Tag: Visa

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Thailand’s Eastern Economic Corridor: Enhanced Incentives and Visa Programs to Attract Foreign Investment

Thailand’s Eastern Economic Corridor (EEC) is introducing a comprehensive package of incentives and visa programs aimed at attracting foreign direct investment (FDI) to this strategic region in Southeast Asia. The EEC, comprising the provinces of Chonburi, Rayong, and Chachoengsao, continues to be a focal point for industrial development and innovation in Thailand.

The Eastern Economic Corridor Office of Thailand (EECO) projects that the area’s economy will grow by 3.5% in 2024, surpassing Thailand’s overall growth rate. Since its inception in 2018, the EEC has consistently attracted foreign investment across 12 key industrial sectors, including next-generation automotive, intelligent electronics, and advanced agriculture and biotechnology.

To further stimulate investment, the EECO launched a new framework of privileges in April 2024. These privileges, pending Cabinet approval, are expected to attract at least 30 companies with investments totaling 210 billion baht and creating 1,500 jobs. The incentives include both tax and non-tax benefits as follows:

Tax incentives:

  • Corporate tax exemption for up to 15 years
  • 50% tax reduction for 1 to 10 years
  • Import duty exemptions on machinery, research and development equipment, and raw materials
  • Deductions for investment costs

Non-tax incentives:

  • Land ownership rights in investment promotion zones
  • Condominium ownership rights in the EEC
  • Enhanced visa options for foreign workers
  • A 17% flat income tax rate for certain categories of workers

In May 2024, the EEC introduced significant updates to its visa program, designed to attract and retain highly skilled professionals and executives. The new EEC visa categories include:

  • EEC Visa “S” for specialists
  • EEC Visa “E” for executives
  • EEC Visa “P” for professionals
  • EEC Visa “O” for spouses and dependents

These visas offer substantial benefits, including validity for up to 10 years with an initial stay period of up to 5 years. They allow multiple entries and exits, providing flexibility for international business operations. Moreover, visa holders are eligible for a special personal income tax rate of 17%, making the EEC an attractive destination for global talent.

The EEC is also focusing on developing a skilled workforce through its “demand-driven approach,” which involves collaboration between the government, educational institutions, and private companies. This initiative aims to create a talent pool aligned with industry needs in key sectors.

Infrastructure development remains a priority, with ongoing projects such as the high-speed train connecting three airports, docking facilities at the ports and the expansion of U-tapao airport. These projects, although faced with some delays, are progressing and are expected to significantly enhance the region’s connectivity and appeal to investors.

In June 2024, the EEC Policy Committee approved the draft EEC Environmental Plan 2023-2027, aiming to promote environmental management in parallel with city development. This plan seeks to balance various development projects and encourage sustainable business investments, further enhancing the EEC’s appeal to environmentally conscious investors.

In conclusion, Thailand’s Eastern Economic Corridor represents a significant opportunity for foreign investors seeking a strategic location in Southeast Asia with robust infrastructure, a commitment to innovation, and now, an attractive visa program for skilled professionals. The new incentives, visa options, and ongoing development initiatives position the EEC as an increasingly attractive destination for international investment, offering a comprehensive package that addresses both business needs and quality of life for expatriate workers.

Author: Panisa Suwanmatajarn, Managing Partner.

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Government Streamlines Regulations to Facilitate Business Operations and Boost Competitiveness

The Chairperson of Regulatory Reform for Ease of Doing Business met with the Prime Minister. The meeting aimed to report on the progress of regulatory improvements and discuss the benefits that the private sector has gained from these reforms.

The initiative aligns with the government’s policy to address issues in law enforcement related to public services and business operations, adapting to evolving economic and social conditions. It also seeks to enhance efficiency in facilitating public access to government services and permits.

