Bali's New 40% Tax 😱 May Change Nomading Forever

Plus: Best Countries to Move Away From the USA

Author

Pranam Lipinski
January 23, 2024

Welcome back to another edition of Nomad Cloud! We’re that friend that always has your back with everything travel, nomading, and remote work. Today we’re talking Bali. You know that one island that almost EVERY nomad has been to? Well there’s a special tax coming in you might want to be aware of.

Also South Korea has made adjustments to its incoming digital nomad visa. If you’re a citizen of certain countries, you’ll want to take notes.

Let’s go ☁️ surfing shall we?

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  • Bali’s New 40% Tax (What To Know) 💸

  • Where Americans Are Fleeing For Better Life 🏃

  • Aussies in South Korea? 🇦🇺🇰🇷

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Bali’s New 40% Tax Has Tourists Shaking In Their Boots

No more extra Bintang Beers? Well in a significant development, Indonesia is poised to implement a substantial increase in its national entertainment tax, ranging from 40% to 75%! This tax will be applied to tourists’ bills at nightclubs, spas, some beach clubs, and other specific entertainment venues.

This move has triggered dissatisfaction among entertainment businesses in Bali and the tourism sector, raising fears of adverse effects on businesses nationwide. Here’s what is echoing across rice fields from Canggu, to Uluwatu and Ubud too.

Backlash Over Increasing Fees

The steep hike in Indonesia's entertainment tax has led to genuine concerns within the tourism sector, particularly in Bali. Businesses fear negative repercussions as the added financial burden may drive budget-conscious tourists to explore alternative vacation destinations.

Bali's General Treasurer Critiques Tax Increase

Agung Bagus Pratiksa Linggih, General Treasurer of HIPMI Bali, expressed mixed feelings about the massive tax increase. Linggih emphasized the need for the government to demonstrate Bali's superiority in tourism services and facilities before justifying the highest tax rates globally. He argued that such a move could hinder Bali's competitiveness against other tourist destinations.

Entertainment Industry Leaders Use The Law Rally Against Tax Hike

Influential figures in the entertainment industry, including celebrity lawyer Hotman Paris, co-founder of Atlas Beach Club in Canggu, are vocal about the potential negative impact of the 40% entertainment tax. Paris and his legal team plan to submit a judicial review to the Constitutional Court if President Joko Widodo does not address the concerns promptly. They advocate for emergency legislation to halt the introduction of the new tax rates, emphasizing the people-centric nature of the tourism industry.

Even more worrisome? Other countries may follow suit and it could change nomading forever.

Here’s Where Americans Are Leaving The US To Go (It’s Not Where You’d Guess)

You’ve been wondering why there’s an American in every city you visit abroad. No this is not about Passport Bros we covered in a past edition. There’s a notable trend where an increasing number of American citizens are opting to live abroad, with an estimated 9 million U.S. citizens currently residing outside the country, as reported by the U.S. State Department. For those contemplating such a move (American or not) here are crucial steps to consider and countries that stand out as expat-friendly destinations.

Essential Steps Before Relocating

Before embarking on an international move, thorough research is crucial. From understanding the cost of living and job opportunities to cultural differences, prospective expats should delve into the specifics of their chosen destination. Early steps include securing or updating passports, applying for the necessary visas, creating a budget, and familiarizing oneself with the culture and customs of the new country.

Top Expat-Friendly Destinations

Some countries emerge as particularly welcoming for American expats, considering factors such as visa accessibility, job opportunities, and quality of life. Mexico stands out with its proximity to the U.S. and lower living costs, while Spain and Portugal offer relatively easy long-term visa processes and affordable living. Singapore is praised for its safety and sizable English-speaking population, and Thailand is recognized for its low living costs and vibrant expat community.

Countries to Avoid

The U.S. State Department issues advisories cautioning against travel to countries marked by high levels of crime, health hazards, and civil unrest. The list includes nations like Afghanistan, Iraq, Syria, and Venezuela. Additionally, understanding visa requirements is crucial, as not all countries have the same entry regulations. The State Department's Learn About Your Destination search tool proves valuable, offering information on visas, embassies, safety, local laws, healthcare, and transportation for prospective expats.

Why Are Aussies Going To South Korea?(Digital Nomad Visa Details)

Gday mate! Ok we tried, but in a surprising turn, South Korea has become the latest hotspot for Australian travelers, recording a significant increase in visits from Down Under. According to data from the Australian Travel Industry Association (ATIA), over 90,000 Australians explored South Korea between June 2022 and May 2023, marking a substantial surge from the 75,000 visits in the same period of 2019. Here are the key points driving this trend:

Extended Stays for Remote Workers

South Korea is now attracting remote workers with its innovative Workcation or Digital Nomad Visa, allowing individuals employed by overseas companies to stay for up to one year, with the option to extend for an additional year. This marks a departure from the previous 90-day limit for remote workers in the country.

Strict Requirements for the Workcation Visa

While the Workcation Visa opens doors for extended stays, applicants face stringent criteria. Individuals aged 18 or older must have worked for an overseas company for at least a year, earning a minimum salary of around AU$97,000. Additionally, applicants need medical insurance covering over AU$114,000 in medical treatment and repatriation fees. Notably, the visa does not permit engagement in profit-making activities.

Hallyu Visa for K-culture Training

The South Korean government also introduced the Hallyu visa, also known as the 'K-culture training visa,' targeted at enthusiasts of Korean culture. This visa allows individuals registering at local performing art academies to stay for up to two years, receiving education and training in Korean music, film, animation, and gaming industries. The Hallyu phenomenon, encompassing the global popularity of K-pop culture, is a driving force behind South Korea's rising appeal for Australian visitors.

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