Особенности покупки квартиры в Таиланде

A country with a rich culture, magnificent beaches and a friendly population attracts not only tourists, but also investors seeking to acquire their own corner of paradise.

The transaction between a Thai developer and a foreign buyer is legal and quite simplified. In addition, the exchange rate to the brother is very beneficial for buying real estate in Thailand. From the article you will learn other advantages and some disadvantages of such an investment, legal aspects, as well as features of the transaction, including remotely.

Real estate in Thailand: pros and cons

First, let’s list the 5 key advantages of buying an apartment in Thailand:

Reasonable prices. A studio or a small studio apartment can be purchased from 45 thousand. In addition, the property is available at a minimum price during the construction phase.
High investment potential. The Ministry of Tourism of Thailand plans to receive about 23 million tourists in 2024. Since the cost of rent has skyrocketed this year, there is a shortage for many offers. We recommend choosing apartments for both long-term and short-term rentals in 1-2-bedroom properties under construction. Also pay close attention to the condominiums in which the finishing is completed and there are from 3 months to a year left before settlement.
Simplified purchase procedure. The Government has developed special programs for buying real estate in Thailand for foreigners.
Beautiful nature and a comfortable climate for living. Thailand is known for its exotic nature and beautiful beaches. Buying a property in this country allows you to enjoy the beauty of the environment and the warm climate all year round.
The cost of living. Living in Thailand will require much less money compared to European countries. The cost is also determined by the area in which you plan to live. For example, compared to Phuket, life in Pattaya is more profitable.

Among the relative disadvantages of purchasing real estate in Thailand for foreign buyers, we would like to highlight the following:

Restrictions on land ownership: Foreigners are limited in their ability to own land in Thailand. This can be a significant disadvantage for those who wish to purchase a property with a large plot or build a house.
Maintenance and management issues: Due to the language and cultural barriers, foreigners may face difficulties in managing their properties. This can lead to additional costs and challenges.
Price fluctuations: The Thai housing market can be volatile, with prices fluctuating significantly from year to year. While some properties may appreciate in value, others may depreciate. This makes it difficult to predict the future value of a property and can create uncertainty for buyers.
4. Location-dependent pricing: Prices for properties in different areas of Thailand can vary greatly. Properties in prime locations, such as those with a view or on the first line, tend to appreciate more than those in less desirable areas.

Rights and obligations of foreign buyers

Foreigners are allowed to buy, rent, and sell real estate in Thailand. However, there are restrictions related to the registration of property rights.

There are different forms of ownership for real estate, including:

Freehold: This is a type of private ownership of real estate in Thailand that allows foreigners (individuals and legal entities) to own property permanently, as opposed to a 30-year lease or joint ownership. At the same time, the ownership is declared and taxes are paid. The transaction is registered with the land office, after which the buyer receives a chanot – a certificate of ownership of the property.
Leasehold: It is a long-term lease agreement registered with the state. According to Thai law, foreign citizens are not allowed to own land directly. The agreement is for up to 90 years with an upfront payment made for the entire duration of ownership. This period is split into 30-year blocks, the first 30 being guaranteed by the government, and the remaining years by the developer who is the direct owner of the property. The lease agreement must be executed in writing, registered and certified by the land department. It should be noted that a foreign citizen cannot own land, but has the right to claim all the structures erected on it.

When concluding a lease, it is important to pay attention to the conditions, including the lease term, the rules for using real estate and the possibility of extending the contract. It is also worth considering the right of exclusive ownership separately. The lessee can sell, inherit, or donate real estate during the entire period of the agreement. Therefore, it is recommended to enter the heirs when making a transaction. If this is done later, additional costs for a lawyer will be required.

A transfer to the freehold property with an additional fee is available. This is possible only with the consent of the owner and the availability of a free quota for a foreigner. The amount of money that will need to be paid is discussed individually in each case.

How to purchase real estate in Thailand on behalf of a legal entity?

1. Establishing a new company

Foreigners can purchase real estate in Thailand in the name of a company. This means that the foreigner will become the owner of the company rather than the housing directly. Since non-residents are legally allowed to own no more than 49% of shares, they will need to ensure that they have a casting vote.

To establish a new company in Thailand, follow these steps:

Choose the type of company (e.g., a limited liability company) and register it with Thai Enterprise Management.
Open a bank account with a Thai bank for financial transactions.

When purchasing real estate through a company in Thailand, consider the additional costs associated with legal services. These costs are typically lower than when purchasing in a foreign individual’s name.

2. Acquisition of a company with real estate

This method is only suitable for those who truly intend to conduct business in the country. If the activities of the company are fictitious, shareholders may face fines and imprisonment.

To purchase a company, there are several steps that must be completed:

1. Find a company that owns the property you desire. To do so, contact legal consultants or real estate agents.

2. A thorough review of all documents and financial statements of the company is required. This will help verify the legality and reliability of the business, as well as ensure there are no debts or other encumbrances.

3. It is necessary to draw up a comprehensive purchase and sale agreement that clearly outlines the terms of the deal, including the price, payment terms, and transfer of ownership of the company shares.

4. Register the transaction with relevant government authorities in Thailand and update the property’s registration by amending the company’s founding documents.

As a result of this transaction, the owner of the property will change, and the new owner will be listed on the company’s books.

Buying real estate in Thailand for foreigners: What facilities are available?

Foreigners are allowed to purchase various types of real estate in the country, but there are certain restrictions and requirements that must be followed.