Following the meeting, the government plans to proceed as follows:

  1. International Film Industry: The foreign film production business in Thailand currently generates approximately 7 billion baht annually. With proposed regulatory reforms, this figure could potentially rise to 15 billion baht. The Department of Employment has initiated the following measures: a) waiving background checks for Chinese nationals entering Thailand as part of foreign film crews, provided that they have certification from the Film and Video Censorship Board b) amending ministerial regulations to allow designated coordinators to receive work permits as foreign film crew members, expected to be completed by August 2024 and c) classifying music festivals or concerts supported by government agencies as necessary or urgent events, exempting foreign participants from work permit requirements for stays up to 15 days.
  1. Regulatory Reform: The Office of the Public Sector Development Commission is revising the Licensing Facilitation Act of 2015. The draft of the new Act on Facilitating Licensing Consideration and Public Services has been approved in principle by the Cabinet. Key features include: a) establishing fast-track channels for public services and b) expanding the scope for fee payment in lieu of license renewal across all types of licenses.
man in black suit sitting on chair beside buildings

The Prime Minister suggested extending the 15-day exemption period for foreign film crews and music festival staffs, considering the time needed for pre-event preparations. The Chairman of the Committee agreed to discuss this matter further with the Department of Employment.

These reforms aim to streamline processes, attract foreign investment, and boost Thailand’s competitiveness in the international market, particularly in the film and entertainment industries. The government’s efforts to reduce bureaucratic hurdles and facilitate business operations are expected to significantly contribute to economic growth and enhance Thailand’s appeal as a destination for foreign business and creative endeavors.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Unveils Comprehensive Changes to Visa and Travel System

In a bid to boost its tourism and business sectors, Thailand has recently introduced a series of policies and measures that have been approved by the Cabinet following proposals from the Ministry of Foreign Affairs. The successful implementation of these changes will require collaboration from various government bodies, including the Ministry of Labour and the Ministry of Higher Education, Science, Research and Innovation.

Short-term measures (effective from June 2024):

1. Visa exemption for visitors will be extended from 57 to 93 countries, with the maximum allowable stay increased to 60 days.

2. A new Destination Thailand Visa (DTV) will be introduced to attract high-skilled foreigners, digital nomads, and tourists looking to combine work and travel (workcation) for extended periods. The DTV will be valid for up to 5 years, allowing multiple entries and stays of up to 180 days per entry, with the option to convert to other visa types.

3. The Non-Immigrant Visa type “ED” (Non-ED) for educational purposes will be enhanced to support international students. Graduates holding this improved Non-ED Visa can remain in Thailand for up to 1 year after graduation and convert their visa to a Non-B (working) visa without leaving the country.

Medium-term measures: (effective from September – December 2024):

1. Non-Immigrant visa categories will be streamlined from 17 to 7, including Non-B, Non-ED, Non-F, Non-M, Non-O (others), Non-O (L-A), and Non-L-A types.

2. The long-stay retirement visa (Non-Immigrant visa type “O-A”) will be revised, with the required health insurance deposit for medical expenses in Thailand reduced from 3,000,000 THB to 40,000 THB for outpatient care and 400,000 THB for inpatient care.

3. The E-Visa service will be expanded to cover all Thai embassies and consulates worldwide by December 2024, making it easier for foreigners to apply for visas online.

photo of woman sitting on boat spreading her arms

Long-term measures: (effective from June 2025):

Thailand will launch an Electronic Travel Authorization (ETA) system aimed at foreign nationals exempt from visa requirements. The ETA system will enhance the efficiency of foreigner screening using QR codes to facilitate airport entry. Beta testing of the ETA system is planned for December 2024, with a full rollout expected by June 2025.

These proposed measures demonstrate Thailand’s commitment to attracting foreign visitors and talent, which will be crucial in driving economic growth and boosting the country’s competitiveness. The strategic visa policies and systems are designed to encourage foreigners to travel and work in Thailand during the high season while also promoting the country as a global education hub.​​​​​​​​​​​​​​​​

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s New EEC Visa: Fostering Foreign Investment and Expertise.

As part of its strategic efforts to propel economic development and position itself as a regional hub for cutting-edge industries, Thailand has introduced the Eastern Economic Corridor (EEC) Visa program. This initiative represents a pivotal step towards attracting foreign talent and investment crucial for realizing the nation’s ambitious vision.

