If you're planning on retiring in Thailand, there are numerous things you need to consider, some of which you probably haven't yet thought of.
And that's the purpose of this guide: a checklist of sorts to make sure you have everything covered.
First, we will look at how much you will need to retire, and where is best for you to live. Then, we will cover getting a visa, accommodation, healthcare, banking, driving, learning Thai, and much more.
I'm sure you'll have a question or two pertaining to your personal circumstances, so feel free to drop that in the comments section at the end of the post, and I'll be happy to answer it for you.
Contents
The Ultimate Thailand Retirement Guide
Cost of Living
According to a recent study, it's estimated that an expat requires approximately $390,000 (US) to retire comfortably in Thailand. This calculation spans over 14 years, assuming retirement at the age of 64 and a life expectancy of 78.7 years.
Breaking it down, this amounts to around $2,321 per month, or 82,500 THB.
This estimation aligns quite closely with reality. Many expatriates would concur that a single retiree could maintain a fairly comfortable lifestyle on $1,500 per month (approximately 53,000 THB). However, having an additional 30,000 THB each month would allow for a more luxurious lifestyle.
The study encompassed various countries worldwide, aiming to gauge the cost of retirement in Thailand relative to the equivalent quality of life one would experience in their home country.
The research was predicated on the following lifestyle for one person:
- Renting a one-bedroom apartment in a city center, such as Bangkok.
- Two vacations annually.
- Moderate alcohol consumption.
- No smoking.
- Dining out: 15% at upscale restaurants, 75% at budget-friendly eateries.
- Consuming Western cuisine at home.
- Two round trips on public transportation weekly.
- Moderate spending on takeaway coffee.
- Moderate expenditure on clothing.
- No taxi or ride share services, but moderate use of personal vehicle.
- Gym membership.
The cost of living in Thailand can vary significantly, and the economic landscape accommodates various income levels, While it's feasible to live comfortably on as little as $1,500 USD per month, particularly if one is frugal and adopts a modest lifestyle, expenses can easily escalate for those desiring a more luxurious standard of living. Indeed, some retirees live a very extravagant lifestyle, with monthly expenditures exceeding $10,000 USD.
However, to ensure financial security and a degree of comfort, it's advisable to aim for a minimum budget of $2,500 USD per month. This amount provides a buffer against unexpected expenses and allows retirees to enjoy a reasonably comfortable lifestyle without undue financial strain. Ultimately, individual preferences, priorities, and financial circumstances will dictate the appropriate budget for retirement.
Tip: Further to this study, you can find out the price of everyday items in my cost of living guide.
Location: Where to Live
The first consideration is: where are you going to live?
Most people who retire in Thailand have some idea of where they want to live, whether it's a place they've holidayed before, near friends, or with a Thai partner. However, if you don't have ties to a particular area but have a couple of places in mind, I encourage you to visit and spend some time there before making a final decision.
Think about what you want from life. If you're 50, you might still want to be out three nights a week enjoying bars and late nights. If you're 70, you might really appreciate the peace and quiet and early nights.
Location is everything. If you can't tolerate noise, then certainly don't live in a tourist hotspot where there is likely to be a lot of loud music, foot traffic, and road noise at all hours. And if you're easily bored, forget about sleepy country towns.
Think about whether you want to be by the beach, in a city location, or a rural area. Let's explore those three options.
The Rural Life
Some retirees don't have much of a choice in where they live, as their better half already has a forever home in Nakhon Nowhere. Of course, it makes sense to live near family, but this isn't always ideal for the foreign national in the equation.
In this case, it might make sense for you to live in a location closer to a bigger town, or a couple of hours away by the beach.
The thing is, the quiet life is great for a while, but socializing is an important aspect of health as we grow older.
You don't want to be so isolated that you seldom talk to anyone. And if you don't speak Thai, you will feel like an outsider among the only people you get to interact with on a daily basis.
This is the problem with rural towns and villages: there may not be another foreign national from your home country for a few miles, and with all the locals speaking Thai, you'll only have your thoughts for company.
A lot of people will say, “I like the quiet life and being on my own.”
Yes, so do I, but I'd think carefully about being too isolated, as loneliness can lead to depression and negatively impact health. Having people to interact with, and having the odd conversation each day, contributes a lot to your mental well-being.
Moreover, it puts a lot of pressure on your relationship if your partner is the only person you have for company. You will be reliant on him or her for everything, yet he or she will likely be busy with family a lot of the time.
