Information, not advice: Second Home Visa Indonesia is an independent editorial guide — not the Government of Indonesia, not the Directorate General of Immigration, and not a law firm or licensed adviser. The Second Home Visa is a non-working visa; the IDR 2 billion deposit is IDR-set and FX-exposed, rules change by regulation, and figures are "last verified June 2026" — confirm at the e-Visa portal (evisa.imigrasi.go.id) and with licensed Indonesian immigration/tax counsel before acting. We never promise approval. If you engage a partner we introduce, that partner may pay us a referral fee at no cost to you.
The tax implications of Indonesia Second Home Visa status are simple in concept and messy in practice: the visa itself is “non‑fiscal”, but spending enough time in Indonesia can still make you a tax resident. This page unpacks how the 183‑day rule interacts with the Second Home Visa, what that means for income, and where immigration stops and tax law starts.
What this page is — and what it is not
I am writing here as Lead Analyst, Long‑Stay Residency Policy at Second Home Visa Indonesia. We read Indonesia’s immigration framework from the primary texts up — especially:
- Government Regulation (Peraturan Pemerintah) PP 48/2021 on types of visas and stay permits; and
- Directorate General of Immigration Circular IMI‑0740.GR.01.01/2022 establishing the Second Home Visa scheme.
This page:
- covers immigration-derived facts (deposit, duration, work limitations) based on those texts; and
- explains in plain language how Indonesia’s 183‑day tax residency concept usually interacts with a long stay under the Second Home Visa.
This is information, not advice. Second Home Visa Indonesia is not the Government of Indonesia, not the Directorate General of Immigration, and not a law or tax firm. We do not represent the Directorate General of Taxes (Direktorat Jenderal Pajak, “DJP”). You should confirm any tax position with a qualified Indonesian tax adviser before acting.
Our independence policy: no one can pay to change what we publish; if you proceed with our partner they may pay us a referral fee at no extra cost to you.
Second Home Visa in one page: what the regulations actually say
To understand tax exposure, you need the immigration skeleton first. All immigration facts below are derived from PP 48/2021 and Circular IMI‑0740.GR.01.01/2022 unless flagged [VERIFY].
Permit type and duration
- The Second Home Visa (Visa Rumah Kedua) is a limited stay visa (visa tinggal terbatas) that leads to a limited stay permit (Izin Tinggal Terbatas, “ITAS”).
- Per Circular IMI‑0740.GR.01.01/2022, the core options are a 5‑year and a 10‑year stay permit, subject to eligibility and continued compliance. Exact configurations can change; always confirm the latest practice [VERIFY].
The IDR 2,000,000,000 deposit (non‑tax, but relevant)
The headline eligibility requirement is a financial proof that Immigration describes as a “fund placement”:
- IDR 2,000,000,000 (two billion rupiah) minimum balance in an Indonesian state‑owned bank; or
- Qualifying luxury property ownership (specific thresholds and documentation in IMI‑0740.GR.01.01/2022) [VERIFY for current practice].
Last verified June 2026: the IDR 2,000,000,000 figure remains in force and is not defined as a tax or fee. It is an immigration requirement. It does not count as tax paid, and it does not exempt you from Indonesian tax rules.
Approximate FX: IDR 2,000,000,000 has typically ranged around USD 120,000–130,000 in recent years (FX ranges only; the rupiah amount is fixed in the regulation and FX moves daily).
No explicit work rights
PP 48/2021 distinguishes between stay permits for work (with sponsoring employer) and stay permits “bukan untuk bekerja” (not for working). The Second Home Visa is designed as a non‑work stay permit category.
- Holding a Second Home Visa does not grant you the right to take up employment in Indonesia.
- You cannot legally perform work in Indonesia that normally requires a work permit (IMTA) and a work‑purpose ITAS.
- Remote work for a foreign employer, and passive investment income, sit in a grey area that is not clearly addressed in IMI‑0740.GR.01.01/2022; these are ultimately tax and manpower questions, not immigration visa‑type questions. Treat anything beyond “you may live here” as needing bespoke advice.
