Living in Krabi: key legal considerations for foreign residents in Thailand

Long-tail boats on a tropical beach, perfect scenery for foreigners living in Krabi.

Compliance with legal requirements for foreign residents living in Krabi 

Living in Krabi presents a valuable opportunity for foreign nationals but also requires a clear understanding of the legal framework governing foreign residency, property ownership, tax obligations in Thailand.

Foreign nationals’ residence is regulated by the Immigration Act B.E. 2522 (1979), specifically Section 18 for visa issuance and extensions, and Section 37 for the 90-day reporting requirement. Property matters are subject to the Land Code B.E. 2497 (1954) and the Condominium Act B.E. 2522. Additionally, taxation obligations for foreign residents are outlined in the Revenue Code.

Non-compliance with these laws can lead to serious legal consequences, including fines, loss of visa rights, or deportation. Foreign residents in Krabi must navigate these regulations with care to ensure legal compliance.

This article serves as a comprehensive guide for foreign nationals living in Krabi, focusing on visa regulations, property ownership, tax obligations, and business compliance under Thai law.

Table of Contents

Visa requirements when living in Krabi

For living in Krabi and for foreign nationals wishing to reside long-term in Thailand, the  appropriate visa must be obtained, as regulated by the Immigration Act B.E. 2522 (1979), which sets out the categories of visas, the conditions for their issuance, and the obligations of foreign residents in Thailand. The most common visa options for long-term stay are as follows:

Long-Term Resident (LTR) Visa 

The Long-Term Resident (LTR) Visa is designed to attract high-net-worth individuals, including wealthy retirees, entrepreneurs, investors, and skilled workers living in Krabi. The LTR Visa provides a streamlined solution for those seeking long-term residency in Thailand, offering several benefits such as 10-year residency, divided into two 5-year terms, and an exemption from the 90-day reporting requirement.

To qualify for the LTR Visa, applicants must meet the specific criteria outlined by the Board of Investment (BOI), and there are four primary categories under which foreign nationals can apply:

  1. Wealthy Retirees: Applicants must be at least 50 years old and demonstrate USD 80,000 per year in passive income. Alternatively, they can show an investment of at least USD 250,000 in Thai assets, such as government bonds, real estate, or business ventures.
  2. Wealthy Individuals: For high-net-worth individuals seeking residency, they must invest at least USD 500,000 in Thai government bonds or real estate. This category is ideal for those who wish to invest without engaging in business operations.
  3. Highly Skilled Professionals: This category is for professionals in sectors such as technology, healthcare, and finance. Applicants must have highly specialized skills and a salary of at least USD 80,000 per year, along with the necessary qualifications in their respective fields.
  4. Investors: Applicants seeking this category must demonstrate an investment of at least USD 500,000 in a Thai business or startup with the intention of creating economic value within Thailand. These investments must be in accordance with the BOI’s regulations, ensuring substantial contributions to the Thai economy.

Non-Immigrant O Visa 

As per Section 18 of the Immigration Act B.E. 2522 (1979), a Non-Immigrant O visa is granted to individuals aged 50 and above, initially valid for 90 days. Retirees can apply for an extension to convert this visa into a Non-Immigrant O-A Visa, which is valid for one year and renewable annually for living in Krabi.

To qualify for the extension and transformation into an O-A visa, applicants must demonstrate financial self-sufficiency. This can be shown through a monthly income of at least THB 65,000 or a bank balance of THB 800,000, which must be maintained for at least two months before applying. These requirements are specified in Section 18 of the Immigration Act and reinforced by Section 19 of the Civil and Commercial Code, which governs the financial thresholds for foreigners wishing to reside in Thailand long-term.

Non-Immigrant O-X Visa 

The Non-Immigrant O-X visa is another option for retirees living in Krabi, available to nationals from specific countries, including France, Germany, and the United States. This visa grants a five-year stay, renewable once, and offers the benefit of a longer-term residence option compared to the O-A visa.

The O-X visa has stricter financial requirements than the O-A visa. Applicants must demonstrate THB 3 million in a Thai bank account or a combination of THB 1.8 million in a Thai bank and verified annual income. The O-X visa also requires proof of health insurance covering at least THB 40,000 for outpatient care and THB 400,000 for inpatient care.

While the O-A visa is generally more flexible in terms of financial thresholds, the O-X visa is particularly suited for retirees who seek a long-term stay with less frequent renewal requirements. However, retirees holding either of these visas must still comply with the 90-day reporting requirement as per Section 37 of the Immigration Act B.E. 2522 (1979).

Non-Immigrant B Visa (Work or Business) 

For individuals intending to work or conduct business while living in Krabi, the Non-Immigrant B visa is the appropriate option. This visa is governed by Section 18 of the Immigration Act B.E. 2522 (1979), which allows foreign nationals to enter Thailand for employment or business purposes. Documentation required for this visa includes proof of employment or business registration, and once in Thailand, the visa can be extended for longer stays.

Education (ED) Visa

Those studying and living in Krabi must apply for an Education (ED) visa under Section 18 of the Immigration Act B.E. 2522 (1979). This visa is issued for a period of six months to one year, depending on the course of study. Documentation such as enrollment certificates from Thai educational institutions is required for approval.

Digital Nomad Visa (DTV) 

The Digital Nomad Visa (DTV) allows remote workers and freelancers to live and work in Krabi while maintaining employment with overseas clients or companies. It is particularly suited for digital entrepreneurs and professionals who wish to stay in Thailand long-term without being tied to a local employer. There are two key sets of criteria :

  • Income: Applicants must prove a monthly income of at least USD 2,000 from remote work or freelancing.
  • Proof of remote employment: Evidence of remote employment or self-employment, such as contracts or business registration.

