What You Need to Know About Buying Property in Thailand


For those considering buying property in Thailand, there are a number of options available. There are properties to suit every budget with new real estate projects being announced on a daily basis. There are a number of factors that make Thailand an attractive place for investors, retirees or people just looking to buy a holiday home. Despite the appreciation of the Thai currency, property in Thailand can still be purchased at a very reasonable price compared to western standards.

The Purchasing Process
An offer on a property in Thailand should not be made unless the prospective buyer has received legal advice. A person should only ever hand over any money when they have been given the go ahead by a solicitor.

When a person is in a position to go ahead with the purchase of a property in Thailand they should make sure that the name in which the property has been purchased matches the name on their passport. This can help avoid any complications further down the road. Normally, a 10% deposit is required before the full purchase agreement is completed.

A preliminary contract will be drawn up containing a date when the final contract will be signed. On this date the buyer will have to pay the outstanding balance and any other taxes that are due. The Land Department will also be made aware of the purchase.

Legal Matters
Regulations mean that foreigners in Thailand can own actual bricks and mortar, but not land. This means that most foreigners buying property in Thailand will opt to buy a condominium. This makes matters less complicated, but if a person really does want to buy a house or villa there are ways to do so. A person could set up a Thai limited company in name, owning 39% of the shares with the remaining shares owned by Thai nationals that can be transferred later to the buyer. Another way is to lease land. This will be for 30 years with an option to renew the lease twice so really it’s a 90 year lease. Marrying a Thai is another option.

Finance
Acquiring finance for a property in Thailand can be difficult for a foreigner so most people will arrange this in their home country and then transfer the money to a Thai bank account. This means that buyers do not have to consider currency fluctuations.

Fees and Taxes
An estate agent will usually take around 3% of the total purchase price. When compiling a budget include a transfer fee of 2%, 0.5 % stamp duty and solicitor’s fees of 1%. The good news for the buyer is that there is no capital gains tax.

If a person has set up a Thai company to purchase a property in Thailand a 3.3% business tax will have to be paid.

Finally
With so many property developments being announced there are many options for those looking to buy a property in Thailand. Buyers should aim to purchase from a well-established developer, and a reputable solicitor should always be used.

Advertisements

One thought on “What You Need to Know About Buying Property in Thailand

  1. Thanks for this informative article. I’m glad you mentioned Thailand. I want to know more about owning property in Thailand. I’ve lived here for five years now, but I’ve only recently found out about property laws here and decided that I want to know more. I’ve been reading up on Thailand company registration. From my understanding, I can purchase property and then create a company and register it on my property, and doing this will help to protect my investment. What do you know of this tactic? I plan to speak to an experienced lawyer in Thailand before proceeding with any purchases because the laws are literally foreign to me, and I don’t want to do mess up the paperwork or misinterpret the law. I’d appreciate it if you can please let me know if you’ve heard about company registration in Thailand and offer whatever advice you have.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s