Finance and Investment

-Thailand-

“Sabai sabai” - (EASY GOING)

Thailand expat guide to banking, investment opportunities, and legal income generation Finance and investment options for expats in Thailand including remote work and local business setup

Banking and Money Management

Setting Up Bank Accounts:
Expats in Thailand can open a local bank account at major banks like Bangkok Bank, Siam Commercial Bank, or Kasikorn Bank. Requirements typically include:

  • Passport and a valid visa (such as a work, retirement, or long-stay visa).

  • Proof of residence, such as a rental agreement or utility bill.

  • Some banks may also require a work permit for non-tourists.

Accessing Financial Services:
Thailand offers a range of online banking services and mobile banking apps. Expats can:

  • Use internet banking for bill payments, fund transfers, and account management.

  • Make international transfers using services like SWIFT or TransferWise.

  • Access ATMs nationwide with low fees for domestic withdrawals (international withdrawals may carry higher charges).

Currency Exchange and Fee Management:
To avoid high fees and poor exchange rates, consider the following:

  • Use currency exchange counters at airports or local banks for better rates than typical tourist exchanges.

  • Set up a multi-currency account if you frequently deal with foreign currencies.

  • Avoid withdrawing from international ATMs; instead, use local ATMs that support your bank for lower fees.

For more detailed guidance on banking and money management in Thailand, [click here].

Investing in Local Markets

Real Estate Investment:
Expats can invest in condominiums, as foreign nationals are allowed to own up to 49% of the units in a single condominium building. However, foreigners cannot own land outright but can secure long-term lease agreements (up to 30 years) or invest through a Thai company that holds land.

Stocks and Businesses:
Expats can invest in Thai stocks through a Thai brokerage account, but they may face restrictions on certain sectors. Popular sectors for foreign investors include tourism, energy, and consumer goods. Businesses can be started in Thailand, but they often require a Thai partner to own the majority (typically 51% Thai ownership is required for most sectors).

Foreign Ownership Restrictions:
Thailand has strict rules regarding foreign ownership, especially in land and sensitive industries. Expats can:

  • Own up to 49% of a condominium.

  • Start businesses in BOI-promoted sectors, which allow for more foreign ownership.

  • Use nominee agreements or leasehold structures to navigate restrictions on land ownership.

Local Investment Opportunities and Returns:
Thailand’s real estate market, particularly in major cities like Bangkok and popular destinations like Phuket, offers attractive rental yields. The stock market, through the Stock Exchange of Thailand (SET), provides access to both blue-chip and emerging companies.

For more detailed investment strategies and legal considerations, [click here].

Income Opportunities

Generating Income Legally:
Expats in Thailand can legally earn income through remote work, freelancing, or setting up local businesses, as long as they comply with Thai regulations regarding visas, work permits, and taxes.

Remote Work and Freelancing:
Expats can engage in remote work for foreign companies or offer freelancing services to international clients. However, be mindful of the type of visa you hold, as most visas do not automatically allow work without a permit.

  • Digital nomads typically rely on tourist or education visas but should avoid directly working for Thai clients without a permit.

  • Popular freelance sectors include writing, graphic design, and consulting for international clients.

Setting Up Local Businesses:
Expats can start businesses in Thailand, particularly in tourism, hospitality, and technology. Common business structures include setting up a Limited Liability Company (LLC) with a Thai partner or taking advantage of Board of Investment (BOI) incentives, which provide flexibility in foreign ownership for certain industries.

Legal and Tax Implications:
To legally work or generate income in Thailand, expats must:

  • Obtain a work permit to comply with Thai labor laws.

  • File taxes on local and foreign-earned income. Thailand has progressive income tax rates ranging from 0% to 35%, and expats must comply with both Thai tax laws and any applicable double taxation agreements.

For detailed guidance on generating income legally in Thailand, [click here].