What a foreigner needs to know to buy a home in Thailand?
After visiting Thailand, many foreign nationals are excited about buying a house in this colorful place. This is not surprising, considering the combination of favorable conditions for rest that the “land of smiles” offers.
The Kingdom is not only a popular tourist destination, foreigners purchase real estate here for personal use and rental. Local developers promote guaranteed real estate income programs, so the share of investment transactions is growing every year.
Thailand is the most sought-after country in Southeast Asia. Overseas buyers prefer the main resorts – Pattaya and Phuket – for their bargain deals. Koh Samui ranks third. Buyers from China and Hong Kong are also active in these locations.
Non-residents can purchase any local property, including a house with a land plot. However, there are some restrictions on the registration of property rights. Thailand-Real.Estate shares information about this.
Types of real estate ownership by foreigners in Thailand
- Freehold — in fact, it is private property. Freehold real estate can be bought, sold, inherited, donated and leased. When buying a home, a foreigner receives a certificate with the seal “chanot”.
- Leasehold is a time-limited ownership of real estate. As a rule, the contract is concluded for 30 years with the right to double extension (up to 90 years). Although this is a long-term lease, rental ownership allows you to dispose of real estate in the same way as a freehold (sell, inherit, donate, etc.). During the transaction, a contract is drawn up, registered and certified by the Land Department.
Features of buying Thai real estate
Thailand-Real.Estate has collected 3 basic things that a foreigner should consider before buying a property in the Kingdom.
No. 1 Land ownership
By law, a foreigner cannot own land in Thailand. For those who set this goal, there is an alternative – to open a Thai limited liability company and buy land on its behalf. In this situation, a foreigner cannot own over 49% of the company, 51% should belong to Thais.
Houses, townhouses and detached houses are described as grounded, which means that they are part of the land in or around the country. Therefore, a foreigner cannot own them without the participation of a Thai national.
No. 2. Condominium ownership
Due to restrictions on the purchase of land in Thailand, foreigners seek instead to buy a condominium or an apartment. Unlike land plots, a foreigner can buy them in full ownership. This is the easiest and most affordable option for buying Thai housing. According to the Thai Condominium Act of 1979, foreigners can own 100% of a condominium or apartment anywhere in the Kingdom if Thais own 51% of the building with this condominium. This means that 49% of apartments in condominiums are for sale to foreign nationals.
No. 3 Thai mortgage
When buying a condominium, there are several nuances, and many of them relate to financing. It is difficult for foreigners to obtain financing from Thai banks. This is true for foreigners who have been living in the country for many years, with work experience, married to a Thai, etc. However, it is possible to obtain financing to buy real estate. Even if you get a mortgage from a Thai bank, they will have to bring money from abroad, and the loan will be in foreign currency (dollars or euros).
What responsibilities does the owner have?
A foreigner is obliged to pay taxes and utility bills annually. There are also one-time fees when registering a property in the Land Department – 2-3% of the value.
At the same time, tax residents of other countries still have obligations to their home country. They must notify the tax service about accounts in foreign banks or legal entities.
Does real estate give the right to live in Thailand?
Buying a property in the country does not give the right to obtain a residence permit or citizenship. The general visa regime applies to homeowners.
However, there is a Thailand Elite program in the country, which allows you to get a visa for 5 to 20 years with an investment amount of $16,000. And some developers of elite residential complexes offer their clients visas under this program to buy housing.
Assistance in purchasing real estate in Thailand
Thailand combines the balance between East and West and is one of the most profitable investment destinations. In this country, you can admire ancient temples and palaces during the day, as well as enjoy bright and lively entertainment at night. In addition, the world’s most popular beaches are located here.
If you are interested in real estate in the Kingdom, you can turn to experts to get more detailed information about the peculiarities of this country, features of becoming a resident, purchasing an apartment or villa. Thailand-Real.Estate has all the data you need. Moreover, the company can provide you with the best bargain offers, the cost of property in Thailand, proven ads from reliable developers and proven homeowners and other services.
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