Thailand Property Buying Guide: Four Key Points You Should Know Before Buying a Property in Thailand

Thailand Property Buying Guide 1: Can foreigners own real estate in Thailand?

Buying property in Thailand is feasible for foreigners. Foreigners can hold freehold ownership of a Thai condominium building, up to 49% of the total number of units in the project. In addition, Thailand's laws on buying houses do not stipulate an age limit for real estate owners. Before deciding to buy, please confirm the proportion of foreigners holding the project.

For foreigners who want to buy a house in Thailand, buying a freehold apartment project is always the best way to invest. Under the Thai Condominium Act of 1979, foreigners can hold absolute freehold ownership of condominium projects and co-ownership of community common property.

Leasehold is another property ownership option. Whether you want to rent an apartment or rent land to build a house, you must apply to the district land office to register the lease. During the lease period, you can own the buildings or building improvements on the land. However, Thai law stipulates that the term of a lease contract is at least three years but not more than thirty years, and after the expiration of the lease contract, both parties must renew the lease contract for no more than thirty years. Even if the landowner sells the real estate to a third party, the lease contract will be transferred accordingly.

Foreigners can register a company in Thailand and purchase land or real estate in the name of the company. If the company is purchasing a completed project, it must pay the total purchase price. If the project is not yet completed, a down payment of 25-30% of the purchase amount is required, and the remaining 70-75% is due upon completion of the project.

Since the Thai government needs to monitor the flow of funds, real estate purchases in Thailand must be paid in internationally circulated currencies and the amount must be remitted to the seller's bank account via wire transfer. A remittance notice and foreign exchange transaction certificate issued by the bank must also be provided to retain legal transaction records. Do not pay for real estate with cash, as the title cannot be transferred and registered to the buyer without the above bank documents.

If a foreigner dies while holding Thai real estate, the heirs must appoint a lawyer to prepare inheritance documents and the heirs must pay fees as per the Land Department regulations. In addition, when the total value of real estate exceeds 100 million baht, the heirs are subject to inheritance tax.

Thailand House Buying Guide 2: Do Home Buyers Need an Agent or Lawyer to Assist in Buying Real Estate in Thailand? Or is both necessary?

Buying a property in Thailand is usually done with the assistance of an agent, and the law does not require hiring a lawyer. Generally, the agent draws up a sales contract that contains all the negotiated details signed by both the buyer and the seller. In addition to the fact that the agent has a clearer grasp of the local market, the interests of buyers can also be ensured by entrusting the agent. Because the legal terms and clauses are quite complex, using an agent can ensure that the transaction goes smoothly and represents the best interests of the buyer when purchasing real estate in Thailand.

Thailand Property Buying Guide 3: Can Thai property buyers apply for a visa by purchasing Thai real estate?

Retirement visa

Many foreigners choose to retire in Thailand after retirement, and applying for a retirement visa has become an excellent choice. To apply for a retirement visa, you must be at least 50 years old and have not violated relevant Thai laws and regulations. You must have held a Thai non-immigrant visa. Holders of this visa cannot work and receive salary in Thailand. In addition, the retirement visa must be renewed every year, and when renewing it, one must provide proof that one's monthly income is not less than 65,000 baht; or that the bank deposit balance in the past three months is not less than 800,000 baht; or that the total bank deposit plus annual income in one year is not less than 800,000 baht.

Investment Visa

Applying for an investment visa is another option. When you purchase an apartment worth at least 10 million baht and have held a Thai non-immigrant visa, you can apply for an investment visa. This visa is for one year and must be renewed every year.

Thailand Elite Visa

If you are unable to apply for a retirement or investment visa, you can consider applying for a Thai Elite Premium Visa. Members holding a premium visa can enjoy multiple entry special visas and visa extension services to Thailand, and enjoy state guest treatment every time they enter and exit Thailand.

Thailand Property Buying Guide 4: What are the associated costs of buying a house?

Buying a Leasehold Property in Thailand: Lease Registration Fees

There is no legal requirement to register short-term leases with a lease term of less than three years. However, if the lease period exceeds three years, it must be registered with the Land Department to ensure that the court will allow enforcement. The current lease registration fee is 1.1% of the total rent for the lease period, which is usually shared equally by the lessor and the lessee.

Buying a Permanent Property in Thailand: Transfer Fees

The title transfer fee is calculated at 2% of the government assessed value. The buyer is the obligor to pay the property transfer fee, but it can be paid by either the buyer or the seller. The actual situation depends on the agreement between the buyer and the seller. Once the ownership transfer registration is completed, the property transfer fee must be paid to the Land Department.