Germans in Bali
Business & Visa Guide 2025
Everything German entrepreneurs, digital nomads, and expats need to know about starting a business, getting the right visa, and managing taxes in Indonesia. Your complete guide to making the move to Bali.
Services for Germans
From company formation to ongoing compliance, we help Germans successfully establish and run businesses in Indonesia.
Why Germans Choose Bali
With approximately 180,000 German visitors each year, Bali has become a favorite destination for Germans seeking tropical living with strong business opportunities.
Strong EUR Exchange Rate
The Euro offers excellent purchasing power in Indonesia, making both living costs and business investments highly favorable for German entrepreneurs.
Comprehensive Tax Treaty
The Germany-Indonesia Doppelbesteuerungsabkommen (DTA) prevents double taxation on income, dividends, royalties, and pensions.
Quality of Life
Escape the German winter and enjoy tropical living while maintaining European business standards. Many Germans find Bali offers the perfect work-life balance.
Long Trade History
Germany and Indonesia have strong bilateral trade relations spanning decades, creating a supportive environment for German businesses operating in Indonesia.
How to Start Your Business in Bali
The typical journey for Germans 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 Germans
Quick answers to the most frequently asked questions.
Can Germans 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.
Does Germany have a tax treaty with Indonesia (Doppelbesteuerungsabkommen)?
Yes, Germany and Indonesia have a comprehensive Double Taxation Agreement (Doppelbesteuerungsabkommen) that prevents double taxation on income, dividends, and royalties. This treaty ensures you are not taxed twice on the same income.
Can I receive my German pension (Rente) while living in Bali?
Yes, German pensions are paid worldwide. Under the tax treaty, pensions are generally taxable only in Germany, though Indonesian tax residency rules may apply. Consult a tax advisor for your specific situation.
What is the minimum investment for a PT PMA?
The minimum investment commitment is IDR 10 billion (approximately EUR 580,000), with minimum paid-up capital of IDR 10 million per shareholder. The investment can be fulfilled over time.
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.
Do I pay tax in both Germany and Indonesia?
The Germany-Indonesia Tax Treaty prevents double taxation. Generally, you pay tax where you are a tax resident (183+ days/year). Income can be taxed in one country with credit given in the other.
Germany-Indonesia Tax Treaty(Doppelbesteuerungsabkommen)
The comprehensive Double Taxation Agreement between Germany and Indonesia ensures you don't pay tax twice on the same income. Key benefits include:
- Reduced withholding tax on dividends (10-15%)
- Reduced withholding tax on royalties (10-15%)
- Clear rules on tax residency
- Pension taxation typically in Germany only
- Prevention of double taxation
Quick Tax Facts for Germans
Ready to Start Your Bali Business?
Join the growing community of Germans who have successfully set up businesses in Bali. Get expert guidance from our team who understands both German precision and Indonesian regulations.
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