The Ultimate Guide to Expat Living in Phuket, Thailand

Known as the ‘Jewel of the Andaman Sea’, Phuket has long been one of Thailand’s most desired destinations.

Devastated by the 2004 Indian Ocean tsunami that claimed 225,000 lives across Southeast Asia, Phuket has undergone a remarkable transformation.

The disaster, one of the largest natural catastrophes in recorded history, claimed over a hundred lives on the island, with many hundreds more injured or missing.

Yet, an extraordinary resurgence of nature arose from the destruction – flourishing flora, abundant wildlife and revitalised landscapes.

Today, Phuket is not just a premier tourist destination but a symbol of resilience and renewal.

Its pristine beaches, lush jungles and unique mix of culture have cemented its place on the global travel map, drawing in millions of visitors and migrants every year.

Easily accessible through its international airport, this tropical haven offers more than just sun and sand – it’s a testament to the endurance of nature and the human spirit.

Home to nearly 600,000 residents, including a vibrant community of around 115,000 expatriates from all corners of the globe, Phuket boasts a reputation of being a place where ‘time slows down, and bliss takes over’.

Whether you’re seeking a beachside lifestyle filled with ocean-based adventures or yearning to explore untouched jungles brimming with nature’s bounty, this island delivers an unforgettable experience for every traveller.

Phuket – City Guide

There are plenty of stunningly beautiful islands off the coast of Phuket; however, the resorts of Patong, Karon and Kata are the most popular bases for expats. 

Bangla Road is one of the busiest streets in Phuket, full of bars, nightclubs and just about any kind of club you can imagine.

Alongside Bangkok and Pattaya, Patong on Phuket Island is a notorious red-light district. This may seem shocking by Western standards, but if you can adopt an open mind and stay clear of the seedier elements of life there, it can be an entertaining, albeit strictly adult-only, experience. 

Phuket’s upscale locations include Bangtao Beach, Surin Beach and the coastal Millionaire’s Mile, which offers the island’s best views, real estate and amenities.  

Phuket’s popularity with expats continues to grow, but don’t expect a year-round peaceful paradise. 

Phuket’s beaches and islands can get very crowded with tourists, which detracts from some of the appeal of this otherwise tranquil place. So, if you’re looking for a more peaceful experience, consider the quieter islands of Koh Lipe and Koh Tao. 

Phuket’s beaches and islands are beautiful but choose which time of the year you visit carefully, as they can get very crowded with tourists. 

Tourist numbers haven’t yet recovered to pre-covid heights of the 14 million that came to the island in 2019. However, Phuket remains one of Thailand’s most popular destinations, with November to February being the peak months for visitors. 

April and May are Phuket’s hottest months, with temperatures ranging from 25°C to 34°C. May heralds the onset of the rainy season, which lasts until October. While the rain isn’t heavy and usually short-lived, strong winds can cause rough seas.

With so many options, it can be difficult to determine what’s best suited to your personal needs and desires. Reach out to our team at Nomad Capitalist and let us help you take the first steps and plan for the future. 

Live Well in Phuket – Affordability

Aside from its weather, beaches and cultural attractions, one of the main benefits of living in Phuket is the low cost of living. 

Although Phuket is comparatively expensive in terms of Thailand, it remains highly affordable for expats.

A meal in one of its many inexpensive restaurants will cost in the region of US$4 per person while those with more expensive tastes are looking at a bill of about US$32 per person for a three-course meal in a mid-range eatery. 

There’s certainly plenty of choice here: Phuket’s only Michelin-starred restaurant, PRU, is located near the Tiraasa Resort and boasts a theatre kitchen. 

Likewise with accommodation, there is a wide variety to suit different needs and budgets, including some of the following options: 

• One-bedroom apartment with swimming pool access in Kamala (2.5 kilometres from the beach) for THB40,000 (US$1,183) per month
• Two-bedroom or three-bathroom villa with a pool (approximately 500 metres from the nearest beach) costs THB40,000 (US$1,183) per month
• Three-bedroom fully furnished waterfront townhouse with a communal restaurant costs THB70,000 (US$2,071) per month.

