These days it seems like every other foreigner you meet in Thailand is doing some sort of work online.
Whether a retiree managing business affairs back home via email, a YouTuber documenting their every breath of air, of an entrepreneur running an e-Commerce store out of cafes and co-working spaces, more and more people are taking advantage of being location independent.
Over the last decade, and particularly post-Covid, online workers have flooded into Thailand: remote workers, YouTubers, bloggers, web developers, affiliate marketers, poker players, the list goes on.
So what's the problem?
Well, the law pertaining to foreigners working in Thailand was written prior to the growth of the internet, which means that anybody falling into one of the aforementioned categories cannot obtain a work permit that covers the type of work they want to carry out in the Kingdom.
You can't simply sign up as being self-employed like you would back home. And in any case, the majority of online workers are registered as self-employed back home, and therefore paying tax in their home country (one assumes).
The fact is: the moment you conduct any type of work online in Thailand, you are technically breaking the law. No type of work is permitted without a permit. But as we know, judging by the numerous movie extras working on tourist visas, the law isn't always applied.
However, even those desperately trying to comply with the law can't currently do so.
And here's why…
Working in Thailand: A Legal Definition
When it comes to work, Thai law doesn't say anything specific about working online.
The law defines work in the following way:
“Work” means engaging in work by exerting energy or using knowledge whether or not in consideration of wages or other benefits;
To perform any professional work, regardless of whether or not there is an employer.
This definition is very broad, catching in its net all forms of work. Technically, even if you're staying in a hotel for a week on a tourist visa, sending a few work-related emails each day is against the law. Of course, no one would enforce that.
The fact is, to do any type of work in Thailand, you need a work permit. To get a work permit, you must have a Non-Immigrant B Visa.
Can I Get a Permit to Work Online in Thailand?
No, is the short answer.
Foreigners cannot set up as a sole trader or limited company with one employee (you). To obtain a work permit, other than through an employer, you need to set up a Thai company.
The requirements for this are a minimum of 4 Thai employees per foreigner, a 51% holding Thai partner who isn't included in the 4 employee quota, 2 million Baht business capital, and a business premises.
As you can see, this isn't really a solution for the typical person running a small online business.
What Do Lawyers Say on the Matter?
Back in 2009, I was living in Thailand and writing for a magazine based in the UK. It was a small gig writing an article or two each week. The pay was modest, but it covered my food bills and nights out.
I was fairly new to Thailand and concerned about working remotely in this way without a permit. However, everyone I spoke to said you've got nothing to worry about.
I didn't want to take a risk, so I decided to pop off an email to a well-known Bangkok-based legal firm asking whether a permit was required for a person working online in Thailand for an overseas client.
The response was very interesting. Here is the reply I received:
Thank you for contacting [name undisclosed]
Legally speaking, you are required to carry out your tasks with a corresponding Work Permit, regardless of the fact that you are doing your job through your laptop. This is because you are earning income whilst you are in Thailand.
At the same time the process of procuring a Work Permit is just complicated, as opposed to just doing your thing discreetly. Logically, thus, I would opt for the latter, like more or less what you are doing at the moment.
The most important thing in the end is you have a visa that makes your stay in Thailand legal.
Should you have further questions, please don't hesitate to contact us.
Have a nice day!
This shocked me a little, because legally speaking I was operating outside of the law, but being advised to do so.
I asked my brother, a lawyer in the UK at the time, what he thought of this position. His response was:
I would be very skeptical of a law firm, or lawyer, that actually advises you to break the law. We often point out to clients that what they are doing is against the law and the action they should take to remedy it, but would always stop short of advising them not to do it.
What's Changed in 15 Years?
Thailand was a very different place back in 2009. The whole “working online” thing was quite new and there were no legal guidelines specifically covering this area.
So you'd think that considering the explosion of the “digital nomad” scene there would have been some legislation brought in to regulate online workers.
Sadly not. And having spoken to a fair few people working online in Thailand over the years, I've discovered that I'm not the only person to receive a similar response from a lawyer.
In fact, law firms have been giving out this advice for many years, because they themselves have been waiting for the law to catch up this modern way of working.
Some people, however, would argue that the law doesn't need an ‘online worker' inclusion because it provides a clear definition of what working in Thailand means. You simply can't do it without a permit.
This means that thousands are breaking the law. So what happens if you get caught?
Are You at Risk of Being Arrested or Fined?
If you are working in Thailand without a work permit, then you will be subject to the following prosecution:
A foreigner who engages in work without having the work permit for it shall be liable to imprisonment for a term of not exceeding 5 years or to a fine from THB 2,000 to 100,000 or both.
Sounds scary, but don't panic, your YouTube channel or Etsy store isn't going to land you in the slammer.
