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Short Guide for Foreigners about Investing in Thailand

February 28, 2014 | Valerie Wong

When it comes to foreigners wishing to invest in Thailand, they should realize that adaptation to the culture is their first and foremost concern. Unlike many other Southeast Asian countries, Thailand is more open and welcome when it comes to acquiring investors (in that there aren't any special taxes for them or special treatment of local businesses), but in order to truly make an impact investment-wise in Thailand, you should be aware of several things. First, you can't own land in Thailand. Second, it's a conservative country, so you need to adapt to this conservatism in order to make your cash count and get something out of your investment.

Never Forget the Following

You keep yourself updated when it comes to VISA regulations as well as the current political turmoil that has many investors second-guessing themselves when it comes to actually investing in Thailand as of the moment. With that said, even though the situation isn't as perfect as one would expect, it's too much to claim that it's unsafe to bring money to Thailand for the sake of investment. In fact, it's not. Over the past few years, Thailand has proven itself to be a capable country when it comes to giving investors solid returns. It's also no coincidence that there remains an influx of foreign money into the Kingdom of Thailand.

When it comes to investing in Thailand by foreigners, your safest bet even in today's current political climate is to put your cash in the country's promising equity markets. The influx of money there as strengthened the Thai Baht by leaps and bounds, which in turn spells beneficial profit and stronger returns for investors when everything is said and done. Don't count Thailand out just yet. Part of the reason why investors continue to put their proverbial eggs in the Thai basket is because American and European investors are tired of the low bond and stock yields they've gotten from their own nations ever since the 2008 financial meltdown.

Other Things of Note

Thailand is one of Southeast Asia's economic tigers, with a sustained growth and resilient people. The fact of the matter remains that even though the world has recovered from the now half-decade-long financial crisis, Europe and America are still suffering from an economic slowdown and a pretty high unemployment rate in 2014. Thailand, meanwhile, offers high returns on dividend-bearing stocks. Savvy investors already investing in Thailand won't jump ship just yet, while investors who are considering getting a piece of the Thai pie should take the leap with an informed opinion on everything.

Don't be afraid to invest in Thailand because many investors remain on the Thai "bandwagon" for good reason. The Thai stock market remains strong (just check out its MSCI Emerging Markets Index and SET Index reports for a more in-depth look regarding that). No, it's obviously not totally safe, and there are investors jumping ship thanks to political turmoil and even general conservatism of Thailand even before the protests began. Still, no investment is ever completely safe, but Thai investments still offer higher yields than local stateside investments.

If you want to establish a business in Thailand, the Servcorp can help you out in the form of its corporate registration services ad virtual office solutions. The organization is one of the most reliable firms out there when it comes to Thailand-based startups.