You’ve just returned from a dream vacation in Thailand and are thinking about buying real estate here. Whether it’s a villa, house or condo, you want to make sure that your investment is solid.
Foreigners cannot buy land in Thailand, only condominium units and apartments. However, setting up a Thai company to purchase land can allow foreigners to own property.
Buying a Condo
Local Tip: One of the best ways to find condos in Thailand is through word of mouth. Talking to friends or colleagues who have recently purchased property in the country can help you get recommendations based on their experiences. However, it is important to keep in mind that personal preferences and needs can vary from person to person.
Before buying a condominium, it is important to make sure that you are not exceeding the foreign ownership quota. Under Thai law, only 49% of a condo building can be sold to foreigners. You can check this by contacting the jurisdiction office of the condo building.
Also, be aware that there are a variety of fees and taxes that you will need to pay when buying a condo in Thailand. These include transfer fee, stamp duty, and withholding tax (personal or corporate). The way these costs are divided between the buyer and seller will be negotiated during the preparation of the Sale-Purchase Agreement.
Buying a Villa
While apartments and condos are the most popular property types among foreign buyers in Thailand, villas are also gaining popularity. They are usually found in prime locations close to beaches and other attractions. They are a good choice for people who want to live in Thailand all year round or use it as a secondary home.
The process of buying a villa as a foreigner is similar to that of purchasing other properties in the country. You should expect to pay the same transfer fees and taxes, which are based on the government appraised value of the property.
The first step is choosing a real estate broker to help you find and buying a property in Thailand. Make sure that they have a valid license and extensive experience. They should also be able to conduct thorough background checks on the properties they sell, including any possible debts or encumbrances. They should also know the local laws regarding foreign ownership of real estate.
Buying a Land
Foreigners cannot own land in Thailand, except for condominium units. However, the total amount of foreign ownership in a building cannot exceed 49%. One way for foreigners to own land is through a long term leasehold agreement, usually 30 years with the option to renew it.
Another popular option is for a Thai spouse (usually the wife) to buy the property in her name. This type of property ownership is known as a superficies or usufruct. It entails the right to use the property and can be passed on through inheritance.
Before purchasing any property, a thorough inspection by a professional surveyor is recommended. It will help identify issues that may arise later on and uncover any potential red flags. This service can be costly, but it is worth the peace of mind. In addition, a property survey will give the buyer confidence in the purchase. A reservation fee, typically 20% to 30% of the purchase price, is required from the seller to show commitment to the transaction.
Buying a House
While Thailand is a popular destination for holidaymakers, the country also offers a range of property options. The majority of Thais (73%) own their homes, with detached houses (baanediiyw, baan diieow) accounting for 72% of these. Foreigners can buy property in Thailand as long as the development complies with the country’s condominium law, and a foreign ownership quota has not been reached.
Before buying a house in Thailand, you must perform thorough due diligence to protect yourself and your investment. This should include checking the title deed, investigating land encroachments or squatter issues, and assessing flood and coastal erosion risks.
When buying a house in Thailand, it is important to have mortgage insurance. This will protect your home from damage caused by natural disasters such as storms and burst water pipes. It is generally not a legal requirement in Thailand, but it is advisable. During the process, it is important to engage a reputable attorney who has experience reviewing property contracts.