You will often hear news that immigration is cracking down on illegal workers. But this has nothing to do with those working online.
Such crackdowns usually target migrant workers, tour operators and guides working illegally in Thailand, not those working independently / for companies outside of Thailand.
So what happens when someone does get caught working online?
In the 16 years I have been here, there have only been a couple of cases that I know of where people have been arrested.
Case 1:
The first was partly a set-up by someone with a vendetta. This person reported to immigration that foreigners were working illegally at a co-working space in Chiang Mai. Immigration raided the place and arrested a bunch of foreign nationals.
However, all were released when the immigration police realized they were working on their computers (online), not actually for the co-working space itself (link to report).
Case 2:
The second was the case of 17 foreigners arrested in 2015. Immigration officers raided a condominium in Chiang Mai, where the foreigners were suspected of teaching English to Chinese nationals online. This was reported in the Bangkok post here.
I don't know the outcome of this case but I doubt it resulted in more than a fine. The problem here was that the operation was pretty big, with 17 employees. We're not just talking about one dude on his laptop doing web design for a firm in the US.
This is clearly a case where a company could have and should have been formed.
The only other cases I know of revolve around raids on illegal online casinos. Gambling is illegal in Thailand, whether online or not.
Do You Work in the “Grey Area”?
The fact is, the majority of online jobs are tolerated in what is an unwritten “grey area”.
We know this to be true because of how publicly YouTubers walk around filming and posting videos online, receiving ad revenue, sponsorships and donations in return.
In fact, YouTubers have pushed the legal guidelines beyond any other online work we've seen in prior to its popularity. Why? Because YouTubers in Thailand are actively making money out of Thailand. Thailand is their business. They essentially document it and sell the footage to the rest of the world.
If the Ministry of Labor is fine with this, then clearly those working online are operating in an non-legislated grey area.
In short, if your work doesn't fall foul of one of the following sins, then you aren't likely to ever have an issue with working remotely in Thailand:
- You are not taking a work opportunity away from a Thai national.
- You are not employing a Thai national.
- You are not working with or for a Thai company.
- You are not operating a company-like structure.
- Your work does not pose a threat for the security or image of Thailand.
YouTubers should note number 5 on that list. Any defamation or silly antics deemed insulting will land you in hot water.
Are There Plans for an Online Work Permit?
The relevant authorities have been aware of people working online inside Thailand for many years, so why haven't they developed a permit for online workers?
I believe there are four key reasons for this:
- The cost involved in developing the legal framework and an alternative work permit for those working online is not justified against the relatively low volume of online workers. To us it might seem like digital nomads are hogging every seat in the local cafe, but in terms of the labour market they represent a small percentage of people.
- Most don't earn much. Very few are making a notable amount of money, so in terms of taxation it wouldn't be very lucrative. Moreover, the new tax legislation will pick up any high earners bringing money into Thailand.
- Take up of a permit might be very low, especially if it costs money and comes with a reporting requirement. In this case, people would just fly under the radar. It would then require considerable resources to investigate those suspected of working online, and in many cases would be difficult to prove.
- How do the authorities define and draw a line under online work? You can't penalize a person on a 6-month tourist visa who sends 6 emails a day, and then not penalize a person on a 30-day exemption stamp who sends 3 emails a day and makes two work-related phone calls.
It does seem like a missed opportunity though. Why not develop a digital nomad visa that includes a simple permit and a tax reporting requirement? It could attract a fair amount of revenue.
I guess this goes back to my first point above. Is it really worth the effort?
Nomads are coming in the absence of a permit and staying and spending money. The lack of regulation is most likely why they come.
The authorities clearly don't care about the little guy/gal writing blog posts on the beach. If they did, they would have done something about it by now.
I Don't Want to Work Illegally, What Can I Do?
There are two things you should do if you are concerned about the work you do online inside Thailand.
The first is to fully acquaint yourself with the law. Understand what the current legal guidelines are on work and know exactly where you stand. You can read the Alien Working Act here:
*Note that there is not one reference to “web” or “online” in this document. It is outdated, but perhaps remains so deliberately.
If you fall into the “grey area” (read my list above), don't worry. You don't fall foul of the law, but rather the law doesn't legislate for you at this time and you are tolerated – just like hundreds of others. But do be discreet.
If you are still concerned, speak with a reputable lawyer and seek legal advice like I did.
At least that way, should you be accused of working illegally, you can at the very least prove that you have actively been trying to get a permit to cover the type of work you do. Make sure you keep all correspondence between yourself and the law firm.
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Have you been given legal advice about working online in Thailand? Share your experience below in the comments section.
