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How to work on Bali: Official Visas, PT PMA, and Tax Compliance

Kristina Martynova The author of the article, the Broker
#Blog DDA
9 October 189 views

Bali has evolved far beyond a tourist destination — it’s now a global hub for digital nomads, entrepreneurs, and creative professionals.

Thousands of foreigners move here each year to build businesses, work remotely, or invest in property.

But while Bali’s lifestyle feels relaxed, the Indonesian legal framework is strict. To work here safely and profitably, you need the right visa, business registration, and tax compliance.

This guide explains how to work on Bali in 2025 — legally, strategically, and sustainably.

Legal Framework: What “Working” Really Means

In Indonesia, “work” is defined broadly — any income-generating activity conducted while residing in the country, even online.

That means digital freelancers, consultants, and influencers all fall under work regulations.

Operating without proper visas or licenses can lead to fines, deportation, or business closure.

Three Legal Paths to Work on Bali:

  • Employment — local company hires you with a Working KITAS.
  • Entrepreneurship — you own/manage a PT PMA (foreign-owned company).
  • Remote Work — using a Digital Nomad Visa (for offshore income only).

Main Work Visas on Bali

Visa Type Duration Who It's For Key Features
Working KITAS 6–12 months Employees of Indonesian companies Requires job offer & sponsorship
Investor KITAS 1–2 years Company shareholders/directors Includes work rights
Digital Nomad Visa Up to 5 years Remote workers earning abroad Tax-free if income is offshore
Business Visa (B211A) 60–180 days Market research / pre-investment Non-working visa

Tip: Always choose the visa that matches your activity — Indonesian immigration is strict about “purpose mismatch.”

Which Visa Fits You

Profile Recommended Visa Key Advantage Work Permitted? Tax Status
Remote freelancer Digital Nomad Visa Up to 5 years, tax-free Yes (foreign income only) Non-resident
Business owner Investor KITAS + PT PMA Full legal work rights Yes Resident (183+ days)
Employee Working KITAS Employer sponsorship Yes Local tax
Visitor B211A Market exploration No N/A

This table helps investors, freelancers, and professionals instantly identify the correct visa type — a must for smooth, compliant work in Bali.

Employment on Bali

If you’re joining a local company, the employer must sponsor your Working KITAS.

Requirements:

  • Valid job offer and contract
  • RPTKA (Foreign Worker Utilization Plan) approval
  • IMTA (Work Permit) issued by the Ministry of Manpower

Popular Roles for Expats:

  • Hospitality management
  • Education & training
  • Creative / marketing agencies
  • Architecture & construction

Average expat salary: $1,500–4,000/month, often with accommodation and benefits.

Starting Your Own Business — PT PMA

If you plan to run a business — from villas to yoga retreats — register a PT PMA (foreign-owned company).

Advantages:

  • 100% foreign ownership (in open sectors)
  • Legal right to employ staff
  • Corporate bank account & invoicing
  • Investor KITAS eligibility
  • Property ownership through HGB (Right to Build)

Setup: 3–6 weeks, $2,000–3,000.

Before registering, consult the Positive Investment List (Daftar Positif Investasi).

Certain sectors (education, media, mining) still require local partnerships or special permits.

Remote Work & the Digital Nomad Visa

Bali officially launched the Digital Nomad Visa in 2023, positioning itself as Asia’s remote work capital.

Key advantages:

  • Stay up to 5 years without paying Indonesian income tax (if income is offshore).
  • Family sponsorship options.
  • Perfect for freelancers, agency owners, and online entrepreneurs.

Best Zones for Remote Work:

  • Canggu: vibrant, modern coworking and surf scene.
  • Ubud: spiritual, calm, nature-rich.
  • Uluwatu: premium villas, ocean views, quiet luxury.

Reminder: You can’t serve Indonesian clients on this visa — doing so constitutes local business activity and requires PT PMA registration.

Taxes and Legal Compliance

Indonesia’s tax ecosystem is digital, transparent, and tightly monitored.

Category Tax Type Rate / Notes
Individuals (residents) Income tax 5–35% progressive rate
Digital Nomads Offshore income 0% tax
Companies (PT PMA) Corporate tax 22% standard rate
VAT (PPN) Goods/services tax 11%, above 4.8B IDR turnover

Tip: Even “zero-income” companies must file monthly reports. Failure = license suspension.

Top Industries for Foreigners in 2025

Sector Roles ROI / Growth
Real Estate Developer, broker ROI 8–12% per year
F&B / Hospitality Café owner, GM 15–25% profit margin
Wellness & Fitness Retreat founder, instructor 10–12%
Creative / Tech Agency owner, designer High scalability
Tourism & Events Operator, consultant Seasonal but strong ROI

Trend: The future is hybrid — villa, café, and co-working space under one brand.

Reality Check

Bali seduces you easily — sunrise yoga, coconuts at noon, networking dinners by sunset. It’s a rhythm that makes people forget that this paradise is still a country with its own rules, taxes, and business structures.

Working here isn’t about escaping systems — it’s about building a sustainable one around your dream life. The island gives enormous freedom, but that freedom only lasts when it’s backed by paperwork: a valid visa, a transparent company, and clean tax records.

Too many newcomers arrive with a “let’s just start and see” mindset — freelancing on a tourist visa, renting villas for Airbnb without a license, paying salaries in cash. It works… until it doesn’t. The Indonesian government has modernized fast — online tax systems, immigration checks, and land-use monitoring mean that “unofficial” operations are now visible within months.

The truth: compliance is not the opposite of freedom — it’s what protects it.

When your PT PMA is registered, your Investor KITAS is valid, and your tax filings are clean, you can finally exhale. No fear of immigration raids, no frozen bank accounts, no fines — just peace of mind to build, create, and live the Bali life everyone dreams about.

So yes — working in paradise means paperwork. But those papers are what make the dream real.

They turn “living on Bali” from a long vacation into a legitimate, thriving lifestyle and business.

Common Mistakes to Avoid

  • Working on a tourist or social visa — even remotely.
  • Running a business without PT PMA or proper licenses.
  • Ignoring monthly tax reports or payroll compliance.
  • Using nominee property ownership — legally unenforceable.
  • Signing English-only contracts — Indonesian law requires bilingual notarization.

Remember: Legal shortcuts often look cheap but cost far more in fines, penalties, or even deportation.

Example:

A French entrepreneur opens a surf and wellness retreat in Canggu. He registers a PT PMA, obtains an Investor KITAS, leases land under Hak Sewa for 30 years, and secures a Pondok Wisata license. He files monthly tax reports and hires local staff through payroll compliance.

Result: a fully legal, profitable business with 10%+ annual ROI and the right to live and work in Bali long-term.

Professional Support

DDA Real Estate helps investors and professionals navigate Bali’s legal and business landscape.

Our services include:

  • PT PMA registration
  • KITAS & Digital Nomad Visa assistance
  • Property and lease verification
  • Tax & compliance structuring
  • Business and investment consulting

Our mission: to make your Bali business life simple, legal, and profitable.

Read also: “Tax & Accounting in Bali for Foreigners”, “Company Formation on Bali | KITAS”, “How to Start a Business in Bali: Legal, Financial, and Cultural Aspects”.

Bali offers the world’s most inspiring mix of freedom, opportunity, and creativity — but only those who build legally can truly enjoy it long-term.

  • Choose the right visa.
  • Register your company.
  • Pay taxes transparently.
  • Build with compliance, not shortcuts.

With the right structure, you won’t just work on Bali — you’ll grow here.

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