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Why Compliance with Legal Requirements is Crucial for Foreign Residents in Krabi?
Living in Krabi offers foreign nationals a unique opportunity, but it also requires a solid understanding of the legal framework that governs foreign residency, property ownership, and tax obligations in Thailand.
Foreign nationals’ residency is regulated by the Immigration Act B.E. 2522 (1979), with Section 18 outlining the process for visa issuance and extensions, while Section 37 establishes the 90-day reporting requirement. Property ownership is subject to the Land Code B.E. 2497 (1954) and the Condominium Act B.E. 2522. Additionally, tax obligations for foreign residents are addressed in the Revenue Code.
Failure to comply with these laws can result in significant legal consequences, such as fines, the loss of visa privileges, or even deportation. As such, foreign residents in Krabi must carefully navigate these regulations to ensure full legal compliance.
This article serves as a comprehensive guide for foreign nationals living in Krabi, covering visa regulations, property ownership, tax responsibilities, and business compliance under Thai law.
For anyone looking to ensure that their stay in Krabi is fully compliant with Thai regulations, Benoit & Partners is here to assist with legal advice and guidance through each step of the process.
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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. The Immigration Act B.E. 2522 (1979) regulates this process. It 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 attracts high-net-worth individuals, including wealthy retirees, entrepreneurs, investors, and skilled workers living in Krabi. The LTR Visa offers a streamlined solution for those seeking long-term residency in Thailand. It provides 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). Foreign nationals can apply under four primary categories:
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.
Wealthy Individuals: High-net-worth individuals seeking residency must invest at least USD 500,000 in Thai government bonds or real estate. This category suits those who wish to invest without engaging in business operations.
Highly Skilled Professionals: Professionals in sectors such as technology, healthcare, and finance qualify for this category. Applicants must possess highly specialized skills and earn at least USD 80,000 per year, along with the necessary qualifications in their respective fields.
Investors: Applicants in this category must demonstrate an investment of at least USD 500,000 in a Thai business or startup. They must aim to create economic value within Thailand. These investments must comply with the BOI’s regulations, ensuring substantial contributions to the Thai economy.
Non-Immigrant O Visa
Section 18 of the Immigration Act B.E. 2522 (1979) grants a Non-Immigrant O visa to individuals aged 50 and above. The visa is initially valid for 90 days. Retirees can apply for an extension to convert this visa into a Non-Immigrant O-A Visa, valid for one year and renewable annually for living in Krabi.
To qualify for the extension and conversion into an O-A visa, applicants must demonstrate financial self-sufficiency. They can prove this through a monthly income of at least THB 65,000 or a bank balance of THB 800,000. The bank balance must be maintained for at least two months before applying.
Section 18 of the Immigration Act specifies these requirements. Section 19 of the Civil and Commercial Code further reinforces them by outlining 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. It is available to nationals from specific countries, including France, Germany, and the United States. This visa grants a five-year stay, renewable once, offering 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 generally offers more flexibility in terms of financial thresholds, the O-X visa suits retirees seeking long-term stay with fewer renewals. However, retirees holding either visa must still comply with the 90-day reporting requirement under 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). It allows foreign nationals to enter Thailand for employment or business purposes.
Applicants must provide proof of employment or business registration. Once in Thailand, they can extend the visa 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 criteria:
Income: Applicants must prove a monthly income of at least USD 2,000 from remote work or freelancing.
Proof of remote employment: Applicants must provide evidence of remote employment or self-employment, such as contracts or business registration.
The DTV is valid for one year and 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. This applies regardless of whether the income is sourced from Thailand or abroad, as long as 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 by April 9th if filed online. The return must detail income earned worldwide, including 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 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%. Income exceeding THB 5 million is taxed at the top rate of 35%.
Section 48 of the Revenue Code outlines progressive tax rates for individuals. These rates 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. Financial planning should account 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. This section 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. They may, however, 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 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 bypass land ownership restrictions is prohibited. Any attempt to use a company structure solely 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 exceeding 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 that the landlord has the legal right to lease the property. It is also important to retain legal counsel to review or draft rental contracts.
Conclusion
Living in Krabi offers many advantages. However, only those who fully understand the legal landscape will enjoy a stable and worry-free life. Foreigners must choose the right visa, properly register leases, pay taxes according to the Revenue Code, and avoid 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.
If you need further information, you may schedule an appointment with one of our lawyers.
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.