Story :  Pattamaporn Kittipanachol   
Image : courtesy of Kobkit Thienpreecha
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Although Permanent Residency (PR) may be regarded by many expatriates as granting additional privileges and benefits, the truth may well be otherwise.

“PR does not bring many benefits. I don’t consider it an attractive instrument for ordinary expatriates,” Kobkit Thienpreecha candidly declares. The youthful attorney-at-law specialising in foreign investments and immigration issues at Tilleke & Gibbins, the prestigious independent law firm, subsequently qualifies his statement, “Of course, it is subject to individual needs, and for some people it means a lot, because those who hold Permanent Residency Permits (PRPs) do not have to get visas to stay in Thailand.”

Kobkit Thienpreecha

Alternative measures in conjunction with 1-year visa extensions are usually sufficient. All foreigners obtain their first visa abroad from the Royal Thai Embassy. Short-term stays are accommodated by 30-day to 90-day visas issued upon entry. Longer stays are better served with 1-year visa extensions which are not as complicated and time-consuming as PR applications.

1-Year Visa Extensions
Work permits issued by the Ministry of Labour are required for all business-category applications. Other categories like retirement, education, investment, Thai family, are subject to different requirements. Because dependents are automatically granted visas along with the breadwinner, it suffices for most expatriate families’ needs.

Business Visa Requirements
  • Each foreigner has to be matched against 4 Thai mployees.
  • THB 2 million registered capital.
  • Good corporate financial performance - shareholders’ equity
    stays above THB 1 million.

For All Visas
  • All official supporting documents have to be accompanied by officially certified copies from various government agencies.

Applications include corporate documents, corporate and personal tax returns, social security, work permits, and marriage and birth certificates for dependents.

Standard 1-year visa extensions costing 1,900 baht are appropriate for those who do not plan to travel. Single re-entry visas cost an extra 1,000 baht per trip. Multiple re-entry visas for an additional 3,800 baht are best for frequent travellers. Dependents pay the same rates. The entire process takes about 30 days. Investment-promoted companies will get quicker processing, while retirement visas are available the same day.

Permanent Residency

A maximum of 100 people per nationality are granted PR each year. Except for citizens from India and China, most nationalities are not keen to apply. An Immigration officer informed Kobkit that on average, only “300 PRs are granted annually.”

Application Process

Identical documents as 1-year visa extensions, plus additional requirements like 3-year back tax filing records. Every applicant is subject to:

  • Show at least three consecutive 1-year visa extensions.
    Average PR applicants stay in Thailand for five years or more.    
    At least one year’s stay is generally needed before start
    applying for the first 1-year visa extension.
  • Criminal background checks: A petition is filed at the
    applicant’s embassy for a police check in their homeland.
    E.g. American citizens request the U.S. Embassy to supply
    information from the Federal Bureau of Investigation (FBI).
    Kobkit recommends an early start as some countries take up
    to four months. Results are submitted with the application.
  • Finger printing: Applicants have to appear in person on
    the day of the application.
  • Thai language test and brief interview: Read out some
    questions in Thai on Thai culture and history, and select the
    multiple choice answer. Those who cannot read have to speak
    Thai well enough to respond to questions read out to them.
  • Applicants are videotaped introducing themselves, stating
    their reasons for applying.

Benefits
 
• No longer require visa or re-entry permits.
• PR status of breadwinner accorded to dependents.
• Eligible for Thai citizenship – PRs can apply
  for naturalization after 5 years.
• Register names in household certificate
  (tabian baan).
• Offspring born in Thailand can get Thai citizenship.
• Purchase condominium without having to bring
  in foreign currency.
• Eligible to apply for a local personal mortgage.
• Can be a public company director.

