Both foreign investors and expatriates are becoming more interested in purchasing real estate in Thailand. When purchasing real estate in Thailand, keep the following in mind:
1. Real estate ownership
- a. Freehold: With certain limitations, foreigners in Thailand are permitted to buy buildings outright (freehold). However, except in certain circumstances, only Thai citizens are normally allowed to own land.
- b. Leasehold: Land can be leased by foreigners for up to 30 years (renewable), offering a safe option for long-term investment.
2. Types of property:
- a. Foreigners are permitted to own freehold condominiums as long as they make up no more than 49% of the building’s total foreign ownership.
- b. Foreigners are permitted to own villas and houses, but not the land itself. Thai companies and long-term leasehold agreements are two typical ways to establish ownership.
3. Do your research:
- a. Do a thorough title search to determine the property’s ownership, legal status, and any encumbrances or restrictions.
- b. Make sure the land measurements are accurately recorded and correspond to the title deed.
- c. Legal Assistance: Hire a competent attorney with knowledge of Thai property law to assist you with the acquisition process and analyze any related paperwork.
- a. Thai banks may provide financing options to overseas buyers of real estate, although the conditions and terms may change. As an alternative, purchasers can think about financing possibilities offered in their home nations.
- b. Mortgages: For suitable foreign purchasers, certain Thai institutions provide mortgages. Research other banks and compare their offers because the loan-to-value ratio and interest rates can differ.
5. Fees and property taxes:
- a. Transfer fees are normally paid by the buyer and are calculated as a percentage of the appraised value of the property.
- b. Stamp fee: A stamp fee of 0.5% of the appraised value of the property is due on transfers of real estate.
- c. Withholding Tax: If the seller is a business, the buyer is required to withhold 1% of the appraised value or the actual selling price (whichever is larger) and send it to the Revenue Department.
- d. Property tax: A yearly property tax is due from property owners depending on the assessed value of their assets.
6. Activating Experts:
- a. Work with reliable and accredited real estate agents that can advise you, present you with possibilities for properties, and negotiate on your behalf.
- b. Lawyers: To guarantee all legal matters are properly handled and to defend your interests, hire a certified property law specialist.
Keep in mind that Thailand’s real estate rules can be complicated and that they occasionally change. A successful and legally compliant property acquisition in Thailand depends on comprehensive study, experienced consultation, and professional assistance.