Buying property in Thailand as a foreigner can be a bit complex due to legal restrictions, but it is certainly possible if you follow the rules. Here’s a general overview:
1. Buy Property as a Foreigner: • Condominiums: Foreigners can buy condominiums in Thailand, but there are limitations.
A foreigner can own up to 49% of the total units in a condominium building, with the remaining 51% needing to be owned by Thai nationals. This is the most straightforward way for foreigners to buy property.
Lands (Houses): Foreigners are generally not allowed to own land outright in Thailand. However, you can buy in a Thai company.
Leasehold: Foreigners can lease land for up to 30 years, with options to renew. You can build a house on leased land.
Thai Company Ownership: A foreigner can set up a Thai company to buy land, but this requires careful legal advice as the company must be structured correctly (with at least 51% of shares owned by Thais).
Marrying a Thai National: If you’re married to a Thai citizen, they can own the land, but the foreign spouse will not have ownership rights. The property should be registered under the Thai spouse’s name.
Foreign Currency for Purchase: If you’re buying a property in Thailand and transferring money from abroad, the funds must be transferred from overseas in foreign currency. The Thai authorities will require proof that the money was transferred legally from a foreign bank account in your name. This is important for the property to be recognised under foreign ownership regulations.
Required Documents:
1: Passport: A copy of your passport, including the entry stamp.
2: Visa: Proof of a legal visa status (non-tourist).
3: Proof of Funds: Proof that the money used for the purchase was transferred from abroad.
4: Work Permit or Business Visa: If you’re a long-term resident or working in Thailand, this might be requested as part of the process.
Process for Buying Property:
Choose a Property: Once you find a property, negotiate the price with the seller and ensure it’s within the legal foreign ownership quota (for condos).
1: Due Diligence: Have a lawyer review the title deed and ensure there are no legal issues.
2: Sign a Contract: Once the terms are agreed, both parties sign a sale and purchase agreement.
3: Deposit: You’ll typically need to pay a deposit (usually around 10% of the purchase price) to secure the property.
4: Payment: You’ll need to transfer the balance of the purchase price through a foreign currency transaction from abroad, which is required for the transaction to be legal under Thai law.
5: Final Transfer: The final transfer of ownership happens at the Land Department or a local legal office. The process typically takes a few weeks.
Taxes and Fees:
1: Transfer Fees: These are typically around 2% of the property value, though they can vary.
2: Income Tax/Withholding Tax: This applies to the seller, but sometimes is negotiated as part of the deal.
3: Stamp Duty: A minor fee applied to the transaction, generally around 0.5% of the sale price.
4: Maintenance Fees: For condominiums, owners are responsible for ongoing maintenance fees.
Legal Assistance:
It’s highly recommended to work with a real estate lawyer who understands the nuances of Thai property law, especially when dealing with foreign ownership restrictions. If you’re planning to stay long-term, it’s also wise to understand the local rules about property ownership, residency, and taxation. Let me know if you’d like more specific details.
If you would like to discuss further with us, please email us on joel@ariamanproperty.com