What do you expats invest in Thailand

[Thaiaddict01]

What can foreigners invest in Thailand? and what do you invest in? What's Thailand's future economy like to invest some money in it?

Maybe planning a semi-retirement to Thailand, and gonna sell my stuff and move there, but what can foreigners invest there? you can't buy houses, only condos. Can you invest in the mutual funds there? Certified deposit there? what can you invest in there? what's the tax like?

So after you guys decide you gonna move to TH and sold all your things in your country, what do you invest in? what do you buy? please share thanks. things to know like risks, dangers, banks going bankruptcy, do they have the 1 million baht FDIC thing for foreigners there in Thailand? thanks guys

[Pomthai]

A beer bar or if you have a girlfriend already maybe she'd like to open a restaurant.

The only other sure thing I can think of is getting into timeshare.

[Richie23]

Invest your money offshore (high dividend yield stocks, bonds etc) and drip feed the money in as and when you need it. Just my tuppence worth.

[soi41]

Invest your money offshore (high dividend yield stocks, bonds etc) and drip feed the money in as and when you need it. Just my tuppence worth.

Why on earth should you invest offshore, if you intend to live here? It is easy to find high dividend stocks here. And by buying locally you eliminate the risk of fluctuating exchangerates. There are other risks ofcourse, but IMO not higher here than anywhere else.

Been trading here for 10 years and never looked back. Baht is my currency for better or worse!

Tax on dividends is a flat rate of 10%. Tax on capital gains on the SET is ZERO!

Have a look at CPNRF, at its present price (17.60) it is yielding around 7% per year, paid quarterly into your account. With good and stable funds like that available here, why go somewhere else?

[bkkfaranguy]

Never invest more in Thailand that your not willing to walk away from!

[bangkoklad1]

Never invest more in Thailand that your not willing to walk away from!

As opposed to any other form of investing?

[garyk]

I personally would invest in a place you are comfortable with. if you invest where you are then keep going. Why complicate it?

[AnotherOneAmerican]

Invest your money offshore (high dividend yield stocks, bonds etc) and drip feed the money in as and when you need it. Just my tuppence worth.

Why on earth should you invest offshore, if you intend to live here? It is easy to find high dividend stocks here. And by buying locally you eliminate the risk of fluctuating exchangerates. There are other risks ofcourse, but IMO not higher here than anywhere else.

Been trading here for 10 years and never looked back. Baht is my currency for better or worse!

Tax on dividends is a flat rate of 10%. Tax on capital gains on the SET is ZERO!

Have a look at CPNRF, at its present price (17.60) it is yielding around 7% per year, paid quarterly into your account. With good and stable funds like that available here, why go somewhere else?

Because Thailand is an inherently unstable banana republic.

Any foreigner could be removed from the country without any notice or compensation.

Any assets that person had brought here would/could be lost.

Civil war could value the shock market at ZERO tomorrow.

You are happy to accept those risks, many others are not.

No way I would ever bring any of my serious money to Thailand.

[Naam]

Never invest more in Thailand that your not willing to walk away from!

[foxteen]

Quite agree is more risk here as long you understand where you are and stand and can walk away still smiling

[foxteen]

Quite agree is more risk here as long you understand where you are and stand and can walk away still smiling

[LuckyLew]

I think Thailand now is a bad place to invest

Thais living way past there means

Gov't spending and stealing too much

Lots of construction ... too few buyers

Bubble gonna burst soon

Buy gold

[yoshiwara]

You can invest in Thailand without bringing a penny to Thailand. Just buy into an appropriate investment or unit trust either in your country or offshore. Your primary exposure looking forward is FX risk, so you can build up up to 3 years spending money in baht in a Thai bank savings account. Other than that blow your money on some business venture you know little about. That has been the favourite activity for years.

[WhizBang]

The way to make a small fortune in Thailand, is to start with a large one.

Personally, I only invest in Thai women.

[midas]

You can invest in Thailand without bringing a penny to Thailand. Just buy into an appropriate investment or unit trust either in your country or offshore. Your primary exposure looking forward is FX risk, so you can build up up to 3 years spending money in baht in a Thai bank savings account. Other than that blow your money on some business venture you know little about. That has been the favourite activity for years.

your primary exposure in this day and age is that your money isn't being “ taken care of “ by another Jon Corzine type of individual or another LM Investment and that the whole lot disappears. But then we would never expect that people like you would give any other kind of “ advice “

A BETRAYAL OF TRUST

The country's banks might be amongst the best-regulated in the world, but outside the banks it's a very different story. In the past five years it's estimated up to fifteen billion dollars worth of investments have been lost in dubious investment schemes.

http://www.abc.net.au/4corners/stories/2013/03/04/3700673.htm

Edited July 17, 2013 by midas

[Time Traveller]

Invest your money offshore (high dividend yield stocks, bonds etc) and drip feed the money in as and when you need it. Just my tuppence worth.

