The Minister of Law and Human Rights Indonesia has just issued a Circular letter dated 21 December 2022, which ends much speculation regarding the Second Home Visa.
Many retirees in Bali have been in a state of trepidation that their visas were likely to be cancelled, subsequently, this clarification letter is a Christmas present for many, although as usual, there may be some future changes.
There are a bunch of different visas in Indonesia, but this article only refers to the new Second Home Visa.
This visa is intended for high-echelon foreigners wishing to stay long term and invest in Indonesia’s property market, who can come and go without the rigid restriction of limited stay or tourist visas that only allow short stays. Visa holders will be afforded the same immigration entry benefits as other long-stay permit holders, avoiding lengthy tourist queues, which on a good day can mean only minutes between plane arrival and customs exit.
In a nutshell, this Second Home Visa is directed towards foreigners and their immediate families to stay between 5 to 10 years, if certain conditions are met, ie:
- That they hold IDR 2bn in an Indonesian bank or have a property in Indonesia exceeding this value;
- An applicant provides a financial statement showing at least IDR 2bn in an Indonesian bank, or an Indonesian property certificate of ownership – At the time of writing, it is not clear if proof of Leasehold (Hak Sewa) property ownership will be an acceptable form of property title, as the latest Circular Letter only refers to Certificate of Ownership (Hak Pakai or Hak Milik);
- Official documents to prove family relationships ie marriage and birth certificates;
- The visa reason is not for work generating an income inside Indonesia;
- Applicants have full medical insurance; and
- Applicant’s National passport is still valid for a minimum further 36 months (3 years);
A foreigner that cannot provide proof of funds, may instead be guaranteed by a property developer in Indonesia, who provides the authorities with the necessary comfort that the applicant is a future land, villa, or infrastructure owner.
This Circular has also stated that residence permits for existing retirees will not be affected, however, similar future retirement visas are unlikely to be issued, but that is subject to change.
If you are looking to purchase a second home in Bali, we have plenty to choose from on our website www.balirealty.com If you wish for your existing or new villa to be professionally managed and marketed to the world, we invite you to discuss with our team all the services that we offer, and the ROI you can expect to receive in Bali.
About the author
Nathan Ryan is one of the best real estate agents in Bali and will be able to help you secure your wonderful piece of paradise in Canggu. He’s got a wealth of experience and knows everything there is to know about buying and selling real estate in Bali.