Advice for People Over 50 Wanting to Retire in Thailand

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Undaunted
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Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by Undaunted » Sun May 19, 2019 10:35 pm

Jun wrote:
Sun May 19, 2019 8:39 pm
There are also huge positives. For example if I understand correctly, Thai residents do not have to pay tax on overseas income, if it is not bought into Thailand in the year in which it is derived.
Where on earth do you get your information from :?:
"In the land of the blind the one eyed man is king"

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Jun
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Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by Jun » Mon May 20, 2019 12:51 am

Undaunted wrote:
Sun May 19, 2019 10:35 pm
Where on earth do you get your information from :?:
Deloitte, who you may recognize as one of the Big 4 global accounting firms.
At the start of the personal taxation section on page 4 of the pdf in the attached link.
https://www2.deloitte.com/content/dam/D ... s-2018.pdf

I have read something similar in books and so on, but decided to confirm it from a reputable source.

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mahjongguy
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Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by mahjongguy » Mon May 20, 2019 7:49 am

"There are also huge positives. For example if I understand correctly, Thai residents do not have to pay tax on overseas income, if it is not bought into Thailand in the year in which it is derived."

That is correct information, but I don't see how it could be of importance to many readers. That income would likely be taxable at the source anyway. Even if not, it might be taxable by your own country (e.g. USA). Government pensions are not taxable even if they are sent directly and immediately to Thailand. So, those who would benefit are few.

Everything else in the post is spot on.

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Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by fountainhall » Mon May 20, 2019 9:18 am

To add to Jun's comment, it can be useful for those living in Thailand on retirement visas. I have been living here on a retirement visa for 13 years. During all but the last two years, I ran a small company in Hong Kong. All income and expenditure was declared in Hong Kong and was indeed taxable there (although Hong Kong tax regulations are quite simple and the allowances generous so that no tax was payable in many of those years).

I think the key point is that although under the terms of the retirement visa the holder can not undertake any form of employment in Thailand, there is nothing that prohibits paid work that is wholly outside the country.

ก้นconnoisseur

Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by ก้นconnoisseur » Mon May 20, 2019 9:27 am

Trongpai wrote:
If you're an unhappy person in Farangland and move to Thailand you'll likely continue to be unhappy. Failed relationships, bad decisions with good intentions and just bad luck can happen anywhere, don't blame the location.
Dodger wrote:
I've always believed that home is what you make it. It's entirely up to me. Everywhere I go - there I am.
fountainhall wrote:
I believe this should be true for everyone. We all create our own reality.
Jun wrote:
Absolutely, we have to adapt to the world & not vice versa.


All keen observations. Another view:
“I have noticed that most people in this world are about as happy as they have made up their minds to be.”

Abraham Lincoln

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Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by Jun » Mon May 20, 2019 3:59 pm

mahjongguy wrote:
Mon May 20, 2019 7:49 am
That is correct information, but I don't see how it could be of importance to many readers. That income would likely be taxable at the source anyway. Even if not, it might be taxable by your own country (e.g. USA). Government pensions are not taxable even if they are sent directly and immediately to Thailand. So, those who would benefit are few.
Even if 10% of readers benefit, it's worthy of comment. I would bet that more than 30% benefit, since we don't all get huge government pensions & a fair number are retiring on the back of their own investments, which can be moved where they like.

Current ways in which I COULD* benefit from the Thai tax rules include buying stocks in Hong Kong or Singapore. I would pay no dividends in those countries and providing I waited until the next tax year before moving the money to Thailand, this would be tax free. That's better than living in the UK.

Also, any money saved up in a UK ISA is tax free. Obviously no tax paid in the UK, but if emigrating, it's a nice bonus to move to a country where this money does not become taxable. Anyone who has contributed the full ISA allowance into stocks and shares should really be well into 6 figures by now, with a small minority into 7 and extreme cases allegedly 8 figures.

[* Not currently living in Thailand, but I'm following advice given in this thread and am considering it carefully first. Possibly even more carefully than the people giving the advice]

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Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by Undaunted » Mon May 20, 2019 4:56 pm

I don’t quite understand the tax advantages as I live in Thailand and still must pay tax in my home country on all my income? It would make sense if it was so that because I reside in a foreign country and do not partake in some advantages given to those in my home country not to pay tax but that is not the case! I do agree that one must be cognizant of currency fluctuations an example of which is the pound which has halved from its high against the baht.
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Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by Jun » Mon May 20, 2019 6:09 pm

Undaunted wrote:
Mon May 20, 2019 4:56 pm
I don’t quite understand the tax advantages as I live in Thailand and still must pay tax in my home country on all my income?
One way to do it would be to broaden your horizons and introduce a third country into play.
Move some of your money to somewhere like Singapore & invest in stocks.
You then pay no tax in Singapore on dividends received and no tax in Thailand as long as you move the dividend income to Thailand in the following tax year. So no tax.

That's just an example, NOT financial advice.
Once you have your bank & broker accounts set up, it's surprisingly easy to control.

Incidentally, I see this as having further benefits from diversification since we have less exposure to currency risk, for example the pound falling, or a marxist government screwing up the UK economy to the extent where they have to reintroduce currency controls. Don't wait until it happens.

Note: The above advice is aimed at non US citizens, since I believe US citizens are subject to US tax wherever they live, whereas the rest of the world can emigrate and no longer be subject to tax in their home country.

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Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by fountainhall » Mon May 20, 2019 7:31 pm

I don't have any info on investing/opening accounts in Singapore. But I do know something about Hong Kong and I would recommend non-US citizens thinking about retirement in Asia to consider putting some of their money into Hong Kong. It is a low tax territory. There is no tax on your first US$12,500 or so of income. Thereafter there is a ladder of peercentages but it averages out at a maximum of 15%. If you can set up a small company there, you can take advantage of lots more allowances. For example, I was able to set a notional rent for my apartment here (which I own) as rental of an office. That was an allowable expense before tax was levied. Much of my eating out was billable as allowable entertaining expenses. Further, income earned outside Hong Kong but remitted to Hong Kong must be declared but is non-taxable in Hong Kong. Inward and outward remittances are a piece of cake and can be done on the internet. Re investments, there is no tax on profits.

I believe opening an account in Hong Kong is easy. Opening a company is not so easy but is worth checking. Only one director is required for Hong Kong companies and that director need not live in Hong Kong.

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Re: Advice for People Over 50 Wanting to Retire in Thailand

Post by windwalker » Mon May 20, 2019 11:21 pm

A friend who has a bank account in Hong Kong for many years is now seriously considering giving it up. Too many restrictions as compared to the past; not worth the effort.

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