Americans in Bali
Business & Visa Guide 2025
Complete guide for US citizens starting a business in Indonesia. Navigate PT PMA setup, visa requirements, and complex US-Indonesia tax obligations including FATCA and FBAR compliance.
Important for US Citizens
Unlike citizens of most countries, US citizens are taxed on worldwide income regardless of residency. Living in Indonesia does not exempt you from US tax filing requirements. We recommend consulting with a US-qualified tax advisor alongside Indonesian tax planning.
Services for Americans
From company formation to ongoing compliance, we help American entrepreneurs successfully establish and run businesses in Indonesia.
US Tax Considerations
Critical tax information for Americans living and working in Indonesia.
US Citizens Are Taxed Worldwide
Unlike most countries, the US taxes citizens on worldwide income regardless of where you live. You must file with the IRS even while living in Indonesia.
FATCA Reporting Requirements
US persons must report foreign financial accounts (FBAR) and assets (FATCA Form 8938) to avoid severe penalties.
Foreign Earned Income Exclusion
You may qualify for the FEIE (up to ~$120,000 exclusion) if you meet the bona fide residence or physical presence test.
Why Americans Choose Bali
Despite the distance, Bali offers unique advantages for American entrepreneurs.
Strong USD Exchange Rate
The US Dollar offers excellent exchange rates against the Indonesian Rupiah, maximizing your purchasing power.
Tax Treaty Benefits
The US-Indonesia Tax Treaty prevents double taxation, though US citizens must still file with the IRS worldwide.
Digital Economy Hub
Bali has become a hub for American digital entrepreneurs, with strong internet and a supportive expat community.
Remote Work Paradise
The time difference actually works for some businesses - you can work US hours in the evening and enjoy days off.
How to Start Your Business in Bali
The typical journey for Americans setting up a business in Indonesia.
Consultation
We discuss your business goals and recommend the best company structure and visa.
Company Setup
Register your PT PMA with OSS, get NIB (business license), and open a corporate bank account.
Visa & Work Permit
Obtain your KITAS work visa sponsored by your own company.
Start Operating
Begin business operations with ongoing accounting, tax, and compliance support.
Common Questions from Americans
Quick answers to the most frequently asked questions.
Do I still have to file US taxes if I live in Bali?
Yes, US citizens must file tax returns with the IRS regardless of where they live. However, you may qualify for the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit to reduce or eliminate US tax liability.
Can Americans own 100% of a company in Indonesia?
Yes, through a PT PMA (foreign-owned limited liability company). Most business sectors allow 100% foreign ownership under the OSS (Online Single Submission) system.
What is FBAR and do I need to file it?
FBAR (FinCEN Form 114) must be filed if you have foreign financial accounts exceeding $10,000 aggregate value at any time during the year. This includes Indonesian bank accounts.
What visa do I need to work in my own company?
You need a KITAS (temporary stay permit) with a work permit. As a director/shareholder of a PT PMA, you can sponsor your own KITAS.
Ready to Start Your Bali Business?
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