Immigration vs tax: two different systems
A Second Home Visa is an immigration document. Tax residency is determined under Indonesia’s Income Tax Law (Undang‑Undang Pajak Penghasilan, “UU PPh”), not under PP 48/2021 or the Second Home Circular.
Key separation:
- Immigration: can you stay in Indonesia, and for how long? Governed by PP 48/2021 and its derivative regulations.
- Tax: are you a tax resident, what income is taxable, and how much tax is due? Governed by UU PPh and regulations from the Ministry of Finance and DJP.
The Second Home Visa is sometimes described (informally) as a “non‑fiscal” visa. In practice this only means: the visa itself is not a tax regime. It does not override or replace Indonesia’s general tax rules. There is no line in the law that says “Second Home Visa holders are exempt from Indonesian tax”.
The 183‑day rule: how Indonesian tax residency usually works
Indonesia uses a day‑count concept that is very similar to many other jurisdictions. The core idea, simplified, is:
- Spend enough days in Indonesia → you are likely treated as a tax resident.
- Tax residents are generally taxed on worldwide income, subject to double tax treaties and any special rules that may apply (see foreign income section below) [VERIFY for current year rules with adviser].
Typical Indonesian tax residency tests
Under the Income Tax Law framework (not the immigration regulations), an individual is typically regarded as a resident taxpayer if they:
- are present in Indonesia for more than 183 days in any 12‑month period; or
- are present in Indonesia and intend to reside in Indonesia (intention is judged case‑by‑case).
The 183‑day rule is the most objective and is the one most relevant for Second Home Visa holders. A multi‑year visa makes it easy to cross the 183‑day threshold each year. That is the “183‑Day Reality”.
Day counting under a long-stay visa
Your visa validity does not equal your day count. For tax purposes, what matters is how many days you are physically in Indonesia in any rolling 12‑month window. Some practical points:
- Days of arrival and departure normally count as days in Indonesia.
- Short trips out of Indonesia reduce the count, but do not reset it to zero, because the test is “any 12‑month period”, not “calendar year only”.
- Crossing a total of 184 days in Indonesia within 12 months will generally move you into “resident” territory unless a tax treaty and your factual circumstances support otherwise.
Second Home Visa and tax residency: how they intersect
Holding a Second Home Visa does not automatically make you a tax resident. But:
- The visa is explicitly designed for medium‑ to long‑term stays.
- If you use the visa as intended — living in Indonesia for extended periods — you will almost certainly cross 183 days in many 12‑month periods.
As a result, the typical pattern is:
- <= 183 days in a 12‑month period: you may be treated as a non‑resident taxpayer. Non‑residents are generally taxed only on Indonesia‑source income, usually via fixed withholding rates. You still may have filing obligations in Indonesia if you have Indonesian‑source income.
- > 183 days in a 12‑month period: you are generally a resident taxpayer, with potential worldwide income exposure, annual filings, and other administrative obligations (NPWP, etc.).
Nothing in PP 48/2021 or IMI‑0740.GR.01.01/2022 changes these tax tests.
Resident vs non‑resident: what actually changes?
The tax effects of crossing 183 days are more important than the immigration label on your visa. Here is a simplified comparison, using “typical” rules that can be modified by treaties and new regulations [VERIFY for your situation with a tax adviser].
| Aspect | Non‑resident (≤183 days) | Resident (>183 days / intention to reside) |
|---|---|---|
| Tax scope | Generally Indonesia‑source income only | Generally worldwide income (Indonesia‑ & foreign‑source) |
| Typical employment income tax | Final withholding at non‑resident rate on Indonesian salary [RATE VERIFY] | Progressive resident rates on total taxable income [RATES VERIFY] |
| Foreign employment / business income with no Indonesian nexus | Typically out of scope (as long as it remains genuinely foreign‑source) | Potentially taxable, subject to foreign income rules and treaties [VERIFY current exemption/deferral schemes] |
| Need for NPWP (tax ID) | Usually no, unless you have specific Indonesian income requiring it | Typically yes – residents are expected to obtain NPWP |
| Annual tax return | May not be required if only final withholding occurs | Generally required (SPT Tahunan) if you meet thresholds |
| Use of tax treaties | Possible, but often limited if no residence certificate from home country | Critical to avoid double taxation; needs careful structuring |
| Second Home Visa impact | Visa alone does not trigger residency; your day count and facts do | Visa makes extended presence easier, thus residency more likely |
Again: this table describes typical patterns. Indonesia has been revising aspects of foreign‑source income taxation in recent years. Always confirm the current position for the specific year you are planning to move [VERIFY for current year].
