Foreign Buyers Guide

Purchasing a condominium

In Thailand

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Certainly! Purchasing a condominium in Thailand can be an exciting opportunity, but it’s important to understand the local laws and customs to ensure a smooth and successful home buying process. Here are some key things to consider. It’s important to find a reputable real estate agent who can guide you through the process and help you find a property that meets your needs. Be sure to do your research and ask for referrals from other expats or locals.

Purchasing a House & Land

In Thailand

Foreigners cannot legally own land in Thailand, but they can lease it for up to 30 years for residential property. To purchase land, a foreigner can create a Thai company and purchase land under its name, but the company must be owned completely by Thai people when the land is transferred to it. A foreigner can own up to 49% of the shares in the company when it owns the property. Alternatively, a Thai spouse can purchase the land, but the foreigner must legally declare that the funds for the purchase belong to the Thai spouse and register a lease on the land to protect their interests.

Steps on how to purchase a

Property In Thailand

1

Research and choose the location and condo project that you want to buy.Work with a reputable Thai property agent or lawyer to assist you with the purchase process and check the legality, ownership of the property, as well as any outstanding debts or liabilities.

2

Sign a reservation agreement and pay a deposit, usually around 10% of the purchase price.

3

Obtain a foreign exchange transaction form from the bank (if you are transferring money from overseas).

4

Sign the sales agreement and pay the remaining balance of the purchase price.

5

Register the ownership transfer at the Land Office and obtain the title deed (Chanote) for the property and pay the transfer fee and any taxes that may apply.

Obtaining a mortgage

loan In Thailand

Foreigners can apply for a property loan in Thailand if they meet certain criteria. These include having a stable income, good credit score, and being between the ages of 21-55 (not exceeding 60 by the end of the loan tenor). Foreigners can also be eligible if they hold Thai PR, work in Thailand under a work permit for at least 1-2 years, or hold dual citizenship, including Thai citizenship.

However, interest rates for foreigners are generally higher than Thai interest rates (around 5%-8%), and the maximum loan-to-value amount is up to 70% of the government appraised value or purchase price (whichever is lower). The payback period is also generally a maximum of 15 years, and the property must be a completed project in Bangkok or selected areas in Thailand.

Taxes and Fees for

Properties In Thailand

1

Transfer fee: A government transfer fee is calculated based on the appraised value of the property and usually ranges from 2 %.

2

Stamp duty: This tax is due on the transfer of property ownership and is typically 0.5% of the appraised value.

3

Withholding tax: This tax applies to non-resident sellers of real estate which is calculated on a rather complex formula according to the appraised value of the property, the length of ownership and the applicable personal income tax rate.

4

Specific business tax of 3.3% of the appraised value or the selling price whichever is higher. This specific business tax is applied to all sales made by developers and to any individual sale hat occurs within 5 years from the date of purchase.

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