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, Thailand can become your new home, where you can open your own business, if you are an entrepreneur.
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 in which it is built on.
If a foreign citizen wishes to purchase a property in Thailand, there are mainly only two documents that are required: a valid passport and an 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 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 in Thailand, our team can help answer your questions if you are ready to purchase a property.
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 of 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.
If you wish to purchase a property in this country, we invite you to contact our law firm in Thailand.