Worldwide income and foreign income: what might be taxed?
For Second Home holders who cross 183 days, the key question is usually: “If I’m a tax resident, do I pay Indonesian tax on my salary / dividends / investments abroad?”
Classifying your income: Indonesian‑source vs foreign‑source
Indonesia’s income tax system distinguishes by source of income, not just by where you are sitting when you receive it. In very broad terms:
- Indonesia‑source income can include:
- salary for services performed in Indonesia;
- business income linked to assets or activities in Indonesia;
- rental income from Indonesian property;
- interest/dividends from Indonesian companies or banks.
- Foreign‑source income can include:
- salary from work genuinely performed outside Indonesia for a foreign employer;
- dividends and interest from non‑Indonesian entities/banks;
- capital gains on foreign securities; and
- rental income from property located outside Indonesia.
Resident taxpayers and foreign income
As of the last review point (last verified June 2026), Indonesia’s baseline framework has been:
- Resident individuals are in principle taxable on worldwide income, including foreign‑source income, with:
- relief from double taxation potentially available through:
- foreign tax credits (pajak dibayar di luar negeri); and/or
- tax treaties between Indonesia and the other country (perjanjian penghindaran pajak berganda, “P3B”).
However, several reforms around Indonesia’s treatment of foreign‑source income for resident individuals have been discussed and partially implemented in recent years. Specifics (e.g. deferral rules, remittance‑based treatments, exemptions for certain categories) can shift with new implementing regulations. These details are beyond the scope of immigration‑based analysis and must be confirmed with a tax professional [VERIFY].
Typical patterns we see (non‑advisory)
Among Second Home‑type profiles globally, you often see three patterns, all of which need tailored tax analysis:
- Retirees with pensions and investments abroad.
- Pensions and foreign investment income may be taxable in Indonesia if you are resident, but treaties sometimes allocate main taxing rights to the payer country.
- Indonesian and foreign treatment can differ sharply depending on public vs private pensions, fund structures, etc.
- Remote employees of foreign companies.
- Your physical presence in Indonesia can create Indonesia‑source employment income, and in some cases can even create a permanent establishment risk for your employer.
- This is both a tax and corporate law risk; it is not addressed in the Second Home Circular.
- Investors / business owners.
- Dividends from foreign companies, partnership income, and carried interest structures are all complex under Indonesian rules.
- Repatriation vs non‑repatriation of funds can matter; Indonesia has periodically adjusted incentives around foreign income remitted to Indonesia.
These examples are to help you frame questions, not to suggest a treatment. For any non‑simple income mix, you should assume a paid consultation with an Indonesian tax specialist as a normal cost of moving.
NPWP, reporting, and your practical obligations
Once you cross 183 days or otherwise become an Indonesian tax resident, you move from “am I taxable?” to “what do I have to do administratively?”
NPWP (Nomor Pokok Wajib Pajak)
NPWP is the Indonesian taxpayer identification number. While immigration regulations do not require an NPWP for Second Home holders, in practice:
- Resident taxpayers are expected to obtain an NPWP.
- Certain transactions (e.g. property transactions, some bank operations, some investment activities) may be easier or only possible with an NPWP.
Obtaining an NPWP generally involves registering with the local tax office (KPP) responsible for your Indonesian address. This is an administrative DJP process, not an immigration one.
Annual tax returns
Resident individuals typically file an annual tax return (SPT Tahunan Orang Pribadi), reporting:
- Indonesian‑source income; and
- foreign‑source income, to the extent required by the prevailing rules and any claim for foreign tax credit or treaty relief.
