Introduction

Despite the process appearing daunting initially, no worries! We provide you with a complete guide to start your home-buying journey in 2024. Entering the Thai property scene is not only feasible but potentially lucrative with the right knowledge and preparation.

How Expats Can Buy Property in Thailand

Foreigners can own property in Thailand, albeit with some restrictions. The available options include condos, houses, and land. One common method for a foreigner to buy property in Thailand is to establish a Thai Limited Company. This company can own land and a house, with the land owned by the company and the expat holding a majority of the company’s shares. Below are the ownership possibilities for foreigners:

• Condos: Foreigners can own condos outright.
• Land and Houses: Through a Thai Limited Company.
• Direct Land Ownership: Restricted to Thai nationals.

Three Options for Foreigners to Buy Property in Thailand

Foreigners looking to dive into the Thailand property market have the following three options:

1. Buying a Condo

Condos are a popular choice for foreigners due to the legal simplicity of freehold ownership. Foreigners can own up to 49% of the units in any condo building outright, with the title deed registered in their name, offering clear and permanent ownership.

2. Buying Land in Thailand

Although direct ownership of land is not allowed for non-Thai citizens, leasehold ownership is an alternative, allowing foreigners to lease land for up to 30 years, with the option for two additional renewals. This setup is ideal for building a residence or business.

3. Establishing a Thai Business

Foreigners can circumvent land ownership restrictions by forming a Thai Limited Company, maintaining at least 51% Thai ownership. It’s important to engage active, genuine shareholders to comply with legal standards.

Additional Rules for Expats Owning Land in Thailand

For investments exceeding 40 million Thai Baht, expats should consider the following:

• The investment must remain in Thailand for over five years.
• Approval from the Ministry of Interior is required.
• The land area must not exceed 10 rai and should be used for industrial or agricultural purposes.

Steps to Buying Property in Thailand

The process includes understanding key terms related to property rights and titles, such as:

• Chanote: Full ownership rights.
• Nor Sor 3 Gor and Nor Sor 3: Less stringent surveying standards, requiring careful legal review.
• Possessory Right: Based on possession, not as secure as other titles.

Can Foreigners Buy Leasehold, Freehold, or Off-Plan Properties?

• Leasehold: Yes, up to 30 years, renewable.
• Freehold: In condos, as long as foreign ownership does not exceed 49%.
• Off-Plan: Yes, offering potential benefits like lower prices and value appreciation.

Taxes for Foreigners Buying Thailand Property

Understand the tax obligations:

• Transfer Fee: 2% of the registered value.
• Stamp Duty: 0.5%.
• Specific Business Tax: 3.3% of the assessed value or sale price.
• Rental Income Tax: 5% for individual landlords, 1% for corporate.

Step 1: Define Your Requirements

Identify what you need in a property, including the number of bedrooms, size of the kitchen, or proximity to specific amenities like international schools or airports. Understanding your needs will guide your search and purchasing decisions.

Step 2: Preliminary Property Research

Start exploring properties that meet your criteria. Websites like Dot Property and Thailand-Property.com can offer a comprehensive view of the market. Consider enlisting a real estate agent with local expertise, but ensure they come recommended as the industry is unregulated.

Step 3: Inquiry & Initial Consultation

Once you find properties of interest, reach out for more details. An initial consultation with a property consultant can clarify any questions and refine your search based on your preferences and their local insights.

Step 4: Viewing Shortlist & Property Inspections

Arrange to visit the shortlisted properties. This step allows you to assess the property’s condition, location, and suitability firsthand. If you’re abroad, virtual viewings via recorded videos or live video calls can be an alternative.

Step 5: Price Negotiation

Engage in negotiations with the seller with the help of your property consultant. They can guide you on realistic offers, leveraging their understanding of the local market and seller situations.

Step 6: Reservation Agreements

Once a price is agreed, a Reservation Agreement is drafted, highlighting the intent to purchase and taking the property off the market temporarily. This agreement typically includes a reservation fee, generally 5-10% of the agreed price.

Step 7: Due Diligence and Sales & Purchase Agreement

It’s crucial to perform due diligence, checking the land title, building permits, and compliance with local laws. Both parties should have legal representation to prepare and sign the Sales & Purchase Agreement, usually within 30 days of the reservation agreement.

Step 8: Transaction at Land Office + Final Payment

The final steps are completed at the local Land Office, where the property transfer is formalized. If you’re not in Thailand, this can often be handled remotely via a power of attorney.

Additional Considerations

• Financing: Obtaining a mortgage as a foreigner is difficult but possible under certain conditions, such as being married to a Thai national or holding certain types of visas.
• Taxes and Fees: Be prepared for additional costs like transfer fees and legal expenses. Using services specialized in international transfers can facilitate international payments.

Average Price of Thailand Property in 2023

The median sales price for properties in Thailand is approximately THB 5,990,000. Prices vary significantly by region, with Bangkok featuring the highest average median price.

Search for Your Thailand Homes Today!

Explore the diverse range of properties in Thailand. Whether you’re looking for a vibrant city condo in Phuket Town, a beachside villa, or an off-plan investment on the beaches of Phuket’s west coast, your journey to owning a property in Thailand starts here. Dive into the adventure today and secure your own piece of paradise in the Land of Smiles.

Conclusion

Buying property in Thailand as a foreigner is complex but manageable with the right guidance and preparation. Always work with reputable professionals and ensure all legalities are thoroughly addressed to secure your investment.

We encourage you to explore our property listings or reach out for a personalized consultation. At Toucan Property Phuket, we prioritize building lasting relationships with our clients, helping you find the perfect property in Phuket with confidence and ease.