A New Life in Thailand

For three years running, Thailand has managed to keep its position as the top tourist destination in the world. Despite the tsunami, despite the Muslim insurgency in the southern provinces, Thailand is still the destination of millions of tourists drawn to its tropical beauty, its hospitable people, and world-class services. Tourists not only go to Thailand; they keep coming back.  Some come back to live in Thailand and expats .

Climate in Thailand | Thailand Government  | Medical Care in Thailand | Tax in Thailand | Thailand Real Estate | Shopping in Thailand | Cost of Living in Thailand  

Climate in Thailand

Thailand is very hot and humid from April till May. A respite comes with the monsoon rains, which arrive in June and last till September, sometimes flood the streets and make people wish they could have the hot but dry weather back again. Tourists generally visit the country from November to February, when it is less humid and breezier. A general rule of thumb is the higher the altitude and the farther north you are, the lower the temperature and humidity.  Take it from the locals, Thailand is especially blessed with tropical produce such as mango and papaya, sugar cane, and young coconuts that you can eat or drink as freshly made juice to help you cope with the weather.

Government in Thailand

According to the World Bank (2006), Thailand’s population has reached 65 million. The per capita annual income is US$2,750.  The country was considered as one of Asia’s economic tigers until the 1997 Asian financial crisis, which led to higher rates of unemployment, recession, steep drops in prices of stocks and properties, and bankruptcies.

Thailand has been a constitutional monarchy since 1932. In real life, however, Thailand was ruled by the “generals” for almost 50 years (1947-1992) and is currently  governed by the Council for National Security, which is composed of military officers supported by the King. The CNS assumed power after launching a successful coup in 2006. Elections, scheduled to be held in December 2007, are supposed to pave the way towards a return to civilian rule and resumption of normal political processes.

Another nagging problem concerns the country’s Muslim population, which is concentrated in the southern provinces. A still ongoing Muslim separatist movement has already claimed the lives of about 1,500 people and shows no signs of immediate resolution.

Tax System in Thailand

Residents are taxed only on income earned in Thailand.  Income earned outside Thailand is taxed if it is brought by the resident to Thailand within that same year.  Expatriates in Thailand can resort to a self-assessment tax system in which s/he can estimate and pay income taxes.  Expatriates who possess work permits may choose to be taxed at 15% for two years instead of the usual tax rates. Thailand has no capital gains or gift tax.

Medical Care in Thailand

Thailand is one of the two top destinations of foreigners who opt for overseas medical treatment. (The other is India).  In the beginning Thailand catered primarily to expatriates from Western countries that live and work in Southeast Asia. However like other countries that offer “medical tourism,” Thailand has broadened its target countries and the kind of services that the country offers, such as dental treatment. Medical treatment is also usually combined with a short vacation during the patient’s recovery period.  

As to costs, we can use one example. Medical services in a very modern and large hospital where half the doctors are U.S. trained can cost as little as 10-20 percent of what they would cost in the U.S. The hospital treats 250,000 foreign patients a year.  Charges can go as low as $50 per day for a private room with meals and go as high as  $150 for a luxurious suite complete with a living room, two bathrooms, a small kitchen, and bedroom. The rooms are so well furnished and the service so good that people say staying in the hospital is like staying in a hotel.

Real Estate in Thailand

First, it should be clear that foreigners are prohibited by law from owning land in Thailand. There are ways of “adjusting” to this restriction but these can be difficult and subject to questions and objections from Thai authorities. Those who are set on owning land usually resort to establishing a limited liability company where foreign ownership can reach a maximum of 39 percent. The simplest legal alternative to ownership is to buy a condominium since foreigners in Thailand are allowed to buy up to 49 percent of total units of a condominium building, as long as the money used is remitted from abroad and verified as such by a Thai bank.  Real estate property prices have doubled in recent years but you can still get reasonably priced properties. For instance, a studio apartment can still be had for about $17,000 in the Pattaya resort area while a condominium can be bought for $136 per square foot.

Shopping in Thailand

Thailand is a shoppers’ Mecca.  A shopping addict will be overwhelmed with the amount and variety of goods for sale, ranging from traditional, peasant made baskets used to store fragrant rice to Swiss-made diamond studded watches. Buyers are expected to haggle and sellers usually raise prices by 40 percent or more in expectation of the bargaining to come.  There are many fakes (good and bad) and buyers should beware.

Cost of Living in Thailand

Thailand still is a good bargain for expatriates although prices have been increasing for the past five years.  It will take some serious thinking on your priorities and the kind of lifestyle you are willing and ready to maintain.  You will find it hard to last anywhere, if you force yourself to go without any and all conveniences. You have to find a good compromise and balance. Living in Bangkok  is generally as expensive as living in other Asian cities. However, in general, a US$1000-1200 budget will get you a sufficiently comfortable lifestyle. Transportation costs very little in Thailand and  you can use buses, motorbike taxis, domestic plane service, trains and river buses. Thai food is very cheap and good, so eating local will mean big savings.