Thailand offers retires a great mix between metropolitan city life or the slower pace of island life further south.
If you’re looking for a tropical escape, it’s both tax friendly, low-cost and popular with expats.
Top expat retirement locations include:
- Bangkok
- Chang Mai
- Chon Buri & Pattaya
- Phuket
- Koh Samui
According to Numbeo, the cost of living in Bangkok is 60.9% lower than London (including rent).
The climate varies across the country. In the hottest months Bangkok reaches an average of 31°C, and the coldest months around 26°C.
The rainy season runs from May-October with the rest of year being hot and dry.
Owning Property
It is possible to buy condominium units outright, provided the total foreign ownership of the building doesn’t exceed 49%.
But expats are prohibited under Thai law from owning free-hold land in Thailand.
However it is permitted to lease land on a long-term basis for up to 30 years (with the possibility to extend the lease for another 30 years).
Low construction costs, mean many expats use long-term leases as a route to build a villa to live in. At the end of the lease, the land and property reverts to the landowner, so the cost compared to renting needs some consideration.
There are reports of expats have previously using companies to purchase property, but this is a grey area and requires the company to have a local majority owner.
Thailand has been cracking down on shell companies used for real estate purchases, and there are some horror stories about ownership issues – so proceed with caution.
Tax Residency
If you spent over 180 days in any tax year in Thailand, you’ll be a tax resident.
Of course, keep in mind if you’re splitting your retirement between two destinations, it’s possible to be a tax resident in more than one jurisdiction at the same time.
Tax Advantages
Thailand has a territorial tax regime, which taxes residents on their Thai-sourced income. But exempts overseas income, unless it’s remitted to Thailand.
This allows tax residents to hold their wealth overseas, in a well-regulated and tax-friendly jurisdiction. Only being exposed to Thai tax on money they remit to Thailand.
Assessable income for Thai tax purposes includes pensions, investment income and capital gains, rental income and earned income remitted to Thailand.
Obtaining Long-Term Residence
Thailand has a number of routes available for securing long-term residence.
The Thailand Retirement Visa
Also called the Non-Immigrant Type “O” Retirement Visa. These are available to people meeting the following criteria:
- Age 50 and above.
- A security deposit of 800,000 Thai Baht (approx $25,000) deposited in a Thai Bank account.
- Or, a monthly income of at least 65,000 Thai Baht.
- Adequate health insurance cover, and accommodation arrangements.
This enables you to stay for 1 year in Thailand, which can be renewed indefinitely.
However, if you wish to leave Thailand and return without losing your visa, you must obtain a re-entry permit. And you’re required to report to immigration office every 90 days to confirm your residence.
The Long-Term Resident (LTR) Visa
This is another long-term visa option, which comes in 4 categories. One of these is tailored to wealthy pensions, aged 50 and over.
Unlike the Thailand Retirement Visa the Long-Term Resident Visa lasts for 5 years, and can be renewed for another 5 years provided the criteria are still met.
The LTR Visa allows for multiple entries into the country, and has a low cost of $1,600
To qualify as a ‘Wealthy Pensioner‘ with no local investment requirements, you need $80,000 of unearned passive income.
This includes pension income, rental income, realised capital gains, dividends, and interest payments.
Alternatively if your pension income is between $40,000 – $80,000 you can also qualify by investing $250,000 in Thai government bonds, or Thai property.
A substantial benefit of the LTR Visa is that it swaps the usual 90-day report for an annual one at the immigration office.
The Thailand Elite Visa/Privilege Card
The Thailand Elite Visa has recently been rebranded as the “Privilege Card”.
For those serious about securing their future in Thailand, the Thailand Privilege Card offers the option to purchase a long-term residence permit from 5-20 years.
There’s no minimum age or income requirements. Each visa last for 5 years, with the difference being how many times it can be renewed (at a very minimal cost of around $60).
The Platinum, Diamond and Reserve visas allow for a second application to be added on to visa, but Bronze and Gold are only for individuals.
Privilege Visa holders still have to report to the immigration authorities every 90 days, but this can be done online or through an agent.
The more expensive visa categories also come with ‘privilege points‘ each year, which can be used for a range of benefits like airport transfers, hotel stays, lounge access, spa treatments, and domestic flights.
