Thailand launches 10-year visa (LTR) to attract wealthy foreigners

Thailand is rolling out the red carpet for wealthy foreigners, launching the 10-year renewable LTR (Long Term Resident) visa this Thursday, September 1st.

According to Chayotid Kridakon, advisor to the Thai Prime Minister, high-level professionals, eligible high-net-worth individuals, and wealthy retirees can begin applying online starting Thursday, September 1, to stay in Thailand for up to 10 years.

The government has set a goal of attracting one million wealthy or talented foreigners to the country over the next five years, he said at an event in Bangkok.

The new visa program, unveiled more than a year ago and officially launched Wednesday, builds on post-pandemic efforts to welcome back visitors to the Southeast Asian country, where tourism accounts for some 12% of gross domestic product.

The move to harness remote talent, which mirrors measures taken by countries such as Singapore and the United Arab Emirates, is seen as a way to add value to an economy expected to grow 3.3% this year, the slowest pace in the region.

“The pandemic has upended workplace policies and introduced flexibility in terms of location and scope of work, and some countries are looking to capitalize on this by offering long-term residencies with attractive benefits,” said Radhika Rao, an economist at DBS Bank Ltd. in Singapore.

"Host countries are also counting on these arrivals to enrich the country's talented labor pool and stimulate the economy through increased demand."

The visa initiative can generate economic activity worth about 1 trillion baht (26.93 billion euros) annually through investment and property purchases by newcomers, Chayotid said.

See: Foreigners in Thailand could own 1,600 m2 of land provided they make a large investment

The program will also help attract professionals to industries such as electric vehicles, smart electronics and digital technology that Thailand is keen to promote, he added.

"The long-term resident visa program will help Thailand in its post-Covid economic recovery," Duangjai Asawachintachit, secretary general of the Board of Investment of Thailand, said Wednesday.

“The LTR validity period is probably the longest, and with so many expats working in Thailand for a long time, this meets a long-standing demand.”

The government is banking on a rebound in foreign tourist arrivals to fuel economic growth next year to 4.2%, which would be the fastest pace of expansion since 2018.

See also: Thailand's tourism industry is permanently damaged

Details of Thailand's Long Term Visa Program

Wealthy global citizens

Minimum investment of $500,000 in Thai government bonds, foreign direct investment, or Thai real estate, or at least $1 million in assets.

Wealthy retirees

Personal income of at least $80,000 per year.

Health insurance with coverage of at least $50,000.

Professionals working from Thailand

Personal income of at least $80,000 per year for the past two years.

At least 5 years of professional experience in relevant fields of current employment within the last 10 years.

Highly qualified professionals

Personal income of at least $80,000 per year for the past two years.

At least 5 years of professional experience in the targeted sectors of activity.

Source: Thai Government

Key Benefits of the LTR Visa

• Valid for 10 years and renewable
• Multiple re-entry permit
• Permission to work in Thailand
• Personal tax rate of 17% for highly skilled professionals.
• Tax exemption for income earned abroad
• Spouses and children of temporary residence permit holders receive the same benefits, with a maximum of four dependents per visa holder.
• Exemption from the 4 Thai to 1 foreigner ratio for employment.
• Expedited processing service at international airports in Thailand
• Immigration and work permit services in one center

Simplified installation

While wealthy expats living in Thailand already had access to a "pay-to-stay" visa program, the new initiative will spare professionals the hassle of dealing with one-year work, retirement, or marriage permits that often require multiple trips to government offices, lawyers, and fixed deposits at local banks.

The Joint Foreign Chambers of Commerce said the new visa regime will make Thailand an attractive place for global citizens to work and buy a second home.

“Work permits and visas have been the biggest obstacle for all investors in Thailand for a decade, and the LTR offers a solution,” said Vibeke Lyssand Leirvag, president of the Joint Foreign Chambers of Commerce of Thailand.

"If we do it right, the target of one million people over five years and one trillion baht of domestic spending should be achievable."

Source: Bloomberg