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Killing off Retirement Opportunities in Thailand
Editorial
Quite clearly the Government has simply not thought through the impact of the insurance provisions imposed by the Thailand Pass on “budget tourists” and likewise on current and prospective retirees in Thailand. The sobering reality is that it is well nigh impossible for individuals, 70 years and above, to obtain health insurance other than at exorbitant rates. The insurance requirements, USD 50.000 (1.6 Million THB), while rational on the surface, will undoubtedly block the backpacker/budget tourist cohort and simultaneously devastate those long-term elderly Non-Resident Visa holding retirees, many of whom live on fixed pensions and have been attracted to remain in Thailand as a friendly low cost haven.
A dollar and a pound go much further in Thailand as we all know and, as all retirees know, we contribute on a daily basis to local families and the local economies. We seem to become de-facto ATM’s for those in our households…….that in turn sustain us. At present to gain a Retirement Visa one must negotiate a bureaucratic maze, “aka” the Immigration Department, and individuals such as myself, must deposit 800k baht in a “dead” Thai bank account earning say 1% or less in interest which is then taxed. Ninety-day reports and the costs of a visa are “manageable”.
But the slow death of Kao San Road is now assured as “budget tourists” and retirees alike, who collectively sustain street vendors, food stalls tuk-tuk drivers and a range of other service providers are locked out of the economy to make way for those who stay in luxury hotels and villas and sweep past the Sois in their chauffeur driven limousines.
I would like to emphasise that I am a very contented 73 year old retiree living on a fixed pension in the NE of Thailand and up to this time have had absolutely no hesitation in inviting family and friends to come to visit, and even to settle down and retire in what was the “Land of Smiles”. Yet it now appears that the Government has set a course to ensure that its borderline impoverished citizens, both in the cities and in the provinces, remain and will become even more impoverished as the cash flow from “backpackers” and retirees alike is obliterated.
For the good of the country I urge the bureaucrats to think, and then to think again, in the interests not only of those who come to visit but also for all those Thai citizens who benefit, on a daily basis, from the money we happily contribute to the local economy.Comment
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Key info for those planning to retire in Thailand
If you are planning to retire in the beautiful and tropical country of Thailand, there are many places which will suit your interests. From up north in Chiang Mai where the air is cooler (during winter), to a tropical oasis in the southern islands, Thailand has it all. Of course, with all things, you will need to get sorted before you come and we are right here to help.
Things to think about- How much money will I need to retire in Thailand? For example, a retired couple should be able to live quite comfortably on around 71,000 THB per month, but of course, it depends on your lifestyle.
- While the cost of living is low in Thailand, it is still important to have a savings of at least 890,000 THB, probably more, depending if you’re getting anything paid to you from outside the kingdom. This can help in the event of unexpected expenses, such as health insurance premiums, purchasing a car, or home repairs.
- For those in the UK with pensions, having your UK pension paid to you in Thailand is possible, but you cannot transfer over any other UK-based pensions without incurring a tax of at least 25%. This is because the UK’s HMRC does not list Thailand in its qualifying recognised overseas pension schemes (QROPS). You may still be able to transfer payments from your UK bank, but you are likely to incur bank and currency conversion fees. But, you won’t have to pay tax on this income to the Thai government. Other countries will have different laws on pensions and taxation so you need to find out about these before proceeding.
- If you are wanting to buy a property in Thailand, you can. Sort of. It can be a bit tricky if you want to buy freehold land or a villa on land. As Thai laws prohibits foreigners from buying land and property in their own name, there are a few loopholes which allow foreigners to ‘own’ property.
- One, is through starting your own Thai Limited Company or entering into a long-term leasehold with a Thai landowner, usually starting ar 30 years, and then renewable. You need the advice from a qualified lawyer who is on top of the many details involved in foreigners purchasing real estate in Thailand. Get a recommendation from a friend rather that relying on Google to find a reputable agent or lawyer.
For those wanting to buy land, there are a few exceptions that are well-known and allow such a purchase to be completed:
-In the instance of a foreigner buying real estate in Thailand, the ownership of a house can be registered and transferred separately from the land where the house is built;- The transfer procedure must follow the Thailand Civil and Commercial Code
- The transfer has to be evidenced in writing
- The transfer must also be registered with the Land Department’s branch or provincial office
- The sale and transfer of ownership of an existing building, that is separate from the land, requires the current owner and buyer of the house to strictly adhere to the standard procedure detailed at the Land Office. If this is not done, the building will still be legally owned by the developer or a third party who owns the land.
