What Is the Second Home Visa?
Indonesia's Second Home Visa (Visa Rumah Kedua), commonly abbreviated as SHV, is a long-term stay permit introduced to attract wealthy foreigners who want to use Indonesia as a second residence. Unlike KITAS which requires a sponsoring company or KITAP which requires years of prior residence, the SHV is a standalone immigration product designed for individuals who can demonstrate financial means.
The visa grants a 5-year stay permit, making it one of the longest single-issue visas available in Indonesia. It sits between the KITAS (1-2 years, work-focused) and the Golden Visa (5-10 years, investment-focused) in terms of duration and requirements.
Eligibility Requirements
Path 1: Bank Balance (IDR 2,000,000,000)
The primary qualification route requires demonstrating liquid savings of at least IDR 2,000,000,000 (approximately USD 125,000 at current exchange rates).
What counts as proof:
- Bank statements from the past 3-6 months showing a maintained balance at or above IDR 2B
- Statements from international banks are accepted (converted to IDR at prevailing exchange rates)
- The funds can be in a single account or combined across multiple accounts at the same bank
- Fixed deposits (deposito berjangka) count toward the balance
- Investment portfolios with a brokerage may be accepted if accompanied by a valuation letter
What does NOT count:
- Property valuations or real estate appraisals (use Path 2 instead)
- Business assets or company accounts
- Cryptocurrency holdings (no standardized valuation accepted)
- Retirement account balances that cannot be liquidated (e.g., locked pension funds)
- Projected future income or inheritance
Path 2: Property Ownership in Indonesia
Foreigners can qualify through property ownership in Indonesia, subject to the following conditions.
Eligible property types:
- Residential property held under Hak Pakai (Right to Use) title in the foreigner's name
- Apartment/strata title units designated for foreign ownership
- Property held through a PT PMA company where the applicant is a majority shareholder
Property requirements:
- Minimum value thresholds may apply (varies by province; Bali typically IDR 2B-5B)
- Property must be legally registered with the local Badan Pertanahan Nasional (BPN)
- The property certificate (Sertifikat Hak Pakai or Sertifikat Hak Milik Satuan Rumah Susun) must be current and valid
- No ongoing legal disputes on the property
Important note on property ownership for foreigners: Under Indonesian law (PP 18/2021), foreigners can hold Hak Pakai land titles for up to 30 years, renewable for 20 years, then extendable for another 30 years (80 years total). They cannot hold Hak Milik (freehold) titles. Many foreigners structure property ownership through a nominee arrangement or a PT PMA, each carrying different legal implications.
General Requirements (Both Paths)
- Passport valid for at least 60 months (5 years) from application date
- No criminal record in home country (apostilled certificate required)
- Health insurance valid in Indonesia with adequate coverage
- No previous immigration violations or blacklist entries in Indonesia
- Passport-size photographs (4x6 cm, white background)
- Completed application form
Step-by-Step Application Process
Stage 1: Document Preparation (5-10 Days)
- Verify passport validity (minimum 60 months remaining)
- Obtain criminal record clearance from your home country
- Apostille the criminal record certificate (process varies by country, can take 2-6 weeks)
- Compile bank statements showing 3-6 months of IDR 2B+ balance OR property documents
- Obtain health insurance policy valid in Indonesia
- Prepare passport photos meeting Indonesian specifications
- Have all foreign-language documents translated to Bahasa Indonesia by a sworn translator
Stage 2: Application Submission (1 Day)
- Submit the complete application package through your agent to the Direktorat Jenderal Imigrasi
- Receive an application receipt and tracking number
- Pay the government visa fee (IDR 3,000,000-5,000,000)
Stage 3: Immigration Review (5-15 Working Days)
- Immigration verifies your financial documents (bank balance or property ownership)
- Background check conducted against immigration databases
- Case officer may request additional documentation or clarification
- If property-based: verification with BPN records
Stage 4: Approval and Visa Issuance (3-7 Working Days)
- Receive visa approval notification
- Visa approval letter issued (valid for 90 days for entry)
- Review visa conditions and validity dates
Stage 5: Entry and Activation (1-3 Working Days)
- Enter Indonesia within 90 days of visa issuance
- Immigration stamps passport with 5-year stay permit
- Register at local immigration office (Wajib Lapor) within 7 days
- Register domicile at local kelurahan (SKTT) within 14 days
Costs Breakdown
| Item | Amount |
|---|
| Government visa fee | IDR 3,000,000-5,000,000 |
| Agent processing fee | IDR 8,000,000-15,000,000 |
| Document translation | IDR 1,000,000-3,000,000 |
| Apostille (varies by country) | IDR 500,000-3,000,000 |
| Health insurance (annual) | IDR 5,000,000-15,000,000 |
| SKTT registration | IDR 200,000-500,000 |
| Total first year | IDR 17,700,000-41,500,000 |
| Annual ongoing costs | IDR 7,000,000-18,000,000 (insurance + reporting) |
| Total 5-year cost | IDR 45,700,000-113,500,000 |
Rights and Privileges
What You CAN Do on Second Home Visa
- Reside anywhere in Indonesia for up to 5 consecutive years
- Travel freely in and out of Indonesia (multiple entry included)
- Open an Indonesian bank account at most major banks
- Register an Indonesian phone number in your name
- Enroll children in Indonesian schools (international or national curriculum)
