The COVID-19 epidemic and the long-awaited lockdown measures has resulted in a severe economic crisis in Thailand. Many businesses had to shut down. Industries have been negatively impacted. Despite that, the number of infections is still far from declining. The government cannot afford to wait out the pandemic before opening the country and restoring the economy that has been depressed for a long time now. Apart from welcoming back international tourists, the government has introduced changes to stimulate the economy. For this reason, InvestMan brings readers to the talking point of this article, policy for attracting foreigners into the country.
In addition to the revenue stream from the tourism industry, the government has now loosened the regulation regarding real estate investment by foreigners in Thailand, in hopes that will attract more foreign investment, which could potentially lead to attracting more foreign talents and individuals with high financial status in the long run.
This new measure focuses on the granting of a long-term resident visa as well as revising the land ownership law for foreigners in preparation for the year 2022 as follows
- Grant the right to a new long-term residence (LTR) visa for a period of 10 years, including dependents or spouses and children.
- Obtain an automatic approval of a work permit after LTR is approved.
- Exempt from having to report every 90 days
- Received the right to pay personal income tax on income in Thailand at the same tax as Thai nationals.
- Income tax exemption on foreign income outsider Thailand
- Right to own or lease real estate, including long-term land in a given area.
- Amend other relevant laws, such as the land ownership law, work permit, tax exemption and customs procedures, etc.
However, foreigners who are entitled to these privileges must be:
- Highly wealthy individuals – minimum $500,000 of investment in Thai government bonds or foreign direct investment or in real estate with minimum annual personal income of $80,000 in the past 2 years and own a minimum of $1,000,000 in assets.
- Retirees aged 50 years and over – must have regular, stable retirement income from abroad and invest a minimum of $250,000 in Thai government bonds or foreign direct investment or in real estate including a minimum annual income of $40,000
- Individuals who work from Thailand for employers in foreign countries
- Individuals with special skills/talent who work in Thailand or work for government agency or as university professor
This may help reduce the current over-supply of property in the market in Thailand. This was due to the unfavorable economic conditions during the COVID pandemic, resulting in people’s fear of investment. Hence, the government expects that this ‘Thailand as a second home’ concept will increase investment in the country, generate income from taxation and increase jobs in Thailand.
Therefore, this is the perfect timing for foreigners who are looking to buy properties no matter if it is for living or investing purposes. As an expert in real estate, Prospec is happy to offer advice related to whether it’s buying or selling of all types of properties. We also provide appraisal services to determine the value of properties before making an investment decision.