Indonesia – A Cheap Country To Retire To

Many people would like to make their retirement dollars stretch a bit further by finding a cheap country to retire to. There are all sorts of options available, depending on your requirements. One of these is Indonesia.

Istiqlal Mosque, Jakarta, IndonesiaImage via Wikipedia

It is possible to retire to Indonesia, and to eventually get a retirement visa, providing that you meet the minimum qualifications. You need to have an income of at least $1,500 per month, you need to hire an Indonesian maid, you need to either purchase or rent a home of a certain value, depending on where you stay, and you need to have health, death, and personal liability insurance. You cannot work while on these visas. You also must be at least 55 years old.

As foreigners cannot own land in Indonesia, it is not really possible to purchase a home, although legally they are allowed to purchase a home. It is probably better to rent until all the legal issues get straightened out.

If you are in Indonesia for more than 183 days a year you need to pay income tax of 35 percent for incomes over $20,000. This is true even if you are not working in Indonesia. This will cut into your retirement funds a bit.

There is medical care available in Indonesia, though it is not necessarily up to the standards that you are used to. You can get your basic care through one of the group practice medical groups that are available, but more specialized care usually requires a trip to the referral hospitals in Singapore or Australia.

While the weather is generally warm in Indonesia, keep in mind that they do have monsoon season there. It will be very rainy, and you will need to make sure to take precautions so that your home is protected from the rain.

However, Indonesia is a cheap place to retire to. You will be expected to have a maid, as most people do, so you won’t have to worry about cleaning or cooking. You will probably want to live in one of the larger cities so that you will have more of the amenities you are used to, even though they aren’t as picturesque as some of the more rural locations.

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