Indonesia introduced golden visa to attract foreign investors

Southeast Asian countries, including Indonesia, are trying to attract rich applicants with high net worth by offering various visas to advance economic projects and invest in these countries. Qualified applicants can obtain a 5-20 year residence permit by investing in Indonesia, Malaysia, Singapore and Thailand. This is just one of the amazing benefits of investing in these countries. In this article, we will review the investment visas of these Asian countries.

Indonesia golden visa to attract foreign investors

Indonesia implements the golden visa scheme to attract foreign investors and foreign companies. This Indonesian immigration visa program provides applicants with residence permits from 5 to 10 years based on the value and amount of investment.

Indonesia introduced the golden visa program to attract foreign investors with high capital and high net worth. According to this new visa plan, foreign investors can receive a 5-10-year residence permit in this country according to the amount and value of their investment.

With how much capital can you get a 10-year Indonesian residency?

In order to receive a 5-year visa, private investors must register and establish a company in this country with a capital of 5 million dollars. Investors must establish an Indonesian company worth 2.5 million dollars to receive a 10-year visa. Also, investors who do not wish to establish a local entity or business company can invest at least US$350,000 in shares of a local public company, deposit or savings accounts, or Indonesian government bonds to qualify for a 5-year visa. To get a 10-year Indonesian visa, investors must spend US$700,000 to buy stocks or deposit or savings accounts.

In addition, managers and business representatives can receive a 5-year residence visa in this country by investing at least 25 million dollars. To obtain a 10-year residence permit, managers and business representatives must invest at least 50 million dollars in this country.

Indonesia’s fierce competition with neighboring countries to attract rich people

Indonesia faces stiff competition from its Southeast Asian neighbors to attract wealthy individuals. In fact, the Indonesian government encourages rich applicants from all over the world to invest in this country by offering attractive investment opportunities and many privileges to obtain a 5-10-year residence permit. But many neighboring countries and regional competitors have been leading in attracting foreign investors before Indonesia’s policies and arrangements.

Indonesia’s first competitor: Thailand

Thailand in 2022 various programs and incentives incentives It implemented investments with the aim of attracting retirees, investors and foreign professionals. Eligible applicants can obtain a 10-year long-term residence visa for themselves, their spouse and children by investing in this country. In addition, automatic work permits will be issued to qualified applicants. This is a new type of visa that did not exist in Thailand before. Eligible applicants can also benefit from paying the same income tax rate as Thai citizens, as well as tax exemptions for overseas earnings. Applicants who receive this new Thailand visa will benefit from fewer restrictions on buying houses and property, foreign ownership and renting land and property.

Tax and investment incentives in Thailand are available to wealthy applicants from around the world with at least $80,000 in annual income and at least $1 million in assets. Wealthy retirees with a minimum fixed pension of US$40,000 per year and with 50 years or more are eligible for tax and investment incentives in Thailand. In addition, highly skilled professionals with a 2-year income of at least US$80,000 or a one-year income of at least US$40,000 in industries such as infrastructure or digital systems are eligible for investment incentives and this new Thailand visa. and are eligible. Since the implementation of this visa program in September 2022 to June 2023, about 4,200 applicants have applied. In line with the implementation of this visa program, the Thai government aims to increase one million foreign applicants to the country’s population in the next 5 years.

Indonesia’s second competitor: Malaysia

Malaysia Visa Privilege Program (PVIP) Premium Visa Program It was introduced in 2022 to attract wealthy foreign applicants to invest and obtain a 20-year residence permit in this country. By receiving this visa, applicants can buy houses and residential or commercial properties in Malaysia. Eligible applicants for the Malaysia PVIP Premium Visa Program must meet the following requirements and conditions:

• Applicant must open a fixed deposit account of RM1 million (US$227,180) in a Malaysian licensed bank. The applicant is not allowed to make any withdrawals in the first year of depositing, but upon entering the second year of depositing, the applicant can withdraw up to 50% for buying a house and property, medical expenses or education.
• The applicant must have a monthly income of at least 40,000 ringgit (9,086 USD) or an annual income of 480,000 ringgit (109,000 USD) outside Malaysia.
• The applicant must pay participation fees of approximately 200,000 ringgit (45,434 USD) for the main applicant and 100,000 ringgit (22,713 USD) for each dependent family member.
• All applications for Malaysia’s premium visa must be made through an authorized agency designated by the Department Migration Malaysia to follow.

However, Malaysia’s premium visa program is currently under review by the government and only 28 applications have been submitted. The reason for this is that the requirements and conditions of this visa program are similar to another visa program called “Malaysia My Second Home program”, which has a much lower application fee of about 5,000 ringgit (1,074 US dollars) for the main applicant and 2,500 Ringgit (US$537) per dependent family member.

Malaysia is also the first digital nomadic (remote work) visa program. digital nomad visa implemented the region in 2022. The program, called De Rantau, is for digital marketers, IT professionals and content creators, offering a 12-month residency permit. The government hopes the program can make Malaysia a hub for digital nomads in the region, while boosting the digital industry across the country.

Eligible applicants for a digital nomad (remote work) visa who have jobs in the areas of digital freelancing or independent contracting must submit an active project contract with a duration of work of more than 3 months. This proof of residency can be provided in the form of multiple contracts with foreign or Malaysian companies. These applicants must provide an active employment contract where the duration of the contract in Malaysia is more than 3 months. The employer can be foreign or Malaysian. The annual income of a foreign digital freelancer in Malaysia should be more than 24,000 US dollars, while the annual income of a native Malaysian digital freelancer should be more than 36,000 ringgit (7,863 US dollars).

The Malaysian government has targeted 80,000 digital freelancers by 2025 through the De Rantau 8 visa program.

Indonesia’s third competitor: Singapore

Singapore’s Global Investor Program was launched in 2004 and has undergone many changes since then. This program is one of the preferred routes for foreign investors and their families to obtain permanent residency in Singapore.

Singapore’s Economic Development Board (EDB), which runs the program, announced new requirements for eligible applicants.

From March 2023, the Singapore government has increased the investment criteria for the GIP program. The new criteria and conditions for the GIP program are:

• Investment of at least S$10 million (US$7.4 million) in a new or existing business in Singapore
• Invest S$25 million (US$18.5 million) in an EDB-registered GIP fund in Singapore businesses or
• Establishing a Singapore-based family office with assets under management of at least S$200 million (US$148 million), the applicant must invest at least S$50 million (US$37.1 million) in each of the following 4 investment categories:
• Buy Singapore government bonds and securities
• Injecting private equity into unlisted and Singapore-based businesses
• In companies listed on exchanges licensed by the Monetary Authority of Singapore
• In funds distributed by Singapore licensed fund managers

Between 2020 and 2022, a total of 200 investors received Singapore permanent residence permits through this scheme. The Singapore government has not released information on the total number of successful applicants since raising the qualifying investment criteria, but they aim to attract investors and high-net-worth affluent applicants.

Conclusion

We are experts Immigration Institute In this article, we reviewed the Indonesian golden visa to attract foreign investors and the investment visas of Malaysia, Singapore and Thailand and presented the benefits of this type of investment. Apart from the permanent residence permit and social privileges and rights, the applicants enjoy the advantage of buying houses and properties as well as earning profit from the rental income of houses and properties in these countries.