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Compare · Bali vs Malaysia

Bali vs Malaysia for Australians leaving home

Bali:Worldwide taxAU tax treatyMalaysia:Territorial taxAU tax treaty

The regimes are genuinely different: Bali is a worldwide tax system while Malaysia runs territorial tax, which of your income streams each one actually touches matters more than any headline rate.

Both have a tax treaty with Australia, so either way you get a tie-breaker if the ATO contests your departure, and capped withholding (15%/10% vs 15%/10% on unfranked dividends/interest).

On day-to-day costs there is little between them, roughly 45% and 50% of Sydney's basket (indicative, ex-rent), so the money question is decided by tax and rent, not groceries.

Personalise this, enter your numbers once and every figure below becomes yours: “your estimated income tax: $14,200”, not “0, 22%”. Open the Country Comparison tool →

2 destinationsBaliIndonesiaMalaysiaMalaysia
Tax
Regimeworldwide, taxes worldwide incometerritorial, worldwide income not taxed
Income tax on salaryProgressive 5, 35%. An A$120k income maps to roughly 27% effective, Indonesia is not a low-tax residence on paper.Progressive 0, 30% on Malaysian-source income. A RM300k salary pays roughly 20% effective.
Capital gainsNo concessional CGT: foreign gains are ordinary income up to 35%. Indonesian-listed share sales instead pay a 0.1% final tax on proceeds. (30% typical)No CGT on listed shares for individuals. Real property gains hit RPGT (up to 30% within 3 years of purchase, 0% for citizens/PRs after 5; foreigners pay 10% even after 5 years). (0% typical)
DividendsDomestic dividends: 10% final (0% if reinvested in Indonesia under conditions). Foreign dividends: progressive rates unless the reinvestment exemption applies.Malaysian dividends tax-free in your hands (single-tier). Foreign dividends remitted in are broadly exempt to 2036 provided they were taxed in the source country. A 2% tax on large domestic dividend income (>RM100k) was introduced from 2025.
InterestTaxed locally around 20%Generally untaxed locally
CryptoCrypto traded on Indonesian platforms carries small final transaction taxes (income tax of ~0.1% of value plus VAT). Gains realised offshore by a resident are, strictly, worldwide income at progressive rates.No CGT for individual investors, so long-term crypto gains are generally untaxed. Active or business-like trading is taxable income at progressive rates, Hasil looks at frequency and intent.
Australia tax treatyYes, AU withholding capped at 15% dividends / 10% interest, tie-breaker availableYes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available
Social securityBPJS health and employment schemes apply to formal employees; foreign remote workers typically fall outside them.EPF is generally optional for foreign employees; most expat packages exclude it.
Visa
Best pathways
  • E33G remote worker KITAS, One-year remote worker permit: employment with a company outside Indonesia and ~US$60k/year income, plus proof of funds.
  • Second Home visa, 5, 10 year stay for those parking ~IDR 2bn (~A$190k) in an Indonesian state-bank account or buying qualifying property.
  • Retirement KITAS (E33F), Age 60+ (55 for some categories), ~US$3k/month pension income, one-year renewable.
  • MM2H (Malaysia My Second Home), Long-stay visa in three tiers: Silver (~US$150k fixed deposit, 5 years), Gold (~US$500k, 15 years), Platinum (~US$1m, 20 years). Property purchase requirements apply per tier.
  • DE Rantau nomad pass, Digital nomad pass (3, 12 months, renewable once): ~US$24k/year income for tech workers, ~US$60k for non-tech professionals, with foreign clients or a foreign employer.
  • Employment Pass, Employer-sponsored pass, tiered by salary (Category I from RM10k/month, up to 5 years).
Visa ease7/106/10
Family on visasDependants covered on main pathwaysDependants covered on main pathways
Fastest timeline~0 months on the quickest pathway~2 months on the quickest pathway
Money
Rent (family home, monthly)$2,500/mo$2,200/mo
Rent (couple, monthly)$1,500/mo$1,300/mo
International school (per child/yr)$15,000$16,000
Health cover (family/yr)$5,000$4,000
Cost of living vs Sydney45% of Sydney (ex-rent)50% of Sydney (ex-rent)
Relocation one-off~$12,000~$15,000
Flights home (return, pp)$1,100$1,300
Life
Timezone vs AEST2h behind2h behind
Flight from Sydney~6.5 hours~8.5 hours
English6/108/10
Safety7/107/10
Healthcare5/108/10
Schooling6/108/10
ClimateTropical, 30°C year-round; wet season roughly November to March.Tropical, 32°C, humid, afternoon storms year-round; haze season some years.

Costs, rates and visa figures are country-module data marked indicative until individually verified; FX and rental markets move constantly.

Honest downsides, side by side

Every destination hub on this site carries its downsides in the open. Here are both lists together, because the right question is rarely “which is better?” and usually “which set of problems would you rather live with?”

Bali

  • Healthcare on the island is adequate for small things and inadequate for big ones, serious cases get evacuated to Singapore or Australia, so insure accordingly.
  • Indonesia taxes worldwide income at up to 35%: done legally, Bali is often a worse tax outcome than staying in Australia at middle incomes.
  • Infrastructure strain is real: traffic between Canggu and anywhere can be brutal, and rainy-season flooding, power cuts and construction noise are routine.
  • Foreigners cannot own land freehold, leaseholds and nominee structures carry genuine legal risk.
  • Enforcement culture is unpredictable: long tolerance, then sudden crackdowns (on visas, on unlicensed business, on tax).

Malaysia

  • MM2H goalposts have moved three times in five years, deposit sizes and conditions are policy-volatile, and grandfathering has not always been generous.
  • KL is easy but not electric: many expats find the lifestyle comfortable rather than compelling, and Singapore-level career options are not here.
  • The foreign-income exemption runs to 2036 and requires the income to have been "subject to tax" abroad, the mechanics matter and the policy can change.
  • Alcohol is heavily taxed, and cultural/legal conservatism (especially outside KL and Penang) surprises some arrivals.

Make this comparison yours

The table above shows the general figures. Enter your income and family once and the tax rows become your numbers, “your estimated income tax in Canggu: $14,200”, not a range.