Having a few friends, someone to have a coffee or a beer with, to play golf with, to chew the fat on Western politics with, is important.
Of course, if you're still very active and mobile, you can always take regular breaks away from a small town or village and visit the beach or a big city. That said, traveling becomes an increasing hassle and inconvenience as you get older: Long drives, train rides, airport lounges—it's an effort. It's far better to have what you need on your doorstep.
Another challenge of rural living is getting around. Even if you live in a village a couple of kilometers outside of the main town, you will still need a car to get your shopping and make necessary trips.
- Are you still comfortable driving?
- Can you afford a car? (They are pricey in Thailand.)
- Does your wife/husband drive?
- Do you want to be reliant on others for transport?
There is always the option of a motorbike – a small 100cc bike – but do you want to be riding one of those at 65?
Village life isn't as isolated as it was 20 or even 10 years ago. Most villages have a small convenience store, and many have a 7-Eleven and a Tesco within walking distance; it really depends on how pedestrianized the location is.
The Island Life
Living by the sea is good for your health, and what better way to spend retirement than sitting on a sandy beach and looking out over the ocean.
The challenge, however, is finding reasonably priced accommodation in a beach location, and one that meets your needs in terms of noise pollution and local amenities.
One plus point is that unlike central city living, you can find a house to rent or buy rather than having to rent an apartment. Some people won't mind an apartment, and to be fair, if you've lived in Thailand for a while, you get used to condo living.
But for me personally, the older I get, the less appealing an apartment is. You have to pay a big premium to get something spacious in a good location, you have to put up with the noise of neighbors, and if there are two of you, it gets a bit claustrophobic.
A motorbike really is essential for getting around an island, and the further you stay from the main town, the more likely you are to need transport. That said, if you have the budget to take a taxi whenever you want (taxis are more expensive on islands), then it's a good option in my opinion.
It's not a huge expense, though. Let's say you are living in Bophut, Koh Samui, and you took a taxi to Tesco or Big C (there and back) once a week for your shopping, that would only cost you about 400 Baht per week (about $12).
Koh Samui
Koh Samui is a good option for retirement, in my opinion. Some say it is too built up now, and in places, compared to 25 years ago, that's true. But the island still has lots of beauty and charm. The island isn't that big either, so getting around, even by taxi, is easy, and there are a number of beach locations that are away from the crowds.
There are lots of expats there, too, so it's easy to make friends. There are always lots of markets and events going on. And they have lots of good hospital options.
Living on Koh Samui: An Expat's Guide to Moving to the Island
Phuket
Some areas of Phuket are worth considering too:
- Rawai and Nai Harn are for the quiet life.
- Kamala is similar to Rawai but for those with a little extra budget.
- Turtle Beach is very quiet, and good for those who want minimal contact with other expats.
- Laguna is great for those who like golf.
- Patong works for those who still crave the bar scene.
Phuket is a lot bigger than Samui and has less of that island vibe. The towns of Samui are closer together, making it easier to explore. That said, one advantage Phuket has is that some countries fly direct to Phuket airport, whereas Samui always requires a transfer from Bangkok.
This is a big consideration, as long-haul flights can really take it out of you as get older.
Hua Hin
Hua Hin is an option, too, though the beaches aren't very good. The area is quite spread out, making the need for a car much greater. When compared with Phuket and Samui, Hua Hin is much sleepier and feels a tad boring, in my opinion.
That said, some expats love it for its world-class gold courses, slower pace, fewer people, and it's prestige – due to being the official getaway for Thai royalty, and the middle classes.
Pattaya
And then there's Pattaya, which is somewhat city-like but with a beach to boot, and the red light district, of course.
Nestled along Thailand's eastern Gulf, what was once a tranquil fishing village in the 1960s has since blossomed into a dynamic metropolis, boasting an array of resort hotels, towering condominiums, bustling shopping malls, and lively bars.
I have to say that I'm not really a fan, but it is well located in terms of its proximity to Bangkok and the airports. It has a big retirement community, too. Jomtien, 3 kms down the road, is a quieter, more picturesque option.
The City Life
The obvious city to retire to in Thailand is the Big Mango, Bangkok.
Close to the main airports, with cheap transportation around the city, plentiful restaurants, bars, massage shops, and 7-Eleven's on every corner, along with lots of people to interact with and plenty of expats to meet, Bangkok is super convenient.
The downsides include heavy traffic, significant pollution, extremely humid weather, and the likelihood of needing to live in an apartment due to limited options for renting houses in the inner city. Bangkok isn't exactly picturesque either, and this concrete jungle can be wearing at times.
