Optimization is not evasion
Let's start with the line you don't cross. Optimizing means moving your tax residency to a country with lower rates while following its rules and your home country's exit rules: it's legal, and it's what a lot of people do. Evading means hiding income or faking a move that doesn't actually happen: it's illegal, and with CRS and CARF, pointless too, because the information travels on its own. This whole article is about the first one.
Why Thailand pays off
| Lever | Detail |
|---|---|
| Personal income tax brackets | 0% to 35%, first 150,000 ฿ exempt |
| Wealth tax | Doesn't exist |
| Crypto capital gains (regulated exchange) | Exempt until 2029 |
| Double-taxation treaties (Spain's: 1997) | Avoid paying twice on the same income |
The real saving depends on your income and how it's put together. A freelancer who was stacking progressive income tax on top of self-employed contributions — the norm in most of Western Europe — usually notices a big difference; a retiree with a public pension can barely notice, because many treaties keep that pension taxed at home (Spain's does). There's no universal number: there's yours.
The sequence, step by step
- Plan the exit. The year of the move is the delicate one; getting the timing right changes everything.
- Stop being a tax resident of your old country, in a way you can prove. If you're leaving Spain — consular deregistration, form 030, a folder of evidence — it's all covered in this guide.
- Move and spend 180 days or more in Thailand. That's what makes you a tax resident there.
- Get your TIN and Thai tax residency certificate: the strongest piece of evidence against your home country's tax authority.
- File what's owed in each country: in Thailand, your remitted income; back home, whatever income stays sourced there (a rental in Spain, for example — covered here).
The loose ends you shouldn't forget
- Exit tax: some countries charge one on the way out. Spain's, for example, only hits large portfolios (over €4M, or €1M with a significant stake) — rule it out before you leave.
- Spain's forms 720 and 721: if that's where you're leaving from, they apply until you stop being a resident — when they stop applying.
- The 2024 remittance rule: Thailand taxes what you bring into the country — covered in the tax guide.
- Remote work and the self-employed have their own quirks — here.
Where Bexpat fits in
We're the ones who make the move that anchors that change of residency actually happen — visa, flight, arrival and apartment in Thailand. Without real residency (an apartment, a life, the days), no optimization holds up; with it, the numbers work. Start with the visa quiz and the calculator.
Frequently asked questions
Is it legal to pay less this way?
Yes, if you genuinely change tax residency and do it properly. Optimizing means moving your residency to a lower-tax country while meeting the requirements; evading means hiding or faking it, which is illegal and, with CRS, pointless.
How much do you save?
It depends on your income and how it's composed. Brackets from 0 to 35%, no wealth tax and exempt crypto help a lot of profiles; a retiree with a public pension barely notices, due to the tax treaty. There's no universal figure.
What steps do you need to take?
Plan the exit, stop being a tax resident back home in a way you can prove, spend 180+ days in Thailand, get your TIN and certificate, and file what's owed in each country. The visa and real life anchor the change.