Thailand’s SMART visa - a new Alternative

It has been four years since the Thai government under the responsibility of the Board of Investment (BOI) established the ‘SMART visa Program’. The main purpose of the SMART visa Program is to attract highly skilled foreign manpower into Thailand, as well as investors, executives and startup entrepreneurs wishing to work or invest in certain targeted industries with innovative technologies; known as the “S-Curve industries” (currently, there are 13 targeted industries); in order to enhance the economy through investment and innovation, as follows:

• Next-Generation Automotive
• Smart Electronics
• Affluent, Medical and Wellness Tourism
• Agriculture and Biotechnology
• Food for the Future
• Automation and Robotics
• Aviation and Logistics
• Biofuels and Biochemicals
• Digital
• Medical Hub
• Alternative Dispute Resolution
• Human Resource Development in Science and Technology
• Environment Management and Renewable Energy

However, the SMART visa is not only for foreigners wishing to enter Thailand; foreigners already residing in Thailand may also apply if they are qualified,

The SMART visa can be categorised into five types: (1) SMART T - Talent; (2) SMART I – Investor; (3) SMART E - Executives; (4) SMART S - Startup entrepreneur; and (5) SMART O – (Other) - Spouse/legitimate children of a SMART visa holder. Each category will have different criteria and requirements, whereby each applicant can opt for the most suitable one for them.

Several foreigners have complained about the SMART visa Program’s complicated criteria and requirements, including the specific qualifications of each applicant and the business of the hiring or investing company; which are required to be endorsed by the relevant governmental sectors in charge, e.g. the National Science and Technology Development Agency (NSTDA), the Digital Economy Promotion Agency (DEPA), etc.

However, despite all this, the privileges granted under this scheme is far more beneficial compared to the ‘complicated’ criteria one has to satisfy.

The initial privileges of the SMART visa holders are:

• Maximum visa allowance period of four years
• No work permit required
• One-year self-notification, instead of every 90-days
• No-limit re-entry permit throughout the visa-period
• Fast-track through immigration at international airports in Thailand
• The spouse and legitimate child(ren) will also haven the same visa allowance period as the SMART visa holders and also be allowed to work as permitted by law.

According to statistics recorded by the BOI, 714 people in total have already been granted SMART visas. The SMART S has the highest number of holders at 348, followed by the SMART O at 158 holders, SMART T at 156, SMART E at 48 and SMART I at 4. As for monthly term, between 21 to 58 (as of May 2020 to April 2021) were granted per month. Considering the statistics, the reason why the SMART S has been granted the most might be that this category is separated into three more types, depending on the level of the startup business, which allows more alternatives for the investors, especially in business terms.

With regard to the 13 S-curve industries listed above, based on the BOI’s records, 367 people have been granted the SMART visa by applying under Digital, followed by Automation and Robotics at 57 and Smart Electronics at 46. In such regard, it is clear there is a large gap between 1st and 2nd place, but this does not mean the chance of the applicants to be granted depends on the types of industries. Taking into account the characteristics of each of the targeted industries, Digital has a pretty wide scope, and includes many types of businesses; obviously, this equates to more applicants and more opportunities. However, the statistics have no effect on the endorsement of the SMART visa, which shall be granted under any of the targeted industries, as long as the applicant fulfils the necessary requirements.

To conclude, the SMART visa seems to be the best alternative for foreigners working or investing in technology related industries. In particular, it provides holders with an easier immigration process and avoids potential complications that may arise for general visa holders, as well as negates any work permit issues; which are important things to take into consideration.

This is intended merely to provide a regulatory overview and not to be comprehensive, nor to provide any legal advice. Should you have any questions on this or on other areas of law, please contact:

Nuttaros Tangprasitti
Partner

Thanungarn Wongnitiaunggul
Attorney-at-Law