You know that old saying how “Two things are sure in life, death and taxes”?
Well, that’s not necessarily true if you plan to spend your golden years on a tropical paradise island like Phuket as foreigners can enjoy tax free retirement in Thailand.
100% Tax-Free Retirement in Thailand
Only income earned inside Thailand is subject to tax during retirement. If you have personal income from pension, interest or other income-producing means from your country of origin it would not be subject to income tax in Thailand.
Income Generated Inside Thailand
While there is no tax on rental income from abroad if you live in Thailand on a retirement visa, that is not the case if you have rental property within Thailand generating an income. Luckily, personal income tax in Thailand is very low compared to Western countries, and you pay absolutely no income tax on your first THB 150,000. But then again, this does not even apply to retirees bringing in money from abroad.
How To Retire In Thailand Tax-Free
To officially become a retiree in Thailand you need to obtain a retirement visa (Non Immigrant O Visa). You can read about the detailed requirements on Siam Legal, but we have outlined the basic requirements below.
- You must be 50 years old and above
- You must have a Thai bank account with a bank book
- You must be able to provide a letter from your Thai bank
- You must meet the financial requirements below
Financial Requirements for a Retirement VisaBank Account showingTHB 800,000 ($24,500)Monthly income of at leastTHB 65,000 ($2,000)Combination (bank account + yearly income)THB 800,000 ($24,500)
You need to be able to show either 800,000 THB in the bank, or the amount in the bank account + yearly income (pension etc.) must equal at least 800,000 THB.
If you as an example have 300,000 THB in the bank account you need to be able to show a yearly income of at least 800,000 – 300,000 = 500,000 THB .
In our example, that would equal a monthly income of roughly 42,000 THB (500,000 THB / 12 months).
For savings in the bank, the 800,000 THB must be in the bank for at least 2 months before your visa application and must also remain in your bank for 3 months after the extension. After those 3 months, you must keep a minimum of 400,000 THB in there indefinitely. You also need a letter/statement from your Thai bank to confirm the 800,000 THB is there and has been there for the required time frame.
Why You Should Retire in Phuket, Thailand
You can find one-bedroom apartments for as little as THB 15,000 ($500) / month and private pool villas and be rented for about THB 30,000 ($1,000). If you have the savings, we recommend that you purchase a property to save up on rent. We have more than 1,000+ property listings in total and would be more than happy to give you suggestions for both Phuket rental property and real estate for sale in Phuket. We recommend that you plan to live on a budget of at least $1,500 per month, with $2,000 being a more reasonable benchmark.
Thailand is home to one of the most popular and cuisines in the world. Authentic Thai food relies upon the careful balancing of sweet, salty, spicy, and sour, and it is generally very healthy with a lot of green vegetables and herbs.
The food can also be very cheap as you can get delicious street food for just a couple of dollars. International foods often cost significantly more than buying local produce or eating out at a small, local restaurant. If you prefer fine dining (or western food in general), there is no lack of options in popular tourist destinations like Bangkok and Phuket.
Tropical Weather All Year Around in Phuket
Thailand is considered to have three official seasons; hot, cool, and wet. The hot season runs from March through to June, with April and May the hottest months of the year. Even during the wet monsoon season, typically July through September, the weather will still be hot. The cool season normally runs from October through February and will still feel hot to most visitors. Much of the country does experience a short cold snap for a week or so in December, but that is not the case in the south of Thailand like Phuket where we have tropical heat all year around.
Thailand, and Phuket in particular, has beautiful scenery and tons of picture-postcard spots you’ll want to experience at least once in your life. Whatever you want out of a holiday, Phuket has it. There are weird and wonderful museums like the Phuket Trickeye Museum and Baan Chinpracha, remarkable religious and cultural structures like the Big Buddha in Chalong, and exotic shows like Phuket Fantasea Show. Phuket also has some of the most beautiful beaches in the world, on which you can enjoy soft white sand, tropical surf,and amazing scenery.
Do not hesitate to get in touch if you have any questions regarding tax-free retirement in Thailand or if you are looking for property to invest in or rent. Our team has more than 20+ years of experience in the Phuket property market and, and with more than 1,000+ property listings you’ll have plenty of options to choose from.