Why on earth should you invest offshore, if you intend to live here? It is easy to find high dividend stocks here. And by buying locally you eliminate the risk of fluctuating exchangerates. There are other risks ofcourse, but IMO not higher here than anywhere else.

Been trading here for 10 years and never looked back. Baht is my currency for better or worse!

Tax on dividends is a flat rate of 10%. Tax on capital gains on the SET is ZERO!

soi41 makes a good point. If you are a tax resident in thailand you do get benefits by investing here. For example, in the dividends of thai stocks these mostly come with tax credits based upon the corporate taxes the company has already paid. For many investors this tax rate is higher than their effective personal tax rate so it is advantageous for such dividend recipients to file tax returns including the dividends and claim this money back. It's worthwhille instead of just accepting the 10% withholding as the final tax.

[circusman]

Never invest more in Thailand that your not willing to walk away from!

I can't understand why you post only a emoticon and say nothing.

To build your post totals ? Waste of broadband maybe.

[Utley]

U.S. based no-load mutual funds. I like keeping my money.

[1FinickyOne]

The world of investment is inherently unstable and maybe more so than ever these days. If you are going to invest in RE here, really research the market - it can be quite difficult to sell anything in some places and prices can actually depreciate as newer buildings developemnts are constantly going up and yours become older and due to climate, things do fall apart more easily than other non-tropical places...

But I treat it as all my investments and try and diversify - the banks are yielding just over 3% for cds and other instruments yield more but you need to be a Thai citizen. I would not bring everything here if you have substantial assets. And do not buy a beer bar.

[oneday]

To answer your question straight up without advice.

All of what you mentioned is available here to invest in. I'm only brave enough at this point to invest in a FIXED RATE account that has zero taxes. My current account started this Monday is at 2.75% for 6 months. Siam Commercial Bank (SCB) was 2.85% for the same time frame and Bangkok Bank was 2.6%. This last week these were the three best banks of the ones I checked. Every week the rates change.

Mutual funds are also available through the Green "K" Bank and I assume other banks.

Good luck.

[jpinx]

You say "semi-retirement" .. does that mean you will not live here full-time, or what ?

I suggest you trawl the internet for banks doing fixed term deposits at a reasonable rates in a stable country. You might have to fly to where-ever-land to sign the papers, but usually you only have to do that once and then everything is online. Obviously check their tax status and apply your situation accordingly.

[Suradit69]

The way to make a small fortune in Thailand, is to start with a large one.

Personally, I only invest in Thai women.

"The way to make a small fortune in Thailand, is to start with a large one."

There's plenty of risk everywhere in the world and there are more than a few "black swans" lurking, but most of you are making an emotional call rather than one based on reality in comparing Thailand, the US and the Eurozone.

Look back over the period when the Bush-Cheney economic and financial collapse started gaining momentum. All the safe bets like the US S&P, Japan, the whole of the Eurozone, Lehman Bros., Washington Mutual, WorldCom, General Motors, Enron, PGEC, Bears Stearns, Lloyds, Citi, Northern Rock ... whether or not they survived, they were death traps for investors.

How about investing in "safe" real estate? Or putting your money in a bank in the Eurozone where threats were made to just confiscate funds of Russian or other depositors?

It's possible to make money or lose money in a lot of different places, but if your investment thesis is based on calling one place a banana republic and feeling comfortable with the "absolute safety" offered by investing in the west, you're allowing childish emotions to guide your investments, which rarely ends well.

Everyone got all bent out of shape and made plans to leave Thailand when the exchange rate was falling against the "safe" currencies. That should send a message that you need to build up Baht reserves when the exchange rate is working your way and draw those down when the exchange rate is poor. Whether you invest the money, keep it in a bank, buy gold or whatever, you have the potential to be ahead.

Keeping all your money here would be foolish for a lot of reasons, but over the past 5 years Thailand has pulled in a lot of foreign investment because it presented a good place to put money ... and it paid off.

