By Kelly Iverson
| What’s the deal with digital nomads in Thailand? DIGITAL nomads are ditching their day jobs in hopes of working for themselves, by themselves. Thailand is one of the most sought after home bases for digital nomads hailing from around the world, but what does it take to be one of these vagrant employees in the Kingdom? Why Thailand? Digital nomads are trending in Thailand. After Berlin, Barcelona, and Budapest, Bangkok comes in as the best city to work in remotely according to Nomad List. Chiang Mai also makes the cut coming in at number seven and the southern island of Phuket falls at number 27. The cost of living, internet connectivity, fun, and safety are a few factors nomads take into consideration before relocating remotely, and Thailand seemingly exceeds expectations in each one of these categories. The country is also a hodgepodge of unique culture, the locals are friendly, and it is overall a stunning place to reside, so it is easy to see why so many digital nomads are moving to the Land of Smiles. |  |
Is there a visa for digital nomads?
Unfortunately for digital nomads, there is no such visa in Thailand that exists for them. There is, however, a new visa classification that has been announced by the Prime Minister’s Delivery Unit (PMDU) this past August.
Any guidelines or information on the visa have yet to be released, but what we do know is that it is called the smart visa, and it is estimated that it will be in effect as of January 2018.
“Early specifications indicate this would be a four-year visa, eligible to applicants who must be investors, startup entrepreneurs, high-level executives or highly skilled professionals. Unfortunately, the announcement was lacking any detail in eligibility criteria, cost or procedure,” Gareth Knight, Business Consultant at Interactive Associates, said.
It would also provide greater flexibility for dependents (spouse and children) attached to the visa. And while this visa has received traction on the internet as the new visa for digital nomads in Thailand, Knight is sceptical.
“In our view, the new visa is unlikely to undermine any existing projects, such as BOI promotion and Thailand Elite,” Knight said. “The cheapest Thailand Elite membership card costs B500,000 for five years, and that does not include any right to work within the Kingdom. Companies need to jump through many hoops to get BOI approval for foreign ownership and work permit solutions, including needing to show that capital has been brought into the country. In this context, it’s hard to make a connection to the eligibility of this visa for a typical digital nomad.”
What now?
There are still a few avenues travellers can venture down to work as digital nomads in Thailand. The most popular visas to attain as a digital nomad are tourist visas, retirement visas and education visas. The requirements for each one varies, though these ensure applicants have at least 60 days in the country as a digital nomad. The main issue on how digital nomads can obtain long-term visas has yet to be solved, however.
“Over-50s have the retirement visa to fall back on, although this prohibits ‘work,’” Knight said. “Otherwise, the best way to obtain a long-term visa solution is to have a company sponsor a work permit. Savvy digital nomads have been setting up companies to support their work here and then transferring ownership to others when it is time to move on. This is by far the most reliable way of staying here legally with a long-term visa.”
What about taxes?
Countries enter double tax treaties or agreements with one another to ensure people do not pay taxes twice, otherwise known as double taxation. Thailand is not a tax haven, so those nomads who are not paying taxes in their home country must pay them here. Nomads can get tax identification numbers from the revenue department.
Digital nomads do not need to pay taxes if they are not a resident. Non-residents only pay taxes if their income comes from a source inside the country. That being said, anyone who has resided in the country for at least 180 days is considered a resident and must pay taxes as such.
While Thailand does not have any type of tangible visa for digital nomads, these remote workers will continue to live the drifting life with the country acting as their office.
Unfortunately for digital nomads, there is no such visa in Thailand that exists for them. There is, however, a new visa classification that has been announced by the Prime Minister’s Delivery Unit (PMDU) this past August.
Any guidelines or information on the visa have yet to be released, but what we do know is that it is called the smart visa, and it is estimated that it will be in effect as of January 2018.
“Early specifications indicate this would be a four-year visa, eligible to applicants who must be investors, startup entrepreneurs, high-level executives or highly skilled professionals. Unfortunately, the announcement was lacking any detail in eligibility criteria, cost or procedure,” Gareth Knight, Business Consultant at Interactive Associates, said.
It would also provide greater flexibility for dependents (spouse and children) attached to the visa. And while this visa has received traction on the internet as the new visa for digital nomads in Thailand, Knight is sceptical.
“In our view, the new visa is unlikely to undermine any existing projects, such as BOI promotion and Thailand Elite,” Knight said. “The cheapest Thailand Elite membership card costs B500,000 for five years, and that does not include any right to work within the Kingdom. Companies need to jump through many hoops to get BOI approval for foreign ownership and work permit solutions, including needing to show that capital has been brought into the country. In this context, it’s hard to make a connection to the eligibility of this visa for a typical digital nomad.”
What now?
There are still a few avenues travellers can venture down to work as digital nomads in Thailand. The most popular visas to attain as a digital nomad are tourist visas, retirement visas and education visas. The requirements for each one varies, though these ensure applicants have at least 60 days in the country as a digital nomad. The main issue on how digital nomads can obtain long-term visas has yet to be solved, however.
“Over-50s have the retirement visa to fall back on, although this prohibits ‘work,’” Knight said. “Otherwise, the best way to obtain a long-term visa solution is to have a company sponsor a work permit. Savvy digital nomads have been setting up companies to support their work here and then transferring ownership to others when it is time to move on. This is by far the most reliable way of staying here legally with a long-term visa.”
What about taxes?
Countries enter double tax treaties or agreements with one another to ensure people do not pay taxes twice, otherwise known as double taxation. Thailand is not a tax haven, so those nomads who are not paying taxes in their home country must pay them here. Nomads can get tax identification numbers from the revenue department.
Digital nomads do not need to pay taxes if they are not a resident. Non-residents only pay taxes if their income comes from a source inside the country. That being said, anyone who has resided in the country for at least 180 days is considered a resident and must pay taxes as such.
While Thailand does not have any type of tangible visa for digital nomads, these remote workers will continue to live the drifting life with the country acting as their office.