The EEC Visa scheme, approved by the Cabinet, is a central component of Thailand’s broader strategy to develop the EEC provinces of Rayong, Chonburi, and Chachoengsao into a thriving hub for next-generation industries, including automotive, robotics, aviation, and digital technologies. By offering a streamlined process and attractive privileges, the program aims to facilitate the entry and long-term stay of overseas professionals and investors in these targeted sectors.

Working visas in Thailand are categorized into multiple types, but the Non-Immigration Visa type B (“Non-B visa”) remains a popular choice for foreigners, allowing them to stay and work in the country for up to one year with a work permit. Moreover, for foreigners seeking to work or invest in Thailand’s targeted industries, there are various visa options designed to meet their specific needs, each offering unique benefits and privileges. These include the SMART Visa, which offers a maximum stay of 4 years and work permit exemption, with an annual notification requirement rather than the standard 90-day reporting at the Immigration Bureau. Additionally, the Long-Term Resident (LTR) Visa, tailored for highly-skilled professionals, grants visa holders up to 10 years of renewable residency, permission to work with a digital work permit, a 17% flat personal income tax rate, and the ability to bring up to four dependents.

brown trees under white and blue cloudy sky

Recently, the Cabinet acknowledged the introduction of the Eastern Economic Corridor (EEC) Visa, issued by the EEC committee. Currently under consideration for launch, the EEC Visa aims to provide benefits and privileges for foreigners working in targeted industries within the EEC Zone, encompassing Rayong, Chonburi, and Chachoengsao provinces. Designed for foreign investors, business owners, CEOs, and skilled laborers, the EEC Visa is poised to play a crucial role in driving investment and talent acquisition in these strategic sectors.

Under the EEC Visa program, four distinct categories of foreign nationals are eligible to apply: Specialists, Executives, Professionals, and their dependents. Successful applicants across these categories will be granted a range of benefits designed to incentivize their contribution to Thailand’s economic transformation.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s Robust Visa Policies: Attracting Global Talent and Investment

As Thailand positions itself as an attractive destination for foreign talent, technology, and investment, its strategic visa policies have become instrumental in driving economic growth. For international business owners, entrepreneurs, and expatriates seeking to work, conduct business, or invest in Thailand for an extended period, the country offers several viable visa options.

Non-Immigrant Visa “B”

The Non-Immigrant Visa “B” is a popular choice for those whose activities do not involve permanent residency. This visa allows foreign nationals to stay in Thailand for up to one year and is typically granted for purpose of working in Thailand.

After obtaining this visa, a work permit from the Department of Employment is essential to comply with Thai labor laws. This process necessitates demonstrating a job offer or employment in Thailand. Additionally, the employing company must meet specific requirements set by the Ministry of Labor, including:

  • Maintaining a minimum registered capital of 2,000,000 Thai Baht for Thai juristic entities, or 3,000,000 Thai Baht for foreign registered companies.
  • Employing at least four Thai nationals for every foreign employee.
  • Having supporting corporate documents.
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Long-Term Resident Visa

Recognizing the need to attract and retain highly skilled professionals and wealthy individuals, Thailand introduced the Long-Term Resident (LTR) visa in September 2022. This special visa category offers foreigners in certain categories up to 10 years of renewable permission to stay in Thailand, along with various privileges and exemptions during their stay.

One of the targeted groups under the LTR visa is the “Work-From-Thailand Professionals,” catering to foreign employees whose companies grant them the ability to work remotely from other countries, with Thailand as their chosen destination. To qualify under this category, applicants must meet the following criteria:

  1. Demonstrating a required amount of personal income.
  2. Holding an employment contract with a foreign company that is a publicly listed or private company operating for at least three years with a minimum required amount of revenue over that period.
  3. Having at least five years of relevant work experience in their field of expertise within the last 10 years.
  4. Providing proof of adequate health insurance coverage for medical expenses in Thailand valid for at least 10 months, have social security benefits, or deposit in a bank account to be maintained for 12 months in the amount as required.
photo of woman sitting on boat spreading her arms

It is crucial to note that the LTR visa itself does not grant the holder the right to work or engage in employment in Thailand. Those seeking employment opportunities must obtain a separate Work Permit to comply with local regulations.

