Foreign income is not automatically tax-free. It may become taxable if it is remitted into Thailand
No wealth tax
Crypto gains via platforms licensed by the Thai SEC may be tax-free from 2025 to 2029
Strong healthcare system, modern infrastructure and lower living costs than in many European countries
Foreign ownership is often limited to 49% unless BOI promotion or a special permit applies
Nominee structures are scrutinised strictly
Banks expect genuine local substance
If management is based in a high-tax country, taxation may arise there
Thailand is one of the most important ASEAN economies in South East Asia, with around 71 million inhabitants and the Thai baht (THB) as its currency. It is not an EU Member State; however, it is not on the EU tax blacklist and is not considered a high-risk country from an FATF perspective either. A Thai limited company is generally subject to corporate income tax of 20%, and dividends to non-residents are, as a rule, subject to 10% withholding tax, although this rate can often be reduced under double tax treaties.
Thailand applies a remittance principle to foreign income. Since 1 January 2024, however, foreign income brought into Thailand by persons who are tax resident in Thailand may be taxable. Clean structuring is therefore crucial. There is no separate capital gains tax in the classic sense; disposal gains are generally captured within normal personal or corporate income tax, subject to certain exceptions.
From 2025 to 2029, profits from digital assets may be tax-free, provided they are realised via platforms licensed by the Thai SEC.
Thailand offers modern infrastructure, a developed banking system and access to a strong regional market. However, foreign participation in many sectors is restricted by the Foreign Business Act, often to 49%, unless a special permit or BOI promotion applies. Nominee structures are being examined increasingly strictly.
VAT registration is generally straightforward once annual turnover exceeds THB 1.8 million (approx. EUR 49,000). The VAT rate remains effectively 7% and has been extended until September 2026. Thailand can be an attractive and credible base in Asia, but it requires careful legal and tax planning rather than simplified zero-tax assumptions.
Contact us for an individual review and potential alternative solutions.
Corporate income tax is generally 20% on net profit.
Dividends to non-residents are generally subject to 10% withholding tax, which can often be reduced under double tax treaties.
VAT registration is generally straightforward once the threshold is reached. The effective VAT rate is 7%.
Mandatory registration is required as soon as annual turnover exceeds THB 1.8 million (approx. EUR 49,000).
Yes. A Thai company is generally subject to 20% corporate income tax on its worldwide profits, regardless of where the shareholder lives and whether the income was earned abroad.
Banks often require in-person identification, and for compliance purposes genuine local substance is usually expected, for example an office or operational activity.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| USA | 21-0% |
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from EUR 1,900 |
| Singapore | 0% |
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from EUR 2,950 |
| Hong Kong | 0% |
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|
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from EUR 1,900 |
| Cyprus | 15% |
|
|
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from EUR 1,900 |
| Malta | 5% |
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|
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from EUR 2,500 |
| Ireland | 12,5% |
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from EUR 1,950 |
| Trust | 0% |
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from EUR 4,900 |
| England | 25-19% |
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from EUR 1,000 |
Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income - in some cases even if profits are not distributed.
Depending on your personal situation, a suitable holding structure may be required to comply with tax rules and avoid unnecessary tax risks.
To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be pleased to review your case and advise you accordingly.
