TAT latest: Elite card holders who buy a condo can stay "long term" and get work permit - but there's a catch

[webfact]

TAT latest: Elite card holders who buy a condo can stay "long term" and get work permit - but there's a catch

 

Picture: Thai Rath

 

The governor of the Tourism Authority of Thailand told Thai Rath that he is proposing changes to the Elite Card that allows well-heeled foreigners to stay in Thailand long term. 

 

Now foreigners who invest in the real estate market can get to stay and even get a work permit, but there is a financial catch.

 

Yutthasak Suphasorn said that his plan is to change the arrangements for those that apply for an Elite Card at a cost of between one and two million baht. 

 

If the card holder subsequently invests $1 million (31 million baht) in Thailand in the following year they will be eligible for a long term stay and a work permit.

 

The media did not report what long term actually meant. 

 

Yutthasak cautioned that if investment is subsequently removed from Thailand the rights will be revoked. 

 

He said there are a multitude of ways to invest in Thailand and the country desperately needs investment especially during the Covid-19 crisis.

 

One of the ways for a foreigner to get long term stay and a work permit in Thailand would be to invest $1 million dollars in real estate, such as the condo market where non-Thais can invest legally. 

 

He said that at present there are 11,000 Elite Card holders and that interest in August and September doubled. He put this down to "tourists" stranded in Thailand who wanted to stay past the September 26th amnesty deadline that was announced. 

 

He said that most interest had come from visitors from China, America and Europe. 

 

Thaivisa notes that the so-called "tourists" would have to be very well-heeled. Rather amusingly, the Thai Rath story was accompanied by a picture of backpackers.

 

Yutthasak added that he hopes the "Rao Thiaw Duay Gan" (let's take a trip together) domestic stimulus scheme will be extended to the end of this year. 

 

And he said that he thinks the recently announced long weekend holidays for November and December will be even better in terms of revenue than the Songkran replacement long weekend back at the beginning of September. 

 

He expects Thais to take 3 million individual trips and spend 12 billion baht on each of the long weekends totalling 24 billion baht. 

 

Source: Thai Rath

 

 

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[Artisi]

More wishful thinking, or was it fortune telling? 

[RotBenz8888]

3 minutes ago, webfact said:

If the card holder subsequently invests $1 million (31 million baht) in Thailand in the following year they will be eligible for a long term stay and a work permit.

 

The media did not report what long term actually meant. 

Seems like they've forgot to take their neuroleptics again. 

[BritManToo]

4 minutes ago, webfact said:

If the card holder subsequently invests $1 million (31 million baht) in Thailand in the following year they will be eligible for a long term stay and a work permit.

Doubt anyone with $1M to play with would want to live in Thailand, or even holiday here more than once.

I certainly wouldn't.

 

I'd like to ask TAT ...... why do you think rich foreigners would want to live in Thailand? (or even holiday here?)

[Pattaya Spotter]

It's a little like how the Elite Card was marketed when it first came out 18 years ago. I remember when the Square Faced One initiated the program and handed out some free memberships to people like Bill Gates that he predicted like a million and a half memberships would be sold withing a few years...11k after almost 20 years and it seems they still have a ways to go.

[JonnyF]

A million dollar work permit? Sounds great.

 

There must be loads of multi-millionaires out there who dream of getting a job in Thailand.????

[Pattaya Spotter]

5 minutes ago, BritManToo said:

I'd like to ask TAT ...... why do you think rich foreigners would want to live in Thailand? (or even holiday here?)

The temples and beaches?

[Misterwhisper]

5 minutes ago, Pattaya Spotter said:

It's a little like how the Elite Card was marketed when it first came out 18 years ago. I remember when the Square Faced One initiated the program and handed out some free memberships to people like Bill Gates that he predicted like a million and a half memberships would be sold withing a few years...11k after almost 20 years and it seems they still have a ways to go.

And Bill never came, let alone settled and invested here. Nor did Tiger Woods, another "Elite Card" laureate courtesy of the "Square Faced One". Bummer.

[BritManToo]

Just now, Pattaya Spotter said:

The temples and beaches?

Never been to a Thai beach that is good as any Viet beach.

Thai beaches are usually dirty and have bitey sandflies.

[Henryford]

You can buy a condo but are not allowed into the country to use it. Great idea.

[donnacha]

There was some discussion of this news when I posted it yesterday in a related thread. I was not able to create a new thread here in the News section, seems to be restricted.