U.S.-Thai Treaty of Amity and Economic Relations excerpt:
The U.S.-Thai Treaty of Amity and Economic Relations (AER) was originally signed in 1833. The 1966 reiteration of the Treaty allows U.S. citizens and businesses incorporated in the U.S., or in Thailand that are majority-owned by U.S. citizens, to engage in business on the same basis as Thais, exempting them from most of the restrictions on foreign investment imposed by the Alien Business Law of 1972 and its successor, the Alien Business Act of 1999. Under the Treaty, Thailand restricts American investment only in the fields of communications, transport, fiduciary functions, banking involving depository functions, the exploitation of land or other natural resources, and domestic trade in agricultural products. The original treaty can be viewed via the U.S. Embassy’s official website:
During the Covid pandemic, health insurance is now mandatory for all retirees who want to stay long-term. You will need to get health insurance to access medical services, in which the cost can vary depending on your age and any pre-existing conditions.
Retirement Visa
One of the most important things in which to obtain before you can move to Thailand, is a retirement visa. The good news is that it can be pretty easy to obtain as long as you meet the following requirements:- You’re 50 years old or over
- You can make a security deposit of 800,000 baht (around £18,400 or USD 23,400) into a Thai bank account or having a monthly income of at least 65,000 baht. Or, a combination of the 2.
- UK citizens will need to provide a passport with at least one year’s validity remaining, along with proof they meet the financial requirements (such as bank statements). There are details for each country available on the Thai Embassy portals in your country.
How to apply for a Thailand retirement visa
To get your retirement visa, follow these steps…- Apply for a 90 day visa from the Thai Embassy in your country or online – this will enable you to travel to Thailand and apply for your retirement visa in person.
- Apply for the Non-Immigrant O-A retirement visa at the Immigration office in Thailand. This is a 1 year multiple-entry visa and you’ll need to renew it with an ‘Extension of Stay’ visa every year.
- Make sure you also have a ‘re-entry permit’ before you leave Thailand to travel to any other country.
- Once you’ve had a retirement visa for at least 3 years, you can then apply for permanent residency if you wish. The criteria for being approved includes being in a relationship with a Thai citizen or permanent resident, or investing a required amount in the Thai economy. There are a lot of other requirements which can change from time to time. Some more info about permanent residency HERE.
Other things to consider before moving- Apply for your retirement visa before you leave your home country. As it can take a while to get all the paperwork sorted, it is best to do this first.
- Choose where you would like to live in Thailand. This is recommended as there are many places to retire in this beautiful country. You can use your 90-day visa to travel around in person to get a feel for each area and its expat community. You can also organise a property rental during this time.
- Take out a healthcare insurancepolicy. This is essential to have as soon as you arrive as they will ask for proof of a health policy.
- Any furniture and posessions should be arranged to be shipped to Thailand. It is best to get a few quotes and do some research on how to get your personal items shipped.
- Apply to receive your pension in Thailand. For UK citizens, you can visit the UK Government website.
- Open a Thai bank account. This is also another must-do task that will make it much easier to pay for rent and other daily living expenses. Although it may not be the cheapest option when it comes to managing any international payments, it will most likely be the easiest.
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How to prevent a Retirement Visa in Thailand from Expiring
With the availability of a Retirement Visa in Thailand, it becomes possible for retirees to reside in the country long-term and enjoy all the perks it has to offer. However, like all good things, a retirement visa comes with an expiration date, and understanding the implications of a retirement visa expiring is crucial for those planning to settle down in this Southeast Asian haven. In this guide, we will explore the options to avoid your retirement visa from expiring. Preventing your retirement visa in Thailand from expiring requires careful planning and adherence to the rules and regulations set forth by the Thai government. Here are some essential steps you must follow to prevent any hassle in your long-term stay.
Apply for the re-entry Permit
Applying for a re-entry permit as soon as you obtain your retirement visa in Thailand is a prudent and proactive approach to securing your residency status. A re-entry permit ensures that your visa remains valid when you exit and re-enter Thailand. Without a re-entry permit, your retirement visa may be voided upon exiting Thailand, even if it has not reached its expiration date. If you are not in Thailand when your 90-day reporting is due, you should have an exit stamp on your passport. However, you will need a Re-Entry Permit for this. Your 90-day reporting period will resume once you re-enter Thailand. The re-entry permit ensures that your retirement visa remains valid when you leave Thailand for any reason, be it a short vacation, a family visit, or any other personal or medical situation. This permit essentially “freezes” your visa’s validity, allowing you to return to Thailand without having to reapply for a new retirement visa. With a re-entry permit, you can freely travel in and out of Thailand without worrying about jeopardizing your retirement visa status. This flexibility is particularly helpful for retirees who have family and friends in their home country or other countries and wish to visit them regularly. Failing to obtain a re-entry permit before leaving Thailand can result in unexpected complications, such as having to reapply for a retirement visa or being denied entry upon your return. You can complete the 90-day reporting within 14 days before or up to seven days after the due date. Failing to report within this timeframe will result in a THB2,000 penalty. If you are arrested for not reporting, the fine increases to THB4,000, and you may face jail time. Additionally, you could be added to the Immigration “blacklist,” potentially hindering future visa applications.
