Most European state pensions keep being paid while you live in Bali. UK pensions are paid but frozen at their first overseas rate, Dutch AOW and German statutory pensions are generally paid in full, and French pensions travel with an annual life certificate. Your tax position then depends on Indonesian residency and your country's treaty.
Key takeaways
- UK state pensions are paid in Indonesia but frozen, with no annual increases, per GOV.UK guidance.
- Dutch AOW, German statutory pensions and French state pensions are all exportable, each with its own paperwork.
- Spend 183 days or more in Indonesia within 12 months and you normally become an Indonesian tax resident, per PwC's Indonesia tax summaries.
- The UK, Netherlands, Germany and France each have a double taxation agreement with Indonesia, so the same income should not be fully taxed twice.
- Speak to a cross-border tax adviser before you move, not after. Sequencing matters.
Can you receive a European state pension while living in Bali?
Yes. None of the four big Western European systems stops paying your state pension because you live in Indonesia. The differences between them are not about payment itself, but about whether the pension keeps rising, what paperwork keeps it flowing, and where it gets taxed.
This matters to more people every year. Bali recorded 6.9 million foreign arrivals in 2025, up 9.7% on the year before, according to BPS Bali, and Europeans are a visible share of the long-stay crowd in Sanur specifically. Most retirees keep their pension paid into a home-country bank account and move money to Indonesia in blocks, which keeps exchange-rate timing in their own hands. Private and occupational pensions are usually payable anywhere in the world, though you should confirm with each provider individually, as some have their own overseas payment rules and forms.
What happens to a UK state pension in Indonesia?
Indonesia is a frozen-pension country. Your UK state pension is still paid, but it stays at the rate in force when you first receive it abroad, with no annual uprating, because the UK has no social security agreement with Indonesia, per GOV.UK guidance. The freeze applies only to the state pension, not to private or workplace pensions.
The full new state pension is £230.25 a week in 2025-26, just under £12,000 a year, per GOV.UK. Frozen at that level, its real value erodes with every year of inflation, and over a 20-year retirement the compounding loss is substantial. British retirees in Sanur typically plan around it in one of three ways: leaning on private pensions and drawdown, which keep growing; renting out a property at home or in Bali to create an income that does rise; or simply budgeting on the frozen figure and treating any other income as buffer. The UK and Indonesia have had a double taxation agreement in force since the 1990s, which governs where each type of income is taxed. Our guide to retiring in Bali from the UK walks through the full picture, including healthcare and flight routes.
How do Dutch, German and French pensions travel?
All three are exportable. Dutch AOW is paid abroad through the SVB, German statutory pensions have been payable worldwide in full since the 2013 reform of the old reduction rules, and French state pensions follow you provided you return an annual certificat de vie. The admin differs; the principle of payment abroad does not.
Netherlands. The SVB pays AOW to pensioners living outside the EU, with the exact rate governed by the Wet BEU, which links full export to treaty arrangements with the country of residence. Confirm your personal rate with the SVB before committing to a budget. Occupational pensions from Dutch pension funds are generally paid abroad without reduction. There is a long-standing Dutch-Indonesian tax treaty, and the historic ties run deep, as we cover in the Dutch retiree's guide to Sanur.
Germany. Deutsche Rentenversicherung pays statutory pensions to non-EU countries in full. Many German retirees abroad remain limited taxpayers in Germany on their statutory pension, depending on how the Germany-Indonesia treaty allocates taxing rights, so the net figure needs checking with a Steuerberater who handles cross-border cases. Practical steps for the move itself are in our guide to retiring in Bali from Germany.
France. CNAV and the complementary caisses such as Agirc-Arrco pay pensions to residents of Indonesia. The recurring task is the certificat de vie, the proof-of-life certificate you must return each year, which can now usually be handled digitally or through a consulate. Miss it and payments pause until you catch up.
| Country | Paid in Indonesia? | Annual increases? | Tax treaty with Indonesia | Who to confirm with |
|---|---|---|---|---|
| United Kingdom | Yes | No, frozen at first overseas rate | Yes | International Pension Centre, HMRC |
| Netherlands | Yes (AOW via SVB) | Yes, rate depends on Wet BEU treaty status | Yes | SVB |
| Germany | Yes, in full | Yes, standard adjustments | Yes | Deutsche Rentenversicherung |
| France | Yes, with annual life certificate | Yes, standard revaluation | Yes | Your caisse (CNAV, Agirc-Arrco) |
When do you become an Indonesian tax resident?