All of these properties are serviced, have air-conditioning and come with various amenities. 

You can expect to live reasonably well on a budget of around US$2,000, including accommodation. That should mean you can easily eat out every night, have a gym membership, enjoy Sunday brunches and cover your basic expenses. 

Phuket – Where to Live

With overall affordability and welcoming locals who make expats feel right at home, Phuket is ideal for a second residence or home. Here are some of the best areas to check out:

Patong

Patong offers a golden sandy beach, water sports and paragliding, as well as plenty of bars and restaurants. It comes alive at night, especially in the Bangla Road area. 

The street food options are diverse and fantastic and it’s a great place to shop. Vendors at the side of the road offer all sorts of Thai delicacies, so you shouldn’t run out choice too quickly.

The beautiful Karon Beach is just seven kilometres south of Patong and is easy to reach via tuk-tuk (a small local truck) or taxi. 

Tuk-tuks in Phuket are not the three-wheeled kind to be found in Bangkok. Here they’re four-wheeled vans with bench seating in the back and can be seen all over the area. 

Karon

The price of a trip from Patong to Karon is around THB400 (US$11) if you use a tuk-tuk, or you can use a GrabTaxi (a taxi app service). 

The cost of one of these taxis will vary, but generally, they cost around THB900 (US$24) and provide a little more comfort, although less excitement. 

Karon Beach has a laid-back vibe and is a family-friendly location. The beach is long but busy, and there are bars and restaurants supplying refreshments during the long, hot, sunny days.

Tourists flock to Karon to spend a day on the beach soaking up the sun, so if that’s your bag, then this is a great place to live. 

Kata

Further along the coast, Kata Beach is just a THB200 (US$5.45) tuk-tuk ride away. It’s a livelier area than Karon but still quieter than Patong.

A beautiful sandy beach with street vendors and plenty of sun loungers and umbrellas, Kata is close to nearby shops, bars and restaurants, as well as a Dino Park mini-golf attraction. 

Warning signs along the beach indicate evacuation routes, a reminder of the devastating tsunami that exacted a terrible toll in the area. 

If you want to explore further afield, take a day trip and experience scuba diving in crystal clear water or kayaking around the coastal islands. 

Living in Phuket – the Downside

With all the upsides of life in Phuket, there are a few cons to consider.  

One of the cons is that job opportunities for expats are limited by the Thai Government’s Alien Employment Act, which prohibits around 40 occupations for those commonly referred to as ‘farang’ (foreigners). 

Most jobs are reserved for Thai people, so you have to have a job approved for foreigners.

Some of the most popular options include teaching English or working in real estate. Other than that, the options are fairly limited, though many expats who aren’t retired, engage in online business and trading activities.

The high cost of education is another potential downside for those with kids.

The best option for Westerners with English-speaking kids is to send them to an international school, which isn’t cheap. 

The top-tier international schools in Phuket charge around THB900,000 a year, the equivalent of around US$26,000 a year. There are some mid-tier international schools that charge less, or those with English programs that are even cheaper. 

The free, state-run schools do not generally cater for English speakers, so your children will need to speak Thai to attend them.

Regarding healthcare for expats, Thailand has a Universal Coverage Scheme under which a national medical insurance system pays for contributions via salary. 

However, many expats opt for private care, which comes at a cost but is better quality. As a general rule, it’s better to have private insurance. 

Residence in Thailand

You can typically enter the country on your passport as a tourist and apply for a resident permit after you arrive, though this will ultimately depend on your current country of residence and whether visa-free or visa-on-arrival is allowed. 

Under the Tourist Visa Exemption Scheme, citizens of qualifying countries and territories may enter Thailand without a visa for a stay of up to 30 days and may extend their stay for another 30 days.

For example, if you’re from the US or the UK and your stay does not exceed 30 days, you do not need a visa. While this will give you time to do some research, assess your options and get a feel for the place, you’ll face a fine or even deportation if you overstay.

