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Why does Thailand’s LTR visa appeal to tax-conscious expatriates?
Thailand, with its pleasant living environment, competitive cost of living and growing openness to international talent, has become a destination of choice for expatriates, investors and retirees. In response to this dynamic, the Thai authorities have introduced the “LTR visa in Thailand” (Long-Term Resident Visa ). This visa, officially introduced by the Thai Office of the Board of Investment (BOI) and the Bureau of Immigration , aims to attract high value-added profiles. It is also a strategic fiscal tool.
This article explains the tax consequences of obtaining an LTR visa in Thailand, the applicable regimes, and eligibility conditions.
At Benoit & Partners, we offer expert guidance to help optimize your tax situation as an LTR visa holder in Thailand. Understanding the tax implications of your visa status is essential for managing your finances efficiently. Our team specializes in advising LTR visa holders on tax planning, legal requirements, and compliance with Thai tax laws. With our support, you can navigate tax regulations and ensure your long-term residency in Thailand is both financially and legally sound.
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Table of Contents
What is the LTR visa in Thailand and who can benefit from it?
The LTR visa in Thailand was introduced in 2022 by the BOI as part of the “Thailand 4.0” strategy to attract global talent. This ten-year visa targets four profiles with strict eligibility criteria defined by the BOI and Immigration Office:
- Highly qualified professionals: These individuals must have at least five years of experience in advanced technological, scientific, or financial fields. They must also have a contract from a certified local or foreign company.
- Remote workers: Applicants must have over three years of employment with an established foreign company. They must earn at least USD 80,000 annually for the past two years, or USD 40,000 with a master’s degree or in a priority sector.
- Wealthy retirees: Individuals over 50 years old must have a passive income of at least USD 80,000 per year, or USD 40,000. They must also have a Thai property or bond investment of USD 250,000.
- High-net-worth investors: Applicants must demonstrate a minimum net worth of one million USD. This includes USD 500,000 invested in Thailand in government bonds, funds, or real estate.
Dependents: The visa extends to spouses and dependents of LTR visa holders, allowing families to also benefit from this programme. Since the reform of January 2025, this extension to relatives can be used without restriction, as the restriction of a maximum of four people has been removed.
Each applicant must have international health insurance of at least USD 50,000 or proof of an equivalent bank deposit. The visa targets financially secure individuals with strategic skills for Thailand’s economy.
The Thai Official Gazette published the decree creating the LTR visa on September 1, 2022. It outlines access conditions, work rights, and tax benefits, including a reduced reporting period to immigration (from 90 to 365 days).
What is the link between an LTR visa in Thailand and tax residency?
Although the LTR visa in Thailand does not automatically grant tax resident status, it is possible to acquire this status under certain conditions. Article 41 of the Thai Revenue Code stipulates that a minimum stay of 180 days in the country during the same calendar year is required.
Once this duration criterion is legally met, the visa holder will be taxed in Thailand on all local income. In certain cases, they may also be taxed on foreign sources of income.
Tax benefits offered by the LTR visa: LTR visa tax exemption
A favorable flat tax rate for highly skilled professionals
LTR visa holders classified as ‘highly skilled professionals’ benefit from a flat 17% tax rate on their income earned in Thailand. This rate differs from the standard Thai tax system, which taxes up to 35%. Royal Decree No. 743 grants this benefit.
To qualify, applicants must meet strict conditions. They must hold a position in a strategic sector (e.g., health, research, renewable energy) within a Thai-based entity, such as a company, university, research centre, public body, or specialized training centre.
Applicants must receive salary-type income as defined in Section 40 (1) of the Thai Income Tax Act. Due to strict requirements, hiring a lawyer is advised to avoid mistakes that could lead to the loss of this tax benefit.
Exemption from foreign income tax: a privilege reserved for certain profiles
LTR holders in the ‘High Net Worth Individuals’, ‘High Net Worth Retirees’, or ‘Remote Workers’ categories are eligible for a second tax exemption: exemption from tax on foreign-source income. This applies to both foreign active income from activities outside Thailand and foreign passive income from assets located abroad.
For example, a European retiree who receives a pension in 2024 and deposits it into a Thai bank account in 2025 will not pay Thai tax on this income.
This provision was clarified in Revenue Department Notice No. 427, effective June 15, 2022.
Please note:
- This exemption does not apply to highly skilled professionals benefiting from the 17% rate, as the two schemes are mutually exclusive.
- Dependents benefiting from the extension of a person’s LTR visa are not entitled to any tax benefits granted by the LTR visa to the principal holder.
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Tax obligations for LTR visa holders in Thailand
Once an individual meets the criteria for tax residency, they are subject to the obligations of the Thai Revenue Code. This includes the annual declaration of income, even if it is not taxable, and payment of the corresponding taxes by March 31 of the following year. Form PND.90/91 must be completed carefully.
There are severe penalties for late payment or omission, including fines of up to 200% of the amount due.
The LTR visa also brings a degree of administrative flexibility to its holders. They are exempt from recurring obligations such as the annual renewal of work permits or visas, thus avoiding time-consuming dealings with immigration services and the Ministry of Labor.
What are the risks of tax mismanagement?
Failure to comply with tax obligations can have serious consequences for long-stay visa holders in Thailand. Even a small failure to declare or any proven act of tax evasion can lead to removal from the LTR program.
Since 2023, local authorities have worked closely with foreign countries for the automatic exchange of financial and tax information. Through the Common Reporting Standard, any lack of transparency or concealed information could be detected and heavily punished by Thai authorities.
Conclusion
Thailand’s LTR visa marks a significant step in the country’s policy to welcome foreign talent. It offers unprecedented administrative benefits and the possibility of tax optimization. This visa allows you to keep foreign income tax-free, work at a limited rate under certain conditions, and settle permanently within a clear legal framework.
However, these advantages require heightened tax vigilance. Deadlines, forms, and procedures for repatriating or not repatriating funds must be respected. The services of a tax lawyer in Thailand are highly recommended, especially for individuals with multiple income sources.
By combining knowledge of the legal framework, mastery of tax treaties, and wealth structuring, the LTR visa becomes more than just a residence permit. It serves as a lever for optimizing secure expatriation with lasting tax benefits.
If you need further information, you may schedule an appointment with one of our lawyers.
FAQ
Only if they are repatriated to Thailand in the year they are received. Otherwise, they remain outside the scope of local taxation.
Yes, provided you are employed by a company recognized by the BOI or a public body. You will need to apply for a simplified work permit.
The visa is valid for 10 years, and can be renewed according to the criteria in force.
Yes, spouses and minor children can benefit from derived rights, subject to conditions.