Is it legal to work remotely in Thailand without a work permit?
Imagine swapping your view of office buildings for the pristine beaches of Thailand – or indeed any other exotic location in the country. You could skip your hectic morning commute on the subway, enjoy some THB ฿60 (approx USD $2) freshly-made noodles for breakfast, and get straight to work from your new home. In the evenings and on weekends, you’ve got an entire city and country to explore. To top it off, you can work the same job for the same pay.
While this kind of lifestyle was only restricted to digital nomads in Thailand, it’s becoming more and more attainable due to the increased number of remote jobs, as accelerated by the COVID-19 pandemic. With that said, what is the status of remote workers in the Kingdom, and is it legal to work remotely in the country without a work permit? Pacific Prime Thailand tells you the answer to this question and so much more in this article!
Thailand’s Appeal: Low Cost of Living, Great Weather, Amazing Food, etc.
It’s hardly a surprise that Thailand is one of the top locations for digital nomads and remote workers. According to the overall ranking by Nomad List, five Thai cities feature in the top 100: #10 is Chiang Mai, #23 is Ko Pha Ngan, #30 is Bangkok, #68 is Phuket, and #98 is Krabi. But of course, these rankings are to be taken with a pinch of salt, as it depends on the kind of lifestyle and experience you’re looking to get as well.
That being said, Thailand is a good bet if you’re looking for a relatively lower cost of living. Even in the capital Bangkok, where things can be more expensive than the rest of the country, your money goes a long way. What’s more, you can always count on sunshine, friendly locals, and great food. The country is world-famous for its cheap and delicious street eats, as well as high-end restaurants and dining scene. There’s also no shortage of things to see and do.
Word of warning: Of course, no country is without a downside. If you choose to settle in Thailand, especially in big cities like Bangkok, you should be aware of the air pollution and traffic. Furthermore, a well-connected subway and train system isn’t the country’s strong suit either, and you may also struggle with tropical diseases (or food poisoning) if you go somewhere more rural. Check out our article on the vaccinations you’ll need before you head out.
Legal matters: Visas/work Permits for Digital Nomads and Remote Workers
When it comes to digital nomad visa or freelance work permit in Thailand, there is a Smart Visa that digital nomads and remote workers may soon be able to apply to, giving up to 4 years of stay in the Kingdom. This is currently only a proposal by the Board of Investment (BOI), which has been approved by the Centre of COVID-19 Situation Administration (CCSA) and pending Cabinet approval.
Under the proposal by the BOI, those on a tourist visa would be able to transfer to a Smart Visa as long as they have:
- An employment contract with a foreign firm for at least 6 months
- Proof of qualifications and experience
The Smart Visa was launched in February 2018. Initially, it was designed to enhance Thailand’s attractiveness by drawing science and technology experts, senior executives, investors, and startups. However, only a handful of foreigners have been granted the visa so far due to strict criteria. As such, the BOI is hoping to loosen the requirements by also allowing foreign freelancers to apply, which will cover the majority of digital nomads and remote workers.
Working without a work permit in Thailand is illegal
If you wish to work from Thailand for your foreign employer, you need to secure a work-from-Thailand professional visa. The visa covers four main areas: personal income, work experience, the financial status of your foreign employer, and health insurance. In addition, digital nomads may be surprised and disheartened to see that the bar is set high for them to qualify for a work-from-Thailand visa.
For instance, the foreign employer must possess the following to qualify:
- A private company that has been operating for 3 years and has a combined revenue of more than USD $150 million in the last 3 years
- The company must be publicly listed on the stock exchange in any country
Planning to work remotely in Thailand?
It might sound like a dream to work remotely in Thailand. However, it’s crucial to be aware of the local tax regulations and employment laws to avoid any unexpected tax obligations and ensure a successful experience.
Generally, foreigners will need a work permit to work in Thailand, but work-from-Thailand professional visa holders can easily obtain a digital work permit for their foreign employer. The processing fee for a digital work permit is 3,000 Baht per year.
In addition, if you’re legally married, you can also obtain a long-term resident visa for your spouse, who can then apply for a work permit. Your spouse can work in any occupation that is not exclusively reserved for Thai nationals.
Taxation for work-from-Thailand visa holders
Working abroad means that you may have to pay taxes in both Thailand and your home country. Usually, foreign remote workers will have to pay personal income tax in Thailand for any work they do within the country. This applies regardless of whether they’re paid inside or outside of Thailand and whether or not they’re a resident of Thailand.
The personal income tax rates in Thailand can range from 5-35%. Here’s a breakdown:
Taxable Income per year (THB) | Tax Rate (%) |
0 to 150,000 | Exempt |
150,001 to 300,000 | 5 |
300,001 to 500,000 | 10 |
500,001 to 750,000 | 15 |
750,001 to 1,000,000 | 20 |
1,000,001 to 2,000,000 | 25 |
2,000,001 to 5,000,000 | 30 |
Over 5,000,000 | 35 |
Source: AustChamThailand
Note: We would also strongly suggest you to seek a professional immigration lawyer’s advice before you make the move.
Not Formally Employed in Thailand? Secure Health Insurance Via Pacific Prime Today
If you need to access healthcare in Thailand, you’ll be frustrated by these two facts. Firstly, private hospitals (especially top-tier hospitals that cater to medical tourists) are mega expensive and cost of treatment can quickly spiral. Secondly, public hospitals aren’t a viable alternative for most foreigners because many implement a dual-pricing system that discriminates between foreigners and Thais. For instance, charging foreigners more for COVID-19 testing. This is on top of other drawbacks of Thai public healthcare like overcrowding and language barriers.
While most foreigners employed in Thailand receive health insurance as an employee benefit, chances are you won’t get employer-sponsored health insurance if you work remotely in the country. But worry not, health insurance brokers like Pacific Prime Thailand can help you navigate your options and select the most appropriate plan. Whether you’re looking for international insurance coverage for digital nomads, or even travel insurance covering COVID-19, our knowledgeable and friendly advisors can help.
Contact us today!
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