Bali may be one of the most photographed destinations in Southeast Asia, but for high‑income entrepreneurs and investors it often falls short on the practical criteria that matter most: visa stability, tax efficiency, property ownership, and a business‑friendly community.
Visa and residency hurdles
- Kitas and tourist visas – Most newcomers start with a tourist visa, extend it repeatedly, and leave the country every few months. This “visa hopping” is increasingly seen as unsustainable for long‑term business operations.
- Digital nomad visa – Indonesia announced a five‑year digital nomad visa that does not require tax residency. While the duration is attractive, it still stops short of a full residence permit, limiting access to services such as local banking.
- Visa‑on‑arrival fee – In 2017 the fee was about US $40, after which Indonesia relaxed many entry requirements, allowing passports from Georgia, Serbia and other non‑Western countries to obtain visas more easily.
Overall, the lack of a straightforward, long‑term residence pathway makes Indonesia less appealing than neighboring jurisdictions that already offer clear residency routes.
Tax regime comparison
- Territorial tax systems – Singapore, Malaysia, Thailand (and, to a lesser extent, Hong Kong) tax only income generated locally. This simplicity is attractive for entrepreneurs whose revenue streams are global.
- Indonesia’s tax structure – The country does not provide a comparable territorial regime, meaning worldwide earnings can be subject to Indonesian tax. For many high‑net‑worth individuals, this adds complexity and cost.
The author notes that Malaysia’s tax framework “worked a lot better” for his own business, offering a more predictable environment for expatriates.
Property ownership and leasehold limits
- Leasehold land – In Bali most foreign‑owned land is leasehold, typically for 30‑ or 99‑year terms. This creates uncertainty for long‑term asset planning and can affect future generations’ ability to use the property.
- Banking constraints – Without a residence permit, opening a local bank account can be difficult, forcing renters to pay cash or arrange manual transfers each month. Owning a property often eases this process, but the leasehold model limits the incentive to purchase.
For entrepreneurs who prefer to own rather than rent, the combination of leasehold restrictions and limited banking access makes Bali less attractive than markets where freehold ownership is available to foreigners.
Business ecosystem and networking
- Community composition – Bali’s expatriate scene is heavily weighted toward lifestyle‑oriented entrepreneurs, many of whom run businesses generating “a million or two” rather than scaling to multi‑hundred‑million‑dollar enterprises.
- Networking opportunities – Larger hubs such as Kuala Lumpur, Singapore, or Dubai provide deeper pools of high‑growth peers, more sophisticated service providers, and better access to capital.
The author argues that for “seven, eight or nine‑figure” entrepreneurs, the probability of finding partners and talent that match their growth ambitions is lower in Bali.
Lifestyle considerations
- Vibe and infrastructure – While Bali offers beautiful beaches and a relaxed atmosphere, the author finds the environment “too laid back” for his work style. Limited walkability, fewer luxury services, and a pervasive “good vibes only” culture can feel restrictive for those who value accountability and fast‑paced urban life.
- Alternative destinations – For a comparable beach setting with stronger tax and residency options, the author mentions Mauritius, Caribbean islands, or emerging European hubs like Ireland, which combine lifestyle appeal with clearer pathways to citizenship and tax benefits.
Practical takeaways for high‑net‑worth nomads
- Prioritize jurisdictions with clear territorial tax rules (e.g., Malaysia, Singapore) to avoid unexpected worldwide tax liabilities.
- Seek residency programs that grant full banking access; a digital nomad visa may suffice for short‑term stays but can hinder long‑term financial operations.
- Consider property ownership models that allow freehold or long‑term lease terms to protect asset value and simplify banking.
- Evaluate the local business ecosystem: if scaling to $100 million+ is a goal, locate in a city with a proven track record of supporting large enterprises.
- Match lifestyle preferences with professional needs; a laid‑back island vibe may be ideal for a vacation, but not necessarily for continuous high‑level business activity.
In short, Bali remains a compelling travel destination, but for entrepreneurs seeking tax efficiency, stable residency, property ownership, and a high‑growth business network, other Asian cities—particularly Kuala Lumpur and Singapore—offer a more suitable combination of advantages.