One thing I love about Bangkok is that there's always something going on. It's hard to feel lonely because life is everywhere, 24/7.
If you're active, you will never get bored exploring the city and its history, and when you're out and about, you're interacting with people all the time who are just as interested in you as you are in them.
It must be said that one thing Bangkok isn't is disability-friendly. If you use a wheelchair, part or full time, or walk with a stick and struggle on busy sidewalks and awkward pavements, it probably isn't the city for you.
Chiang Mai
One might consider Chiang Mai instead of Bangkok; a much smaller city, and one steeped in nature and rich in culture and historical sites.
Life in Chiang Mai offers a serene pace compared to the hustle and bustle of Bangkok. With its compact layout and manageable traffic (though still busy at times), navigating the city is easy. Moreover, the city offers easy access to the tranquility of nature: mountains, cascading waterfalls, picturesque rice paddies, etc.
Offering great amenities such as cinemas, shopping malls, and diverse international cuisine, Chiang Mai strikes a solid balance between modernity and authenticity.
It has to be said, though. that Chiang Mai becomes very familiar very quickly. The city itself isn't very big, and the suburbs are very rural.
Retirement Visa
I've written about the retirement visa extensively, so I won't go into too much detail here. Basically, you have two options:
- Get a 90-day single entry Non Immigrant O Visa from your local Thai embassy. Enter the country on this visa. Once in Thailand, open a Thai bank account and deposit 800,000 Baht. Once this money has been in the account for 60 days you can apply for a 1-year extension of stay based on retirement at a local immigration office. You will have to report to immigration every 90 days. This is called 90-day reporting. It can be done online, too. You must be 50 years old to apply for the extension of stay based on retirement. More on the Non O Visa retirement route here.
- The other option is to get an O-A visa. This is obtained in your home country at a Thai embassy, and gives you a 1-year stay upon entry to Thailand. It sounds easier than option 1, but it comes with a number of hassles, including having to do a police check (criminal record, etc), and having to buy mandatory health insurance. More on the O-A visa route here.
The easiest way is to follow option 1.
Please note that though we refer to it as such, there is no such thing as a retirement visa, only these two options aimed at retirees: An extension based on retirement, obtained through a Non O Visa, and the O-A Visa, obtained in your home country.
Buying or Building a House
Depending on your financial situation, you might consider purchasing property in Thailand.
Before doing so, I'd urge you to consider that rent is inexpensive here and may be the better option. In most cases, renting for 20 years or more will cost you less than buying a property.
Renting also offers the flexibility to relocate or return home without the hassle of selling or renting out a property through agents.
There's an old adage for happiness among expats in Thailand that goes, “Rent everything and own nothing.”
It's important to note that as a foreigner, you can't own land in Thailand unless it's part of a business setup, which can be complex and isn't available to those without the correct company structure in place.
So, if you “buy land” with your partner, he/she will own it; you'll simply be providing the funds and covering the cost of building the house.
You can lease land, as described here, and you can buy a house on land with a lease.
There are also some luxury, so called “branded properties”, that offer a freehold arrangement. These developments circumvent the law using a loophole, as described in my detailed article on ownership, linked below.
Buying a condominium is the easiest way to own property in Thailand. You can own one outright and leave it in your Will without the worry of a lease.
Renting an Apartment/Condo
Once you've found your preferred area to live, you'll need to rent an apartment/condo.
Renting in Thailand offers numerous options tailored to individual lifestyles and preferences. Whether you seek a modern apartment with upscale amenities or an prefer older, more spacious home, there's a home to suit your needs and budget. Furthermore, the distinction between apartments and condos provides flexibility in ownership structure and management style.
The cost of renting can be as affordable or extravagant as desired, often proving significantly cheaper than in countries such as the USA, UK, Canada, Australia, Germany, France, and Switzerland. While some may find the size of condos smaller than expected, particularly those accustomed to larger spaces like my American friends, increasing the budget by 5-10k THB can lead to a dramatic increase in living space.
When navigating the rental process, it's crucial to consider factors like transportation accessibility, noise levels, and building security. Understanding lease contracts, deposit regulations, and utility billing procedures is essential for making informed decisions and ensuring a seamless rental experience.
In bustling cities like Bangkok, the abundance of rental options means that if noise becomes an issue, or if proximity to public transportation is lacking, or even if a neighbor's late-night drumming becomes disruptive, relocating to a more suitable residence is relatively straightforward.