Thailand’s commitment to fostering global talent, experts, and investors, while increasing economic growth and becoming an attractive destination for foreigners, is evident through these strategic visa policies. By facilitating the entry of global talent and investment, Thailand positions itself as a hub for innovation, entrepreneurship, and economic development in the region.

Author: Panisa Suwanmatajarn, Managing Partner.

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Non-Immigrant ‘O’ Visa: A Versatile Option for Extended Stays in Thailand.

For foreigners looking to remain in Thailand beyond the standard 90-day tourist visa period, the Non-Immigrant Visa category ‘O’ presents a valuable and flexible solution. Catering to a range of purposes from retirement to marriage and familial ties, this visa type is one of the most commonly sought-after options among expatriates.

Whether applying at a Royal Thai Embassy or Consulate abroad or extending an existing stay through Thailand’s Immigration Bureau, the Non-Immigrant ‘O’ visa streamlines the process for those wishing to make Thailand their temporary home for an extended period.

This visa category encompasses several subcategories, each tailored to meet the specific needs of foreign nationals in various circumstances. Here’s a closer look at some of the key types:

man in pipe beside woman wearing black frame eyeglasses during day time

Marriage Visas: Foreign spouses of Thai citizens can obtain a Non-Immigrant ‘O’ visa to accompany their partners and live, or even work, in Thailand. Applicants must demonstrate a minimum monthly income of 40,000 Thai Baht (THB) or maintain a Thai bank deposit of at least 400,000 THB. Importantly, this visa also allows holders to apply for a work permit.

Retirement Visas: Thailand’s tropical climate, rich culture, and affordable cost of living have made it an increasingly popular retirement destination. The retirement subcategory of the Non-Immigrant ‘O’ visa caters to this demographic, requiring applicants to be at least 50 years old and either hold a monthly pension income of 65,000 THB or maintain a Thai bank deposit of 800,000 THB or more. However, this visa does not permit employment in Thailand.

Thai Child Guardianship Visas: For foreign nationals serving as legal guardians to Thai children under 20, the Non-Immigrant ‘O’ visa offers a path to an extended stay. Applicants must provide proof of guardianship, a monthly income of at least 40,000 THB, or a Thai bank deposit of 400,000 THB or more.

photo of couple standing on wooden planks

Beyond these common subcategories, the Non-Immigrant ‘O’ visa can also accommodate volunteers, dependents of Thai residents or workers, and various other qualified circumstances as determined by Thailand’s Immigration Bureau.

With its versatility and potential for long-term residency, this visa has become an indispensable tool for those seeking to forge deeper ties with the Kingdom of Thailand. As foreign interest in Thailand continues to grow, the Non-Immigrant ‘O’ visa is likely to remain a popular and sought-after option.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand prepares AI experts’ visas to support the AI industry.

Artificial Intelligence or “AI” is rapidly growing in importance worldwide. Recognizing this trend, The Thai government is prioritizing the development of AI capabilities to ensure the country does not fall behind. Various international forums have highlighted the significance of promoting ethical and responsible AI adoption. Thailand aims to position itself as a regional hub for AI investment and innovation.

AI trend in Thailand has a model from the European Union, Artificial Intelligence Act (“EU AI Act”) which is the regulatory framework for AI systems that are being used in various applications and will be analyzed and classified according to the risk that they pose to users. The EU AI Act is currently in the process of being enforced and implemented.

Currently, the Thai government has identified AI as a crucial area for boosting economic growth and competitiveness and has set ambitious goals to establish the country as a center for AI in the region. However, Thailand faces a significant shortage of AI experts, with an estimated need for 100,000 AI experts but only around 21,000 currently available. To address this gap, the government is exploring measures such as the Digital Scholarship Fund, offering 200% Tax deduction for AI courses, and also the Global Digital Talent Visa program to attract high computer-skill manpower and AI talent experts from worldwide top-ranked universities to work and fulfill lack of AI expert’s gap in Thailand.

