Are you planning a retirement in paradise? If you are a U.S. citizen considering the move, obtaining a retirement KITAS in Bali offers the convenience to make it happen. Find below why Bali stands out and how to apply correctly to ensure a smooth retirement journey.
What Bali has to offer for US retirees
Retiring in Bali allows U.S. citizens to enjoy a laid-back lifestyle, breathtaking scenery, and a significantly lower cost of living. Here is a deeper look into why Bali is a favorite among American retirees:
Warm Climate with Beautiful Scenery
Bali offers year-round sunshine and a warm tropical climate, making it perfect for retirees to escape cold winters. The island also has a wide variety of natural landscapes, from beaches to waterfalls to mountains, ensuring retirees can enjoy both relaxation and adventure.
Low Cost of Living
Living in Bali is surprisingly affordable for U.S. citizens, making it one of Southeast Asia’s top retirement destinations. Here is the breakdown:
- Housing: You can rent a one-bedroom apartment in downtown Bali for $300–$600/month. Upscale villas with pools and garden spaces are also available for higher budgets.
- Utilities: Monthly electricity, water, and air conditioning costs range from $60 to $100.
- Transportation: Fuel and monthly scooter expenses are incredibly cheap.
- Groceries: Locally grown produce keeps grocery bills low. Weekly essentials typically cost under $15 at local markets.
This low-cost structure allows retirees to live comfortably, even on fixed incomes like Social Security.
Diverse Housing Choices
Bali offers a broad spectrum of properties that fit various lifestyles and budgets. From apartments to villas and rentals, retirees have the flexibility to live modestly or in luxury, depending on personal preference.
Quality Healthcare
Healthcare in Bali has improved significantly, especially in areas popular with expats like Ubud, Kuta, and Denpasar. Several international hospitals, local clinics, and pharmacies deliver quality and affordability for retirees in Bali.
Rich Culture, Welcoming Community, and Strong Network
Balinese culture is deeply spiritual, and the local population is known for warmth and hospitality. With thousands of retirees and digital nomads, the expat community also offers plenty of opportunities for socializing and support.
Read more: 7 best places to stay in Bali for first-time travelers
How to apply: Key requirements and guides
The Retirement KITAS is designed for non-working retirees who wish to live in Indonesia for the long term. Before applying, make sure you meet these specific criteria, such as:
- A foreign retiree who is 55 years old or older.
- Hold a valid passport with at least 18 months of validity remaining.
- Do not plan to work or earn income in Indonesia.
- Can show proof of sufficient income (minimum USD $1,500 per month, or $18,000 per year).
- Agree to rent a property in Indonesia (minimum rental contract of 1 year).
- Have valid health and life insurance that covers your stay in Indonesia.
- Employ at least one Indonesian domestic helper (e.g., maid, driver, or gardener).
These requirements help ensure that retirees can support themselves and contribute to the local economy without taking jobs from locals.
Retirement KITAS Application Process
Applying for a Retirement KITAS as a U.S. citizen is straightforward if you follow the proper steps and prepare your documents correctly. To simplify the immigration process and ensure a smooth experience, it is highly recommended that you work with a licensed visa agent, like InCorp Indonesia.
Once you complete your documents, your chosen agency can help submit them through the Indonesian immigration portal and act as your visa sponsor. If your retirement KITAS is granted, it will be valid for one year and can be renewed annually for up to five years.
Read more: Guide to obtaining a retirement visa in Bali
Tax consideration before retiring in Bali
Before applying for a Retirement KITAS, it is essential to understand the key tax residency compliance to ensure a smooth long‑term living in Bali. As a tax resident, all income within Indonesia may be subject to progressive tax rates based on total income level.
However, retirement KITAS holders in Bali can get specific tax exemptions, such as:
- No local tax is required if you do not earn income in Indonesia (non-tax resident).
- Foreign income is exempt for up to 4 years for new tax residents, giving financial flexibility when settling in.
- No double taxation means that a Retirement KITAS holder may not have to pay tax again in Indonesia.
Read more: Visa in Indonesia: Choose the correct visa for work, travel, or retirement
Ensure a smooth retirement journey in Bali
If you are ready to enjoy your golden years in paradise, securing your Retirement KITAS is the first step. The process can be complex, but with the right help, it becomes stress-free.
InCorp Indonesia (an Ascentium Company) offers a professional, reliable Retirement KITAS service to assist U.S. citizens. Our experienced team helps with:
- Document preparation and submission
- Sponsorship arrangements
- KITAS conversion and renewals
- Local compliance and regulations
- Expert visa support throughout your stay
Contact us today and let us simplify your retirement journey in Bali. Do not let the visa process be a barrier to your dream retirement. Reach out to us, and we will handle the paperwork while you plan your new life in paradise.
Frequently Asked Questions
Who is eligible to apply for a Retirement KITAS in Bali?
Foreigners aged 55 years or older who do not plan to work in Indonesia and can show proof of sufficient income are eligible.
What are the main requirements for a Retirement KITAS?
You must have a valid passport (18+ months), health insurance, proof of income (min. USD 1,500/month), a 1-year property rental, and employ at least one Indonesian domestic helper.
How long is the Retirement KITAS valid?
The Retirement KITAS is valid for 1 year and can be renewed annually for up to 5 years.
Are Retirement KITAS holders in Bali required to pay taxes?
If you don’t earn income in Indonesia, you are not subject to local tax. New tax residents may also enjoy foreign income exemptions for up to 4 years.
Can I apply for a Retirement KITAS without an agent?
While possible, it’s highly recommended to use a licensed visa agency like InCorp Indonesia to handle documentation, sponsorship, and renewals smoothly.
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Disclaimer
The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.
Verified by
Hotdo Nauli
Senior Legal & Delivery Manager at InCorp Indonesia
Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI).
