What are the pros and cons of Non-O and Non-OA visas in Thailand, and what are the tax implications of maintaining a Thai savings account for these visas?

Jan 14, 2023
2 years ago
Andy *********
ORIGINAL POSTER
I'm weighing the pros & cons of the non O and non OA visas. I've had the OA visa in the past, and (kind of) understand it. The financial requirement for the non O visa is what I have questions about. I have a Swift account, so can transfer funds. How does the 800k Thai savings account impact US tax reporting? It seems you have to report the foreign account, on your income tax or other? When I decide to close the Thailand savings account - how does that work? Can I just transfer the money back into my US bank account? Also, I'm intending to get a non O visa for my wife - she is a US resident with Green card, and a Vietnamese passport. We can change her O visa from retirement to dependent on my O visa once in Thailand, correct?
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TLDR : Answer Summary
The discussion explores the differences between Non-O and Non-OA visas for expats in Thailand, particularly focusing on the financial requirements for the Non-O visa, including the necessity of maintaining 800,000 Baht in a Thai bank account. Key concerns addressed include the impacts on US tax reporting, such as the need for FBAR (Foreign Bank Account Reporting) if foreign accounts exceed $10,000, and the process for transferring funds back to a US bank account upon closing the Thai account. Additionally, comments detail the process for obtaining a trailing spouse visa for the user's wife and the related immigration procedures, emphasizing the importance of being on the proper visa status before applying for extensions.
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Robert ************
@Kevin *******
STEP-BY-STEP DO-IT-YOURSELF INSTRUCTIONS -- APPLYING FOR RETIREMENT STAY AFTER ARRIVAL IN THAILAND (Must be over age 50): i. You may arrive either Visa Exempt (currently 45-days), or on a 60-day Tourist Visa. ii. Then, immediately after your arrival, you must promptly open a Thai Bank Account, and transfer 800,000 Baht into Thai Bank Account (if married, some Immig. Offices like CM, accept Joint Account with 1.6 Mil. Baht. Also Note, that either Passbook Savings or Fixed Deposit is acceptable, but not Investment Account. Finally note, that some Immig. Offices, but not all - e.g. CM, require proof of foreign source of funds. WISE is an inexpensive, easy & reliable service to transfer funds). iii. Then, you apply for a 90-day Non-O Visa at local Thai Immigration Office. If on Visa Exempt, you use Form TM87, if on Tourist Visa TM86. You are required to apply with minimum 15-21 days remaining on permitted Stay, depending on Office (Chiang Mai, requires 21 days). Requirements: TM87 or TM86 (Note: Fear not, only 1-page Form simple to fill out in English with only basic info., name, address, passport info., arrival info, and stated purpose: "For Retirement"), Must be Over Age 50, 2000 Baht, Copy of all relevant pages of Passport (i.e. Facepage, and Entry Stamp); copy of TM30 (that is the required arrival form that is either completed by your Hotel or Condo, or you do yourself at Immig. Office w/i 24 hrs of arrival); copy of proof of residency (Rental Agreement, or Hotel Reservation -- some offices may not allow if only staying at a HOtel); and most importantly proof of the money in Bank (Copy of Bank Book, and a certified Letter from the Bank usually costing 100 Baht). Above is all simple and straightforward, so no need for spending money on a Visa Service. iv. If all docs. in order, Immig. Office will put a Sticker in your Passport that you are "under consideration", and a date to return to pick up your Visa Stamp (prior to your Stay expiration). v. Next, when you have 30 days remaining on the Non-O (and your Bank Money has "seeded" 60 days -- i.e. stayed on deposit), you go back to Immig. Office to apply for the 1-yr Retirement Extension. Requirements.: TM7 (Req. for Extension of Stay); 1900 Baht, and all other same docs. as above (newly updated of course). And, you will receive 1-yr Extension of Stay -- usually same day, if you arrive in morning. Note: For both processes above, your Bank Passbook Balance must be updated same date as application, and the Bank Letter should be no more than 7 days old -- easiest just to do both same day just before going to Immig. Office). vi. Finally, you should/must get a Re-Entry Stamp -- easiest/best to just do immediately after you get your 1-yr. Extension stamp. It can be single Re-Entry for 1000 Baht, or 3800 Baht for unlimited multiple Re-Entry. The Re-Entry Stamp allows you to leave and return to Thailand, without invalidating your 1-yr Extension. If you fail to do that, then your Extension of Stay is nullified, and you must start the process again. (IMPORTANT: If you want or need to leave Thailand while on the initial 90-Day Non-O, same thing -- must get Re-Entry Stamp.). Hope that is all clear.
Kevin ********
@Robert ***********
wow thank you good reply. I will copy it down.
Robert ************
Robert ************
Agree with prior Posters comments. But would add, that I personally prefer O to O-A. With "O-A" there is mandatory Health Insurance required at extra cost to you, plus if you apply outside of Thailand (for either), then also required to have Criminal Check and Medical Check. Better, to arrive Visa Exempt or on Tourist Visa, and convert/change to "Non-O" and then subsequent 1yr extension(s). If you wish specific "How-To" Instructions, let me know and I will post.
Andy *********
ORIGINAL POSTER
@Robert ***********
Thanks everyone for the info. For a couple years, it seems the OA visa will be the easiest, and better suit us now. The criminal check & medical check is no problem, and we will carry insurance anyhow. That will give us ~2 years, then we'll see what our situation is.
Robert ************
@Andy ********
Your choice of course. Good luck.
Andy *********
ORIGINAL POSTER
@Robert ***********
Thanks for the information! We've gone the OA/O visas before, then the OA insurance requirement happened, after that, covid. That seemed to change up everyone's plans.
Robert ************
@Kevin *******
You will need to exit Thailand without Re-Entry Stamp, to your O-A is voided. Then, you can re-enter, and follow my instructions below.
Kevin ********
@Robert ***********
Yes please I'm going to let my OA run out and get O my insurance goes up to 140k next year.
Alan *******
You have to do an FBAR report when you file your tax return if your total out of the US account(s) reach over $10,000 in value.