My own take is that this move actually indicates a direction that would be a lot smarter for Thailand than it at first appears.

https://forum.thaivisa.com/topic/1184176-tat-turning-to-the-super-wealthy-to-boost-domestic-tourism/?do=findComment&comment=15848334

In short, some bright spark has figured that taxes in most of the world are going to rocket post-Covid and that, along with the swing towards remote working, there will be a big increase in the number of individuals and families attracted by the loophole of Thailand not taxing income generated abroad.

Thailand's tax system is designed to benefit rich Thais but, at this crunch-time for the Thai economy, they can leverage that to attract a significant number of well-heeled expats. Not quite the actual super wealthy who can afford the Bahamas, but a wider target that, in particular, takes in the European middle classes, the same audience that Mohammad Bin Salman is targeting with Neom.

They will just keep referring to the "super wealthy" it order to make it easier for the ultra-nationalists to swallow these concessions.

 

 

[ezzra]

Therese immigration visa news become similar to a USA TV advertising... buy/do this and that you will get this and that , BUT WAIT, there's more, here comes the CATCH... there's is always a catch is there? nothing can be just smooth, not tricks and hidden meaning is there? otherwise it will be no Thailand would it now?...

[ThailandRyan]

32 minutes ago, Pattaya Spotter said:

The temples and beaches?

No they come here now for the free Mercedes or Porsche when you buy a Hi-End Condo, and now you of course get your longstay visa and a work permit.  Looks like a dream come true for those Digital Nomads who have been whining lately.

[TheFreqFlyer]

28 minutes ago, BritManToo said:

Never been to a Thai beach that is good as any Viet beach.

Thai beaches are usually dirty and have bitey sandflies.

So are many Vietnamese beaches; the ones without tourists are full of trash. There are plenty of good Thai beaches, you just haven't traveled much - I suggest you look further than Pattaya or Bang Saen.

 

Also some very nice Vietnamese ones, but one thing that stands out about Vietnamese waters is they're cold, compared to Thailand. At least anywhere north of around Nha Trang that is. Northern Vietnam is not a year-round beach destination. The water and air temps are comfortable for forays to the beach between April and November only. Locals might find even April and November to be a bit too cool so their window is between roughly May and October. 

 

Even as far south as Mui Ne during the dry season, the water temps can be a little on the cool side for a tropical country, but definitely not too cold for a swim. However, temps can get down to like 23 or 24 degrees C around there, which is a lot lower than Thai waters. Phu Quoc is in the gulf of Thailand hence enjoys similar water temps to Thai beach resorts. 

 

All Thai beach areas are year-round destinations. 

[Neeranam]

Investing half of that, $500,000, I could get a retirement visa in the USA. Not sure about a WP.

[Captain Monday]

21 minutes ago, Henryford said:

You can buy a condo but are not allowed into the country to use it. Great idea.

Yep, and now I may never see it in 2021 unless I buy another 5 year Elite membership although there is 

no valid medical reason I could not arrive on a Non 0-A, or any other bit of sticker paper.

[Neeranam]

56 minutes ago, BritManToo said:

Doubt anyone with $1M to play with would want to live in Thailand, or even holiday here more than once.

I certainly wouldn't.

Not sure why you doubt this. I know many rich people who live here.

Why do you live here? 

[GeorgeCross]

Quote

In May, the richest man in Thailand, Dhanin Chearavanont, urged the Thai government to be bolder and take some risks to resurrect the decimated Thai economy. 

The multi-billionaire warned that it stood to lose trillions of baht a year by its failure to open the country back up to tourism.

However, what the Chairman of the huge CP Group conglomerate had in mind was re-launching Thai tourism as a haven for wealthy people around the world who wish to come and stay in Thailand.

The highly successful businessman urged the government to use the Covid 19 crisis in such a fashion to create an opportunity to upsell Thailand as a tourist destination for the world’s elite who can afford to pay.

https://www.thaiexaminer.com/thai-news-foreigners/2020/09/25/rejigged-thailand-elite-card-promoting-country-as-an-oasis-for-the-wealthy/

 

make sense now?

 

 

[holy cow cm]

1 hour ago, webfact said:

Yutthasak cautioned that if investment is subsequently removed from Thailand the rights will be revoked. 

There ya go. Pay up and then it will be revoked. Can’t trust this one bit. 

[GeorgeCross]

there is no way i would invest $1M in a tin pot dictatorship with a penchant for overthrowing democratically elected governments and changing the rules on a whim to suit themselves nevermind the way they treat those they consider "not on their team"

 

looking at offshore havens the Caribbean is far more stable, has better taxes, lifestyle and connections. plus for that kind of money they'd throw in a passport and one can invest the cash in land and villa not a box in the sky

 

just my 2c

 

[Nout]

55 minutes ago, BritManToo said:

Never been to a Thai beach that is good as any Viet beach.