Apartments: Foreigners can buy housing in multi-story buildings or condominiums, but it’s important to note that no more than 49% of the total area can be owned by foreigners.
Villas and Houses: Foreigners may purchase these properties, but land ownership is restricted in some areas, such as national parks and the coastline, where they may need to use a long-term lease for up to 30 years or register with a company.
Business Real Estate: Shops, offices, and restaurants can be purchased, but non-residents must register a business in Thailand and buy the property in the company’s name. The maximum ownership share for foreigners is 49%; the rest must be owned by Thais.Foreigners are not allowed to purchase land in Thailand under their own names.

They can, however, rent land for up to 30 years, with the possibility of extending the lease. There is also the option of establishing shared ownership with a Thai partner.

Do I need a real estate agent?

If you are a foreigner looking to buy a house in Thailand, it is recommended to work with a real estate agent. A realtor can help you find the right property, conduct inspections, provide information about the market, and assist with the entire transaction process.

The main benefits of working with a realtor include:

Detailed knowledge of the Thai property market and its features.
Assistance in selecting a house or apartment that meets your requirements and budget.
Calculating potential investment income from real estate over 5-10 years.
Protection of your interests to avoid risks during the transaction.

Please note that in Thailand, real estate agency services are free for buyers, as this is enshrined in law. Due to our experience, we can offer even more interesting real estate prices than those listed in the official price lists of developers.

We invite you to use the services of High Rise, a full-service real estate agency in Pattaya. We offer only official cooperation in strict compliance with all Thai laws. We will show the properties in a comfortable vehicle at our expense. Transactions can be conducted offline or online. We can also provide photos and videos of properties if you want to ensure that the construction is progressing according to schedule. Alternatively, we can accept the apartment from the developer on your behalf.

Does buying a property in Thailand for foreigners give you the right to live?

The purchase of an apartment by a foreigner does not automatically give the right to obtain a residence permit or citizenship. But there are various programs that allow non-residents to obtain a visa. For example, Thai Elite provides visas for 5, 10 or 20 years when buying a property of a certain value. Foreigners can also apply for a visa based on business or investment in Thailand. In any case, it is necessary to contact the relevant authorities and obtain a visa for legal residence in the kingdom.

How to buy a property in Thailand for a foreigner?

Detailed description of the procedure:

Search for real estate.
For example, foreigners cannot acquire ownership of land, but they can acquire the right to buildings on the land (for example, houses or apartments). Therefore, the first step is to find a suitable object that meets these restrictions.
Verification of legal purity.
This includes checking the ownership, the availability of all necessary permits and documents, as well as the absence of any encumbrances or disputes.
Signing of a preliminary contract.
The contract specifies the terms of sale, cost, terms and other important details of the transaction. It is recommended to consult with a lawyer or notary to make sure that the contract is correct.
Payment of the deposit.
After signing the reservation agreement, the buyer must make a deposit (usually about 10% of the total value of the property). This confirms the seriousness of the intentions and reserves the property for the duration of all legal procedures.
Making a deal.
This usually happens in the office of the agency that handles all the necessary documents
Payment of taxes and fees.
This includes a tax on the transfer of ownership, a government fee for registration of the transaction and other obligations. We recommend consulting with our specialist to find out the exact amounts and payment procedures.
Registration of property.
A foreigner must register his right to use a land plot with the Land Department of Thailand (Land Department). Since the document flow is conducted in Thai, it is necessary to accompany local representatives.

How to buy a property in Thailand for a foreigner remotely?

A remote transaction for foreigners differs from the usual one in that all the main stages of the purchase and registration of property are carried out without the need for the physical presence of the buyer in Thailand. The Internet and e-mail are used to search for real estate, communicate with agents and sellers, as well as to receive and send documents.

The main stages of the transaction:

We make photos and videos of an apartment or house, the surrounding area, infrastructure and a view from the window for the buyer.
Agreement on the cost and timing of the transaction.
Making a deposit, which is included in the contract price.
Verification of ownership documents for the absence of encumbrances, utility bills, etc.
Drafting of an agreement between the seller and the buyer, signing in electronic format.
Registration of a power of attorney in the name of an employee of our agency so that he can represent his interests in the land department. The document is sent by mail. Delivery usually takes no more than two weeks.
Transfer of the full cost of the apartment to the account of a representative of a real estate agency.
Re-registration of real estate in the ownership of the buyer in the land department.

Additional expenses

The tax on the transfer of ownership. It is necessary to pay an amount that is 2% of the value of the property.
The services of a lawyer. The cost of services is not more than 0.5-1% of the value of the property.
Real estate tax every year. The rate depends on the value of the object and is 0.02% on the freehold.
Utility bills. Calculated by the number of square meters.

Note that these costs are general and may vary depending on the specific situation and the region of Thailand. Also, foreign buyers may need additional costs for the translation of documents, property valuation, insurance.

Real estate prices in Thailand are expected to continue rising in the coming years, making it a popular destination for foreign investors. The cost of real estate varies significantly depending on location, type of property, and condition. Generally, prices for foreigners start from around 1 million Baht (approximately $30,000) for studio apartments in provincial areas, and can reach several million dollars for luxury properties in popular tourist destinations like Phuket and Pattaya.

If you are interested in purchasing real estate in Thailand, we can assist you with finding suitable properties. Our team at High Rise Agency can help you with the entire process, from finding the right property to helping you with transactions and approvals for small-scale redevelopments. We offer free property showings and full transaction support, ensuring a smooth and hassle-free experience for our clients.