Price wise, here are some approximations for accommodation in Bangkok. The islands will be a similar price, and upcountry potentially 50% lower in some cases:
- 16,000 THB: This option is based on a new build studio spanning 46 sq.m and situated just 500m from a BTS station. It includes access to a swimming pool and is a convenient 5 stops away from the town center.
- 20,000 THB: For this price, you can secure a new build 1-bedroom unit measuring 35 sq.m, located 600m from a BTS station. Additionally, amenities such as a gym and pool are available, and it's close to the center of town.
- 20,000 THB: This price is based on a 12-year-old 2-bedroom apartment covering 60 sq.m, with access to a gym and pool. Conveniently located just 500m from a BTS station and close to the town center.
- 25,000 THB: This price gets you a new build 2-bedroom unit spanning 57 sq.m, this option is located 500m from a BTS station and close to the town center. Although there's no pool or gym, it provides ample living space.
- 30,000 THB: This choice is based on a 20-year-old 2-bedroom apartment with 112 sq.m of space, situated 1km from a BTS station and close to the town center. While lacking a pool or gym, it offers generous living quarters.
- 75,000 THB: For those seeking luxury, this option is based on a 15-year-old 2-bedroom unit covering 75 sq.m, complete with 2 bathrooms, a gym, and a pool. Located in the heart of town near tourist areas, it offers premium living accommodations.
*Prices are per month.
While it's possible to find cheaper alternatives in similar areas, these examples offer a glimpse into the accommodations available at various price points.
I have a comprehensive guide to help make the rental process a successful experience. See below.
Working / Starting a Business
You are not permitted to work on a retirement visa. It's a strict rule and one that you should never break, as doing so will risk your visa being canceled. To work in Thailand, you will require a work permit.
If you do find a job, or want to start a business, then you will be required to change your visa status.
Starting a business isn't as easy as you would might think, though as detailed in this starting a business article.
Health Insurance
Expats and foreigners are not able to access healthcare in Thailand via the country's universal health program, unless they have worked in Thailand previously and have a social security card.
You may already have a health insurance policy in your home country, so you'll need to check if it covers you internationally while living in Thailand.
If you don't have a policy, you have the option of getting a local policy, which covers you in Thailand, or an international policy, which covers you when traveling abroad or visiting back home.
A domestic policy is typically cheaper as it only covers local healthcare.
If you're over 75 or have a serious health condition, you may struggle to obtain health insurance. Alternatively, the policy premium may be prohibitively expensive. In this case, you should consider setting aside money each month to cover potential medical expenses.
Healthcare costs are significantly lower in Thailand compared to the West. If you have a decent pension and substantial savings, you might find yourself in the advantageous position of not having to worry about hospital fees should you face health issues.
+ See a quote for international health insurance here
+ See a quote for local health insurance here
Life Insurance
Something else you might need to sort out is life insurance. If you have an existing policy, you will need to check with your policy provider to see if it can be transferred to Thailand.
If you're getting married or cohabiting with a partner in Thailand, you may want to consider paying a monthly life insurance premium to ensure your partner is financially secure when you pass.
It's often the case that the foreign national in the relationship is 10 or even 20+ years older than their partner, and therefore likely to die first. It's therefore prudent to make plans for your partner's life without you.
Moving to another country may require you to consider other financial investments and factors as well. For life insurance and financial planning, you can speak with my Thailand-based IFA.
+ Contact my IFA here with your enquiry
Opening a Bank Account
There are plenty of options for expats when it comes to banking. You will be able to get a basic checking account with a debit card and online banking.
Bangkok Bank and Kasikorn Bank are typically the most foreigner friendly banks, and Bangkok Bank works very well with Wise, which we will discuss next.
Open a bank account as soon as you can, as it makes life a lot easier. You will also need to deposit the 800,000 Baht in a Thai bank for a minimum of 60 days before you can do your 1-year extension of stay (based on retirement) at an immigration office.
Sending Money to Thailand
You will no doubt have to transfer money into Thailand on a regular basis, be it for spending, rent, or big purchases like a car or property.
The cheapest way to do this is through Wise. Basically, you send money to Wise from your home bank account and Wise then sends the money to your Thai bank account.
The advantage is that you avoid sending and receiving fees, and you get the mid-market exchange rate, as opposed to the rip-off rate given by banks. All you pay is a small handling fee to Wise.
Wise: Is This Still the Cheapest Way to Send Money to Thailand?
