One of the advantages of purchasing real estate in Thailand is the possibility of remote execution of the transaction. Legal support and registration of the procedure for buying a residential property can be entrusted to a specialist by proxy.
«Chanot» is the main document regulating your property rights is issued and registered by the land department after the purchase of real estate in Thailand. Chanot contains all the necessary information about the acquisition, including the plan-scheme, the owners of real estate and records on how to use it.
«Tabien Ban» is the house registration book, a kind of residence permit, which is proof of your residence in the specified residential complex. Tabien Ban is provided by the local municipality.
The right to own land in Thailand belongs only to the citizens of the kingdom. However, under certain conditions, a foreigner can become the owner of a land plot. To do this, you need to purchase a Thai company and register land or a house with a plot for this company. To open your company, you will need from 50,000 baht.
It is also possible to lease the plot for 30 years with the possibility of a twofold extension for the same period. If the land is associated with business development, then the lease term is tripled. Thus, foreigners may well acquire a land plot in Thailand.
The owner has the right to dispose of the property acquired in Thailand at his own discretion, including giving and passing on by inheritance. The prospective heir is entered into the document when registering the right of ownership or, if the name of the heir is not indicated, then the property passes in the manner prescribed by law. As a rule, parents are the first in line to receive an inheritance, then the spouses of the testator. Next in line are children, if there are none, then the closest male consanguineous member of the family who has reached the age of majority.
Foreigners have the right to purchase property in any region of Thailand without any obstacles, but according to the laws of the kingdom, the land cannot be wholly owned by foreigners. There are two options for owning property in Thailand.
The first option is freehold, which implies free possession of the acquired property.
The owner is issued a stamp document confirming the right of ownership with the possibility of full disposal of real estate at will - resell, lease and receive profit from this, give as a gift or inherit.
The second option is a leasehold - a long-term lease for a period of 30 to 90 years. The owner is issued a registered document for the lease of the property. In this case the acquisition is not subject to tax collection and does not require a declaration. The lessor cannot dispose of the object leased before the end of the contract. The tenant can resell the right to real estate to another person.
The cost of housing depends on the popularity of the region, the proximity of tourist routes and the availability of infrastructure necessary for a comfortable stay.
In the real estate market, the price per square meter is from $ 2,200. For this money, you can buy quite a decent studio, fully furnished, or comfortable apartments from 35-40 m2 at a price of 100-110 thousand dollars.
As a rule, real estate in Thailand is purchased for personal use or for investment purposes. Apartments, apartments in residential complexes, condominiums, comfortable villas and mansions are most often bought as an object for their own residence. The minimum cost of a standard furnished apartment with an area of up to 40 m2 in Phuket, in a respectable area starts from 100 thousand dollars. Housing of this type is suitable for short stays and is an excellent investment option.
- Owning real estate in Thailand is a prestigious and profitable business.
- The demand among those wishing to invest in real estate in Thailand is constantly growing.
- The local currency is considered one of the strongest in Asia and is notable for its stability for a long time.
- The taxation system. For example, if the cost of housing does not exceed 25,000 baht, then the tax is only 0.03 percent.
- The possibility of making a transaction without personal participation, in remote mode.
There are no special restrictions and prohibitions on the terms of leasing real estate in the kingdom. The landlord has the right to offer purchased real estate objects for any period, under any conditions that do not contradict the laws of the kingdom, based on their own considerations. Some restrictions may be imposed by the management company, which has its own rental conditions prescribed in the contract, which it is advisable to familiarize yourself with in advance and take into account in the future.
The acquisition of real estate by foreign citizens on the territory of Thailand does not give the right to automatically obtain a residence permit or any visa exemptions.
To get a long-term visa with the right to stay in the kingdom for up to 20 years, you need to invest 10 million baht to the Thai economy.
Real estate investments also relate to economic development. To do this, you need to buy one or more properties for a total amount of 10 million baht and above.
In Thailand, the tax levy on housing is regulated by Law and depends on the purpose of using the property.
An attractive factor for investors is the low interest rate of tax, which is no more than 1% of the market value of real estate.
Taxes and other state duties provided for when making a trade transaction are divided between the seller and the buyer. The tax is determined based on the selected type of transfer of real estate – leasehold or freehold.
The tax on the sale of real estate is calculated on a progressive scale.
Every owner of real estate in Thailand is obliged to pay tax on the profits received from renting out the property.
If the owner of the property resides on the territory of another state and is not a taxpayer, the following conditions apply:
- it is necessary to fill out an annual declaration indicating income for the past year;
- the management company withholds 10-15% of your rental income.