Thai beaches are usually dirty and have bitey sandflies.

How many islands have you visited in Thailand?

[Nout]

9 minutes ago, GeorgeCross said:

https://www.thaiexaminer.com/thai-news-foreigners/2020/09/25/rejigged-thailand-elite-card-promoting-country-as-an-oasis-for-the-wealthy/

 

make sense now?

 

 

No. And it didn't then.

[Captain Monday]

Thailand should just adapt the Iceland model.

[Nout]

33 minutes ago, donnacha said:

There was some discussion of this news when I posted it yesterday in a related thread. I was not able to create a new thread here in the News section, seems to be restricted.

My own take is that this move actually indicates a direction that would be a lot smarter for Thailand than it at first appears.

https://forum.thaivisa.com/topic/1184176-tat-turning-to-the-super-wealthy-to-boost-domestic-tourism/?do=findComment&comment=15848334

In short, some bright spark has figured that taxes in most of the world are going to rocket post-Covid and that, along with the swing towards remote working, there will be a big increase in the number of individuals and families attracted by the loophole of Thailand not taxing income generated abroad.

Thailand's tax system is designed to benefit rich Thais but, at this crunch-time for the Thai economy, they can leverage that to attract a significant number of well-heeled expats. Not quite the actual super wealthy who can afford the Bahamas, but a wider target that, in particular, takes in the European middle classes, the same audience that Mohammad Bin Salman is targeting with Neom.

They will just keep referring to the "super wealthy" it order to make it easier for the ultra-nationalists to swallow these concessions.

 

 

Income generated abroad is taxable

[donnacha]

1 minute ago, Nout said:

Income generated abroad is taxable

I did not want to overcomplicate my comment.

The loophole is that you must keep it abroad for one year, but I am unaware of this ever being checked or, indeed, how they could check it.

The working principle is to welcome any money brought in, and banks just tick the boxes by sometimes asking what the money is from.
 

[ChouDoufu]

1 hour ago, BritManToo said:

Doubt anyone with $1M to play with would want to live in Thailand, or even holiday here more than once.

I certainly wouldn't.

 

I'd like to ask TAT ...... why do you think rich foreigners would want to live in Thailand? (or even holiday here?)

you might ask why "very well-heeled" foreigners with a million or two baht to blow on an elite card, plus a million bucks as "hostage" for the duration, NEED a work permit.

[GeorgeCross]

1 minute ago, Nout said:

Income generated abroad is taxable

 

Partly true, Income generated abroad & remitted during the current calendar year is taxable

 

Quote

Salaries receive from employment exercises outside of Thailand are exempt from Thai tax, if not paid in or remitted into Thailand within the same calendar year it is received and provided the cost is not recharged into Thailand.

 

Quote

Interest, dividend, and rental income derived from sources outside Thailand by resident of Thailand are taxable in Thailand to the extent such income is paid or remitted into Thailand within the same calendar year it is received. Non-resident is not subject to Thai tax on such income from foreign-sourced, in any case.

 

Quote

Any capital gain or investment income from sources outside Thailand is not subject to taxation unless a resident taxpayer remitted the process into Thailand within the same calendar year it is received.

 

 

[Berkshire]

30 minutes ago, Neeranam said:

Investing half of that, $500,000, I could get a retirement visa in the USA. Not sure about a WP.

The USA does not have a retirement visa.  What are you talking about? 

[BritManToo]

16 minutes ago, Nout said:

How many islands have you visited in Thailand?

I've been to Koh Samet, Koh Libong, Pattaya, Hua Hin, Trang .......... last 3 dirty and all bitey.

In Vietnam Vung Tau Back beach and Da Nang, all really really clean and no bitey insects at all, was surprised. 

[donnacha]

23 minutes ago, ChouDoufu said:

you might ask why "very well-heeled" foreigners with a million or two baht to blow on an elite card, plus a million bucks as "hostage" for the duration, NEED a work permit.

This is just a guess, but I think they are structuring things so that they can claim, with somewhat more validity then they currently can, that the Elite card holders / investors are legitimately tax-resident while not actually being properly resident.

A million is nothing, it's a building or a few condos. That is enough, however, for the Elite card holder to be generating income in Thailand and paying actual taxes on that. The work permit clears up any doubts about whether they are allowed to work their investment. 

So, the money generated in Thailand will allow them to claim, truthfully, that they do actually pay taxes in Thailand, even if most of their money, from their online job, ends up being untaxed.

The main thing Thailand wants to protect, as it ramps this up post-Covid, is their international reputation. They now need to be a tax haven, but they don't want to be called a tax haven.