You're a busy expat who has been working in Thailand for years. Staying here has been a breeze, thanks to your HR Department ably handling your work permit renewals and visa extensions. While your visa status hasn't changed, Thai tax laws have and your social and economic ties to the Kingdom have deepened. You might also be approaching retirement and wish to remain in Thailand as your long-term home.
What you may not know is, there are new visa opportunities, and you may now qualify for permanent residency. So, while your company handles the visa hassles, this may be the ideal time to do a little strategic planning to reduce your tax burden and make your stay in the Kingdom more secure.
Why employment in Thailand makes your stay seem effortless
What’s the easiest way for expats to stay in Thailand? The answer may surprise you because you may already be benefiting from it: a Non-immigrant B visa and work permit provided by a Thailand-based company and administered by a competent HR department.
For expat employees, HR does an expert job of making the process as simple and painless as possible. Your obligations typically consist of signing a few passport pages per year, freeing you from visa extension and work permit renewal worries. This is how it should be after all. HR keeps your focus on what counts—your job, not on ministerial visa complexities.
Overall, a Non-B visa is a good option as it provides a pathway to permanent residency. However, it has its limitations. It provides little security if job circumstances change—including reorganisations or retirement—because once your visa is cancelled, you'll have 7 days to figure out an alternative or leave the country. Also, it doesn’t offer tax exemptions. There are two opportunities to consider that can materially mitigate your risks and/or reduce your tax burden, which we’ll discuss shortly.
Many expats don’t worry about their visa (and it’s understandable)
Just as companies engage in strategic planning to anticipate market risks and adapt to changes, it’s wise to take a similar approach to your visa status. Many expats go through an initial phase of excitement and put down roots in the Kingdom without thinking about their long-term stay situation. You grow a circle of friends, make business connections, and maybe even buy a condo. Thailand becomes home. The risk is, what happens when laws or job circumstances change?
If you lose your job, want to take a sabbatical, or change careers, your visa can limit your options. What’s more, when laws change, such as new tax rules, you may end up paying more in taxes on foreign income than you might otherwise be required to.
Last year, the Thai revenue department tightened tax rules, making all income brought into Thailand taxable, regardless of when it was earned. This year, they’ve announced a potential expansion, considering whether all foreign income should be taxed, even if it’s not brought into Thailand.
Why a long-term visa strategy is important
While taxes and visa strategies aren’t the most enjoyable things to think about, there is good news. The LTR visa offers tax benefits and, in some cases, long-term stability. Permanent residency, on the other hand, allows you to truly immigrate to Thailand, providing a solid foundation for building your future here. We’ll talk about the benefits of each option soon, but first, let’s discuss why it’s important to consider one of these paths.
How leaving your job impacts your long term stay
Earlier, I touched on the potential problems of a Non-B visa, but what are the real-life impacts of losing or quitting your job on this visa class? There are two main consequences to be aware of.
As mentioned, if you’re on a Non-B visa and leave your job for whatever reason, you’re required to exit Thailand within seven days. Without a visa strategy—or Thai dependents who provide you with an alternative option to stay in the country—this can quickly leave you scrambling. Do you pack up your entire life and leave, or do you do everything in your power to stay? You may have commitments like a lease agreement, relationship ties, or obligations to an association, and suddenly you’re forced to make a major life decision in a very short window.
The second consequence is, if you’re trying to obtain permanent residency (PR), a visa cancellation means starting over in the qualification process, as you must hold the same visa category for three years uninterrupted. If PR is important for you, it’s critical to plan a strategy to avoid losing all the time and effort you’ve invested in obtaining the status.
Two ways to stay in Thailand long-term, one of which also reduces your tax burden
If you’re looking to reduce your tax burden in Thailand or to protect the life you’ve built here from a change in job circumstances (or both), you have two good options. Let’s explore their benefits.
Long-Term Resident (LTR) visa benefits
LTR is a ten year visa that allows you to stay in Thailand with many fewer ministerial obligations. The visa comes in four categories: Wealthy Global Citizen, Wealthy Pensioner, Work-From-Thailand Professional, and Highly-Skilled Professional. The most popular category for those over 50 is Wealthy Pensioner, which requires either $80,000 annual passive income for the past 2 years, or annual passive income of $40,000-80,000 for the last 2 years and a minimum $250,000 contribution to qualifying Thai investments. Also popular for certain expats working here is the Highly-Skilled Professional category that includes employees in fields such as digital technology, AI and robotics, and environmental and energy management. Below are some of this visa’s main benefits:
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Tax exemption on foreign income or cap on income earned in Thailand: If you qualify for the Wealthy Global Citizen or Wealthy Pensioner categories, your foreign income will be tax exempt. If you fall into the Highly Skilled Professional category, your tax rate on your earnings in Thailand is capped at 17%.
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Your visa can’t be cancelled by your employer (in most cases): Under the Wealthy Global Citizen and Wealthy Pensioner categories, your LTR visa remains valid even if you leave your job or your employment ends. This gives you the freedom to make the best choices for your life without feeling pressured to stay in a job or worrying about what you’ll do if you’re laid off. Note, this benefit is not applicable to the High-Skilled Professional category where your visa is tied to your employer and job loss can impact your visa status.
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Work with fewer restrictions: LTR eliminates the expat-to-Thai employee ratio required by other visas, such as Non-B (4:1) and Non-O Marriage (2:1). With LTR, the ratio is 0. This not only simplifies the hiring process for employers but also opens up more job opportunities for you, making it easier for companies to hire you.
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Bring family: With LTR, you can bring up to four dependents on your visa, including your spouse and children.
Permanent residency benefits
If Thailand is your home, permanent residency provides the most secure foundation and is one of only two ways to actually immigrate to the Kingdom. There are only two visa categories that provide a pathway to PR: Non-O Marriage and Non-B. You must maintain the same visa and earn and pay tax on 80,000-100,000 THB per month during that period. You must also achieve an intermediate level of Thai conversational proficiency. Below are some of its key benefits:
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Your stay in Thailand is no longer based on circumstances that can change: With PR, you become a true immigrant to Thailand. You’re no longer on a visa, so your stay isn’t based on circumstances such as a job or spousal relationship. You can live the rest of your life here without immigration hassles or worries about having to uproot due to an expiring visa. PR is also an important step towards Thai citizenship.
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Your ministerial burden is significantly reduced: You will no longer be required to make 90-day reports and or engage with Immigration on annual extensions. You will still need to renew your work permit so long as you remain employed locally. However, when you retire, even this obligation goes away.
Do you qualify for the above options? You may be surprised
The new tax laws are a reminder of how common change is in Thailand, and visas and long-stay options are no exception. Much has changed in the past few years, particularly for LTR, which was launched in September of 2022. As a result, there’s lots of conflicting and outdated information online, and you may be surprised to see that you now qualify. A visa expert can let you know.
Find certainty in uncertain times—safeguard your future in Thailand
While Thailand’s new tax law could raise questions about how you can minimise or mitigate your tax burden, it could be the spark you need to think about your long-term goals and future. Does Thailand have a place in your life? Is it where you see yourself in five, ten, or even twenty years?
If Thailand is your home, or home for the next decade, reconsidering your visa options now may be the best decision you make this year. A visa strategy can help protect the life you’ve built in the Kingdom. You’ll have more freedom, without visa troubles holding you back from your full potential and living the life you desire.
If you need help planning a long-term strategy or would like to see if you qualify for PR or LTR, contact us at Baan Thai. We help expats make Thailand home and find the best long-stay option for their unique needs.
