What are the Benefits of Thai Residency?
1. Relaxed Low-Cost Lifestyle, Sunny Weather, Rich Culture<
Thailand is known for its relatively low cost of living, coupled with its high-quality lifestyle when compared to many Western countries. Thus, you can enjoy an affordable quality of life in its hot and sunny weather.
Also, Thailand has an incredibly diverse culture with a rich history, traditions, and friendly locals. Due to the hospitality and welcoming attitude of the Thai people towards foreigners, many people call it the Land of Smiles. It’s a home away from home for various investors, entrepreneurs, retirees, etc.
2. Extended Stay
A Thai residency allows its holders to stay in the country for an extended period without the need to constantly renew tourist visas and undergo short-term visa hassles which means to leave the country every 3 months. On the other hand, Thai investment visas are allowed a one-year visa and are renewable on an annual basis. This provides a sense of stability and convenience for investors who wish to live or retire in Thailand.
3. Family Eligibility and Convenience
An investor’s immediate family members (i.e., parents, spouse, and children) can also apply for a long-term stay in Thailand as dependents. However, they can only work in Thailand as long as they have valid work permits.
Being a resident simplifies certain administrative tasks, such as obtaining a Thai driver’s license, registering a vehicle, and dealing with government agencies.
4. Tax Optimization
As a non-resident of Thailand holding an investment visa, only income earned within the country is taxable, unlike many other countries. Also, no local government income taxes apply to non-residents.
For Long-term Resident visa holders who choose to stay in the country, their income tax rate will progressively increase up to 35%.
What are the Conditions for Obtaining Thai Residency Via Investment Visa and Its Law?
The conditions for obtaining Thai Residency via an Investment visa are straightforward as described below:
- The one-year visa is issued for the sole purpose of investing at least THB 10 million in Thailand in the following:
- Buying or Leasing (Leasehold ownership) a condominium unit of at least 10 million Baht in new developments.
- Buying Thai government or Thai state enterprise bonds worth at least 10 million Baht.
- Deposit funds in a Fixed Deposit Account in a Thai Bank.
- Foreign investors looking to apply for the Investment Visa program are permitted to invest in a combination of assets at their discretion. With the condition that the minimum investment requirement of 10 million Thai Baht is fulfilled. For example, an investor can buy two condo units at 5 MB each or, alternatively, a 4 MB condo and deposit the remaining 6 MB in a Fixed Deposit Account.
- However, before applying for the investment visa, the assets listed above must have been held for a minimum period of 3 years.
On Thai laws guiding the Investment Visa, following the Royal Thai Police Bureau Order No.327/2557, passed on June 30, 2014, but effective Aug 29, 2014, foreign owners of condominium units in Thailand are eligible for a one-year investment visa to enable them to extend their stay in the country for a period of one year which is renewable each year and report their addresses every 90 days.
What are the criteria for foreigners to Invest in Thai real estate?
The criteria for foreigners to purchase a property in Thailand according to Thai law are subject to the Condominium Act, following the legal requirements as below:
- The foreigner quota is the state law that governs that no more than 49% of units can be sold to foreigners, and 51% of the condo units must be Thai-owned. Every foreign individual purchasing a condominium unit must qualify for foreign ownership, as prescribed in Section 19 of the Act.
- Foreigners who do not have a Permanent Residence or who do not reside in Thailand under the laws governing investment promotion must bring foreign currency into Thailand in order to purchase and own a condominium unit in Thailand.
- The payment for all condominium units must first be deposited from overseas to the seller’s Thai bank account, straight from a foreign account in the buyer’s name. The funds cannot be obtained from within Thailand. It also cannot be transferred through any middlemen other than yourself and the local Thai developer.
- The ensuing currency exchange must take place in Thailand. Don’t let your bank convert the money – it’s critical to transfer foreign currency and have the seller’s bank swap it for baht.
What are the general requirements for applying for an Investment Visa?
For applying for an Investment Visa, you can only buy a 1st hand condominium directly from a local developer. After making a condo purchase, the buyer must ensure to collect their letter of guarantee, which is usually issued by the condominium juristic person. The letter ascertains that the condo falls under the real estate ownership of the foreigner quota as established by the Thai government.