Thai government is actively exploring ฟ special type of visa to attract AI experts and people with advanced computer skills around the world. It has promoted various targeted industries including the digital and smart electronics industry or AI industry that may impact and enhance the economic investment in Thailand under the authority of the Board of Investment (“BOI”). This proposed visa policy will eliminate unnecessary bureaucratic hurdles, allowing AI professionals to seamlessly integrate into the country’s AI projects, research institutions, and industry collaborations.

woman sitting on white sofa

Currently, the AI experts who work in the targeted industry can obtain the below visas and work in Thailand, providing them with the flexibility to work and reside in Thailand for extended periods. These visas will offer AI professionals and their families access to various benefits, including healthcare, education, and other social services, ensuring a conducive and supportive environment for their work and personal lives.

  1. SMART Visa or Smart Visa “T”: This is a visa type that is established to attract talented professionals including AI experts working in the targeted industries in Thailand. The visa holders will be granted for 4 years of validity to stay in Thailand, with multiple-entry, and is required to notify the duration of their stay to the Immigration Bureau every 1 year which is differed from the standard working visa (called “Non-B Visa”) that the holders are required to notify to the Immigration Bureau for their stay every 90 days.
  2. Long-Term Resident Visa – High Skilled Professionals (“LTR visa”) : This type of visa will be granted for 10 years with multiple-entry validity to stay in Thailand with a digital work permit to work in Thailand. As well, the visa holders are required notify to the Immigration Bureau every 1 year of their stay.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s Development Towards Thailand 4.0: Implementation of the Eastern Economic Corridor (EEC) Visa

Thailand’s Eastern Economic Corridor (EEC) initiative is a significant component of the country’s development plan, known as Thailand 4.0, spanning a period of five years from 2023 to 2027. The EEC aims to propel the Thai economy, attract investments, and establish itself as the industrial hub of ASEAN and developed nations. The EEC is strategically located in three provinces – Rayong, Chonburi, and Chachoengsao – which have been designated as special economic zones.

Boosting Investment and Attracting Talent

The primary objective of the EEC is to attract both local and foreign investors, business owners, CEOs, and skilled laborers. To facilitate this, the EEC policy committee recently approved the implementation of a new visa category specifically designed for investors – the EEC Visa. This visa is expected to drive investment in modern industrial sectors that prioritize environmentally friendly practices. Target industries include next-generation automotive, smart electronics, biotechnology, robotics, aviation, and digital technology.

The Four Categories of EEC Visa

The EEC Visa is categorized into four target groups: Specialist: EEC Visa “S”, Executive: EEC Visa “E”, Professional: EEC Visa “P” and

Spouse and Dependents: EEC Visa “O”. These categories aim to cater to the diverse needs and qualifications of potential visa applicants.

low angle photography of high rise building

Privileges and Benefits of the EEC Visa

The EEC Visa offers a range of privileges and benefits to its holders. These include a flat rate of 17% for personal income tax, visa validity based on the employment agreement with a maximum multiple entries of 10 years, online reporting and dedicated international airport fast track channel. Additionally, visa holders will automatically be issued a work permit, streamlining the process for those seeking employment opportunities in the EEC.

Implementation and Future Plans

The EEC Visa will come into effect on January 1, 2024. It is expected that this new visa-type policy will play a vital role in achieving Thailand’s vision of becoming a developed country by 2037. The EEC policy committee has also approved guidelines for granting benefits to business operators within the EEC zone.

Currently, the committee is actively considering granting new investment plans and additional benefits such as tax exemptions and upgrading public utilities and infrastructure in the EEC zone. They are also exploring the possibility of including additional industries in the list of targeted sectors within the EEC.

By implementing the EEC visa and developing the EEC zone, Thailand aims to attract investments, foster economic growth, and establish itself as a regional and global leader in innovation and industrial development.

Author: Panisa Suwanmatajarn, Managing Partner.

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Visa Extension for Foreign Workers

The cabinet has recently approved the guideline for managing foreign working after February 13th, 2023, as proposed by the Ministry of Labor in collaboration with the Ministry of Interior, Ministry of Public health, Royal Thai Police, and Department of Provincial Administration. The guideline below will be applied to foreign workers whose work permits expire on or before February 13th, 2023, by allowing the following foreigners to stay in Thailand as a special case until May 15th, 2023.