Limited Rights of PRs

• Still considered “aliens”, thus require work permits and cannot work
  in forbidden occupations.
• PR Books have to be endorsed only at the Immigration Bureau. 
  Each endorsement is valid for 1 year. 
• Must additionally hold Alien Books that do not need endorsement,
  but require updates at local police station for any change of residence
  and renewal every 5 years.
• Allocated under foreign quota in condominium purchases.
• Cannot buy land and house outright. Usually Thai spouses will own 
  land and house 100% or a corporation is established to own the asset.
  Ironically, foreign executives (without a PRP) working for companies
  promoted by the Board of Investment (BOI) can purchase their allotted
  quotas for land and housing.

Kobkit indicated four broad application categories:

1. Investment

This is the least popular option as investors need to sink THB 10 million baht in various types of investments prescribed by the government ranging from shares in private and public companies to corporate securities and government bonds. Once applicants become PRs, investments stated in the application are “frozen” for 3 years.

2. Work

The bulk of professionals, academics, and unmarried foreigners file under this category. Eligible applicants have to:
  • Possess valid work permits for at least three consecutive years
    before the application date.
  • Earn at least 80,000 baht monthly salaries (some exceptions)
    over the past 2 years.
  • Work with their present employers for at least 1 year.

3. Humanitarian

This category is given first priority by the review committee and has the greatest number of successful applicants. Most applicants are foreigners married to Thai spouses hoping to settle in Thailand.

However, a new PR rule requiring work permits for retirees who apply for PRPs is contradictory. Foreign retirees with Thai-born children who demonstrate that they support their parents can apply under this category. Expatriates aged over 50 without work permits are better off with 1-year retirement visas.

Mandatory requirements for applicants with Thai families include:
  • DNA blood test results for offspring born of the union from
    government hospitals like the Police General Hospital.
  • Photographs of the family residence.
  • Video recording of applicant accompanied by family.

4. Expert

Only expatriates who work at Thai government agencies can apply in this category. Applicant success rates are scored on the importance of their job, the duration of the project and scarcity of their expertise.

Drawbacks of PR Applications:

•  No guarantee of success – Unlike 1-year visa extensions where qualified
   applicants are invariably guaranteed a visa, Kobkit states that lawyers
   cannot guarantee PR verdicts. The Immigration Bureau is part of the
   Royal Thai Police, in turn controlled by the Ministry of Interior. A
   committee of high ranking police officers evaluates each case on the
   basis of objective and subjective factors. The Ministry of Interior issues
   PRPs and Alien Books to approved applicants.

•  Short application window – Deadlines are fixed on 31 December
    annually. Opening dates are usually announced by the Ministry
    of Interior in October or November so the Immigration Bureau
    operates daily.
•  Long wait – Results are usually announced 1 year later. Delays
    can occur. Kobkit notes, “Applicants from December 2006
   have been approved, but have not received their PRPs.”
•  Costly - High and non-refundable fees are rarely paid for
    and processed by employers as PR is considered a personal
    choice unlike 1-year extensions that are usually paid for
    and processed by employers along with work permits.

Fees

Non-refundable application fees are 7,600 baht per person. Upon approval, a permit fee of 191,400 baht is due. Humanitarian category applicants get a reduced fee of 95,700 baht.

In 2008, a family of 4 would pay:
30,400             baht application fee for 4 people@7,600 baht
191,400           baht PRP fee upon primary applicant approval
+ 287,100 baht for 3 dependents@95,700 baht
508,900           baht

When are PRPs revoked?

Working category PRPs are not revoked if the holder loses his job. However, PRs who support Thai families could be lose their permits upon divorce and the Thai spouse reports it to the Immigration Bureau.

Kobkit concludes, “Nine out of ten people who sit down with me expecting to get many PR benefits end up deciding against applying or at least postponing the decision until they are eligible.” Nonetheless, if PR best meets your needs, in terms of your investment and living plans, there is a correspondingly high likelihood of your application being accepted.

For more information contact Tilleke & Gibbins’
Bangkok office Tel: +66(0)2 263 7700
www.tillekeandgibbins.com