You must provide the Foreign Exchange Transaction form (FET) from the developer bank. The FET acts as proof that you transferred 10 million baht from another country. Any professional real estate developer will provide you with that form.
Following that, you must obtain a government assessment, which entails visiting the local district land office (Land Department). Land offices normally have these on file and may supply them within one day.
In addition, you’ll need to provide the official sale agreement, Title Deed, House Registration book, and the transfer property tax receipt from the Land Department Officer. All of which should have been registered and received at the Land Department Office.
Finally, you must be a holder of a non-immigrant visa issued by a Thai embassy or consulate
How to extend your Investment Visa and the required documents?
Extending the visa necessitates an annual visit to the immigration office at the same time each year, within two weeks of your visa’s expiration date. If you do not extend your visa, it will expire.
Here is the list of required documents needed to be presented at the Immigration office:
- Possession of a non-immigrant visa, granted to them by a Thai embassy or consulate.
- Proof of investing in the purchase of a condominium unit at a purchase price of not less than THB 10 million by showing a copy of the official sale agreement and condominium unit title deed, registered with the relevant land office.
- Evidence of remitting at least THB 10 million in funds from abroad into Thailand by presenting a copy of such proof, issued by a commercial bank in Thailand.
It is mandatory to show up at the immigration office annually at approximately the same time each year, within two weeks prior to your visa’s expiration date.
Are you eligible to become a Thai citizen by holding the Investment Visa?
Yes, an Investment visa does provide you with the option to apply for PR and Thai citizenship afterwards. In order to apply for Thai citizenship you should have lived in Thailand as PR (Permanent Resident) for at least 5 years. During these 5 years, your residence in Thailand should be the same type of visa with no changes.
If you are married to a Thai citizen and you fit into the following criteria, you may apply for Thai citizenship after 3 years only of living in Thailand upon visa extensions without obtaining a Permanent Residency:
- Stayed in Thailand for three years straight via valid non-immigrant visa extensions.
- A minimum monthly income of 40,000 baht with taxes properly paid for three years on that income.
- Received consecutive work permits from a Thai based employer throughout those three years as well.
Many foreigners married to Thai citizens are eligible for this route and may even qualify based on these other prerequisites listed above but are not aware of this faster route to Thai citizenship.
What services does PropertySights Real Estate offer to help you in obtaining Thai residency?
PropertySights Real Estate services offer the expertise and guidance you will need to find the right property that meets the investment visa requirements. The process of applying for Thai residency through property investments can be draining, especially for foreigners.
We provide you with a full and thorough understanding of your property on facility management and property management strategies with the best options for the essential layout, floorplan, services, and technology solutions to ease future operations and enhance your property’s operations budget into prosperous returns.
These services provide valuable assistance to property buyers looking to secure Thai residency through investments. You can trust PropertySights Real Estate to assist you in purchasing condominium units, navigate the purchase process, and ensure all documentation is in order.
What are the alternatives for obtaining a long-term visa in Thailand?
The alternative long-term visa residence in Thailand is the Thailand Elite Residence Program or the Privilege Entry visa. These types of visas have expanded visa choices and a wide range of exclusive advantages.
There are different membership packages for individual and family options, and they come with either a one-time fee or an annual fee.
The privilege entry visa can last from 5 years up to 20 years, and it provides a more flexible and hassle-free path to Thai residency.
All you need to apply to be part of the Thai Elite membership are:
- A copy of your passport’s profile page.
- Colored ID photo with a white background.
- A properly completed Thai Elite Visa application form.
- A copy of proof of relationship for any family members applying alongside the main applicant.
FAQs
Is it possible to work in Thailand while on an Investment Visa?
No, Thai Investment Visas do not allow you to work in Thailand. You can, however, work in Thailand provided you have a work permit. You would also be required to disclose your addresses every three months.
Can I mix and match assets to achieve the 10 million Baht requirement?
Yes, investors can combine assets to fulfill the minimum investment criteria, such as purchasing a condo and placing additional cash in a fixed deposit account.
Is the Investment Visa applicable to secondhand properties?
No, the visa program only applies to new-construction condominiums purchased directly from a developer.
How long does it take to get a business visa?
The procedure usually takes one to three months.
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