Taxation
In January 1, 2024, a new law began regarding foreign-sourced income in Thailand. Any foreign income exceeding 120,000 THB (or 240,000 THB for married couples) repatriated to Thailand will now be subject to Thai income tax, regardless of the tax year in which the income was earned.
Financial transactions such as direct and indirect transfers, ATM withdrawals, and credit card expenditures, originating from abroad, are deemed as remitted income and are therefore liable for taxation.
Additionally, cash or assets physically brought into the country, including those carried across borders or through airports, are considered as remittances and must be declared on tax returns.
Pensions provided by your government will only be taxed in your home country, while other pension schemes will be subject to taxation in Thailand.
To mitigate tax liabilities, Thailand offers personal and family allowances, which can significantly reduce taxable income. These allowances are applicable to the taxpayer, spouse (if filing separately), and children (subject to specific criteria).
The existence of a double tax treaty (DTA) between Thailand and another country aims to alleviate the issue of double taxation for individuals and businesses with financial activities or income sources in both jurisdictions. The application of double taxation depends on the terms outlined in each country's respective DTA with Thailand and the treatment of specific assets. As DTAs are distinct international agreements, it is advisable to review the applicable terms pertinent to your circumstances.
It's essential to note that regardless of the existence of a tax treaty, foreign-sourced income may still need to be declared on tax returns in Thailand. However, according to the revenue department, you may be eligible for tax credits for taxes already paid abroad.
If you intend to remit foreign income to Thailand, acquiring a Tax Identification Number (TIN) is necessary for filing tax returns. All this is easily handled by consulting a local accountant.
+ More information on the tax law here
Driving License
Don't forget to bring your driving license and International Driving Permit with you. You won't be able to hire or buy a car or motorbike without one.
If you are retiring in Thailand, then you will need to apply for a license. This involves taking a number of tests.
If you already have a driving license from back home, then you will need to do the following when applying for your Thai license:
- A short eyesight test (color perception, peripheral vision, depth perception)
- A reflex examination
- A computer based test (available in Thai & English language only) on the rules of driving
If you don't have an existing license from your home country, then you will need to take the Thai driving test too.
Learning Thai
Socially speaking, it pays to learn Thai so that you can converse with taxi drivers, shop keepers, and those in a position of authority.
Speaking Thai can also save you money, as your bartering skills will be that much better.
It makes sense though, right? If you live in a country you should be able to speak the language. It's a no-brainer.
I know, at 50+ it's not easy to learn a new language, let alone one with a different alphabet. The good news, however, is that Thai isn't hard to learn. In fact, you will be surprised just how quickly you pick words up and how soon you are able to form basic sentences.
A great place to start is Thaipod101, which is online learning software designed to help you learn Thai fast. It's also free to get started.
I use it and so do hundreds of my readers.
+ Register your free account here
Retirement / Care Homes
It's a bit gloomy to think about our final years of life, but being in the last couple of laps, so to speak, means your health can take a sudden turn for the worse.
What will your plan be if you suddenly become immobile, develop dementia, or need round-the-clock care for a serious illness?
Some maybe lucky enough to have a partner who is willing to become a carer, but even that might not be viable after a period of time.
The good news is that there are care homes in Thailand that cater for expats. All the most popular areas of the country have options.
I have written about these retirement homes here.
Making a Will
Most expats gloss over the need for a Will because their investments are mostly back home. However, having just a few assets in Thailand makes a Thai Will necessary.
For example, if you're on a retirement extension, you have 800k Baht wrapped up in a Thai bank account. You will no doubt have another account for withdrawals. You may end up buying a car or a motorbike, too, and you will have possessions in your home.
Dying without a Will makes it problematic for your family to access your estate, and the Thai legal system isn't easy to navigate.
A Will that clearly outlines your intentions for the property you leave in Thailand will make the process smooth, and negate the need for family members to spend money on lawyer and court fees to prove their right to your estate.
In Summary
As you can see, there's a lot to think about when considering retirement in Thailand, so I hope this guide helps make your planning easier.
Hopefully, you can use this as a checklist to ensure you have all the bases covered.
This guide could easily have been 15,000 words or more, but rather than providing every detail here, I have tried to keep the sections concise and provide enough of an overview for you to gain a good understanding. Where further information might be useful, I have linked to dedicated articles elsewhere on the site that offer comprehensive information and all the finer details.
I will update this guide periodically if I think of anything else you might need to add to your retirement checklist. In the meantime, please feel free to ask questions below. And if you know someone else who is considering retiring here, please forward them this guide so they can benefit from the information too.