Indonesia Second Home Visa

Local tax picture

Indonesia’s tax regime here is tagged as resident, which is the opposite of a territorial carve-out. On the facts provided, the visa itself does not state a special exemption for foreign-source salary, ETF dividends, pension distributions, or rental income from property abroad, so the safe reading is that once you are treated as a local tax resident, Indonesia can tax resident income under its normal resident rules. Local work is not permitted under the visa facts, so remote salary tied to work performed abroad is still a tax question, not a visa-permission question.

Capital gains on foreign ETFs or index funds are not publicly specified in the visa facts for this visa, so I cannot honestly pin down a treaty-style exemption or a special preferential rate from the provided record. Tax residency is also not disclosed by a day-count trigger in the facts, and the visa’s 0 days/year physical presence requirement does not itself erase tax residency risk. Local registration steps, filing deadlines, and whether a tax ID is required are not disclosed in the supplied facts.

Tax treaty status with the US is unknown. That means there is no confirmed statement here on whether the treaty covers dividends, Social Security, or only limited categories, and no totalization agreement can be assumed from this page alone.

For US Citizens and Green Card Holders

• FEIE uses Form 2555 and covers earned income only, up to $126,500 for 2024.
• FEIE does not cover dividends, capital gains, pension distributions, or Social Security.
• With 0 days/year physical presence required by this visa, the Physical Presence Test can still work only if you actually spend 330 days in a 12-month period outside the US; the visa structure does not create that count for you.
• FTC uses Form 1116 and only offsets US tax when Indonesia actually taxes the same income stream. If Indonesia’s effective tax on foreign passive income is low or absent, FTC does not shelter much or anything on that income.
• FBAR, FinCEN 114, applies when foreign account balances exceed $10,000 at any point in the year; opening a required Indonesian local bank account makes that filing live immediately.
• FATCA Form 8938 may also apply depending on overall asset levels.

For year one, the right pair is a US CPA who works on expat FEIE/FTC/FBAR returns and an Indonesian tax advisor who handles residency registration and local filings. On a case like this, USD 1,500–USD 3,000 in professional help often pays back through avoided penalties and cleaner elections.