The tax story is specific — not “tax-free”
Thailand is often mislabelled as a tax haven. It is not. What the LTR visa offers is a precise, valuable exemption: LTR holders are exempt on foreign-source income. That matters most against the backdrop of a 2024 change, under which ordinary Thai tax residents (present 180+ days) are now taxed on foreign income they bring into Thailand. The LTR carves you out of that; an ordinary long-stay visa does not.
Personal income tax on Thai-source income
Income earned in Thailand is taxed progressively, from 0% up to 35%. Local salary, local business and Thai-source gains fall here — the LTR exemption is for foreign income, not Thai income.
Corporate and indirect tax
Companies pay corporate income tax at 20%, and the standard VAT is 7%. These are ordinary, mainstream rates, not offshore ones.
Inheritance is taxed above a threshold
Unlike the zero-estate-tax Caribbean and Gulf options, Thailand levies an inheritance tax on estates above 100 million baht (roughly 2.8 million USD), at 5% for ascendants and descendants and 10% for others, plus a gift tax. A land and building tax also applies to property.
Residency is not citizenship — and tax residence turns on days
The LTR is a 10-year stay, not a passport, and holding it does not by itself make you Thai tax-resident: that turns on spending 180 days or more in a year. It also does not remove obligations to a country that taxes on citizenship, such as the United States. If a tax-efficient Asian base is the goal, compare it honestly with other residence routes such as Panama or the zero-tax Gulf option of the UAE, read our tax hub, and see how each figure is checked in our methodology. Browse all options on our residency hub.