Is Indonesia or the Philippines better for expat tax?

Both countries impose worldwide income taxation on resident individuals with top rates of 35%. Neither offers a territorial system or a structured expat tax concession comparable to Thailand's LTR visa. The Philippines taxes resident aliens on worldwide income under the TRAIN Law; Indonesia similarly taxes residents on global income under the HPP Law (Law No. 7/2021). The two countries are broadly comparable from a headline tax perspective.

What are the property rights for European expats in Indonesia vs the Philippines?

Indonesia prohibits freehold title for foreigners, offering Hak Pakai (Right of Use, up to 80 years). The Philippines permits condominium ownership for foreign nationals, subject to a 40% foreign quota per building, but prohibits freehold land ownership. Long-term leases of up to 99 years are available to qualifying foreign investors under RA 12252 (a 2025 amendment to the Investors’ Lease Act, superseding the prior 75-year maximum). The Philippines is marginally more accessible for property investment.

How does forced heirship compare in Indonesia and the Philippines?

Both countries impose restrictions on testamentary freedom. Indonesia's Civil Code applies forced heirship provisions for non-Muslims; Muslim estates are governed by Islamic inheritance law. The Philippines imposes a stricter forced heirship regime: the Civil Code compels specific shares (legitime) to legitimate children, the surviving spouse, and illegitimate children, which cannot be overridden by a will. The Philippines presents greater estate planning constraints for European expats with non-standard family structures.

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Indonesia vs Philippines: Expat Finance Side by Side

Tax residency rules, income tax rates, pension access, property restrictions, estate law, and UK double taxation treaties compared for European expats.

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