Thailand’s LTR visa needs reworking to attract foreigners
Thailand is still confident its updated Long-Term Resident (LTR) visa will attract affluent foreigners despite more attractive LTR visa options in other countries.
On September 1, Thailand launched a revised LTR visa, joining other nations such as Cambodia, Singapore, Malaysia, and the Philippines, targeting rich foreigners.
The Thai government cut the cost of the 10-year LTR visa in half, from 100,000 baht to 50,000 baht, in a bid to attract their four target groups of foreigners: foreign experts, wealthy people, retirees, and those who want to work in Thailand.
The government believes the revised LTR visa will attract about 1 million people per year, providing a significant boost to the nation’s economic recovery after the Covid-19 pandemic. The government believe it will trigger a 1 trillion baht revenue windfall.
The initial outlay of 50,000 baht is not a significant amount of money. But, like all of these things that sound too good to be true, there is a catch. The Thai government has a set of hoops for foreigners to jump through and, for good measure, a few high fences to climb.
There is a special set of criteria each group has to meet.
Foreigners who want to live in Thailand must have combined assets of at least US$1 million and an income of at least US$80,000 per year. Not only that, but they must also invest at least US$500,000 in Thailand, in property or other assets.
Foreigners who have retired, or foreign experts, must earn at least US$80,000 per year. Those foreign experts must also have about five years of experience working at a specialist level in a targeted industry.
For foreigners who want to work in Thailand, they must earn at least US$80,000 per year and also have a minimum of five years of experience working in legally registered companies with total revenue of US$150 million in the past three years.
The visa also covers up to four family members, including dependents under 20 years of age.
When you look at options in other countries you can’t help but think that the Thai government has to try harder and lower the bar otherwise they will lose potential residents to other countries offering a much better package.
The Philippines launched a Special Investors Resident Visa (SIRV) earlier this month offering permanent residency to any foreigner who invests at least US$75,000 in business or securities.
Once a foreigner has invested in the Philippines, they are immediately awarded residency – something Thailand does not offer. The SIRV holder, their spouse, and children can freely enter and exit the Philippines whenever they desire, forever.
What about the others?
Cambodia has the Cambodia My Second Home visa, offering possible citizenship to any investor who generates US$100,000. Applicants must invest in property with the Khmer Home Charity Association. The visa offers a work permit, as does the Thai LTR.
Malaysia is offering a 20 year Premium Visa Program for an investment of US$220,000. The country also offers a Malaysia My Second Home for anyone at least 35 years of age, which has liquid assets equating to around US$320,000 and a monthly income of at least US$8600.
Singapore is launching a five-year visa programme, the Overseas Networks & Expertise Pass (ONE Pass), in January next year. Applicants must have at least 700,000 baht fixed income per month and must demonstrate that they have been working for an established company overseas for at least one year.
Individuals with outstanding achievements in the arts and culture, sports, science and technology, and academia and research qualify for the ONE Pass, even if they do not meet the salary criterion.
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