THE GREAT EXPAT SHIFT: WHY AUSTRALIANS ARE TURNING TO BALI & LOMBOK — AND THE TAX STRUCTURES THEY NEED TO GET RIGHT
By Jamie McIntyre, Political Commentator, Founder of Australian National Review
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There’s a quiet migration underway. Not loud, not chaotic… but steady, deliberate, and accelerating.
Australians are not just holidaying in Bali anymore.
They’re relocating, diversifying, and in many cases, escaping.
And it’s not just Australians.
Europeans, Middle Eastern expats, and even high-net-worth individuals exiting Dubai are now looking toward Bali and Lombok as their next base.
What was once a tropical playground is fast becoming something else entirely:
A global safe haven for capital, lifestyle, and freedom.
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WHY AUSTRALIANS ARE LEAVING — OR AT LEAST HEDGING THEIR BETS
Australia has become one of the most expensive places in the world to live.
Now layer on top:
•Rising fuel costs
•Supply chain pressures
•Increasing food prices
•High interest rates
•Growing concerns of a global downturn or even another GFC
The financial pressure is no longer theoretical. It’s hitting households weekly.
For many, Bali represents a kind of economic reset button.
In places like Bali and Lombok:
•Living costs can be 50–70% lower
•Domestic staff and services are affordable
•Lifestyle quality is often higher, not lower
•Visa pathways are becoming easier
Indonesia has also introduced and expanded:
•Visa on Arrival (VOA)
•Second Home Visas
•Investor KITAS residency options
At the same time, the Indonesian government has openly stated ambitions to position Bali as a future financial and business hub comparable to Dubai.
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THE “GLOBAL REFUGEE CAMP” EFFECT
According to Jamie McIntyre, what we are seeing now is not the peak.
It’s the early phase.
He describes Bali as becoming:
“a global refugee camp… not in the traditional sense, but for capital, entrepreneurs, and families seeking freedom, affordability, and lifestyle.”
Post-COVID, the trend began as a trickle.
Remote work, digital businesses, and online income streams removed the need to stay in expensive Western cities.
Now, with geopolitical tensions rising and economic uncertainty increasing, that trickle is turning into a flood of relocation capital.
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DUBAI WEALTH NOW LOOKING EAST
Dubai has long been one of the world’s largest expat hubs.
But recent reports suggest:
•Rising living costs
•Geopolitical proximity concerns
•Market saturation
…are pushing some high-net-worth individuals to explore alternatives.
And Bali is ticking boxes:
•Neutral geopolitical positioning
•Strong tourism economy
•Growing international flight connectivity
•Cultural familiarity for expats
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WHAT THIS MEANS FOR PROPERTY PRICES
When migration meets limited supply, prices don’t creep — they jump.
Bali has already seen:
•Significant land price increases post-2020
•Strong rental yields driven by tourism + expats
•Increasing scarcity in prime areas like Seminyak and Canggu
But here’s where it gets interesting…
The Spillover Effect into Lombok
Lombok is now where Bali was 10–15 years ago.
•Lower entry prices
•Large-scale land availability
•Government-backed tourism expansion
•New international flight routes
As Bali matures, Lombok becomes the overflow valve.
And historically, when that happens, early investors benefit the most.
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TAX STRUCTURES FOR AUSTRALIANS INVESTING IN INDONESIA
Now comes the part most investors overlook… until it’s too late.
1. Foreign Ownership Reality
Indonesia does not allow direct freehold ownership by foreigners.
So investors typically use:
•Leasehold (Hak Sewa)
•Right to Use (Hak Pakai)
•Nominee or corporate structures
Each has different legal and tax implications.
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2. PT PMA (Foreign-Owned Company)
The most common professional structure is a PT PMA (foreign-owned Indonesian company).
Benefits include:
•Legal right to operate a business
•Ability to generate rental income legally
•Stronger control versus nominee structures
However:
•Subject to Indonesian corporate tax (~22%)
•Requires compliance, reporting, and setup costs
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3. Australian Tax Considerations
Australians remain taxed on worldwide income.
This means:
•Rental income from Bali/Lombok must be declared in Australia
•Capital gains are still subject to Australian tax rules
•Foreign tax credits may apply
This is where structuring becomes critical.
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4. Popular Strategies Used by Savvy Investors
•Holding via an offshore or Indonesian entity to manage income flow
•Structuring income as business revenue rather than passive income
•Timing asset sales to optimize capital gains outcomes
•Using depreciation and expense offsets
But this must always be coordinated with:
•Australian tax advisors
•Indonesian legal professionals
Because poorly structured deals can wipe out returns faster than any market downturn.
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WHY EARLY-MOVER ADVANTAGE STILL EXISTS
Three years ago, Jamie McIntyre publicly stated that Australians should:
“diversify out of overheated Western property markets and look toward emerging destinations like Bali and Lombok.”
At the time, many dismissed it.
Today:
•Bali prices have surged
•Demand is global, not local
•Lombok is entering its growth phase
And major master-planned communities — including Nesara Bay City (formerly Marina Bay City) and its sister project Gesara Bay City in South Lombok — are being positioned to capture the next wave of expat and investor demand.
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ARBITRAGE: THE SIMPLE BUT POWERFUL STRATEGY
This is the core idea driving the shift:
Sell or leverage assets in high-priced markets like Australia…
Reinvest into lower-cost, high-growth markets like Indonesia.
The result?
•Lower entry cost
•Higher rental yield potential
•Greater capital growth upside
It’s not just investing.
It’s geographic arbitrage.
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FINAL WORD
What’s unfolding in Bali and Lombok is not a short-term trend.
It’s a structural shift in how people live, work, and invest.
•Rising Western costs are pushing people out
•Technology is freeing people from location
•Emerging markets are pulling capital in
And as history has shown:
Those who move early in these cycles don’t just participate…
they benefit disproportionately.
The question is no longer if Bali and Lombok will boom.
The question is:
How much of that growth will you capture — and how well will you structure it when you do?