If you decide that Phuket or another Thai location is right for you, there are several ways to secure residence.

Thailand is extremely friendly to foreigners and has a number of options that are considered more accessible and less expensive than other expat destinations. 

One of the most popular options is the Thai Elite Visa, which includes gold, platinum, diamond and elite reserve options with different prices, eligibility requirements and benefits: 

• Gold membership: The fee is THB900,000 (approximately US$26,600) and is valid for five years. This program does not include options to add additional members.
• Platinum membership: The fee is THB1.5 million (approximately US$44,300) and THB1 million for each additional family member. Valid for five years, plus at least two people must apply.
• Diamond membership: The fee is THB2.5 million (approximately US$73,900) for 15 years of residence. Additional members cost THB1.5 million. 
• Reserve membership: This by-invitation program has many privileges, is valid for 20 years and costs THB5 million (approximately US$147,900). The fee for additional family members is ​​THB2 million. 

Other routes to residency can be found via Thailand’s business, investor or retirement visas.  

If you start or invest in a business in Thailand, you can apply for a non-immigrant visa for 90 days and then upgrade it to a renewable one-year visa.

The Business & Investor Visa permits holders to apply for a single-entry or multiple-entry visa.

By investing US$300,000 in equities, bonds, property or any other approved investment vehicle, you can qualify for a renewable temporary residence that’s valid for as long as your investment is maintained. 

If you’re over 50, you can apply for a retirement visa by depositing THB800,000 (about US$23,000) in a Thai bank account or proving you have a monthly income of THB65,000 (around US$2,000). 

Paying Taxes in Thailand

Thailand is considered a territorial tax country that once taxed income made within its national borders but left foreign income alone. 

However, in 2024, the tax rules in Thailand changed, and things became a little more complicated.

As such, if you’re deemed a tax resident of Thailand – by staying there for 183 days in a year – any funds you remit to Thailand are taxed. 

Remittances can include credit card payments or bank transfers, for example, and are taxed at an individual income tax rate from 5% to 35%.

The figure is based on how much you earn and the top rate of 35% is levied on anything over THB5,000,000 (approximately US$147,000).

These changes have led many expats to conclude that Thailand’s tax incentives have ended.

But we at Nomad Capitalist beg to differ.

If you choose to live relatively frugally and do not remit an excessive amount to live on (it is a cheap country, after all), the portion of your income you bring in that is liable to tax should still be a small portion of your overall income. 

For instance, if you have US$500,000 and remit US$50,000 to live in Thailand, which is a considerable sum there, you’ll pay around US$10,000 in taxes.

Assuming the balance of US$450,000 is stored in a tax-efficient vehicle, the US$10,000 you pay on your overall assets of US$500,000 gives you an effective tax rate of 2% – not half bad. 

Living in Phuket, Thailand: FAQs

Living the Dream in Phuket

Whether you intend to live full-time in Phuket or not, there are legal ways to structure your affairs so you pay very little tax in Thailand. 

Phuket is an island paradise where one can experience peace and tranquillity or the hedonistic pleasures of its wild nightlife. The scale of the region’s natural beauty is mesmerising and, for both the adventurous and the more sedate, there’s plenty to keep you occupied. 

The basics of life, food, and accommodation are easily affordable in Phuket and you can be assured of a warm welcome wherever you go. 

As part of a plan to avail of the benefits of international diversification, such as lower taxes, new investment opportunities, asset protection and a second Plan B residence, Thailand is an enticing prospect. 

Of course, you could stay there for a few months a year as part of your trifecta strategy without becoming a tax resident. 

But whichever path suits your needs, it will take planning and that’s where Nomad Capitalist comes in.    

We help seven- and eight-figure entrepreneurs and investors create a bespoke nomad strategy using our unique, tried and true method.

You’ll keep more of your own money, create wealth faster and be protected from whatever happens in just three steps. Discover them here.