Alternative For Financial Qualification

[Thaiquila]

OK, this is a semi academic question, but I am curious anyway.

If you are qualifying for a retirement visa based on bank account (and no pension), could you do something like this and still get extensions?

- Buy 1 million baht in Thai government bonds from a Thai government bank. Leave it there indefinitely.

- Bring in your living money by ATM withdrawals from your home country, and being able to provide prints of the transactions (ATM slips and statements), "proving" you are using foreign sourced money to live

You can probably see the advantages of this.

The 800,000 plus baht you have to keep in a Thai bank account would now earn interest, and also you would never have to worry about the deadlines to top up your Thai bank account with foreign sourced funds (as is evident on other posts, a lot of US people are having issues with the mechanics of doing this due to restrictions imposed by their US banks).

Any informed thoughts on whether this would be accepted by immigration?

[Neeranam]

I'm no bread head but I would have thought that sticking 1 million baht in a foriegn bank would be better and then transferring it once a year.

Ok, there will be the transaction cost, but wouldn't you get a higher interest?

[Thaiquila]

Yes, over time you would likely be ahead money-wise, because bonds earn interest and bank accounts generally don't (at best very little). So if are retiring long term in Thailand, you would make interest on that chunk of money the whole time. Also, of course, there are fees to wire new funds in every year (but then again there are ATM fees too).

The problem I see is with immigration accepting this (a fixed investment) for extensions. The logical reason behind the 800K baht Thai bank account is that you have very liquid resources in Thailand so you don't become a burden to Thailand. With a bond, it is less liquid, and it sits there, so there is no spending flow, so I am guessing immigration might not grant extensions for these reasons, which is why I am asking if anyone knows.

[Maestro]

- Buy 1 million baht in Thai government bonds from a Thai government bank. Leave it there indefinitely.

Make it 3 million and get non-IM visa status.

Unlike the non-O “retirement”, the non-IM will let you apply for a work permit if you feel like working, and as far as I know there’s no need to show funds in a savings account for the annual extensions, just keep those 3 million invested, but let’s wait for an expert to come and confirm this.

[Thaiquila]

Yes, I know about the 3 million investment option but I am under the impression that the return on Thai govt bonds is less than stellar.

So you would have 3 million in baht (a currency risk betting the baht stays relatively strong) and probably making less than you could in non-Thai investments. Not a bad idea for those who can afford it.

Any info on what Thai government bonds are yielding these days and what are the terms?

[lopburi3]

Immigration would likely not accept either an investment or the use of ATM to prove foreign income in OP.

[dr_Pat_Pong]

Lop is correct. One is supposed to live off that 800,000 baht. I think that they'll tell you MAI DAI.

[Thaiquila]

Yeah, I guess I sort of knew that, but was wondering if bank statements showing living income coming from outside Thailand might work (I had heard they don't like ATMS).

I understand rules are rules and my idea is thus a no go, but isn't this another case where the rules are actually self defeating (as far as economic benefit for Thailand)? In the scenario I proposed the retiree would lock up a million baht indefinitely in Thai government bonds AND bring in all his spending money from abroad and spend it every year, if this was also a million baht, the benefit to Thailand would be double the retiree who doesn't have the bond. (The bonds I was talking about I had assumed could be held in a Thai approved government bank.)

In any case, I will let this one go. Thanks as usual.

Edited November 29, 2005 by Thaiquila

[Firefan]

I have seen this discussion here before about whether they really want to see proof of you spending from the 800k and seems milage may vary.

That said one can just combine the OP idea: wire in the cash once a year, and transfer chunk of it to bonds after having obtained visa extension, while spending it down over the year. At least one obtain a bit better return than leaving in the bank for the year.

Disclaimer: bond values can go up and down.

Cheers!

[astral]

I am under the impression that the return on Thai govt bonds is less than stellar.

So you would have 3 million in baht (a currency risk betting the baht stays relatively strong) ........

<{POST_SNAPBACK}>

It has dropped 10% in the last 6 months!!

Better to spend the money and top up each year.