What foreign residents should know before transferring pensions, savings, inheritance or property-sale proceeds
Many foreign residents in Thailand are asking the same question: if I transfer money from overseas into Thailand, will it be taxed? The money may come from selling a property, receiving an inheritance, drawing down old savings or collecting a pension. Some people transfer through a bank or Wise, while others use a foreign card to withdraw cash from a Thai ATM.
The short answer is that money is not taxed simply because it enters Thailand. The real issue is what the money represents, when the underlying income arose, whether the person was a Thai tax resident in that year and whether a double tax agreement changes the result.
The rule from 1 January 2024
Under Section 41 of the Thai Revenue Code and Revenue Department Orders Por. 161/2566 and Por. 162/2566, foreign-source assessable income arising from 1 January 2024 may be taxable when brought into Thailand.
The rule generally applies when a person was in Thailand for at least 180 days in the calendar year in which the foreign income arose and later brings that income into Thailand. The income is normally considered in the Thai tax return for the year of remittance.
Two points are particularly important. First, income arising before 1 January 2024 is outside this new interpretation. Second, the Revenue Department’s published guidance states that foreign income earned in a year when the person was in Thailand for fewer than 180 days is not taxable under this remittance rule when brought in later.
Selling an overseas property
The full sale price of a foreign property should not automatically be treated as taxable income. The proceeds may include the owner’s original capital as well as a profit or gain. The calculation can depend on the purchase price, improvement costs, allowable expenses, the year of sale and the relevant tax treaty.
A seller should keep the original purchase agreement, evidence of the purchase price, improvement invoices, mortgage and completion statements, the sale contract, closing statement and evidence of tax paid overseas. Paying tax in the country where the property is situated may allow a foreign tax credit in Thailand, but it does not always remove the need to report the income.
Inheritance and old savings
An inheritance itself is generally exempt from Thai personal income tax. However, the beneficiary should keep the will, probate or court documents, estate distribution statement and bank records proving that the transfer came from the estate. Interest, rent, dividends or gains generated after receiving the inheritance are new income and must be considered separately.
Old savings are also not taxed merely because they are transferred. Savings accumulated before 2024, or income earned in years when the person was not a Thai tax resident, may generally be brought into Thailand without tax under this rule. But simply describing a transfer as “savings” is not enough. Bank statements and income records should show when and how the money was accumulated.
Pensions transferred every few months
The frequency of a transfer does not change the nature of pension income. Accumulating two or three monthly payments overseas and transferring them as one amount does not by itself avoid Thai tax.
Pensions must also be checked against the double tax agreement between Thailand and the country paying the pension. Private pensions, government-service pensions, state pensions and social-security benefits may be treated differently. Foreign tax already paid may qualify for a credit, subject to the treaty and Thai limitations.
Wise and ATM withdrawals
Using Wise does not place a transfer outside the tax rules. The Revenue Department describes remittance broadly and includes bank transfers, online transfers and money physically brought into Thailand.
Likewise, having no Thai bank account is not a tax exemption. Cash withdrawn in Thailand using a foreign-issued card or Wise card must still be analysed according to its source. The money may be non-taxable old capital or inheritance, or it may represent current pension, rent, interest, dividends or other assessable income. ATM slips alone are rarely sufficient; the foreign account or Wise statement should identify the balance used.
Plan before transferring
Before bringing a substantial amount into Thailand, identify the source of the money, the year in which it arose, the number of days spent in Thailand during that year, the portion representing capital rather than income, any foreign tax paid and the applicable tax treaty.
The safest approach is to classify the funds and prepare the supporting documents before the transfer is made. In many cases, the money may be non-taxable, but the taxpayer must be able to explain why. The method used to move or access the money does not change its true tax character.