Deadlines, forms, and e‑filing options are set by the DJP and can change. The Second Home Visa does not grant any special filing exemptions or simplified forms.
Asset and account reporting
Indonesia participates in various international information exchange frameworks. As a tax resident, you may be expected to:
- declare foreign bank accounts and investments; and
- reconcile those with income reported in your tax return.
Specific thresholds, formats, and penalties for non‑compliance are tax‑law issues and not covered by PP 48/2021 or the Second Home Circular. Treat this as a compliance project, not as an afterthought.
“Non‑fiscal” visa myths: what the Second Home Visa does NOT do
You will find marketing material online that loosely suggests the Second Home Visa provides some form of tax “shield”. Reading the regulations, there is no such wording.
Myth 1: “Second Home Visa holders do not pay Indonesian tax”
There is no clause in PP 48/2021 or IMI‑0740.GR.01.01/2022 that exempts Second Home Visa holders from Indonesian tax law. As soon as you meet the conditions for tax residency or have Indonesia‑source income, general tax rules apply.
Myth 2: “The IDR 2bn deposit is a tax”
The IDR 2,000,000,000 figure in the Circular is a fund requirement or “penempatan dana” condition. It is:
- not described as tax;
- not credited against any current or future tax liability; and
- not mentioned in tax regulations as a deductible or creditable item.
Think of it as part of the immigration risk‑filter — Immigration wants applicants with a certain minimum financial strength — not as part of Indonesia’s fiscal system.
Myth 3: “You can work freely on a Second Home Visa”
PP 48/2021 and derivative rules clearly separate visas for work from visas not meant for work. The Second Home Visa resides firmly in the non‑work bucket.
- You cannot simply start a job with an Indonesian employer on a Second Home ITAS.
- If your goal is employment in Indonesia, you need the correct work‑linked visa and permits.
Tax authorities and immigration authorities are separate, but increased information sharing globally means you should assume that “informal” work arrangements carry both immigration and tax risk.
Planning your stay: practical scenarios
Below are simplified patterns that many Second Home applicants think about. These are not recommendations, only frameworks for questions to discuss with a professional adviser.
Scenario A: “Snowbird” <=183 days per year
You use the Second Home Visa, but you strictly limit your days in Indonesia to stay below 183 days in any 12‑month stretch.
- Immigration: long‑term visa comfort, no need for frequent runs or new applications.
- Tax:
- you may remain a non‑resident in Indonesia; and
- your primary tax residence stays in your home country (subject to that country’s rules).
Risks:
- day‑count mistakes are easy;
- treaties can still assign residency differently if facts point to Indonesia (home, family, economic ties); and
- you may still owe Indonesian tax on clearly Indonesia‑source income.
Scenario B: “Base in Bali” >183 days
You move your main life to Indonesia, spending most of the year here under the Second Home Visa.
- Immigration: the visa matches your life pattern.
- Tax: you are very likely resident in Indonesia, with:
- NPWP obligations;
- annual reporting; and
- potential worldwide income exposure, mitigated by treaties and any foreign‑income rules in force.
Key action item: have a professional run a treaty‑based tie‑breaker analysis if your home country also claims you as a resident, and structure your income flows accordingly.
Scenario C: High‑mobility global professional
You expect to be “in‑and‑out”, spending large chunks of time in multiple countries, with no single base.
- Immigration: the Second Home Visa gives you flexibility to come and go.
- Tax: your risk is ending up as a tax resident in more than one country, or in a grey zone where no country clearly claims you but several assert source taxation on your income.
This is scenario where assumptions are most dangerous and a personalized map of your days, countries, and income sources is critical.
If you would like to explore these scenarios with vetted immigration and tax professionals, you can plan your trip with our team; we can coordinate introductions and early scoping over email or WhatsApp.
The application, briefly: where tax enters (and where it doesn’t)
This page focuses on tax, but it is useful to know at high level how the Second Home application process touches (and mostly avoids) tax matters.
