Dreaming of a decade-long stay in the tropics without the constant “visa run” cycle? For many high-net-worth individuals, the struggle to find a stable, multi-year residency in Bali or Jakarta has been a major barrier to long-term planning. Traditional retirement or social visas often feel temporary and restrictive.
The introduction of the Second Home Visa Indonesia has changed the landscape for 2026, offering a “premium” pathway for those with the financial means to commit to the archipelago. However, the requirements are strict, and failing to manage the 90-day verification window can lead to immediate permit cancellation.
This guide provides a strategic roadmap to ensure your application is successful and your stay remains compliant. By understanding the nuances of the financial guarantee versus property routes, you can turn a complex regulatory framework into a secure foundation for your life. For official guidance, always refer to the Indonesian Directorate General of Immigration.
Table of Contents
- Defining the Premium Residency Concept
- The Two Paths: Financial Guarantee vs. Residential Investment
- Managing the 90-Day Commitment Window
- Bringing the Family: Rules for Dependants
- Real Story: How the Marshall Family Settled in Sanur
- Tax Implications and Financial Residency
- Avoiding Common Compliance Pitfalls
- Rights and Limitations of the Non-Work Status
- FAQ's about Second Home Visa Indonesia
Defining the Premium Residency Concept
The Second Home Visa Indonesia is not your standard tourist permit; it is a long-term residency facility designed for financially independent foreigners, ex-Indonesian citizens, and retirees. Unlike the work-related KITAS, this permit is categorized as a non-work status. This means it allows you to live, invest, and travel freely within the country for either 5 or 10 years, but it does not grant the right to take up local employment or receive a salary from an Indonesian entity.
In 2026, the government positions this as a “VIP” status. It is tailored for those who want to call the archipelago home while maintaining global business interests or enjoying a self-funded lifestyle. Because the permit is valid for up to a decade, it offers a level of stability previously unavailable to the general expat community, making it the preferred choice for those looking to truly integrate into local life.
The Two Paths: Financial Guarantee vs. Residential Investment
To qualify for the SHV, applicants must choose between two primary financial commitment routes. The most common path is the “Cash Deposit” route. This requires the applicant to hold a minimum of IDR 2,000,000,000 (approximately USD 130,000) in a personal account within an Indonesian state-owned bank, such as Mandiri, BNI, or BRI. This capital must remain untouched throughout the duration of the residency permit.
Alternatively, for those looking to invest in the local real estate market, the “Hak Pakai asset” route is available. In 2026, this requires ownership of property under a foreign-eligible title, such as Hak Pakai (Right to Use). The property must meet high-value thresholds, which often exceed IDR 5 billion depending on the region. This route is ideal for those who already intend to purchase a permanent residence. If you are choosing the property route, consulting a trusted villa management company can provide clarity on which assets meet the “luxury” criteria defined by immigration.
Managing the 90-Day Commitment Window
One of the most critical aspects of the application process is the 90-day commitment rule. Indonesia allows you to apply for the initial visa based on a commitment letter. This means you don’t necessarily need the IDR 2 billion in an Indonesian account before you land. However, once you enter the country on your Second Home Visa Indonesia, the “clock starts ticking.” You have exactly 90 days to finalize your bank deposit or property registration.
Within this window, you must present the bank certificate or property title to the local immigration office to “activate” your stay permit (ITAS or ITAP). If you fail to provide this proof within the mandated timeframe, your visa will be revoked, and you will likely be required to leave the country. Most successful applicants in 2026 begin the banking process weeks before their arrival to avoid last-minute delays with local bureaucracy or international wire transfers.
Bringing the Family: Rules for Dependants
The premium 10-year visa is designed to be family-friendly. Once the principal applicant satisfies the financial requirements, their legal spouse, children, and even parents can join them under the “follower” status. The best part is that followers do not need to provide their own separate IDR 2 billion deposit; their residency is linked directly to the main holder’s qualifying assets.
To make this work, you must ensure all family documentation—such as marriage certificates and birth certificates—is legalized or apostilled in your home country and translated into Indonesian by a sworn translator. In 2026, immigration is increasingly digital, so having these documents ready in high-resolution PDF formats before you start the online application is essential for a smooth approval process for the entire household.
