Brits working from home will be able to live tax-free if they move to Bali

Working from home has its benefits, however it can get a bit depressing if you're stuck in your house while it's pouring of rain outside.

However, how would you like to work from the beach in Bali?

And what would you say if we told you your earnings could be totally tax-free?

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Well if that sounds good, you may be pleased to hear that freelancers will soon be able to work tax-free in Indonesia, including on the island of Bali.

The country’s tourism minister Sandiaga Uno announced the five-year ‘digital nomad visa’ earlier this week.

He told reporters that he hopes the move will bring in up to 3.6million overseas travellers and create one million jobs for Indonesians.

Uno said the proposed remote working visa will mean freelancers can live tax-free on islands like Bali, as long as their earnings come from outside of Indonesia.

He told the South China Morning Post he wants Indonesia’s tourism to shift from a ‘sun, sea and sand’ approach and instead focus on ‘serenity, spirituality and sustainability’.

“This way we’re getting better quality and better impact on the local economy,” he explained.

Uno said the e decision was based on research that showed Indonesia was ‘top of mind’ for 95% of the remote workers that took part in the survey.

Similar plans for a digital nomad visa were being developed last year, however had to be put on pause due to the pandemic.

Uno added: “Now with the pandemic handled and all the ministries getting involved and cooperating from the health side to the immigrations office, we believe that this is an opportune time to relaunch this idea.”

There are currently a variety of visas available to remote workers wanting to visit Indonesia. These include the Visa on Arrival (VoA), Tourist or Cultural Visa and the country’s Free Visa, but they only last between 30 and 180 days.

Other countries including Georgia, Croatia and Portugal also offer digital nomad visas. This modern workers’ visa basically means you can work while staying in a foreign country, as long as you don’t enter the local labour market.

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The rule means local residents aren’t pushed out of jobs.

Visa requirements usually vary between countries, but proof of funds is normally required to secure one.

However, living tax-free isn’t always a guarantee if you’re granted a digital nomad visa. For example, Americans still have to file taxes if they’re granted one because the US taxes citizens based on their citizenship itself, as opposed to their residence.

VisaGuide says a total of 26 countries currently accept digital nomad visas.

Those are: Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Barbados, Bermuda, Cabo Verde, Cayman Islands, Croatia, Curaçao, Dominica, Dubai, Estonia, Georgia, Germany, Iceland, Malta, Mauritius, Mexico, Montserrat, Norway, Seychelles, Spain, Taiwan, and The Czech Republic.


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