Buying Thai property can be a very attractive option for foreign investors. Several legal requirements and limitations are in place, however, a foreign national can buy apartments, houses, or other types of property in this beautiful country.
Working with a team of local experts, such as our own agents is recommended, especially when the buyer cannot be present in the country for the entire duration of the process.
Property purchase in Thailand for company formation purposes is also an option, and we suggest considering this option as soon as possible once you decide to open a Thai company.
Investing in real estate in Thailand must be done according to the particularities of the Property Law in this country. Our specialists in company formation in Thailand can explain to you in detail the legal framework for property acquisition in this country.
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A few key aspects of Thailand’s property legislation for foreigners
According to the Condominium Law, a foreign investor cannot own more than 49% of the floor area of a building. The land on which the condominium is situated as well as that provided for mutual benefits and use is considered common property in a condominium.
Foreigners cannot buy land in Thailand in their own name, however, they can enter into a joint ownership agreement with a Thai national or with their spouse, if he/she is a Thai citizen.
You can rely on the advice provided by our specialists in company registration in Thailand for more information on the property acquisition provisions in this country.
Property purchase steps in Thailand
If you intend to buy a property in Thailand you should keep in mind that there are a few essential steps to be taken:
- Understanding the market: this means knowing what the laws are in terms of foreign ownership for different types of property and the limitations that may apply (for example, in the case of owning land);
- Find a suitable property: this is an important step regardless of where you wish to buy a property; For Thailand, we recommend checking our listings on property websites, making a shortlist, and then viewing the most appealing properties;
- Making the offer: the seller needs to accept your offer before you can move on to the next steps;
- Due diligence: we advise buyers to always perform a thorough verification of the property they have decided to purchase;
- Contract: signing the sale/purchase agreement is the last step before the property changes ownership; The agreement should be carefully reviewed and our partner lawyers in Thailand can help you with contract verification;
- Land Office registration: the step that marks the end of the process of buying Thai property is registering the transfer of ownership with the Land Office; This ends with the issuance of the title deed in the name of the new owner.
The list above includes only a brief outline for each key step. Our team can answer your questions and can provide personalized solutions upon request.
If you are looking for specific information about the legal requirements for foreign property buyers, our team specializing in company formation in Thailand will answer your questions accordingly.
Property taxes in Thailand
If you intend to buy property in Thailand, you will not only need to follow the steps above but also to remember a property tax is in place as per the Land and Construction Tax Act. Other taxes also apply when buying property.
Some of the property-related taxes and their rates and listed below by our Thai company formation agents:
- 1% withholding tax on the gross proceeds from the transfer of immovable property when the seller is a company in Thailand;
- 2% transfer fee of the appraisal value;
- 0.02% of the value on land value up to THB 50 million in the case of land used for residential purposes.
If you intend to open a company in Thailand and you need to acquire a property to install your office there, you can buy real estate and place it under the umbrella of the business. Usually, after you choose the property, you will need to make a deposit in order to keep it reserved for you and to show your serious intention of investment. You will need to sign a sale purchase agreement, and working with a notary will be required.
Our consultants in company registration in Thailand can offer specialized support concerning the acquisition of property in Thailand.
You can contact us as well if you intend to start a business in this country and need help with the incorporation process.