Most big banks offer expat accounts that can be used by expat pensioners – for example, HSBC has one based in Jersey.
For state pension claimants, note that Thailand does not appear on the list of countries where an annual increase to the state pension is paid, meaning your payments will be fixed for the duration you live there.
As prices rise, this will make your state pension payments increasingly less valuable. We’ve recently heard from expats in Canada who have experienced this problem.
How you will be taxed in Thailand
Thailand isn’t specifically a low-tax jurisdiction, but until recently there was a gap in the remittance rules, meaning that earnings from a previous year weren’t taxed if brought into Thailand in a later year.
Peter Ferrigno, director of Tax Services at Henley & Partners, said this rule is changing to bring it into line with other countries, so “it isn’t totally clear what the exact position will be”.
He said: “The tax change applies to remittances not earnings, and so with the cost of living being relatively low, and tax rates being progressive, the net tax cost to sustain a certain lifestyle may still be low.
“Thai tax residency only applies if someone is in the country for over 180 days in the tax year, so someone being there part of the year without locally sourced income wouldn’t have any Thai tax to worry about.”
After a personal allowance of 60,000 baht (£1,400), the top rates cut in at quite a high level compared to the cost of living.
Income below 1m baht (£22,800) is taxed on a sliding scale up to 20pc. You pay 25pc up to 2m baht (£45,600), and 30pc above that. The top rate of 35pc is charged on income above 5m baht (£114,000).
Savings interest and dividends are taxable, but at a lower rate if the income is from Thai sources.
Mr Ferrigno said capital gains are also taxable, but with an exemption for locally listed shares and securities.
As for inheritance tax, anyone who comes into the scope can expect to pay a significantly lower rate than they would in Britain. Mr Ferrigno said: “Inheritance tax rates are low (10pc, 5pc for direct descendants, and exempt between spouses), but for someone who remains UK domiciled that won’t necessarily be a benefit as there isn’t a significant nil-rate band.”
How to buy Thai property
If you’re thinking about buying property in Thailand before moving there you should be aware of its strict restrictions for non-residents.
Non-residents can buy condos and apartments, but can’t make up more than 40pc of the building’s total unit owners, according to the bank Wise.
