On 14 September 2021, the Thai cabinet passed a resolution (“Cabinet Resolution”) proposed by the Centre for Economic Situation Administration (“CESA”) to incentivize foreign investment in Thailand through the issuance of new visa, tax, and foreign land ownership incentives. The CESA particularly aims to attract high net worth foreign nationals, who wish to invest in land and buildings, and who can meet these minimum qualifications:

1. Wealthy global citizens who:

• Invest a minimum of USD 500,000 in Thai government bonds, funds qualified/categorized as foreign direct investment in Thailand, or Thai real estate;
• Verifiably receive a minimum salary or pension of USD 80,000 per year (over the last two years); and
• Are able to establish that they own property valued at USD 1 million or more (how this valuation is determined is not yet clear).

2. Wealthy retirees who:

• Invest a minimum of USD 250,000 in Thai government bonds, funds qualified/categorized  as foreign direct investment in Thailand, or Thai real estate; and
• Verifiably receive a minimum salary or pension of USD 40,000 per year.
• Apart from the above, in the event that no funds are invested, the wealthy retiree must verifiably have a minimum pension of US 80,000 per year.

While the Cabinet Resolution provides a framework for the investment incentives proposed by the CESA, its implementation will be guided and directed by the Ministry of the Interior. Based on the Cabinet Resolution, the Ministry of Interior must report on the implementation of this framework (or progress thereof) within 90 days from 14 September 2021.

The cabinet had earlier indicated that it expects up to 1 million foreign nationals to relocate to Thailand through this incentive program. However, the practical implementation of these incentives to lure wealthy expats to Thailand’s shores will depend on final determinations by the Ministry of the Interior and the Thai cabinet. The final scope of the intended incentive program is expected to be clarified and put into practice at some stage in 2022 onward. 

The information provided in this email is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

Contacts

Kraisorn Rueangkul Partner [email protected]

Paul Volodarsky Senior Legal Adviser Deputy Head of Regional Real Estate & Construction Practice [email protected]

Read more Legal & Tax Updates

Read more about DFDL Thailand

The post Thailand: Foreign Investment Promotion Permitting Wealthy Foreigners to Buy Land and Houses appeared first on DFDL.