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Thailand’s Special Long-Term Residence Visa (LTR)

Published: Tuesday, June 28, 2022


Thailand is introducing a new visa called “Long-Term Resident (LTR)” which is a program that provides a range of tax and non-tax benefits to enhance the country’s attractiveness as a regional hub for living and doing business for ‘high-potential’ foreigners. Today, Thailand is already home to multinational corporations from all over the world and one of the most important tourist destinations in Asia. Thailand presents itself as a very attractive location for “work from anywhere” professionals.

This new visa program is expected to attract new foreign residents, technologies and talents contributing to domestic spending and investment while supporting economic growth. The Thai government has set the target of attracting one million wealthy or talented foreign residents into the country over the next five years.

The target groups include wealthy foreigners1, foreign retirees2, foreign professionals working in Thailand3, and highly skilled foreign professionals4.

Pursuant to the Cabinet resolution of 10 May 2022, the LTR’s incentives include the following:

•    10-year visa;

•    Exemption from requirement to hire 4 Thais for each expatriate employee;

•    Requirement to report stay in Thailand every 90 days changed to reporting once a year;

•    Exemption from applying for re-entry permit;

•    Dependant visas obtainable for family members;

•    A 17% flat tax rate for employees working in targeted industries in the Eastern Economic Corridor (EEC) and for highly skilled professionals;

•    Digital work permit obtainable; and

•    Ability to use the FastTrack privilege at airports.

Although the LTR scheme may be attractive for many expats who intend to reside in Thailand on a long-term basis, it may not be suitable for the “average” digital nomad or remote worker. In particular, it should be noted that applicants in the category “foreign professionals working in Thailand” must still be employed by a stock-listed or large corporation abroad. In addition, and depending on the role of the expat working in Thailand, such company may face the risk of creating a permanent establishment and conflict with investment laws in Thailand through the expat on the grounds in Thailand.

Therefore, the LTR scheme should be critically evaluated on a case-by-case basis, taking into consideration, amongst others, the tax implications and registration requirements for the employer situated abroad.Lorenz & Partners has over 25 years of experience in advising foreign companies to structure their investments in Thailand and the Southeast Asian region and to optimize each project in the most tax-efficient way.

1Must own assets of at least USD 1 million, must have had personal income of at least USD 80,000 per year for the past 2 years, and must invest at least USD 500,000 in Thai government bonds or real estate.

2Must be at least 50 years old, must have personal income of at least USD 40,000 per year or a pension of at least USD 80,000 per year, must have a balance of at least USD 100,000 in a Thai or foreign bank account for at least 12 months prior to the application date, and must invest at least USD 250,000 in Thai government bonds or real estate.

3Must have an employment agreement with a company abroad which must be a listed company or a limited liability company that has been in business for over 3 years and has had total income of at least USD 150 million during the 3 years prior to the application date, and must have had personal income of at least USD 80,000 per year for the past 2 years (or USD 40,000 if holding a master’s degree or higher, or if holding intellectual property or receiving Series A funding).

4Must have at least 5 years work experience in certain target industries, and must have had personal income of at least USD 80,000 per year for the past 2 years.

Till Morstadt
Lorenz & Partners Co., Ltd.
Country:
Thailand
Practice Area:
Foreign Direct Investments
Phone Number:
+66 (2) 2871882
Fax:
+66 (2) 2871871
Till Morstadt (born 1968 in Offenburg) studied Law and Business Economics in Bayreuth, Lausanne and Münster. After graduating, he started working for KPMG. During this time, he advised European clients, first in Germany, later in Argentina. Upon his return to Germany, he moved into the industrial sector. After two years in the head office of Herrenknecht AG, a German machine manufacturer, he took over the commercial management of their Thai subsidiary. Till Morstadt has been an equity partner of Lorenz & Partners since April 2004. Till Morstadt publishes articles and holds seminars on investment, tax and law related issues in Thailand and Southeast Asia on a regular basis. Lorenz & Partners List of Brochures & Newsletters Notable Newsletters from the above list: BOI Promotion: Trade and Investment Support Office (TISO) Investment Promotion for International Business Centers (IBC) Transfer Pricing in Thailand How to set up a Company in Thailand Taxation of Expatriates in Thailand

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