Core immigration documents
As of last verified June 2026, the Second Home application typically requires:
- passport with sufficient validity;
- proof of fund placement (IDR 2,000,000,000 in an Indonesian state‑owned bank) or qualifying property;
- personal data forms; and
- other civil documents per current Directorate General of Immigration practice [VERIFY for details at application time].
None of these are tax filings. You do not “register” with the tax office by applying for the visa.
When tax can appear in the process
- Later, when you buy property or a car, or invest locally, some transactions can trigger tax certificates or NPWP requirements.
- Bank account opening for the deposit might involve questions about tax residency under global CRS/FATCA frameworks.
These are compliance touchpoints, not barriers to obtaining the visa itself.
Why we separate “information” from “execution”
Second Home Visa Indonesia’s role is to be numbers‑first and regulation‑grounded. We do not process applications ourselves; instead, we:
- track the immigration regulations (PP 48/2021, IMI‑0740.GR.01.01/2022, and successor rules);
- translate those into plain English / plain Bahasa Indonesia; and
- work with a small network of vetted immigration agents and tax/legal professionals for those who want execution help.
Independence matters for a topic this sensitive. Our funding line is simple: no one can pay to change what we publish; if you proceed with our partner they may pay us a referral fee at no extra cost to you.
If you want a joined‑up view of immigration plus tax (with specialist input), you can plan your trip — let us know that you specifically want “Second Home + tax residency mapping” and we can coordinate an initial WhatsApp triage before any paid advisory engagement.
Key takeaways on Second Home Visa Indonesia tax
- The visa is immigration, not tax.
- PP 48/2021 and IMI‑0740.GR.01.01/2022 govern your right to stay, not your tax liabilities.
- The 183‑day rule still applies.
- Spend more than 183 days in Indonesia in any 12‑month period and you are generally a tax resident, regardless of visa type.
- Resident usually means worldwide income.
- As a resident, expect some level of exposure on foreign income, tempered by treaties and any special foreign‑source income rules in force [VERIFY for the relevant year].
- The IDR 2bn deposit is not a tax.
- It is an immigration requirement, last verified at IDR 2,000,000,000 in June 2026; it doesn’t offset or replace any tax obligations.
- No work rights by default.
- The Second Home Visa is not a work permit; employment in Indonesia requires separate, specific permissions.
FAQs: Indonesia Second Home Visa Tax
Do you pay tax on a Second Home Visa in Indonesia?
You pay Indonesian tax if you meet Indonesia’s tax residency tests or earn Indonesia‑source income, not because you hold a Second Home Visa. The visa itself is “non‑fiscal” in the sense that it does not create a special tax regime or exemption. Cross 183 days in a 12‑month period or earn Indonesian‑source income, and general Indonesian tax rules apply.
What is the 183‑day rule for Second Home Visa holders?
The 183‑day rule comes from Indonesia’s income tax framework, not the Second Home regulations. If you are in Indonesia for more than 183 days in any 12‑month period, you are typically treated as a tax resident. The Second Home Visa makes it easy to stay that long, but it does not change how days are counted or how tax residency is defined.
Is foreign income taxed for Second Home Visa residents?
If you become an Indonesian tax resident (e.g. by staying more than 183 days), Indonesia generally taxes worldwide income, which can include foreign‑source income. However, double tax treaties and specific foreign‑income rules can provide relief or different treatments. These details change over time and must be confirmed with an Indonesian tax adviser for the specific year and type of income involved.
Does the IDR 2bn deposit count as tax or give tax benefits?
No. The IDR 2,000,000,000 (last verified June 2026) requirement is an immigration “fund placement” condition from the Second Home Circular. It is not classified as tax, does not reduce your tax bill, and does not grant you any special tax status. You still need to consider tax residency, income source, and filing obligations separately.
Can I work in Indonesia on a Second Home Visa without extra permits?
No. The Second Home Visa falls under non‑work stay permits as set out in PP 48/2021. It does not authorize employment with an Indonesian employer or other activities that legally require a work permit and a work‑purpose stay permit. Any paid work or business activity connected to Indonesia should be reviewed from both immigration and tax perspectives before you start.