You normally become an Indonesian tax resident if you are present in Indonesia for more than 183 days in any 12-month period, or if you reside there with the intention to stay, per PwC's Indonesia tax summaries. A retiree living in Sanur year-round on a retirement KITAS will almost always meet the test.
Residency brings registration for an NPWP tax number and, in principle, taxation on worldwide income at progressive rates that run from 5% to 35%, per PwC. In practice the treaties decide the real outcome for pensions: they allocate taxing rights between Indonesia and your home country and provide credits so the same euro is not fully taxed twice. Note that your visa does not set your tax status; your days on the ground do. The retirement KITAS and the E33 Second Home Visa both make long stays possible, and either can carry you past 183 days if you stay full-time.
How is your money taxed once you are resident in Bali?
Foreign pensions may become taxable in Indonesia once you are resident, subject to the relevant treaty, and any Indonesian rental income is taxed at flat final rates. Residents pay a 10% final tax on gross rent, while non-residents pay 20% final withholding, which treaties can reduce, per PwC's Indonesia tax summaries.
Those rental figures matter because many European retirees in Sanur own the home they live in part of the year and rent it out the rest. The final-tax system is simple to administer but is charged on gross rent, not profit, so model your net position before relying on the income. On the spending side, the budget the tax has to support is modest by European standards: a retired couple in Sanur lives comfortably on roughly USD 2,350 to 3,450 a month, around EUR 2,000 to 3,000, according to bali.com's 2026 cost-of-living guide.
What should you sort out before you move?
The pension and tax side of a Bali move rewards sequencing. Most of the pain stories come from people who moved first and untangled their affairs afterwards. The checklist below covers the essentials for all four countries.
- Tell each pension provider, state and private, that you are moving, and ask for their overseas payment process in writing.
- Get a written opinion from a cross-border tax adviser on your treaty position, ideally covering the year of departure as well as steady state.
- Decide your banking route: home account plus transfers is the default, and an Indonesian account helps for daily life.
- Close out your home-country tax residency cleanly, including any exit declarations your country requires.
- Arrange health insurance that satisfies your visa and actually covers you in Indonesia.
- Diarise recurring paperwork: the French certificat de vie, SVB forms, or provider life certificates.
Frequently asked questions
Is the UK state pension frozen in Bali?
Yes. Indonesia has no social security agreement with the UK, so your state pension is paid at the rate you first received abroad and never rises, per GOV.UK guidance. Private and workplace pensions are not affected by the freeze.
Will I be taxed twice on my pension in Indonesia?
Normally no. The UK, Netherlands, Germany and France all have double taxation agreements with Indonesia that allocate taxing rights and provide credits or exemptions. The exact outcome depends on the treaty and the type of pension, so take professional advice before you move.
Do I pay Indonesian tax if I only winter in Bali for four months?
Generally no. Below 183 days of presence in a 12-month period you usually remain a non-resident for Indonesian tax purposes, per PwC's Indonesia tax summaries. Indonesian-source income such as rent from a local property is still taxed, at non-resident rates.
Can my pension be paid into an Indonesian bank account?
In most cases yes, but the more common setup is to keep the pension paid into a home-country account and transfer money to Indonesia as needed. This keeps the currency decision in your hands and simplifies paperwork with your pension provider.
Sources
- GOV.UK, State Pension if you retire abroad and countries where the pension is not uprated, 2026
- PwC, Indonesia Individual Tax Summaries, 2026
- SVB (Sociale Verzekeringsbank), AOW pension outside the Netherlands
- Deutsche Rentenversicherung, Renten ins Ausland
- BPS Bali, foreign arrivals statistics, 2025
- bali.com, Cost of Living in Bali guide, 2026