Can a foreigner own a real estate property in Thailand?
Yes, in the case of an apartment in a condominium type residence. For this type of apartment, 49% of the total living area of the residence can be owned by foreigners in full ownership (freehold in English). The title of the apartment is registered in the name of the foreign purchaser to the Land Department, the equivalent of the land register.
The remaining 51% is owned by Thai people or offered for long-term leasing (3 x 30 years). When launching a new real estate project the freehold apartments are often the first ones sold. Once the quota of 49% of apartments sold to foreigners in full ownership reached, it is still possible to acquire an apartment via a lease (or leasing) of long duration recorded in the land registry.
In the case of a villa or residence that is not condominium type, the foreign purchaser is offered two solutions in order to access the property. The most common solution is a 30-year leasing with two renewal guarantees for a total of 90 years. This long-term lease is registered in the Land Department.
The second solution that can be preferred in some cases is the creation of a Thai company that owns the property. Several arrangements are possible to secure the investment and we work with law firms on a case by case basis.
Are there any agency fees in Thailand?
No, real estate agencies are paid by sellers.
What are the costs of buying or selling a property in Thailand?
The property title transfer fee is in the order of 2% of the value of the property estimated by the Land Department. These fees are due on the day of the transfer of ownership and are traditionally shared between the buyer and the seller. Upon resale, you will pay a tax stamp equal to 0.5% of the selling price of the property and a property tax of 3.3% in case this property has been owned for less than 5 years. years.
When buying a condominium or a villa in a community, it is also necessary to provide depreciation charges (or sinking funds in English), an envelope shared by the co-owner for future maintenance work. importance (roadway, swimming pool, electrical transformer, …).
What is the amount of the charges? What do they understand?
When buying an apartment or villa in a community, it is essential to take into account the amount of monthly charges. Expenses vary according to the size of the residence, the level of equipment and the services in general. For the Phuket region it is generally necessary to count on monthly charges of the order of 30 baht to 100 baht per square meter. These fees include the maintenance of common areas and equipment (swimming pool, gym, sauna), garbage removal, security service, the operation of the condominium trustee and in some cases the maintenance of your pool.
Is there a property tax and a housing tax in Thailand?
Thai law provides for a tax on land but in reality it only rises a few baht a year and is therefore not applied. In practice there is no housing tax or property tax in Thailand.
What is the process for buying property in Phuket?
Two types of stakeholders will guide the buyer for a successful and secure real estate purchase in Thailand. At first the real estate agent selects the goods and puts his knowledge of the real estate market, developers and the region to the service of the buyer so that the latter finds the property that corresponds to his needs.
In a second phase, a legal advisor secures the investment. After the signing of a sales agreement and the payment of a deposit to reserve the property at the agreed price, your legal advisor has one month to proceed with the various checks on the sales contract, the land, the title deeds , the promoter and possible mortgages. Your lawyer will modify the sales contract if necessary and send you a full report giving you the green light to sign the sales contract and proceed to the payment.
How to pay for the purchase of property in Phuket?
In order for the title to be issued to a foreigner or for the long-term lease to be registered, the payment of property in Thailand must be made by bank transfer in a foreign currency to a Thai account. Once the account is credited the bank will issue you a document, the “Foreign Exchange Transaction Form” that will allow you to register the property with the Land Department and get these funds from Thailand the day you sell your property. The legal counselor