The DTV is valid for one year, renewable annually if the eligibility conditions continue to be met.

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Tax residency and tax declaration for foreign residents in Krabi 

Tax residency when living in Krabi

As per Section 41 of the Revenue Code, a foreigner is considered a tax resident of Thailand if they stay in the country for more than 180 days during the tax year. This includes retirees, digital nomads, and foreign business owners living in Krabi. Once classified as a tax resident, a foreign national is subject to Thai tax laws on global income, regardless of whether that income is sourced from Thailand or abroad, provided it is remitted into Thailand.

Section 41 of the Revenue Code specifies that income from foreign sources must be declared by tax residents if it is brought into the country. If the income remains outside of Thailand, it is not subject to Thai tax unless the individual becomes a tax resident in the following year and brings the income into Thailand.

For foreign retirees, pension income may be exempt from Thai tax if it is not remitted into the country. However, any pension or income brought into Thailand is subject to taxation at the personal income tax rate as outlined in Section 40 of the Revenue Code.

Tax filing and reporting obligations when living in Krabi

All foreign nationals classified as tax residents are required to file an annual tax return under Section 41 of the Revenue Code. The tax return must include information on both Thai-sourced and foreign-sourced income.

Section 40 of the Revenue Code provides specific rules on taxable income for individuals, including retirees. Income types subject to tax include salaries, pensions, rental income, and income from investments. Foreign residents must file their tax return by March 31st or April 9th when made online, each year for the previous calendar year. The return must detail income earned worldwide, which can include pensions, salaries, rental income, and any income earned outside of Thailand.

Tax rates when living in Krabi

Foreign residents living in Krabi are taxed according to the personal income tax rates set out in Section 48 of the Revenue Code. The personal income tax rates range from 5% to 35% depending on the amount of taxable income. For example, income up to THB 150,000 is taxed at a rate of 5%, while income exceeding THB 5 million is taxed at the top rate of 35%.

Section 48 of the Revenue Code outlines the progressive tax rates for individuals, which increase based on the amount of income earned. For retirees with significant foreign income or pensions, it is important to plan for potential tax liabilities and ensure that their financial planning accounts for Thailand’s progressive tax structure.

Property ownership and investment in Krabi

Investment options available when living in Krabi

Foreign nationals wishing to purchase property while living in Krabi must adhere to Thai property ownership laws. According to the Land Code B.E. 2497 (1954), foreigners are prohibited from owning land in Thailand, including Krabi. However, foreign nationals can purchase condominium units under the Condominium Act B.E. 2522 (1979), specifically Section 19, which allows foreigners to own up to 49% of the total area in a condominium project.

Section 86 of the Land Code B.E. 2497 specifies that foreigners cannot own land directly, but may acquire leasehold interests for up to 30 years. This type of lease agreement must be registered with the Land Department under Section 537 of the Civil and Commercial Code.

Alternatively, some foreigners may opt to set up a Thai limited company to purchase land. However, as per the Foreign Business Act B.E. 2542 (1999), the use of nominee shareholders to circumvent land ownership restrictions is prohibited. Any attempt to use a company structure purely for property ownership without genuine business operations may lead to legal consequences.

Legal precautions when renting property and living in Krabi 

Renting property in Krabi is a common option for foreign nationals. According to Section 537 of the Civil and Commercial Code, lease agreements that exceed three years must be registered with the Land Department. Contracts should clearly outline the terms, including rent, security deposits, and maintenance responsibilities. Retirees and expats should ensure the landlord has the legal right to lease the property and retain legal counsel to review or draft rental contracts.

Conclusion 

Living in Krabi offers many advantages, but only those who fully understand the legal landscape will enjoy a stable and worry-free life. Foreigners must choose the right visa, register leases properly, pay taxes in accordance with the Revenue Code, and avoid any involvement in restricted businesses without proper licenses.

From immigration formalities under the Immigration Act to land regulations governed by the Land Code, Thai law imposes strict conditions that every foreign resident must respect. Legal support is not merely an option but a necessity for anyone living in Krabi long-term. Consulting with a qualified legal professional, such as Benoit & Partners, ensures compliance and peace of mind.

Living in Krabi is a rewarding experience, but only when grounded in legal certainty.

FAQ 

The right visa depends on your situation. Common options include the Long-Term Resident (LTR) Visa for high-net-worth individuals or skilled professionals, the Non-Immigrant O/A/O-X Visas for retirees, the Non-B Visa for work, the Education (ED) Visa for studies, and the Digital Nomad Visa (DTV) for remote workers.

Most visa holders must complete a 90-day report to immigration. LTR visa holders are exempt from this requirement.

Foreigners cannot own land but can own a condominium unit (up to 49% of the total floor area in a building) or lease land for up to 30 years, with the lease registered at the Land Department.

Using a Thai company solely to hold land without genuine business operations is illegal. Nominee arrangements are prohibited and can result in prosecution.

If you stay in Thailand over 180 days in a year, you are a tax resident and must declare Thai and foreign income remitted to Thailand. Foreign pensions not remitted during the same year may be exempt.

Tax returns are due by March 31st (or April 9th online) each year, covering the previous calendar year. You must report income from both Thai and foreign sources if you are a tax resident.

Yes. Leases longer than three years must be registered with the Land Department. Always verify the landlord’s right to lease and have contracts reviewed by a lawyer.

Certain visas, such as the O-A, O-X, and LTR, require health insurance meeting Thai government minimums. Even if not mandatory for your visa, insurance is strongly recommended.