1. Foreigners who have completed and submitted an application for a renewal of their work permit and paid for the application fee and renewal work permit fee within February 13th, 2023  and that 1.) those foreigners were granted a visa or permitted to temporarily stay in Thailand until February 13th, 2023 but have not yet applied for a temporary stay in Thailand until 2024 or 2025 or have a gradually expired passport since February 14th, 2023 onwards or 2.) those foreigners who were granted a visa or permitted to temporarily stay in Thailand until February 13th, 2023 and have been granted to stay temporarily in Thailand until 2024 or 2025 or have a passport expired from February 14th, 2023 onwards.

According to the Notification of the Ministry of Labor issued by virtue of Section 14 of the Royal Ordinance on the Management of Foreign Workers Employment B.E. 2560 (2017) and its amendments, foreigners as mentioned above in Item 1 will be allowed to work in Thailand until February 13th, 2024, or 2025 as the right is granted.

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2. Foreigners, who have incompleted but  submitted an application for a renewal of their work permit and paid the application fee within February 13th, 2023 under the circumstances of 1.)  those foreigners do not have a passport or document in lieu of a passport, 2.) those foreigners who have a passport or document in lieu of passport but fail to extend their visa or 3.) those foreigners whose status is not legal but whose employers have applied for their work permits on their behalf and have already paid the fee in the process of biometrics collection prohibited disease diagnosis, will be granted temporary visas until May 15th, 2023. In case they wish to continue working in Thailand, they will be granted temporary visas and work permits until February 13th, 2024 or February 13th, 2025 as the case may be.

3.  Those foreigners, who have passports or documents in lieu of passports and have been granted visas or have permission to temporarily stay in Thailand but passports or documents in lieu of passports expired before February 13th, 2023, will be allowed to temporarily stay and work until February 13th, 2024, or February 13th, 2025, as the case may be.

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Long Term Resident Visa (LTR Visa)

  • Categorizing to be under the tourist visa
  • Aiming to attract foreigners with capacity of wealth and talent to contribute and generate income to Thailand’s domestic market and support the local economic growth subject to the relevant regulations.
  • Targeting size of the LTR visa is about 1 million of wealthy or talented foreigners who aim to get resident in the kingdom for the next 5 years.
  • Revocation of the LTR visa can be due to incompliance to the Ministry of Interior’s announcement and unable to meet with the qualifications as prescribed.
five women sitting on tree trunk

Qualifications

TypesQualifications
Wealthy global citizens  1.       Owning at least 1 million USD assets globally; or
2.       Having at least 80,000 USD income for 2 years continuously; or at least 500,000 USD investment in assets in Thailand
Wealthy retirees  1.       Owning at least 80,000 USD assets globally; or in case of owning assets between 40,000 – 80,000 USD, they must invest in Thai property for at least 250,000 USD; or
2.       Having 50 years older with annual pension or stable income
Work-from Thailand professional  1.       Owning assets between 40,000 – 80,000 USD for 2 years continuously; or having at least master’s degree or owning intellectual property or receiving a series of funding; or
2.       Working for a SET-listed corporation or business operates for at least 3 years with total revenue of 150 million USD in the last 3 years; or
3.       Having at least 5 years of experience in the specified fields over the past 10 years.
Highly skilled professional  1.       Highly skilled professional holding of assets between USD 40,000 – 80,000 for 2 years continuously; or having at least a master’s degree in science and technology or having special expertise relevant to the job assignment in Thailand; or
2.       No work experience required for PhD degree in the relevant fields of the targeted industries; or
3.       Working in the business in any targeted industries with at least 5 years of experience 
Highly skilled professional working with government agencies  1.       No minimum personal income; or
2.       No work experience required; or
3.       Employing with higher educational institution, research institution, specialised training institution or Thai government agencies
Dependants  Spouse and children under 20 years old of LTR visa holder (maximum of 4 dependents in total per one LTR visa holder)  

Key privileges for LTR visa holders

  1. 10 years renewable visa.
  2. Fast track service at international airports in Thailand
  3. 90 days report extending to 1 year report and exemption of re-entry permit
  4. Permission to work in Thailand (digital work permit)
  5. Immigration and work permit facilitation service at one stop service center for visa and work permit

Relevant Authorities

Board of Investment, Immigration Bureau and Ministry of Labour.