90-Days Reporting
The 90-day reporting is a crucial requirement for maintaining the validity of your retirement visa in Thailand. This reporting rule mandates that you notify the Thai Immigration authorities of your current address every 90 days while residing in the country. The 90-day reporting rule is a stipulation set forth by the Thai government to monitor the whereabouts of foreign nationals residing in the country long-term. Failing to comply with this requirement can lead to fines, and penalties, and even jeopardize your retirement visa status. Regularly reporting your address every 90 days helps establish your continuous residency in Thailand. This record of compliance can be beneficial when renewing your retirement visa or applying for any other immigration-related services. Ensuring timely 90-day reporting can help you avoid any potential legal complications arising from non-compliance with Thai immigration laws. These complications can include fines, visa cancellation, or even deportation, which could disrupt your retirement plans in Thailand.
Timely Visa Renewal
Timely visa renewal is critical to prevent your retirement visa in Thailand from expiring, as it ensures that you continue to maintain a legal residency status in the country. Timely renewal of your retirement visa in Thailand allows you to continue enjoying your life in the country without any disruptions or legal complications. It helps you maintain a stable and worry-free retirement experience. If you possess a one-year Retirement Visa, it is necessary to apply for a visa extension annually at the Immigration Department in Thailand. Conversely, for the Thai O-X Retirement Visa, you are only required to apply for an extension once every five years, at which point you will obtain another 5-year visa. When extending your visa, you must provide several supporting documents, including:- A filled-out TM.7 Visa Extension Application Form
- A passport-sized photograph
- Signed photocopies of all your passport pages
- Evidence of accommodation in Thailand
- Documentation proving you fulfill the financial requirements for living in Thailand, such as bank statements or a notarized affidavit of income.
Meeting the financial requirements is crucial to prevent your retirement visa in Thailand from expiring, as it demonstrates your ability to support yourself financially during your stay in the country. The Thai government outlines specific financial requirements for retirement visa holders to ensure they have adequate resources to sustain their living expenses without relying on public funds or seeking employment. Failing to meet these requirements can result in the cancellation or non-renewal of your visa. Ensuring that you meet the financial requirements for your retirement visa in Thailand provides a sense of financial security and stability during your stay. This stability allows you to enjoy your retirement without worrying about financial constraints or unexpected expenses. When renewing your retirement visa, immigration authorities will verify that you continue to meet the financial requirements. By maintaining the necessary financial resources, you increase the likelihood of a successful visa renewal and uninterrupted residency in Thailand.
Stay Informed
It’s important to note that while it is possible to apply for a Thailand Retirement Visa while in the country, immigration officials may not allow this if you have a Tourist Visa or a 30-day entry stamp. To satisfy the Retirement Visa Thailand requirements, it is recommended to make your initial application in your home country or a nearby country. By doing so, you will receive a 90-day Non-Immigrant O (Long Stay) Visa. Once you have obtained your first Non-Immigrant O Visa, you can then apply for a Thailand Retirement Visa Renewal in Bangkok. To successfully complete this process, you should:- Be within the last 30 days of your 90-day visa, as applications for a Thailand Retirement Visa Renewal submitted earlier will not be accepted.
- Provide proof of address and income, or evidence that you have THB800,000 in a Thai bank account, along with all necessary supporting documents.
Indeed, your family members are allowed to join you in Thailand. Nevertheless, if they are not eligible for the Thai Retirement Visa (O-A or O-X), they can opt for a Non-Immigrant Visa O or ED (for dependent children under 20 years old).It is important to note that only your spouse or a dependent child below the age of 20 can accompany you.Safeguarding the validity of your retirement visa in Thailand is essential for enjoying a carefree and fulfilling retirement in this beautiful, tropical paradise. By staying informed about visa requirements, renewing your visa on time, meeting financial requirements, complying with the 90-day reporting rule, and obtaining a re-entry permit, you can effectively prevent your retirement visa from expiring.
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