Retiring in Southeast Asia offers a combination of beautiful landscapes, interesting cultures, and a relatively low cost of living. These upsides of Southeast Asia are widely known.
In this guide, we are going to speak about other aspects of the most prominent Southeast Asian retirement destinations, namely:
- Retirement visa options
- Taxes for retirees
- Foreigners’ rights to own real estate
- Prospects of permanent residency
Retirement visas
Visas are all about your legal status in a country. Specialized retirement visas are designed to be easier to apply for and have specific conditions that qualifying retirees can easily meet.
Conversely, the lack of retirement visa options can become problematic. For example, Vietnam offers retirees no retirement or other long-term stay visa options.
Some people do border runs: They live in Vietnam on a short-stay tourist visa, and when it expires, they leave the country for a few days and come back, thus starting another tourist visa. This is inconvenient and strictly against the spirit of the law.
So, having dedicated retirement visas makes it much easier for expat retirees to settle in their chosen country.
Taxes for retirees
Knowing whether your retirement income will be taxed in your country of residence is important for understanding the financial implications of retiring to Southeast Asia.
Sometimes, like in Thailand, different visas can result in different tax obligations.
Let's say you become a tax resident in Thailand with the Thai Elite Visa; in this case, you pay income tax on your worldwide income.
On the other hand, if you opt for a wealthy pensioner LTR visa, you will be exempt from Thai income tax even if you are a tax resident in Thailand.
Property ownership by foreigners
Many Southeast Asian countries have laws that restrict foreigners from owning land or certain types of property. While there are often workarounds, they tend to be complex and risky. Here are the downsides of not being able to fully own real estate:
- Legal and financial risks: Relying on local sponsors to hold property can expose foreigners to legal and financial risks, including potential disputes and loss of investment.
- Increased costs and complexities: Setting up legal structures, such as long-term leases or local partnerships, can be costly and complex, requiring extensive legal assistance and careful planning.
- Limited control: Foreigners have limited control over property decisions and management, which can affect the value and use of the property.
- Market restrictions: The inability to own land outright restricts the types of properties foreigners can purchase, potentially leading to higher demand and prices for properties that are available to them.
If the right to own your property and land outright is important to you, your choice of the countries in the region is limited to Malaysia, Singapore, Japan, Taiwan, and South Korea, of which Malaysia is an excellent choice for retirement.
The prospect of permanent residency
In some regions, such as Europe and Latin America, obtaining permanent residency grants you rights and status that are very similar to those of a citizen, with few limitations, and as a rule, it leads to citizenship.
It might be an important factor for retirees if you plan to live in your chosen country indefinitely.
However, the situation is different in Southeast Asian countries. Permanent residency, if obtainable, primarily eases certain bureaucratic procedures related to travel, government paperwork, and loans rather than providing extensive rights comparable to citizenship.
Therefore, it can be useful to understand if your visa provides a valid path to permanent residency and what benefits can come with it.
Five best countries to consider for retirement in Southeast Asia
1. Thailand
Retirement visa options
- The Non-Immigrant O-A and O-X visas
These are specifically for retirees aged 50 years and above who wish to live in Thailand long-term. The O-A visa is valid for one year and renewable for another year, after which you have to re-apply. The O-X visa is for 5 years, renewable for another 5 years.
2. The Thai Elite Visa
This visa is the best way to avoid lengthy bureaucracy and paperwork. You pay a required membership fee and an elite visa agent will do everything needed to obtain this visa. There are several visa types that have different fees depending in the length of stay and other factors.
3. Wealthy pensioner long-term resident visa (LTR): a 10-year visa for retirees with over $80,000 annual income
Find out more in our Thailand Visas And Residency guide.
Taxes
A new tax code introduced in 2024 means expats in Thailand pay taxes on the money remitted in Thailand depending on the DTA with their home countries.
Social Security payments are not taxed. Long-term resident (LTR) visa holders are exempt.
Property ownership by foreigners
Foreigners cannot own land in Thailand. To indirectly own land, some foreigners set up a Thai company to hold the land title, but this method has legal complexities and risks.
Foreigners can lease land for up to 30 years, with the possibility of renewing the lease for another 30 years.
Foreigners can legally own condominiums in Thailand, provided that foreign ownership in the building does not exceed 49% of the total floor area.
Find out more in our Moving To Thailand guide in the Buying Real Estate section.
