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HorizonUK Tax Solutions

Do I pay UK tax if I move to Indonesia or Bali?

Answered by Jordan Onraet-Wells, Founder & Chartered Tax Adviser (CTA). Published 17 August 2026. Last reviewed 17 August 2026.

The short answer

Yes, at least at first: the UK taxes your worldwide income until you have broken UK tax residence under the Statutory Residence Test, and neither a villa in Canggu nor a remote worker visa changes that on its own. Once you are non-resident, the UK still taxes UK-source income such as rental profits, gains on UK property and UK pensions, because the 1993 UK-Indonesia treaty lets the UK keep taxing UK-source pensions. Indonesia then taxes residents on worldwide income at rates up to 35%, softened by a four-year concession that can limit new foreign residents to Indonesian-source income.

  • HMRC taxes your worldwide income until you are non-resident under the Statutory Residence Test; full-time work abroad with fewer than 91 UK days and no more than 30 UK workdays is the cleanest route out.
  • Split-year treatment can tax you as non-resident from your departure date, claimed on the SA109 pages, not the P85.
  • UK rental profits stay UK-taxable under the Non-Resident Landlord Scheme, and gains on UK property must be reported and any tax paid within 60 days of completion, even where nothing is due.
  • The 1993 treaty lets the UK keep taxing UK pensions paid to Indonesian residents, with Indonesia giving a credit, so retiring to Bali does not switch off UK PAYE.
  • Freelance income for UK clients is generally taxed in Indonesia once you are non-resident, provided you keep no UK fixed base and spend fewer than 91 days in the UK.

Break UK residence first, whatever your visa says

Your visa category and your tax residence are separate questions, and people routinely confuse them. The UK taxes residents on worldwide income, so a move to Bali only helps once you are non-resident under the Statutory Residence Test; the usual route is full-time work abroad, averaging at least 35 hours a week with fewer than 91 UK days and no more than 30 UK workdays. Leave part-way through a tax year and split-year treatment can tax you as non-resident from departure, claimed on the SA109 residence pages of your final Self Assessment return rather than the P85. On the other side, spending more than 183 days in Indonesia in any 12-month period points to Indonesian tax residence whatever stamp is in your passport.

What the UK keeps taxing, including your pension

Non-residents still pay UK tax on UK-source income. Rental profits fall under the Non-Resident Landlord Scheme, with basic rate tax withheld unless HMRC approves gross payment, and gains on UK property must be reported and any tax paid within 60 days of completion. The clause that surprises people is pensions: Article 18 of the 1993 UK-Indonesia treaty allows the state a pension is paid from to tax it, so UK PAYE continues on UK private and workplace pensions paid to an Indonesian resident, with Indonesia relieving double tax by credit. Many treaties give the residence country sole taxing rights over private pensions; this one does not, and planning built on that assumption fails. Freelancers fare better: once non-resident with no UK fixed base and under 91 UK days, professional income for UK clients is generally taxable only in Indonesia.

The Indonesia side: worldwide tax with a four-year soft landing

Indonesian residents are taxed on worldwide income at progressive rates from 5% up to 35% above IDR 5 billion. The soft landing is the Omnibus Law concession: a foreign citizen who becomes resident can, subject to expertise requirements, be taxed only on Indonesian-source income for their first four years, which can keep UK rental and investment income outside the Indonesian net. The catch is that the concession cannot be combined with treaty benefits on the same income, so the choice needs making deliberately with a local adviser. The full corridor, including the remote worker visa landscape and the freelancer analysis, is in our guide to UK tax when moving to Indonesia. We handle the UK side on fixed fees agreed upfront, and a free clarity call will tell you what actually needs doing before you commit to anything.

This is general information for the 2026/27 UK tax year, not personal tax advice; speak to a Chartered Tax Adviser about your own position.

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