Protecting your money against inflation and rampant money printing is another consideration that's a looming threat. And keeping your money in Yen or Aus$ or Euros or US$ because they're all so much safer than the baht hasn't been a great strategy recently.

Edited July 17, 2013 by Suradit69

[khunPer]

The banks have Fund Books with both bonds and stocks. I am familiar with Bangkok Bank and SCB (Siam Commercial Bank). The bonds do not pay dividend/interest but accumulate. The outcome is quite low, around 2.5% to 3% pa (up/down with market), but the risk is also low. The stock options come in different series with various mix of branches/risk. Some pays dividend, some are accumulating. I have used SCB LT1, with dividend, and the accumulating LT2. That kind of investment shall be looked at over long term. During the last years the annual dividend has been around 4% (net after withholding tax) and the increase in value around 10%. For the accumulating LT2 the increase was around 20%.

You can also open an account with a broker company and do the trading yourself, as often used by day-traders.

To open a bank account as foreigner you may need a Thai address, may be different from bank to bank, but not as easy as before. If you plan to stay on retirement extension of your Visa, you will need to prove an income and/or a deposit in a Thai bank. Immigration do no longer accept Fund Books as deposit, so that money may be placed at 12 month fixed account(s) or the ongoing special fixed account offers. Interest is normally between 2% pa and up to average 3.5% pa on special fixed term accounts. There is a guarantee on 1 mio. bath for each bank – however, not sure how Fund Books are handled, if within the guarantee or not?

There are different opinions about investing in Thailand; some say it is (very) good and other recommend to stay away. May be depending of, where you are going to use your outcome or savings. If you invest offshore you will need to change currency, and from for example USD or GBP the currency exchange loss has been some 20% plus over the past years.

You can own a house, but not the land the house sits on – which you have to lease or hold in other arrangements. That may make investment in a house a bit risky, depending on your land arrangements. But as you are going to live somewhere, owing a house may be an option. You can own a condo in your own name. When transferring money to buy condo or build house (min. equivalent to 20,000 USD), remember to have a form from the Thai National Bank stating the money is for condo/house, so you legally can take them out of Thailand again, if you sell your property.

There are special favorable rules, hereunder residency permission, if you invest more than 10 mio. bath within certain approved branches.

Investing in a business may be a lot more risky and requires a Thai partner, as you can maximum own 49% as foreigner. If you shall be active involved in the business, you will need a work permit. There is an interesting book with a lot of details on the subject written by Philip Wylie: “How to Establish a Successful Business in Thailand” (Paiboon Publishing, 1-887521-75-8).

Taxes. Tax on dividend and high interest accounts is 15% withholding tax. On low interest accounts, like a normal bankbook, you may pay 1% tax or no tax at all (as foreigner). Business/company tax is between 20% and 30%, depending of profit, they often change a bit in the rules. Personal income tax – which for foreigners may only apply for money earned in Thailand, not overseas savings – start at 5% and goes in small steps up to 35% (of what you earn more than 4 mio. bath). You have some personal deductions, but count the first 180,000 baht as income tax free.

You ask about the future economy of Southeast Asia? It may be more promising than Europe or USA, but depending who you ask.

Hope this may help your and wish you good luck with your future plans.

[AnotherOneAmerican]

You ask about the future economy of Southeast Asia? It may be more promising than Europe or USA, but depending who you ask.

Nobody did.

OP was asking about Thailand, biggest basket case in SE Asia.

Who thinks it's a good idea to put all their money in Cyprus or Greece, because they are probably a better bet than Thailand.

[maprao]

Never invest more in Thailand that your not willing to walk away from!

I can't understand why you post only a emoticon and say nothing.

To build your post totals ? Waste of broadband maybe.

Obviously in your relatively short time as a member here you have not got to know the characters so well. Look at previous posts and you will soon see a picture or an emotion can speak a thousand words. This especially relevant to some of our seasoned characters here like Naam

[maprao]

Never invest more in Thailand that your not willing to walk away from!

I can't understand why you post only a emoticon and say nothing.

To build your post totals ? Waste of broadband maybe.

Obviously in your relatively short time as a member here you have not got to know the characters so well. Look at previous posts and you will soon see a picture or an emotion can speak a thousand words. This especially relevant to some of our seasoned characters here like Naam

[SSSlongtime]

Invest your money offshore (high dividend yield stocks, bonds etc) and drip feed the money in as and when you need it. Just my tuppence worth.

