Over the past few years, a growing number of Réunionnais — the residents of Réunion, a French overseas department in the Indian Ocean — have been choosing to invest in Thailand. The trend is an intriguing one and deserves a closer look. Weighing up the economic, cultural and geographical factors at play, let us try to understand what lies behind this sharply increased interest in the Asian kingdom.
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The economic advantages of investing in Thailand
A low cost of living
One of the main reasons is the cost of living in Thailand. Compared with Réunion, and with a good many other parts of the world for that matter, it remains significantly lower. That low base lets investors maximise their returns while enjoying a comfortable standard of living.
With lower outgoings on housing, food and services, investing and living in Thailand becomes an attractive proposition for the many Réunionnais looking to stretch their purchasing power.
A thriving property market
In Thailand, the property market offers no shortage of opportunities. Whether in the big cities such as Bangkok or in tourist areas such as Phuket and Chiang Mai, the options are many and varied. For buyers from Réunion, it is a chance to diversify a portfolio with property that can be highly profitable.
The sheer range of property on the market means every investor can find something matched to their financial and estate-planning goals. The stability of the local market is also reassuring for foreign buyers wondering how well their money will hold up over time.
Tax advantages that are far from trivial
Add to that attractive tax advantages — France and Thailand are bound by a double-taxation treaty — and Thailand quickly becomes a land of opportunity. Unlike other destinations, taxes on property and on rental income are often lower here, which makes the investment more lucrative still.
For Réunionnais used to a heavy tax burden, that relief is particularly appealing. It encourages more of them to take the plunge and invest without crippling financial constraints.
An agreeable way of life and the charm of Asia
The appeal of Asia and of Thailand
The appeal of Asia is nothing new. Between the cultural wealth and the natural beauty, plenty of people dream of settling there. Thailand in particular wins visitors over with its idyllic scenery, its tropical climate and its welcoming people.
Every year the country sees millions of tourists and temporary residents pass through, among them a growing share of Réunionnais drawn by an exotic destination that is actually within reach. Living or staying in Thailand is also a chance to discover local traditions and to enjoy a different pace of life.
Opportunities created by tourism
With the steady growth of tourism in Thailand, the openings for investors keep multiplying. Réunionnais can ride that momentum by moving into the hotel trade or into short-term holiday lets, thereby securing a rental yield worth having.
Tourist regions deliver exceptional returns during the high season. Ventures of this kind meet the ever-growing demand from visitors arriving from all over the world. Buying land, on the other hand, remains closed to foreigners: it has to go through a 30-year lease registered at the Land Office, or through a Thai-registered company.
Lighter red tape and support from the Thai government
Moving abroad made easy
The process of moving to Thailand has been considerably simplified over the years. The Thai government offers a range of visa options suited to expatriates, which makes settling in easier. These schemes actively encourage foreign investors.
With those doors open, many Réunionnais no longer hesitate to leave their island and try their luck in Thailand. A change of life made possible by lighter paperwork and a warm reception from the local authorities.
Support from the Thai government
Beyond the lighter red tape, support from the Thai government takes the form of various policies that favour foreign investment. Tax incentives, protection of ownership rights, regional development schemes — all of it acts as a catalyst on the country's appeal to investors from Réunion.
The stated determination of the authorities to create a business-friendly environment reinforces the trend. Many entrepreneurs and investors see a genuine growth opportunity here, underpinned by incentives and clear legislation.
Planning your retirement in Thailand
An ideal retirement destination
A great many Réunionnais are thinking of spending their retirement in Thailand. With its agreeable climate, its modern infrastructure and its low cost of living in its favour, the country has become a first choice for older people who want to live comfortably without ruining themselves.
The warm welcome from local people and the emergence of French-speaking communities reinforce that sense of wellbeing. Retired people easily find activities suited to what they enjoy and to their day-to-day needs.
Easier access to healthcare
Thailand also has a healthcare system that is both effective and affordable. Hospitals fitted with modern technology and staffed by internationally trained doctors give quick, efficient access to whatever care is needed. For many Réunionnais weighing up a future abroad, this is the deciding factor.
With healthcare costs below those charged in other Western countries, it is an ideal way to look after yourself while protecting your savings. The peace of mind that comes with this medical cover from the Caisse des Français de l'Étranger, France's voluntary overseas health-insurance fund, reassures future expatriates.
It is clear, then, that several factors explain why more and more Réunionnais are choosing to invest in Thailand. From the attractive cost of living to the range of property opportunities, by way of the tax advantages and the quality of life, every one of these elements helps make the country a sought-after destination, for investment as much as for relocation. Simpler paperwork and proactive support from the Thai government reinforce the trend further, making Thailand an ideal place to invest for anyone coming from Réunion.
