Special terms you must know when buying a property in Thailand: Do your homework before buying a property in Thailand!

Keyword for buying property in Thailand: Permanent property rights

According to the Thai Condominium Act promulgated in 1979, foreigners can legally purchase apartments with permanent ownership rights, either for their own use or for renting out, but the ownership rate of foreigners in each apartment project cannot exceed 49%. The purchasing method is also very simple. You can directly purchase it in your own name with your personal passport and get the property certificate and title deed corresponding to the property.

Keyword 2 for buying property in Thailand: Leasehold

In addition to the capital Bangkok, other popular investment cities in Thailand such as Phuket, Koh Samui and Hua Hin, because the purchasing power of local Thais is not strong enough, therefore, except for the 49% of foreigners who have permanent ownership, the remaining 51% of foreigners can also purchase, but what they obtain is not permanent ownership, but long-term leasehold ownership, that is, the developer signs a long-term lease agreement with the owner, and the owner earns rental income from it.

Currently, the longest leasehold term under Thai law is 30 years, which can be renewed twice for a total of 90 years. This is the 90-year long-term leasehold term that is common when purchasing apartments in the Thai market. Leasehold property, like permanent property, is protected by Thai law and also requires backup registration at the local land bureau. And relatively speaking, although leasehold property is not as attractive as permanent property, it usually has certain advantages in terms of price, taxation, etc.

Keyword 3 for buying a property in Thailand: EIA Environmental Impact Assessment Report

EIA is established to assess the positive and negative impacts of important projects and activities that companies will develop on the environment. It is also an important test and evaluation that must be conducted for real estate projects in Thailand, which will affect the development and construction of real estate projects as well as their development direction.

The Thai government stipulates that for large-scale real estate development projects that have a significant impact on Thailand's environment, real estate developers must submit an EIA environmental impact assessment report to the Office of Natural Resources and Environmental Policy Planning (ONEP) of Thailand. The Thai cabinet and licensing agencies will then make recommendations on the report until it is approved. The Environmental Impact Assessment report must be prepared and submitted by a consulting company officially registered with ONEP in Thailand.

Keyword 4 for buying a property in Thailand: Building maintenance fund

It is a reserve fund paid for future maintenance of the apartment building. For example, a reserve fund is needed to pay for maintenance in the future, such as repairs to the building, replacement of elevators, or the appearance of the building.

Keyword 5 for buying a property in Thailand: Transfer fee

It is a fee that needs to be paid to the government when the house is transferred, which is 2% of the property price. Usually the buyer and seller each pay 1%.

Keyword 6 for buying property in Thailand: Special business tax

It is 3.3% of the property price, paid by the seller, and is exempted if the owner has held the property for more than 5 years.

Keyword 7 for buying a property in Thailand: Stamp Duty

It is 0.5% of the property price and is paid by the seller.

Keyword 8 for buying a property in Thailand: Retirement Residence

Foreigners aged 50 or above with a deposit of 800,000 baht in a local bank can apply for a retirement residence permit in Thailand.

Keyword 9 for buying a property in Thailand: rental management

The developer or real estate agency finds tenants for the owner, and the owner needs to pay a commission to the rental management company.

Keyword 10 for buying a property in Thailand: Rental management

In order to attract or give back to home buyers, developers will give owners annual return on investment after the customers purchase the property. After the contract period ends, the owner will manage the property himself.

Keyword for buying property in Thailand: Bangkok CBD

Refers to the central business district of Bangkok, which has three generations: Sathorn, Asoke and Rama 9.

Keyword for buying property in Thailand: BTS

Refers to Bangkok Skytrain, which has two lines and allows passengers to transfer within the station. It is one of the main modes of transportation for indoor travel.

Thailand property purchase keyword 13: MRT

Refers to the Bangkok Metro, which currently has only one line. Most of the city's busy shopping districts are located near the BTS line, so there are fewer opportunities to take the MRT. One-way tickets and passes for BTS and MRT are not interchangeable and must be purchased separately.

Keyword 14 for buying property in Thailand: ARL

Refers to the Airport Express, which is a rail transit line running between Bangkok city and the airport. The starting point is located on the underground floor of Suvarnabhumi International Airport, and there are currently 3 lines in operation.

Thailand property purchase keyword 15: EEC

EEC refers to the establishment of economic zones in the three provinces of Chachoengsao, Chonburi (where Pattaya is located) and Rayong (where Pattaya U-Tapao Airport is located) on the eastern coast of Thailand. By vigorously developing infrastructure and implementing a series of major investment preferential policies to attract new industries, the eastern part of Thailand will be built into an international transportation fortress integrating a three-dimensional transportation system by sea, land and air, and upgrading Thailand's Economic 4.0 plan. The Thai government is working to push for legislation to fully open up Thai land ownership to foreigners, in an attempt to attract foreign investors and capital, which will be necessary to increase the value of real estate development in the Eastern Economic Corridor (EEC) special zone.