- Access healthcare at hospitals and clinics throughout Indonesia
- Receive passive income from foreign investments, pensions, and rental properties abroad
- Own property under Hak Pakai in your name (independent of the visa)
- Sponsor dependent visas for spouse and children (separate application required)
What You CANNOT Do on Second Home Visa
- Work for an Indonesian employer - No work authorization is included
- Operate a business in Indonesia (requires PT PMA with KITAS)
- Vote or participate in elections - Not a citizenship pathway
- Access subsidized government services (BPJS Kesehatan enrollment may be limited)
- Directly convert to KITAP - SHV time does not count toward the 3-year KITAS requirement
- Invoice Indonesian clients - This constitutes business activity requiring a work permit
Comparison: SHV vs KITAP vs Golden Visa
| Feature | Second Home Visa | KITAP | Golden Visa (5yr) |
|---|
| Duration | 5 years | 5 years (renewable) | 5 years |
| Financial requirement | IDR 2B savings or property | None (based on KITAS history) | USD 350K+ investment |
| Prior residency needed | No | Yes (3 years on KITAS) | No |
| Work authorization | No | Yes (based on underlying KITAS) | Yes |
| Company sponsorship | No | Yes | No (but investment vehicle needed) |
| Total cost (5 years) | IDR 46-114M | IDR 80-150M | IDR 100-200M+ |
| Processing time |
Tax Implications
The 183-Day Rule
If you spend more than 183 days in a calendar year in Indonesia, you become a tax resident under Indonesian law (UU PPh 36/2008). As a tax resident, you are subject to Indonesian income tax on worldwide income.
Tax Residency on SHV
Since the SHV is a 5-year permit, most holders will exceed the 183-day threshold and become tax residents. This means:
- You must register for an NPWP (tax identification number)
- You must file an annual SPT (tax return) by March 31 of the following year
- Your worldwide income is subject to Indonesian progressive tax rates (5%-35%)
- Double Tax Agreements with your home country may reduce or eliminate double taxation
Indonesian Progressive Tax Rates (2026)
| Annual Taxable Income | Rate |
|---|
| Up to IDR 60,000,000 | 5% |
| IDR 60M - IDR 250M | 15% |
| IDR 250M - IDR 500M | 25% |
| IDR 500M - IDR 5B | 30% |
| Above IDR 5B | 35% |
DTA Benefits
Indonesia has Double Tax Agreements with 71 countries. If your home country has a DTA with Indonesia, you can claim treaty benefits to avoid paying tax twice on the same income. Common scenarios include:
- Pension income: Often taxable only in the country of origin under most DTAs
- Dividend income: Reduced withholding rates (typically 10-15% instead of 20%)
- Interest income: Reduced rates under treaty provisions
- Capital gains: Usually taxable in the country where the asset is located
Consult a qualified tax advisor to understand your specific DTA benefits. See our guide on Double Tax Agreement claiming for step-by-step instructions.
Renewal Process
The SHV can be renewed for an additional 5 years before expiry. The renewal process is simpler than the initial application since immigration already has your records.
Renewal Requirements
- Maintain the IDR 2B bank balance or property ownership
- No immigration violations during the first 5-year period
- Completed all annual Wajib Lapor reporting obligations
- Valid passport (must extend beyond the new 5-year period)
- Updated health insurance
- Renewal fee (IDR 3,000,000-5,000,000)
Renewal Timeline
Start the renewal process at least 60 days before your current SHV expires. Renewal typically takes 10-20 working days. If your SHV expires before renewal is processed, you enter overstay status and face IDR 1,000,000/day fines.
Frequently Overlooked Obligations
Wajib Lapor (Annual Reporting)
Every SHV holder must report to the local immigration office (Kantor Imigrasi) annually. This involves visiting the office, presenting your passport and SHV documentation, and confirming your continued residence. Failure to complete Wajib Lapor can result in an IDR 5,000,000 fine and complications with renewal.
SKTT (Temporary Residence Certificate)
You must register your address with the local kelurahan (village office) and obtain an SKTT. This document is required for many practical purposes including bank account opening, phone number registration, and children's school enrollment. The SKTT must be renewed annually and updated if you change addresses.
Travel Notification
While the SHV includes multiple entry-exit privileges, extended absences (180+ consecutive days outside Indonesia) may trigger a review of your SHV status. Immigration may question whether you still qualify for a "second home" visa if you rarely reside in Indonesia.
Who Is the Second Home Visa Best For?
Ideal candidates:
- Retirees with sufficient savings who want long-term Bali residency without business complexity
- Property investors who have purchased a villa or apartment in Indonesia
- High-net-worth individuals who split time between multiple countries
- Parents of school-age children who want stability for education
- Couples or families who want to avoid annual visa renewals
Not ideal for:
- Digital nomads who want to work legally (get E33G or PT PMA + KITAS instead)
- Entrepreneurs building a business in Indonesia (need PT PMA + E25B KITAS)
- Budget travelers (IDR 2B requirement is the entry barrier)
- People seeking permanent residence (KITAP through KITAS is the proper pathway)
Interested in the Second Home Visa? Bali Zero guides you through the entire process, from financial documentation to SKTT registration. We handle all 5 stages so you can focus on enjoying your new home.
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