Cover for National Geographic

The first trip to Bali will be remembered for a long time. The beauty of the landscape – mountains, tropical jungles, and coral reefs – is genuinely intoxicating. Any turn of the head and you bump into the cover of National Geographic. The overwhelming majority of tourists have a desire to capture all this somehow. It’s not for nothing that the island has been named one of the most Instagrammable places in the world.

When the first shock passes, a desire appears to touch this beauty, filling your leisure time. The flow of tourists and the investments it brings have allowed the island to raise its recreational infrastructure to a high level (in 2022, tourism brought about $10 billion to the Bali economy). Today, Bali offers tourists not only high-quality beach holidays but also active programs with diving, surfing, rafting, or, for example, intense excursions to religious centers and culinary presentations.

All this makes the island a tourist magnet that attracts residents of different countries – people come here from Europe, the USA, Australia, and all over Asia. Last year, for example, Bali received more than 2 million tourists, in the first half of this year – already more than 1.2 million. Europeans also fell in love with the island. By mid-summer, almost 100 thousand of our compatriots arrived here, 15% more than before the pandemic. The stable flow of tourists is also facilitated by the fact that Bali is not a seasonal destination but year-round.

To maintain tourist flow, local authorities pay great attention to infrastructure. For example, a large-scale modernization of Bali’s transport system is planned for next year. In particular, the Gilimanuk-Mengwi expressway will be built here. It will pass through the entire island, connecting it with Jakarta. The leading passenger and cargo hub between Java and Bali is also being prepared for reconstruction. And in 2025, the Paramount amusement park will be opened in Bali.

Another advantage of Bali that catches your eye even on your first visit is the warmth and friendliness of the local people, which is legendary. It’s not for nothing that in 2023, Bali was again recognized as the most hospitable island in the world, according to Travel + Leisure magazine.

From infatuation to true love

Tourist love for a location, as is known, often develops into “relocation.” Bali, in this sense, is no exception. The local relocation community numbers more than 100 thousand people – they include:

• downshifters; 
• digital nomads; 
• large investors; 
• representatives of small businesses from all over the world.

Of course, local authorities are primarily interested in attracting significant investments. For example, this year, Indonesia launched a program for issuing “golden visas” for 5-10 years. To obtain a 5-year visa, a private investor who does not plan to create a company here must invest $350,000 in shares of public companies’ bonds or place them on deposit. A visa for the same period is given for opening a company worth $2.5 million. Many foreigners invest in restaurants, travel agencies, and small hotels or register IT companies here.

The tax burden for businesses in Bali remains moderate. For example, an individual, regardless of citizenship, with an annual income of less than $3,400 is entirely exempt from paying income tax. For small businesses with annual revenues of less than $300,000, a preferential rate of 0.5% applies in the first half of the year. VAT is 11% of the cost of goods and services.

Property in Bali

One of the main factors influencing the attractiveness of a particular location in the world remains the issue of purchasing real estate. Considering the geopolitical situation, Southeast Asia has been seriously competing with European countries in this sense in recent years. For many people, for apparent reasons, purchasing housing in some EU countries has become a challenge. Famous Turkey and Dubai raised prices amid sharply increased demand from foreigners. Therefore, it is unsurprising that more and more of our compatriots (and not only) are paying attention to real estate in Thailand, Vietnam, and Indonesia.

Housing in all three countries is relatively affordable. But if realtors for a long time out of habit put Thailand first in this top three, today more and more specialists are inclined to change their opinion towards Indonesia, namely Bali. There are several reasons for this. This includes many options – from apartments to villas on the beaches. And investment attractiveness. And a growing interest in the country’s multicultural richness. And distance from regional conflicts.

Despite the rise in real estate prices, which have increased by 10-15% in Bali over the past five years, the cost of housing here remains, on average, lower than in many resort countries of this level. Property investment in Bali and other Indonesian islands is increasing. The most popular are villas, which range from $80 thousand (small options) to several million (for luxury houses). With good rental management, the property can be repaid in 5 years with a yield of about 10-15% per annum. The country’s real estate market is forecast to increase from $61.22 billion this year to $81.24 billion by 2028, according to consulting Indonesia-real.Estate.