Permanent residency
It is theoretically possible to obtain permanent residency in Thailand after at least 3 years of non-immigrant visa extensions, but in reality, it is a complex and difficult process. Even with PR, foreigners still cannot own land.
Popular retirement locations
Chiang Mai is your go-to for mountain views, temples, and a relaxed vibe. It’s perfect for those who love nature and culture.
Bangkok, the bustling capital, is where the action is—endless shopping, dining, and entertainment. It’s chaotic but thrilling.
Phuket offers stunning beaches and luxury resorts. It’s a bit touristy, but the beauty makes up for it.
Pattaya has lively nightlife and a mix of seaside relaxation, which is great for expats who want a bit of both.
For island paradise, Koh Samui tops the list with its pristine beaches and luxury living.
If you want something quieter, try Krabi. It’s less crowded but just as beautiful, with dramatic cliffs and serene beaches.
For more information on the most popular locations, read our guide on the Best Places To Retire In Thailand.
2. Malaysia
Retirement visa options
Malaysia My Second Home program, with 3 tiers requiring fixed deposits: Silver - RM 750,000, Gold - RM 2,000,000, and Platinum - RM 5,000,000, valid for 5, 15, and 20 years respectively.
Taxes
Expat retirees do not pay income taxes on any money they remit into Malaysia from abroad.
Property ownership by foreigners
Foreigners can own 100% of the property, including land, as long as they meet the minimum threshold for buying real estate.
Various states set up their own thresholds; however, the thresholds are lower for MM2H participants.
Permanent residency
Permanent residency is not offered under the MM2H program.
Popular retirement locations
Kuala Lumpur: Think skyscrapers, mega malls, and amazing street food. It's vibrant and bustling, perfect for city lovers.
Penang: A cultural hotspot with rich history and incredible food. Ideal for those who enjoy a lively, multicultural environment.
Malacca: Quaint colonial charm with a slow pace. Great for a relaxed, tranquil retirement.
Langkawi: Island paradise with pristine beaches and a laid-back vibe. Perfect for peace and stunning scenery.
Find out more in our Retiring To Malaysia guide.
3. Cambodia
Retirement visa options
Cambodia Retirement ER Visa gives the holder residency for one year (12 months), renewable annually for up to 10 years. If you are 50-54 years old, proof of retirement and financial funds is required. If you are 55+, no supporting documents are needed.
Taxes
There is no social security tax in Cambodia.
All tax residents are required to file and pay taxes on their worldwide income, so, in theory, your other pension income might be subject to the Cambodian tax.
However, taxes paid by resident taxpayers on foreign-source income will be allowed as a credit against Cambodian tax as long as you can prove you have paid the tax in the source country.
Foreign property ownership
Foreign property ownership comes with specific restrictions. Foreigners can own apartments and condominiums, but not on the ground floor, and only if foreign ownership in the building does not exceed 70%.
Foreigners cannot own land directly. To navigate this, some use long-term leases or set up local companies, but these methods carry legal complexities and risks.
Overall, while owning certain types of property is possible, outright land ownership remains off-limits for foreigners in Cambodia.
Permanent residency
There is no permanent residency scheme for expats in the country.
Popular retirement locations
First up, Phnom Penh. The capital. It’s chaotic, it’s bustling, and it’s got everything you need. Fancy cafes, lively markets, and a hint of that old-world charm.
Next, there’s Siem Reap. Home to Angkor Wat and a haven for history buffs. It’s touristy, sure, but you’ll never get bored with all the cultural activities and lively nightlife.
Then we have Sihanoukville. Beach lovers, this one’s for you. Sandy shores, clear waters, and a laid-back vibe. Perfect for those who want to chill by the sea.
Battambang is the hidden gem. It’s quieter, more local, with a charming colonial vibe and plenty of artsy spots. Ideal for a peaceful, off-the-beaten-path retirement.
Lastly, Kampot. It’s got riverside views, pepper farms, and a relaxed atmosphere. A bit quirky and full of character. Great for those looking to slow down and soak in the scenery.
4. The Philippines
Retirement visa options
A Special Resident Retirement Visa (SRRV) offers a renewable two-year residence ID card. Requirements vary by age. For applicants over 50, a $10,000 deposit in a Philippine bank and a monthly pension of at least $800 are required. The deposit can later be used to purchase a condo or similar housing.