Last Updated on
Thai Tastic says
Mar 23, 2017 at 1:31 pm
TheThailandLife says
Mar 23, 2017 at 4:12 pm
Steven says
Thank you very much for writing this informative article. You wrote that unless you have been hiding under a rock for the past 6 months, then you should know that the NCPO has ordered the immigration authorities to Crack Down on illegal workers in Thailand. You are right that I was aware of this crack down. However, I was just wondering what your sources for this information are? Were there many articles written about this in the Thai newspapers, like the "Bangkok Post", or...?? I definitely believe what you have written here, so could you please tell me the sources of your information??
Thank you very much for posting this informative article,
I highly appreciate that,
Take care,
Steven
Mar 06, 2017 at 5:05 pm
TheThailandLife says
Mar 06, 2017 at 5:20 pm
Steven says
Thank you for responding back to me so quickly. I am a retired man living here in Thailand legally on a retirement visa. I am certainly not doing any other work "under the table" here in Thailand. However, I realize that there are numerous people who are teaching illegally here in Thailand. By "teaching illegally", I simply mean the many foreigners who are teaching without a proper work permit and work permit visa here in Thailand. These foreigners are usually teaching under a tourist visa, or a retirement visa, etc.... I was simply wondering just what the penalty would be if one of these foreigners got caught doing this type of activity? I have searched the Internet to try to find examples of foreigners who have been arrested for teaching illegally in Thailand, and I can't seem to find any cases of this happening in the past. Could you please give me the names of some articles on the Internet where foreigners have been arrested from doing illegal teaching work?? I am interested in knowing just what penalty was given to them for doing this from the Thai authorities. If you could provide me with any information regarding this topic, then I would highly appreciate it.
Thank you for your time,
Take care,
Steven
Mar 06, 2017 at 6:21 pm
TheThailandLife says
Mar 07, 2017 at 11:57 pm
Zahara says
Feb 21, 2017 at 8:50 pm
Jo says
Jan 22, 2017 at 3:08 pm
TheThailandLife says
Jan 24, 2017 at 5:10 am
Jo says
Jan 24, 2017 at 9:36 am
Thai TAstic says
Mar 23, 2017 at 1:29 pm
TheThailandLife says
Mar 23, 2017 at 4:13 pm
Penelope says
Take the following examples:
1) A person lives in Thailand by renting out their apartment back in their home country on AirBNB.
Is that online work?
2) A person lives in Thailand by earning passive income on a series of evergreen websites or AppStore apps developed long ago and outside of Thailand.
Is that online work?
3) A person lives in Thailand on the revenue generated from their business/restaurant/bar in another country -- which they no longer manage but remain in the loop via email.
Is that online work?
4) A person lives in Thailand on the revenue generated by stock trading on his US based E*Trade account.
Is that online work?
The problem is this: The word "online work" is ridiculous. All 4 of the above examples are clearly examples of revenue generated from *business assets outside of Thailand*. But the occasional management work (which may be less than an hour a month) could constitute "online work" by the definitions of the Thai government.
I'm sorry, but if I own $2 million worth of condominiums in Miami (I don't, I'm just saying), and I book them out at 2 week intervals using AirBNB, I am not "generating my income in Thailand".
We live in a world of passive income streams where millions of people generate recurring revenue on fixed assets.
This is **universally true** of retirees in Thailand who generate their income largely from real estate holdings, annuities and equity markets.
The reason this law isn't enforced isn't because the Thai Police have "better things to do".
It's because the law is patently ridiculous and unenforceable. As soon as you go down the path of calling "management of foreign assets using the Internet", "online work" then you've basically banned every retiree from Thailand and a major percentage of tourists.
Nov 02, 2016 at 8:12 pm
TheThailandLife says
Nov 04, 2016 at 3:28 pm
Paul says
Just wondering if you have reference to a newspaper article or government website, etc where as you state... "They (the police) have categorically stated in the past that they will not arrest people for online work because they do not consider it illegal."
I would love to see this in writing from an "official" source.
Thanks, Paul.
Mar 27, 2017 at 4:07 pm
TheThailandLife says
While they were working on their laptops, they were not not working for Thai companies and not being paid by anyone in Thailand. The tip off the police got was that they were either working for the workspace or companies in Thailand without permits.
They didn't have permits, but as I've mentioned before the outdated law does not cover the internet age and remote working so it is very difficult for the police to pursue a charge. That said, don't think for a minute that immigration wouldn't choose to interpret the law in a way that they saw fit.
Mar 27, 2017 at 4:50 pm
Thai Tastic says
The Thai Law says "Alien (or foreigner): a natural person who is not of Thai nationality. Work: engaging in work by exerting energy or using knowledge whether or not in consideration of wages or other benefits."
