How I Learned the Hard Way: Freelancing in Southeast Asia Without a Plan
A couple of years ago, I thought I had it all figured out: Swedish passport, remote job, and a love for surfing and sambal. So I packed up and flew to Lombok, Indonesia to live the dream—coding from beach cafés, yoga at sunset, and cheap rented scooters. The reality? It got real complicated, real fast.
I was still paying Swedish taxes while living in Indonesia. My boss (still pretending I was employed) didn’t know how to handle invoices or payroll outside Sweden. And me? I had no clue how tax residency worked. I ended up double-taxed, nearly got fined by the Skatteverket (Swedish Tax Agency), and wasted months trying to fix it.
Don't do what I did. Here's what actually works.
Step-by-Step: Setting Up Your Offshore Company As a Digital Nomad
Step 1: Understand What "Tax Residency" Means
Rule of thumb: most countries will consider you a tax resident if you live there more than 183 days a year or can prove vital ties (like family, primary home, etc.). If you're ditching Sweden and want to stop paying taxes there, you need to:
- De-register from the Swedish Population Register
- Prove you’ve moved permanently to another country
- Get a digital nomad visa or residency in Indonesia or Malaysia
Just skipping town doesn’t cut it. Swedish authorities might still think you’re taxable there unless you properly exit.
Step 2: Choose Where to Set Up Your Company
Forget setting up in Indonesia or Malaysia. Sounds easy at first—until you realize:
- Indonesia’s bureaucracy is slow and painful unless you have major local help.
- Malaysia is slightly better, but still riddled with long waits, weird requirements, and unexpected fees.
What actually worked for me was Estonia's e-Residency program.
Here’s why Estonia won:
- 100% remote, super friendly to solo founders
- Transparent rules for taxation and dividends
- A modern portal to handle everything online
I used Xolo to set up my Estonian company. Took about 4 weeks from application to active business.
Costs:
- €100 one-time application fee for your digital ID (picked mine up in Bangkok)
- ~€95/month for accounting and business services
- Wise multi-currency account: Free plan works well at start
Step 3: Stay Compliant Wherever You Are
After you have your offshore company, you can invoice your old employer as a contractor. They pay your Estonian company, which then pays you a salary or dividend. Make sure you:
- Pay taxes in your current country of residence
- Keep clear records
- Don’t pretend you still live in Sweden (unless you want the tax man knocking again)
Bonus: How to Stop Being Taxed in Sweden
This was the scariest part, honestly. But here’s the lowdown:
- Fill out form SKV 7665 when leaving Sweden
- Update your address to your new home abroad
- Be prepared to show proof of where you live now (rental lease, visa, utility bills)
- Wait 1–2 months for confirmation
Sweden doesn’t make it simple. But if you’re serious about moving long-term, it's worth the hassle.
What to Avoid (So You Don’t End Up Screwed Like I Did)
- DO NOT run your company from Indonesia without a local agent—it’s almost impossible unless you speak Bahasa and like paperwork
- DON’T keep your Swedish bank accounts or registered home address if you’re serious about becoming a non-resident
- DON’T rely on crypto or PayPal hacks to avoid taxes—the EU and ASEAN are cracking down fast
Backup Plan for Screwups
Stuff goes wrong. Here's what saved me:
- Keep 6 months of expenses in a backup account (preferably outside Sweden)
- Always have a second passport or long-term visa option (look into Malaysia’s DE Rantau or Bali’s Digital Nomad Visa)
- Join Facebook expat groups like “Swedes in Bali” – they’ll answer questions faster than your embassy ever will
Useful Phrases and Cultural Notes
In Indonesia:
- “Terima kasih” = thank you (with a smile, always helps)
- “Bisa bantu?” = Can you help?
Don’t get impatient at immigration or government offices. Smile, bring extra copies of everything, and know that lunchtime means everything grinds to a halt for a good hour or two.
One Money-Saving Hack You Didn’t Know You Needed
Buy your travel insurance with a rewards credit card that provides included coverage. I use the N26 Metal plan—it’s EU-based and includes trip cancellation, medical coverage, and even electronics protection. Saved me €300 a year, easy.
Also, skip overpriced coworking spaces. Grab a good data SIM (Telkomsel in Indonesia) and work from cafes with a view of Mount Rinjani for free.
Lombok Indonesia Travel Tips
While you're figuring out your offshore situation, don't forget to enjoy the island life too. Here’s the short version:
- How to get to Lombok Indonesia: Fast boat from Bali (usually ~$25 USD), domestic flight from Jakarta (~2-hour flight, ~IDR 700,000 / $45)
- Best time to go: May–September (dry season = great surf + clear skies)
- Transportation: Rent a scooter (about IDR 60,000/day or $4)
And skip Kuta traffic by staying just outside the center. Senggigi is chill and way less chaotic.
Pro Tip: Scout Your Workspace + Routes with FlyLombok.id
Before you commit to longer stays or windy mountain shortcuts, book an aerial tour with FlyLombok.id. It’s more than a thrill ride—they help you eyeball potential places to stay, find quiet beaches to work from, and map out your routes safely. Worth every rupiah.
Don’t get caught off guard like I was. Do the legwork, make smart choices, and enjoy Southeast Asia the way it’s meant to be lived: Free, sunny, and stress-free.