Find more information in our Moving To The Philippines guide.
Taxes
Income from sources outside the Philippines is not subject to tax in the Philippines.
Foreign property ownership
In the Philippines, foreign property ownership is restricted regarding land. Foreigners cannot own land outright but can legally own condominium units, provided that foreign ownership in the building does not exceed 40%. Foreigners can lease land for up to 50 years, with an option to renew for another 25 years.
Permanent residency
Permanent residency is not possible under SRRV.
Popular retirement locations
Cebu: It’s got a bit of everything – beautiful beaches, bustling city life, and a relaxed vibe. Perfect balance for those who want it all.
Manila: The capital’s a beast – chaotic, lively, and never dull. If you love the hustle and bustle, this is your playground.
Dumaguete: A small-town charm with a big heart. Known for its friendly locals and peaceful atmosphere. Ideal for a quiet, laid-back retirement.
Davao: Clean, green, and serene. It’s got all the modern comforts without the crazy crowds. Perfect for those who love nature and tranquility.
Subic Bay: Ex-military base turned expat haven. Beautiful bays, great diving spots, and a laid-back lifestyle. Perfect for those who love the sea and want a mix of adventure and relaxation.
For a detailed look at the most popular locations, read our guide on the best place to retire in the Philippines.
5. Bali (Indonesia)
Retirement visa options
There are 2 options for 60+year old expats:
- The E33F visa requires a bank account statement with a balance of at least USD 2,000, proof of income of at least USD 3,000 per month, and a sponsor (guarantor).
- The E33E visa, nicknamed the Silver Hair Visa, permits a stay of up to 5 years (extendable) and requires a deposit of USD 50,000 in a state-owned bank along with proof of income of at least USD 3,000 per month. Applicants for the E33E must apply while outside of Indonesia.
Taxes
Theoretically, when you become a tax resident in Bali, you are required to pay income tax. However, there have been numerous instances where expats with retirement income from abroad were denied a tax number necessary for paying taxes, as the authorities were not interested in taxing passive income from abroad.
Property ownership by foreigners
Foreigners are not allowed to own land outright. Instead, they can lease land for up to 25 years, with the option to extend for another 25 years, giving them long-term use of the property.
Foreigners can own apartments through a strata title, provided the building is majority-owned by Indonesians.
Some foreigners use local nominees to hold property on their behalf, but this method carries significant legal risks.
Permanent residency
Permanent residency is possible after 5 continuous years of living in Bali on a retirement visa. It is valid for 5 years and renewable indefinitely.
Popular retirement locations
Ubud: This is your spiritual hub. Think lush jungles, rice terraces, and a very tranquil vibe. Perfect for the arty types who love yoga and organic food.
Seminyak: The playground for the stylish. High-end boutiques, swanky bars, and beaches that are perfect for sunset cocktails. If you want to live it up, this is your place.
Canggu: Surfer’s paradise with a hipster twist. Cool cafes, amazing surf spots, and a laid-back atmosphere. It’s where you go if you want the perfect blend of beach and buzz.
Sanur: For the more mature crowd who prefer peace over parties. Calm beaches, great for long walks, and a slower pace of life. It’s all about relaxation here.
Jimbaran: Seafood heaven with stunning beaches. Great for those who love fresh catches and breathtaking sunsets. It’s got a quieter vibe but still close to the action.
For more information, read our guide on Living In Bali.
Final thoughts on the best Southeast Asian retirement destinations
Southeast Asia offers very interesting and appealing retirement destinations, each with its own unique blend of culture, lifestyle, and scenic beauty. Thailand, Malaysia, Cambodia, the Philippines, and Indonesia each provide attractive retirement visa options tailored to expats, simplifying the process of relocating.
Tax issues vary by country. Some, like Malaysia and the Philippines, offer favorable tax conditions for foreign retirees, while others, like Thailand, have specific tax regulations that can impact retirement income.
Property ownership remains a complex issue across the region. Most countries restrict foreigners' land ownership but allow them to purchase condominiums or long-term leases.
Overall, Southeast Asia's main allure is its significantly lower cost of living, which allows retirees to enjoy a high quality of life without breaking the bank. Plus, the region boasts stunning natural beauty, a warm climate year-round, and quite a sizable expat community, making it a great destination if you are looking to retire in comfort and style.