Real Story: How the Marshall Family Settled in Sanur
When David, a retired architect from London, and his wife Elena first arrived in the quiet neighborhood of Sanur, they were overwhelmed by the paperwork required for a decade-long stay. David vividly remembers the afternoon they spent at a local bank, the humidity of the coastal air mixing with the rhythmic sound of temple gamelan nearby, as they tried to explain the “commitment letter” to a teller who was still adjusting to the 2026 digital updates.
They initially struggled with the high-value real estate route because their chosen villa’s title was not yet fully converted to Hak Pakai. Fearing the 90-day deadline, they pivoted to the deposit route. David used the services of a trusted tax management company to ensure their international pension transfers wouldn’t trigger unnecessary local tax flags. By shifting their escrow funds into a Mandiri account just three weeks before the deadline, they secured their 10-year permits. Today, they spend their mornings walking along the Sanur boardwalk, completely free from the “visa run” anxiety that plagues so many other expats.
Tax Implications and Financial Residency
Living in Indonesia for a significant portion of the year on this status will almost certainly make you a local tax resident. Under Indonesian law, staying more than 183 days in a 12-month period triggers tax residency. This means your global income may become subject to Indonesian taxation unless specific double-taxation treaties apply between your home country and Jakarta.
It is a common mistake to assume that a non-work visa exempts you from tax obligations. While you aren’t receiving a local salary, you must still report your assets and global earnings if you meet the residency threshold. Proper financial planning in 2026 involves coordinating with a tax professional to analyze your foreign investments and ensure that your long-term stay doesn’t result in unexpected legal or financial liabilities with the Indonesian tax office (Ditjen Pajak).
Avoiding Common Compliance Pitfalls
The most dangerous mistake an applicant can make is letting the required bank balance drop below the IDR 2 billion threshold. Immigration has the right to conduct periodic checks, and if your Second Home Visa Indonesia deposit is used for personal expenses or business capital, your permit can be revoked immediately. This capital requirement is meant to be a “frozen” guarantee of your financial self-sufficiency.
Additionally, many foreigners confuse the SHV with a Digital Nomad visa. While you can certainly manage your international investments or work for a company in the UK or US while living in Bali, you must never engage in work that targets the local market or takes a job away from a citizen. In 2026, immigration officers are increasingly tech-savvy, and performing local commercial activities on a non-work visa can lead to fines, deportation, and a permanent re-entry ban.
Rights and Limitations of the Non-Work Status
Holding the 10-year permit gives you almost all the rights of a local resident except for voting and working. You can open local bank accounts, obtain an Indonesian driver’s license, purchase vehicles in your name, and enjoy “KITAS rates” at many local attractions and hospitals. It provides a level of integration that makes daily life significantly more convenient than living on a series of short-term visitor visas.
However, it is important to remember that this status is not a direct pathway to Indonesian citizenship. It is a residency facility, not a naturalization program. If your goals change and you decide you want to start a local business or work for a Balinese firm, you will need to “close” your current status and apply for a Work or Investor KITAS. Understanding these boundaries ensures that your long-term stay remains peaceful and legally sound for the full duration.
FAQ's about Second Home Visa Indonesia
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Can I use the IDR 2 billion deposit to buy a house later?
No. If you choose the deposit route, that specific money must stay in the bank account as a guarantee. To use property as your guarantee, you must fulfill the residential investment criteria instead.
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Is there an age limit for the 10-year permit?
Unlike the Retirement Visa, this category has no minimum age requirement, making it accessible to younger families and entrepreneurs with significant capital.
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Can I leave and enter the country as many times as I want?
Yes. The permit includes a Multiple Re-entry Permit (MERP), allowing you to travel internationally as often as you like during the 5 or 10-year validity period.
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What happens if I want to cancel my visa before 5 years?
You can apply for an EPO (Exit Permit Only) at the local immigration office. Once processed, you can withdraw your financial guarantee from the bank and leave the country legally.
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Do my children need to leave when they turn 18?
Children can remain as dependants as long as they are legally under the care of the main holder, though once they reach adulthood, they may eventually need to secure their own independent status.
