Thailand is a very appealing destination to buy a property in. Foreign citizens must comply with specific requirements and respect the applicable legislation. Our Thai lawyers can represent them in the process of real estate purchase.
Find out below how to purchase a property in Thailand.
How to find a suitable property to purchase in Thailand
Thailand is a great country to live in, with outstanding opportunities for individuals who made the decision to relocate here. With a peaceful culture, inexpensive costs of living, and some of the most beautiful, white sandy beaches in Asia, the country can become your new home, where you can open your own business if you are an entrepreneur. This is also a good reason to buy a property in Thailand.
|Specific legislation applicable (YES/NO)
– Civil Law,
– Land Code,
– Condominimum Law
Possibility to acquire Thai properties by foreigners (YES/NO)
|Yes, foreigners can also acquire properties in Thailand.
Types of properties that can be purchased in Thailand
– commercial real estate,
– residential homes
|Real estate due diligence required (YES/NO)
|No, however, it is recommended.
|Documents to draft for property acquisition
– title deed of the property,
– sale-purchase agreement,
– identification papers of the seller and buyer
|Financing options availability (YES/NO)
Yes, mortgage is available when buying a property in Thailand.
|Special property acquisition programs for foreign citizens (YES/NO)
No, however, it is simpler to acquire real estate by starting a company in Thailand.
|Timeframe to acquire a property in Thailand (approx.)
1 to 2 months
|Taxes to consider upon a property purchase
– notary fees,
– property transfer fees
|Registration requirement (YES/NO)
|Yes, the new owner must register the property with the Land Register.
|Restrictions available for foreigners (if any)
Yes, foreigners cannot own land in Thailand.
|Residency requirements for foreign citizens buying real estate
|Possibility to appoint a local representative during the transaction (YES/NO)
Yes, it is possible to grant a power of attorney to a legal representative.
|Property tax rate in Thailand
No annual tax applies, however, a housing and rental tax of 12.5% is levied annually.
|Support in buying a property in Thailand (YES/NO)
|Yes, we offer support in property acquisition.
What you need to take into account is that not all types of properties can be acquired in Thailand as a foreigner, you may wonder where you should start. Our specialists advise on the following:
- always work with reputed estate agents and licensed lawyers in Thailand when signing any documents;
- get your facts straight about what the purchase procedure involves, how long it takes, and the documents you need to draft;
- once you find it, have the property investigated through a thorough real estate due diligence process.
Once these steps are completed, we recommend setting up a company and obtaining a residence permit in Thailand in order to ease the acquisition process. Our law firm can offer guidance in these endeavors.
Possibilities for foreign citizens to buy properties in Thailand
Thailand is one of the most appealing tourist destinations in the world, which is why many foreigners seek to have their own vacation houses here. A lot of foreigners are interested in buying real estate and even securing residency in Thailand for this purpose.
When it comes to relocation, the best way to obtain the desired information is to get in touch with our immigration lawyers in Thailand. For details on the acquisition of real estate, here are the main laws you need to consider:
- the Civil Code;
- the Land Code Law in the main act covering the process of how to buy a property in Thailand;
- the Condominium Law.
Considering foreign citizens cannot purchase land or buildings, they should follow the Condominium Law when it comes to property ownership. Our Thai law firm can help them understand it.
Here are the main aspects to consider if you want to buy a property in Thailand as a foreigner:
- the ownership of the property may be registered and transferred independently of the land on which the house is built;
- the transfer process must comply with the Thailand Civil and Commercial Code;
- the acquisition must be documented in writing;
- the property must be registered with the provincial office of the Land Department.
Our Thai lawyers can help with the registration, especially because of the language barriers foreign citizens may encounter.
Procedure for purchasing a property in Thailand
If you want to purchase a property here, a Thailand lawyer can offer you legal advice and guidance throughout the entire procedure, as the real estate market in the country tends to be quite unregulated.
Foreign citizens can own an apartment in Thailand on their own, as long as it does not occupy more than 40% of the building space. However, it is possible for a foreign citizen to acquire an entire building, except for the land on which it is built.
If a foreign citizen wishes to purchase a property in Thailand, there are only two documents that are required: a valid passport and a Foreign Exchange Form.
In case you want to acquire the real estate in Thailand through a company, you will need the following documents:
• Certified copy of the company’s incorporation certificate;
• Certified copy of the memorandum of association;
• Notary certificates;
• Enlisting of the company shareholders;
• Minutes of the directors’ meetings with the decision to acquire the property;
• Letter of advice on specific signature;
• Power of attorney, if you, as the director, will not attend to the transactions themselves;
• Free debt letter;
• Foreign partner letter;
• Certified copy of the authorized director(s) ID(s);
• Certified copy of the authorized director(s) property registration;
• Title deed of the apartment unit.
If you have already commenced the process to obtain residency and purchase a property in Thailand, our team can help answer your questions if you are ready to acquire real estate.
Taxes and fees on purchasing a property in Thailand
The main taxes and duties due on a real estate purchase in Thailand are:
• The transfer fee: is set at 2% of the real estate value;
• The business tax: is established at 3.3% of the sale price or the appraised price of the real estate;
• The stamp duty: it is 0.5% of the property sale price;
• The withholding tax: varies depending on whether the seller is a private person or a legal entity. If the seller is a private individual, it is calculated at a progressive rate of the appraised real estate value. In the second case, the withholding tax is fixed at 1% of the registered sale value or appraised value, depending on which one is higher.
After you purchase a property in Thailand, you can rely on our accountants for tax-related matters.
Ownership transfer after buying a Thai property
The process for transferring ownership of the house must be completed with the Land Register. In Thailand, this is the only government entity responsible for administering and finalizing the last stage in real estate purchases. The transfer requires the following documents:
- the documents of the property;
- the buyer and former owner’s passports or ID cards;
- the land title deed;
- the house book (Tabien Baan);
- the building permission.
When a house is transferred, it becomes immovable property and is subject to various taxes, including stamp duty, transfer fees, income levied (personal or corporate), and particular business taxes that are computed over the registered sale value or appraised value.
Here is our video on this subject:
Our law firm in Thailand can help you complete all these formalities, so you don’t need to worry about the documents you need to draft. We can also help with immigration to Thailand.
The real estate market in Thailand
If you wonder if you should buy a property in Thailand in the near future, the answer is yes for many reasons. One of them is that the residential real estate market is doing good and is expected to do even better by 2028. According to statistics:
- 2023 is expected to close with a value of USD 146.40 billion;
- it is expected to reach a total value of USD 191.71 billion by 2028.
The best cities to buy properties in are Bangkok, Phuket, Koh Samui, Pattaya, and Chiang Mai. If you decide to acquire real estate, you can rely on our Thailand-based law firm for support.
If you wish to purchase a property in this country, we invite you to contact our law firm in Thailand.