A comfortable retirement works out cheaper in Montenegro — around £1,800/month for a couple, versus £1,900 in Bali, Indonesia (about 5% more).
Cost of living, side by side
| Bali, Indonesia | Montenegro | |
|---|---|---|
| Modest (couple/mo) | £1,200 | £1,300 |
| Comfortable (couple/mo) | £1,900 | £1,800 |
| Premium (couple/mo) | £3,000 | £2,750 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Bali, Indonesia: Foreigners can't own freehold land, but can hold property via leasehold or the 'Hak Pakai' right-to-use.
Montenegro: Foreigners can own residential and commercial property freehold on the same terms as citizens; the principal exception is agricultural and forest land, which must be held through a locally registered company.
Bali, Indonesia: The KITAS and second-home visa routes are the common paths for longer stays.
Montenegro: A temporary residence permit can be based on property ownership (since 2026 the home generally needs a tax-assessed value of at least €150,000), employment or family ties; permits run for a year, are renewable, and require health insurance.
Bali, Indonesia: Southern Bali has decent private clinics and hospitals (such as BIMC and Siloam) for routine and moderate care, but serious emergencies are often referred to Singapore, so comprehensive international insurance is strongly advised; everyday consultations are inexpensive and usually paid out of pocket.
Montenegro: Public healthcare is modest, so most expats use private clinics locally or travel to nearby Croatia or Serbia for bigger procedures; private insurance and treatment are relatively inexpensive. Facilities are best around Podgorica and the coast.
Bali, Indonesia: Indonesian tax residents (183+ days) are taxed on worldwide income on a progressive scale up to 35%, with relief available under the UK-Indonesia double-tax treaty; the retirement KITAS and Second Home visas do not by themselves exempt a foreign pension, so take advice on residency and what you remit.
Montenegro: Montenegro taxes residents' income, including foreign pensions, on a low progressive scale, nothing on roughly the first EUR 700 a month, then 9% and 15% above that, so a typical pension faces only a modest effective rate. It uses the euro despite being outside the EU.
Bali, Indonesia: Tropical and warm all year (high 20s to low 30s C); the dry season from roughly April to October is the best time, with a humid, wetter monsoon from November to March. Very friendly and generally safe; English is widely spoken in tourist and expat areas, but traffic is chaotic and driving is on the left, so many retirees prefer to hire a driver.
Montenegro: A warm Mediterranean coast with hot summers and mild winters, backed by mountains that are cold and snowy in winter. Late spring and early autumn are ideal on the coast. Montenegro is safe and laid-back; they drive on the right, English is widely spoken among younger people and in the tourist towns, and its small size makes it easy to get around.
Bali, Indonesia: Foreigners cannot own freehold land, so buying is via long leasehold (Hak Sewa, commonly 25-30 years) or a Hak Pakai right-to-use title (which needs a KITAS); budget notary and legal fees of around 1%, plus a 5% acquisition duty (BPHTB) on a Hak Pakai transfer, and always use an independent lawyer to check title.
Montenegro: Buyers pay a 3% property transfer tax on resale homes (new-builds include 21% VAT instead), plus legal and agency fees of a few percent, and the process is fairly quick. Note that residence can be based on owning a home assessed at EUR 150,000 or more.
Bali, Indonesia: Sanur for a calm, flat, walkable beach town popular with retirees, Ubud for a green cultural base inland, Seminyak and Canggu for lively well-serviced coastal living, and Uluwatu for clifftop scenery.
Montenegro: Kotor and its dramatic bay for scenery and history; Tivat for the smart Porto Montenegro marina; Budva for beaches and buzz; and Herceg Novi for a sunny, greener setting near the Croatian border.
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