes, foreigners cannot directly hold freehold land in Indonesia. The legal options for a foreigner with a long-stay visa are:

1. Hak Pakai lease — long-term lease in your own name, 30-year initial term + extensions, usually valid for the duration of your KITAS
2. PT PMA structure — set up a foreign-investment company (PT PMA), have the company purchase HGB land, use the property under company name. Costs around USD 5,000-10,000 to set up, plus annual maintenance.
3. Nominee structure — historically common but increasingly risky and unenforceable; the foreign buyer holds property through an Indonesian nominee owner. Multiple legal cases have stripped foreigners of property held this way.

Most long-stay foreigners in Bali use either Hak Pakai or PT PMA structures. The land-purchase process is complex and warrants specialist legal advice.

Banking, taxes, and practical residency

KITAS holders, including those on retirement and Second Home visas, are eligible for:

• An Indonesian bank account (BCA, Mandiri, BRI, and BNI all serve foreign-KITAS holders)
• A local SIM card and mobile contract
• An Indonesian driving licence (after conversion from your home country's licence)
• Health insurance (BPJS as a basic tier, plus private supplementary)

Tax residency: any foreigner spending 183+ days per year in Indonesia becomes an Indonesian tax resident. This means worldwide income is potentially taxable in Indonesia, subject to double-tax treaties with your home country.

For retirees with foreign pension income, the practical effect depends on the relevant tax treaty. Many treaties allocate pension taxation to the source country, so your home-country pension may not be additionally taxable in Indonesia — but professional advice is essential.

Where to get help

The main Indonesian retirement and Second Home visa agents include:

• LegalPath Bali
• Bali Solo
• Cekindo
• Emerhub
• Bali Long Stay
• Various smaller boutique firms

Choose an agent with track record, transparent fees, and good reviews from existing clients. Be wary of agents who claim they can bypass requirements or expedite unnaturally.

For tax planning, the major international accounting firms (PwC, Deloitte, KPMG, EY) all have Indonesian operations with cross-border tax practices. For property purchases, an Indonesian lawyer specialising in foreign property transactions is essential.

Long-term commitment

The retirement and Second Home visas are designed for people serious about long-term residence in Indonesia. They are not particularly good for occasional visits or rough-and-ready "I might be here, I might not" arrangements — for those, the VOA + B211A pattern is simpler and cheaper.

But for foreigners who have decided that Bali (or Jakarta, or somewhere else in Indonesia) is going to be their primary or secondary residence for the foreseeable future, the long-stay programmes offer real advantages: predictable residence rights, the ability to bring belongings into the country, access to banking and services, and over time a path to KITAP and a degree of permanence that the tourist-track visas never offer.