Navigating visa & work permits for remote workers in Thailand
Imagine swapping your office view for Thailand’s breathtaking beaches. Gone are the days of hectic commutes and long lines, replaced with a hearty breakfast before you start your workday from your very own tropical home. After hours and on weekends, an entire country awaits exploration, all while maintaining your current job and salary.
This lifestyle, once the domain of digital nomads, is becoming increasingly attainable for many, thanks to the surge in remote work opportunities accelerated by the Covid-19 pandemic.
The question is, what is the status of remote workers in Thailand, and is it legal to work remotely without a work permit? Our friends at Pacific Prime Thailand are here to provide you with all the answers you seek.
Thailand digital nomad visa: Current status and future prospects
When it comes to digital nomad visas or freelance work permits in Thailand, consider a Smart Visa. This visa, soon available for digital nomads and remote workers may soon be able to apply for, gives up to a four-year stay in the Kingdom.
This proposal, which has already received approval from the Centre of Covid Situation Administration (CCSA), is now awaiting Cabinet approval. If implemented, it would allow those on tourist visas to transition to a Smart Visa, provided they meet certain criteria:
- A contract with a foreign company lasting at least 6 months
- Evidence of relevant qualifications and experience
The Smart Visa program was initially launched in February 2018, targeting science and technology experts, senior executives, investors, and startups. However, due to strict eligibility criteria, only a handful of foreigners have successfully obtained this visa.
The Board of Investment (BOI) aims to relax these requirements, potentially including foreign freelancers in the eligible categories, which would include the majority of digital nomads and remote workers.
Work permit Thailand: Legal requirements for remote workers
It’s crucial to understand that working in Thailand without proper documentation is illegal. If you wish to work remotely for a foreign employer while based in Thailand, you need to secure a work-from-Thailand professional visa.
This visa includes several factors, including personal income, work experience, your foreign employer’s financial status, and health insurance coverage.
The requirements for this visa are quite stringent, which may come as a surprise to many digital nomads. For instance, your foreign employer must meet a specific criteria:
- A private company with at least 3 years of operation and over US$150 million in combined revenue over the last 3 years
- Or be publicly listed on any country’s stock exchange
Thus, these high standards may be disheartening for some remote workers hoping to make Thailand their base of operations.
Remote work in Thailand: Practical considerations
While the prospect of working remotely in Thailand sounds ideal, it’s crucial to have a solid understanding of local tax regulations and employment laws. This knowledge will help you avoid unexpected obligations and ensure a smooth experience.
As a general rule, foreigners need a work permit to legally work in Thailand. However, those holding a work-from-Thailand professional visa can easily obtain a digital work permit for their foreign employer. The processing fee for this digital work permit is 3,000 baht per year.
It’s worth noting that if you’re legally married, you can also obtain a long-term resident visa for your spouse. This spouse can then apply for a work permit, allowing them to work in any occupation that isn’t exclusively reserved for Thai nationals.
Taxation for work-from-Thailand visa holders
Working abroad often means navigating complex tax situations, potentially resulting in obligations in both Thailand and your home country.
Typically, foreign remote workers are required to pay personal income tax in Thailand on any work performed within the country. This applies regardless of where they receive payment or their residency status.
Thai personal income tax rates operate on a progressive scale, ranging from 5% to 35%. The rate applied depends on your income bracket. Here’s a brief overview of the tax brackets:
Taxable Income per year (THB) | Tax Rate (%) |
0 to 150,000 | Exempt |
150,001 to 300,000 | 5 |
300,001 to 500,000 | 10 |
500,001 to 750,000 | 15 |
750,001 to 1,000,000 | 20 |
1,000,001 to 2,000,000 | 25 |
2,000,001 to 5,000,000 | 30 |
Over 5,000,000 | 35 |
Source: AustChamThailand
Given the complexity of international tax law, it’s highly advisable to consult a professional immigration lawyer before making the move to Thailand for remote work.
Are you a digital nomad in Thailand? Get extra coverage from Pacific Prime today
Need to access healthcare in Thailand? This on its own presents challenges for foreigners. Firstly, private hospitals, especially those catering to medical tourists, can be expensive, with treatment costs quickly escalating.
On the other hand, public hospitals aren’t always a viable alternative for most foreigners. Many implement a dual pricing system that discriminates between foreigners and Thai nationals, often charging foreigners more for covid testing, adding to other drawbacks such as overcrowding and language barriers.
Unlike local employees who often receive health insurance as part of their benefits package, remote workers in Thailand typically don’t have access to employer-sponsored health insurance.
However, this doesn’t mean you have to go without coverage. Expert insurance brokers like Pacific Prime Thailand can help you navigate your options and select an appropriate plan.
Whether you’re in search of international insurance coverage for digital nomads, or even travel insurance covering covid, their knowledgeable and friendly experts can assist you in finding the right solution.
Contact us today to explore your insurance options and make your Thai remote working dream a safe and secure reality.
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