Doesn’t impact your taxes unless you earned income on those foreign accounts and even then you’d have to earn more than the foreign earned income exclusion and deductions allow you (assuming you meet the criteria for having your tax home outside the US).

If you’re just holding 800k baht in a Thai account for visa purposes, it’s not going to impact your taxes other than having to do the FBAR report each year.

I know when you buy property with income brought into Thailand then later sell it, that income has to be properly noted by the receiving bank as coming form a foreign source so you can transfer the proceeds of the sale back out of Thailand.

Not sure if anything similar has to be done with the 800k in this situation.

It’s much easier to transfer larger sums of money into Thailand than back out.

Be sure to do more research on that.
Alan *******
But unless you’re living very inexpensively, I’d think that you and your wife would probably spend the lion’s share of that 800k in your last year in Thailand, then transfer or just exchange and carry out in cash what’s left.

If you did have to move back to the US suddenly you can always bring more than $10k with you, you just have to declare it and if you have bank statements and visa documentation showing how it was sent into Thailand and for what purpose, shouldn’t have any issue carrying it back with you
Andy *********
ORIGINAL POSTER
@Alan ******
Thanks for the information. Gives food for thought.
Brandon ************
Getting your wife on the "trailing spouse" visa is likely to be difficult.

You can't do it in Thailand. Recently it has been reported that Phuket has started allowing it, but we haven't gotten a single report of anyone actually getting it done there yet.

You normally have to wait until you are on the 1 year extension, not the initial 90 day visa, and then you and your wife need to go to an embassy outside of Thailand (I think one of the Laos embassies is the only ones in the area that will do it) and apply for the 90 day non-O trailing spouse visa for her (again, after you are on the 1 year extension).

Then she enters on the 90 day visa and after 60 days can go to immigration and apply for the 1 year extension, but they will stamp her extension to match your 1 year extension.
Andy *********
ORIGINAL POSTER
@Brandon ***********
Hmm... Just when I think I have it figured out what to do... Thanks much!
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