You are neither using knowledge or exerting energy when it's passive.
Mar 23, 2017 at 1:41 pm
TheThailandLife says
Mar 23, 2017 at 4:06 pm
Thai Tastic says
I have set-up a Belize corporation, which I am not shown as the Director of as nominee Directors are in place, and those Directors are based within Nevada, USA. and the associated bank account is with Barclays Seychelles.
This provides not only a tax free legal environment but also complete off hands management as all my affairs are managed so I dont have to and my annual 'maintenance' review is conducted outside of Thailand by myself holidaying to conduct this.
Of course one needs to establish a reliable Financial and regulated advisor, as my example is just that, an example of what i've achieved.
This sort of set-up starts at $13,000, but is tax free so pays for itself and also provides for a level of anonymity and asset protection.
Mar 26, 2017 at 7:56 am
TheThailandLife says
Mar 27, 2017 at 3:00 am
Marco says
Now, to the "immorality" of not paying taxes. That's a very subjective thing to say. For me, immorality is to take assets from others through threats of violence, not to protect your freedom.
I personally moved to a tax-free jurisdiction, because I value freedom, not just mine but the freedom of all humans. I love living in a country where people keep 100% of what they earn, and the government doesn't steal from them.
Do people in the UK have the right to take money from their neighbors through threats of violence, by claiming that they will donate to charity part of it? Since the answer is "no", then the government shouldn't have the right to do that either.
We can go on and on about this issue. But, if you want to pay taxes, just do it. Those who don't want to pay have the right not to pay as well. It's their money.
Sep 14, 2018 at 5:11 am
TheThailandLife says
Sep 14, 2018 at 9:02 pm
Marco says
All things pay for themselves when people use them. If a road becomes un-drivable, it's because no one is driving through it. Otherwise, you can somehow collect money for it, through tolls, for example.
How does the internet, electricity, or even the movie industry work so well? None of these things will stop working as long as people use them.
Obviously, if the government owned the internet, electricity and movie industry, they would collect tax for all of that at inflated rates, claiming that the internet or electricity wouldn't work without their divine intervention. Just like they claim that making all schools and healthcare private wouldn't work.
Do they have an interest in keeping things this way? Of course, because they get to keep the monopoly.
Healthcare, for instance, is the biggest scam of the century, with inflated prices that become even more inflated due to the existence of the other big scam that are insurance companies. Now, if we gave all of these things back to the people, and stopped the monopolies, you'd see that healthcare is actually not that expensive. You'd see innovation in these fields and fierce competition, just like we've seen with the internet, which due to its nature and the speed at which it was adopted, was impossible to acquire by the government. Can you imagine a government-owned internet? Your internet bill would be $1689/mo, but hey, luckily you'd be paying for social security, which would cover it.
Unfortunately, this won't change in the near term, because they've got the tanks and missiles. And so moving to another country was my only choice, with no plans of ever coming back, unless things radically change.
What do you think? Interested in hearing your thoughts about these issues.
Sep 15, 2018 at 3:28 am
Jez says
Oct 24, 2016 at 4:36 pm
TheThailandLife says
Oct 25, 2016 at 1:48 pm
aguy says
Have you got any informations about Iglu ?
Thank you.
Jan 16, 2017 at 4:40 am
Tomas says
May 27, 2016 at 4:25 am
TheThailandLife says
May 27, 2016 at 6:03 pm
Juliana says
May 31, 2016 at 11:56 pm
TheThailandLife says
Jun 01, 2016 at 9:57 pm
afsana zarin nabila says
Jun 13, 2016 at 2:32 pm
TheThailandLife says
Jun 14, 2016 at 1:33 pm
vatsal says
I have three years of gap so there is any chance to get rejection in to visa or not ?
And internation studnet can do job while study in thailand like canada or any other countries
.
Aug 12, 2016 at 11:03 pm
TheThailandLife says
Aug 13, 2016 at 2:56 am
David says
Feb 28, 2016 at 7:28 am
TheThailandLife says
Feb 29, 2016 at 12:15 pm
Roy says
I mean even i come in as Social Visit pass, i still can do continue to do them in anywhere from comfortable cafe or even in beaches. Even if i claim to travel for holiday despite only have about a month to be in this kingdom, at most likely i pretty much done in enjoying the kingdom land and would ready to go back home to take some break. Since i still can come back again for another month in the future right?
So i kinda confused about if it is totally okay to do my own things like doing my homework, college project, online trading, internet marketing as a Social Visiter?
Jan 16, 2016 at 1:10 am
TheThailandLife says
Jan 17, 2016 at 5:38 am
Derek says
Oct 31, 2015 at 6:01 am
TheThailandLife says
Oct 31, 2015 at 9:55 pm