Buying Property in Thailand is possible but requires careful research and planning. It's recommended to work with reputable real estate advisors and lawyers who specialize in Thai property laws.
Conducting a survey is also a good idea before making any deposits or completing contracts. It's important to keep in mind that unless specific "exit clauses" are included, any reservation deposit can be non-refundable.
One of the most popular types of property in Thailand that foreigners buy is condominiums. These are often found in the heart of major cities and tourist hotspots. They offer a more convenient living experience as the apartments are usually located close to all major amenities like shops and restaurants. They are also typically less expensive than a house or villa in the same area.
However, buying a condo or apartment comes with certain legal complexities that one should be aware of. Firstly, one should note that although Thai law does not prohibit it foreigners are only allowed to directly own condo units in buildings which have been licensed and registered as condominiums under the Condominium Act. This is different from a landed property which requires the permission of the land office to be bought, sold or transferred.
Moreover, foreigners cannot register ownership of condos without having fulfilled the conditions set out in the Condominium Act section 19. For example, the purchaser will be required to show that they brought foreign currency into the country for the purchase or that they have withdrawn foreign currency from their bank accounts abroad and allowed a licensed financial institution inside Thailand to convert it to Thai currency (THB).
Furthermore, buyers are often required to provide a'reservation deposit' as an indication of their serious intent to purchase a condo. This is non-refundable unless a special clause is inserted in the contract of sale. Lastly, upon the completion of the sale process both parties must sign the official Sale and Purchase Agreement at a land office branch together with paying all relevant statutory fees, taxes and charges.
Buying land is one of the most challenging aspects of property buying in Thailand for foreigners. It requires meticulous planning and navigating the legal complexities. It is recommended that you consult with a professional Thai property lawyer to ensure your purchase complies with local laws and regulations. They will help you assess your options, understand legal considerations, and safeguard your interests.
A deposit is required to reserve a property in Thailand, typically 20-30% of the purchase price. It is non-refundable unless there is a specific “get out” clause in the reservation agreement.
Due to limitations on foreign ownership of land in Thailand, most buyers opt for condominiums. Foreigners can own up to 49% of the total unit area in a condo project. Alternatively, a foreigner may choose to lease land for a long-term period of up to 30 years.
Many foreigners also choose to circumvent the land ownership restrictions by forming a Thai limited company and holding shares in that entity. This strategy allows them to manage and oversee the business while adhering to local laws.
Lastly, if you are married to a Thai citizen, you can own land in your name through a joint declaration that states only the funds contributed by your spouse were used for the purchase. This arrangement is popular with those who wish to build a house or invest in land for development.
Buying a villa in Thailand is an excellent investment opportunity for foreigners seeking long-term living or retirement options. However, there are a number of considerations to take into account when considering this type of purchase including identifying your preferred location and property type, working with a legal professional to safeguard your interests and ensuring your budget aligns with your requirements.
Evaluate Developer Reputation and Track Record: Thoroughly research the developer’s reputation, history and previous projects to ensure you make a secure and reliable investment. Visiting completed developments is also highly recommended, to give you a feel for the area and assess the quality of construction.
Consider Infrastructure and Amenities: It is vital to ensure the location of your potential villa has the necessary amenities to meet your requirements, such as healthcare facilities, schools, transportation options and more. Additionally, contacting expatriate communities or online forums to gather insights and recommendations is highly advised.
Verify Title Deeds: Consult your solicitor or legal representative to verify the legitimacy of the title deed (known as a chanote) and that it is free from any restrictions, such as a 'no development' clause. It is also advisable to get a building survey undertaken by a qualified engineer or surveyor before purchasing to assess the condition of the property and uncover any potential issues.
A popular option for foreigners seeking to enjoy property in Thailand, especially when outright ownership is not allowed, leasehold terms provide a legal avenue to enjoy long-term use and investment. This structure involves a 30-year lease with the possibility of renewal. This arrangement is common in land, landed villas and some condominium units that do not have a specific Condominium Act as they are not considered to be Condominiums.
The terms of a leasehold agreement will vary depending on the developer, but most include clauses promising that the lease can be renewed for additional 30 year periods. It is important to work with reputable developers and lawyers who can ensure that the terms of your lease agreement will be followed as promised.
Another option for foreigners who are interested in a longer term of ownership is known as protected leasehold, which allows the property owner to become a shareholder in the Thai company that owns the land (chanote) on which the property is located. This option may be a good choice for investors who wish to stay in the country on a long-term basis and are interested in helping to stimulate the local economy through foreign demand.
Freehold property offers complete ownership rights, which can be transferred or bequeathed to heirs without restriction. The overall tax burden is also lower for freehold compared to leasehold, making it an attractive choice for those who plan on staying in the country for a longer period of time or as a permanent home.