Introduction: On 1 September 2022, a new long-term visa, known as the LTR visa, came into effect. It will apply to four categories of applicant and their dependents, as defined.
In this article, we discuss the categories of person who are eligible to apply for such visa, the conditions and benefits attached to each category, and the interest shown in the LTR visa after its availability for 12 months.
- Wealthy foreigners They must:
- have assets of at least US$1 million
- have received personal income of at least US$80,000 a year for the previous two years
- Have invested at least US$500,000 in Thai government bonds or real property in Thailand
- Wealthy pensioners They must:
- Be aged 50 or more
- Have personal income of at least US$80,000 a year at the date of application OR
- Have income of at least US$40,000 a year and invest at least US$250,000 in Thai government bonds, foreign direct investment or real property in Thailand
- Work from Thailand professionals must have:
- Personal income of at least US$80,000 a year for the last two years OR
- Had income of at least US$40,000 a year for the last two years
- A master’s degree or higher or own intellectual property or receive series A funding
The employer of a Category 3 applicant must be:
- A public company listed on a stock exchange OR
- A private company in operation for at least three years with total revenue of at least US$150,000 in the last three years
An applicant in category 3 must have had at least five years of experience in relevant fields of current employment during the last 10 years
- Highly skilled professionals must have:
- Personal income of at least US$80,000 a year for the last two years OR
- Income of at least US$40,000 a year for the last two years or before retirement
- A master’s degree or higher in science or technology or special expertise that is relevant (where the applicant works for a Thai government agency, no need to prove minimum personal income)
The employer of such a person must be a Thai or foreign enterprise; a higher education institution, specialized training institution or a government agency in one of the following 14 fields:
- Next generation automative industry
- Smart electronics industry
- Affluent tourism
- Agricultural and biotechnology
- High value-added food processing
- Automation and robotics
- Aviation
- Biofuels and biochemicals
- Digital industry
- Medical industry
- Defence industry
- Human resource development, research and development for targeted industries
- Industries that facilitate the circular economy directly and significantly eg production of energy from waste, water resource management etc
- Other targeted industries in accordance with the National Strategic Plan, as approved
Experience: Applicants in category 4 must have:
- Five years’ experience within the last 10 years in the targeted industry OR
- Hold a doctorate or higher in the relevant fields in the targeted industry or be an applicant working for a Thai government agency
- Spouses and children
- A joint applicant of a principal applicant, must be a legal spouse (same sex unions are not recognized) or child aged under 20. The total of the spouse and children must not exceed four.
Health insurance requirements
All applicants, their spouses and children must arrange health insurance cover of at least US$50,000 per person with approved insurers, or supply a deposit of at least US$100,000 per person.
Income tax concessions
- Highly skilled professionals are only required to pay income tax at a flat rate of 17%.
- Applicants in categories 1-3 are entitled to an income tax exemption for income derived from a post or business conducted abroad or arising from assets located abroad that have been brought into Thailand. Spouses and children are not entitled to this exemption.
All applicants are eligible to the following rights:
- A five year visa, followed by a second five year visa
- Where the applicants works for a Thai company, a waiver from the usual rule that a company must employ four Thais for every foreigner employed
- Applicants need only report their address annually, instead of every 90 days
- Multiple re-entry visa
- Exemption from the requirement to obtain a work permit
- Use of the One Stop Service Centre to process their visa
Comments: When the LTR scheme was made available in September 2022, government publicity at that time predicted that a million applicants would be participating in the scheme after five years.
During the first year of operation, there were a total of 4,842 applicants. The majority originate from Europe (2,179), followed by the United States (810), and China (507).
The applicants so far may be divided into categories as follows:
- Retirees with pensions or income of at least US$80,000 per year: 1,451 applicants (30%).
- Individuals seeking to work from Thailand: 1,228 applicants (25.4%).
- Highly-skilled-professionals: 757 applicants (15.6%).
- High-income individuals with an annual income of at least US$1 million: 304 applicants (6.3%).
- Spouses and dependents: 1,102 applicants (22.8%).
It would appear that the conditions attached will have to be reviewed, if the scheme is to be made more popular. In particular:
- Parties in registered same sex marriages are excluded from the LTR scheme. Note also that same sex marriage has been approved in principle in Thailand earlier this year, although detailed legislation has yet to be drafted.
- Applicants under the LTR scheme may bring into Thailand partners to whom they are legally married and their children limited to a maximum of three children aged under 20. Unmarried partners or additional children/children aged over 20 will be outside the scope of the scheme, and will have to establish their own entitlement to a visa.
- The requirements for investment in Thailand may or may not prove attractive.
- Where the applicant has a foreign employer, the requirements applying to such a foreign employer may or may not prove attractive.
- The LTR visa does not confer a right for a foreigner to own land. In this regard, LTR visa holders are in the same position as all other foreigners in Thailand.