Why on earth should you invest offshore, if you intend to live here? It is easy to find high dividend stocks here. And by buying locally you eliminate the risk of fluctuating exchangerates. There are other risks ofcourse, but IMO not higher here than anywhere else.

Been trading here for 10 years and never looked back. Baht is my currency for better or worse!

Tax on dividends is a flat rate of 10%. Tax on capital gains on the SET is ZERO!

Have a look at CPNRF, at its present price (17.60) it is yielding around 7% per year, paid quarterly into your account. With good and stable funds like that available here, why go somewhere else?

Because Thailand is an inherently unstable banana republic.

Any foreigner could be removed from the country without any notice or compensation.

Any assets that person had brought here would/could be lost.

Civil war could value the shock market at ZERO tomorrow.

You are happy to accept those risks, many others are not.

No way I would ever bring any of my serious money to Thailand.

[jpinx]

Invest your money offshore (high dividend yield stocks, bonds etc) and drip feed the money in as and when you need it. Just my tuppence worth.

Why on earth should you invest offshore, if you intend to live here? It is easy to find high dividend stocks here. And by buying locally you eliminate the risk of fluctuating exchangerates. There are other risks ofcourse, but IMO not higher here than anywhere else.

Been trading here for 10 years and never looked back. Baht is my currency for better or worse!

Tax on dividends is a flat rate of 10%. Tax on capital gains on the SET is ZERO!

Have a look at CPNRF, at its present price (17.60) it is yielding around 7% per year, paid quarterly into your account. With good and stable funds like that available here, why go somewhere else?

Because Thailand is an inherently unstable banana republic.

Any foreigner could be removed from the country without any notice or compensation.

Any assets that person had brought here would/could be lost.

Civil war could value the shock market at ZERO tomorrow.

You are happy to accept those risks, many others are not.

No way I would ever bring any of my serious money to Thailand.

I wonder what he wanted to say ?

[Skytrain2hell]

I invest in the Thai stock market, and am very happy with it. A lot of the people who will try and scare you out of investing in the SET don't know anything about financial markets, and will give you "what if" doom and gloom scenarious ala FOX News. You just ride out things like the floods or political turmoil. If you're lucky and have cash on hand, you buy after those things do their damage.

Markets go up and down throughout the world. The Thai stock market was one of the best things out there last year, and still shows signs up a continued bull market. Clashes between political parties are normal, and investors understand that. If you don't need too much liquidity, the SET is not a bad choice.

Green energy is a great sector to follow in Thailand. It's mimmicking that of the US during the solar and wind energy boom (and subsequent crash). It's currently in the early stages, and by studying what happened in the US, it should be easier to know when to get out. Follow a few stocks like: HYDRO, DEMCO and UAC.

Then again, if I were 65 years old, I wouldn't dare get too risky...I would just put money into the fixed accounts they have here. I've got my kids' tuition locked in a Bangkok Bank 11 month account, which earns 3.11%.

If you want to start a business here, work in a similar one for at least a year. If you try to learn everything on the go while bleeding out money, you'll most likely fail. Stay away from real estate for the time being, and don't listen to broke farangs with "amazing" business ideas. Good luck.

[Naam]

Invest your money offshore (high dividend yield stocks, bonds etc) and drip feed the money in as and when you need it. Just my tuppence worth.

Why on earth should you invest offshore, if you intend to live here? It is easy to find high dividend stocks here. And by buying locally you eliminate the risk of fluctuating exchangerates. There are other risks ofcourse, but IMO not higher here than anywhere else.

Been trading here for 10 years and never looked back. Baht is my currency for better or worse!

Tax on dividends is a flat rate of 10%. Tax on capital gains on the SET is ZERO!

soi41 makes a good point. If you are a tax resident in thailand you do get benefits by investing here. For example, in the dividends of thai stocks these mostly come with tax credits based upon the corporate taxes the company has already paid. For many investors this tax rate is higher than their effective personal tax rate so it is advantageous for such dividend recipients to file tax returns including the dividends and claim this money back. It's worthwhille instead of just accepting the 10% withholding as the final tax.

if you are a tax resident in Thailand you don't pay any taxes on your offshore earnings or capital gains. on top of it you are free to move/invest your money offshore by email, mouseclick or a phone call.

once your money is in Thailand you are at the mercy of rules, regulations, restrictions, documentation and [mostly] ignorant bank employees when you want to move your funds abroad.