Retiring in Bali, visa, budget, healthcare and where to live

Can you retire in Bali?

Yes. Indonesia has a stay permit made for retirees, and thousands of foreigners use it, most of them in Bali.

What you get is permission to live here, not a path to citizenship. You cannot work. You cannot own land in your own name. And your right to stay depends on a permit that you renew.

For many retirees that deal is fine. They rent a house by the year, live on a pension that goes three times further than at home, and keep a base in their own country.

The retirement visa

The retirement stay permit is a one year permit, renewable each year. After five years you can apply for a permanent stay permit.

With agency fees, the first year costs about $1,000 to $1,500, and renewals a bit less. A spouse can be attached as a dependant.

There are two other routes. People over 60 with savings can place a deposit in an Indonesian state bank and get a longer permit in one go. People with about $130,000 to lock in a bank or in property can get a second home visa for five or ten years.

The conditions have changed more than once in the last few years. The guide to long stay visas for Bali has the comparison, and an agent will confirm what applies to your nationality and age.

How much money you need

Less than at home, more than the internet says.

Health insurance is the line that grows with age. Flights home are the line people forget.

On rent, retirees have an advantage, because they can commit to a year. In our listings a two bedroom home costs Rp 30M when rented by the month. On a yearly contract the median is Rp 225M, or Rp 18.8M a month, about $1,050. Houses cost less than villas, and you do not need to be near the surf.

The full breakdown is in the cost of living in Bali.

Healthcare, the part to plan

Be clear-eyed about this.

Everyday care is fine. Private clinics in Sanur, Denpasar, Kuta and Ubud have English-speaking doctors, and a consultation costs $30 to $60. Dentists are good and cheap, and people fly here for dental work. Pharmacies sell many medicines without a prescription.

Serious care is another matter. Bali’s private hospitals handle emergencies and routine surgery. For heart surgery, cancer treatment or complex cases, expats go to Singapore, Kuala Lumpur, Bangkok or back home.

So you need three things.

1. International health insurance that accepts your age and covers evacuation. After 65, premiums rise fast and some insurers refuse new clients after 70 or 75. Apply while you are younger and healthy.
2. Cash or a credit card limit for emergencies. Hospitals ask for a deposit before treating.
3. A plan for what happens if your health declines. Many retirees decide in advance at what point they go home.

Home public cover usually stops abroad. American Medicare does not pay here. British, Australian and European retirees should check what they keep and for how long.

Where retirees live

The surf and nightlife areas are built for people in their thirties. Retirees tend to pick quieter places with flat streets, clinics nearby and a community their age.

• Sanur. The classic choice. A calm, shallow beach, a long seaside path for walking and cycling, flat roads, restaurants, and the island’s best cluster of clinics and hospitals within 20 minutes. See the rentals in Sanur.
• Ubud. Green, cooler at night, with art, yoga and a large older expat community in the villages around town. Hilly, and an hour or more from the main hospitals. See the rentals in Ubud.
• Jimbaran and Nusa Dua. Calm bays in the south, close to the airport and to a private hospital, with a resort feel.
• Lovina and the north. Very quiet and the cheapest, with a small community of European retirees. Three hours from Denpasar, which matters in an emergency.
• Tabanan. Rice fields and villages west of Canggu, for people who want the countryside and low rents. See the rentals in Tabanan.

Canggu, Berawa and Uluwatu are busier, louder and more expensive. Some retirees love them. Visit before you decide. The guide on where to live in Bali compares all the areas.

Housing for retirees

Rent, at least at first. Foreigners cannot hold freehold land in Indonesia, and the schemes that promise otherwise, such as buying in a local person’s name, have ended badly for many people.

Three ways to get a home:

1. A yearly rental. The usual choice. One or two years paid in advance, renewable. Browse the long term rentals in Bali.
2. A monthly rental for the first months, while you choose an area. See the monthly rentals.
3. A leasehold of 20 to 30 years, if you are sure. You pay the whole lease up front and the home is yours to use for the term. Read leasehold vs freehold first, and see the leasehold listings.

When you visit, look at the home with the next 10 years in mind.

• Is it on one level, or are there steep stairs with no handrail? Balinese villas love stairs.
• Can a car reach the door, or only a scooter?
• How far is the nearest clinic?
• Does the bathroom floor get slippery when wet?
• Is there a closed, air conditioned living room for the hot and rainy months?

For the contract, the visit and the deposit, see how to rent in Bali. For a contract of several years, use a notary.

Daily life as a retiree

Days are easy to fill. Walking and swimming, yoga, golf in Nusa Dua or Tabanan, diving, volunteering, language classes, clubs and charity groups run by expats.

Help at home is affordable. A housekeeper, a gardener and a driver cost a fraction of what they would at home, and the retirement permit expects you to employ someone anyway.

Driving is the main daily risk. If you never rode a scooter, 65 is not the age to start in Bali traffic. Budget for a car with a driver, or use Grab and Gojek, which are cheap.

The climate takes adjusting. It is hot and humid all year, and wetter from November to March.

Pensions, tax and paperwork

• Pension. Most countries pay state pensions abroad. Some freeze the amount once you leave, as the UK does for Indonesia. Check before you go.
• Tax. Living here more than 183 days a year makes you an Indonesian tax resident, and how foreign pensions are treated depends on the tax treaty with your country. See an adviser who knows both sides.
• Banking. With a stay permit you can open a local account. Keep your home accounts too.
• Will. Assets in Indonesia, a leasehold for example, need an Indonesian will. A notary can draw one up.
• Embassy. Register with yours.

Pros and cons

How to start

1. Come for three to six months on a visit visa, in a monthly rental, and include part of the rainy season.
2. Get quotes for international health insurance at your age.
3. Talk to a tax adviser and to a visa agent.
4. Choose an area, then sign a yearly rental and apply for the retirement permit.

The guide on moving to Bali covers the practical steps.