Thailand remains a sought-after destination for foreign tourists and long-term visitors, including expatriates and retirees. The number of expatriates increased to 156,596 in the first quarter of 2023, with half choosing Bangkok as their home base, according to data from Colliers and the country’s employment department. The main sources of relocation to Thailand remain Japan, China and India.
After the outbreak of hostilities in Ukraine, the number of Russian citizens coming to Thailand for longer periods and working remotely also increased significantly. According to statistics from the Real Estate Information Center (REIC), Russians ranked second in the number of condominium apartments purchased. They purchased 702 property units for a total of 2.55 million baht, second only to Chinese citizens.
The Thai government is actively engaging foreigners for a longer period of time. The Tourism Authority of Thailand (TAT) has declared 2024 as the Year of Expatriates and is offering various incentives for this category of visitors, including reduced entry fees to national parks.
A special group of foreign workers, known as digital nomads, choose Koh Samui, Koh Phangan and Koh Tao as their primary destinations, where an estimated 10,000-15,000 remote workers live.
Thai authorities emphasize that foreigners benefit the country’s economy and try to create attractive conditions for them. However, the upcoming tax reform may specifically affect this group of digital nomads, who spend more than 180 days in Thailand throughout the year. According to information from the Bangkok Post, from 2024 the government intends to levy income taxes on residents working for foreign companies. The tax rate will be progressive, ranging from 10% to 35%.
According to Thai press reports, these tax changes are primarily aimed at locals trading on foreign exchanges through foreign brokers, as well as crypto traders and those avoiding taxes through offshore accounts. However, technically, these tax changes may also affect digital nomads living in the country.
