Thailand cut halved the cost of long-term Resident Visa for foreigners in order to boost the economy. H&P lawyers in Bangkok have prepared a legal summary on the most significant updates as we see that some clarifications should be done as there are many misunderstandings on internet on this topic:
What is LTR ?
The Long-Term Resident Visa (LTR) in Thailand is a visa designed for foreigners with high capability who wish to reside in Thailand for an extended period of time. For a one-time payment of 100,000 THB, the visa allows the foreigner to stay in Thailand for up to ten years with four followers: spouse or children under the age of twenty. The visa is intended to entice wealthy foreigners to relocate to Thailand in order to boost the economy through international investment.
Background, benefits, government fees and elegibility
Thailand has benefited from the LTR visa by attracting more wealthy foreigners to live in the country, thereby increasing the country’s personal income base. Furthermore, Thailand will gain more highly skilled workers, increasing investment, consumption, and Thailand’s competitiveness.
On the other hand, The LTR visa benefits visitors by providing a long-term visa and exempting them from paying taxes on their overseas income. They can also work without a work permit for up to 20 hours per week. In addition, the standard 90-day report will not be required.
The visitor may also own or rent long-term property, including land. Additionally, the visa facilitates foreigners’ ability to live in Thailand by establishing a private organization, the LTR service unit, which is designed to support the visitors and reduce time wasted of the process while also supporting economic policies and local investment.
New regulation in Thailand
Before the approval for the cabinet, the fee for the LTR was 100,000 THB. On 10 May 2022, the government reduced the LTR visa to 50,000 baht. The visa is eligible for four types of people: wealthy global citizens, wealthy pensioners, work-from-Thailand professionals, and highly skilled professionals.
Firstly, wealthy global citizens must show health insurance covering at least 50,000 USD in Thai hospitals for a period of at least 10 months from the date of application, or a person with social security that covers medical costs in Thailand. Another case that applies to this group is a person who has $100,000 USD in Thai or foreign book bank that has been held for at least 12 months from the date of filing the application. Wealthy global citizens must reveal that they have a personal income of at least 80,000 USD per year for the two years period before the application.
Secondly, wealthy pensioner must be at least 50 years old who receive a steady pension from foreign company and must invest in Thailand for at least 250,000 USD or have income of at least 40,000 USD per year.
Thirdly, a work-from-Thailand professional must have an employment or service contract with a domestic or international company. There are two types of work-from-Thailand professionals: Digital Nomads and Corp Programs. The Digital Nomad must work for a public corporation or a private company that has been registered for at least three years and has a total income of $50 million for those three years. The Corp Program applies to all who have works for a corporation with a yearly income of more than $1 billion USD.
Fourthly, under the Competitiveness Enhancement Act of 2017, a high-skilled professional is a person with high experience or skills who works for an industrial company, or a specialist or researcher working for the government, or a university professor with a personal income of 80,000 USD in two years or 40,000 USD per year.
The law will take effect 90 days after it is published in the Government Gazette.
Revenue and Tax Aspects
The relevant law under the Revenue Code concerning the new LTR visa for foreigners are the following:
– Section 5: Taxes and duties prescribed hereafter shall be within the power and control of the Revenue Department.
– Section 40 (4)
If you need legal assistance to apply for Thailand Long-Term Resident Visa, please contact our Bangkok lawyers at [email protected]