Buying property in Thailand

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Information for buying property in Thailand

Foreigners are restricted at the moment from owning land in Thailand in their own name, here are two effective ways in which you are able to register ownership of land while still complying legally within the Thai law.

Thai Limited Company

The most popular structure to purchase land for foreign investors is through a Thai Limited Liability Company. In Thailand, a Limited Company which is a Thai Juristic Entity and can own land and property. The foreigner can own a limit of 49% of the company shares. With this company you can legally be the signee director of the company who can control the company in any contractual dealings. This successfully allows the foreign buyer to have complete and secure control over the company and all its assets.

30 Year Lease Option

This is the other form of buying land for foreigners is through a 30 year Leasehold Agreement. These are commonly written up as 30 year leases with an amendment written into the contract for two further 30 year renewals for a lease term of a total of 90 years. The lease contract can also include clauses that will bind the owner of the land to automatically allow freehold ownership if Thai law changes to allow foreign ownership. Also the right to sell, sublet, or transfer the lease agreement. This will enable you through a Leasehold contract purchase to have full control over the land but not the ownership for the lease term.

Transferring Fee

When buying property in Thailand you need to be aware that when you transfer the property there is a government stamp duty of 0.5%, a transfer fee of 2% and a business tax of 3.3% levied against an owner who has been in registered possession of the property less than 5 years. Land Tax: This is an annual tax levied on the land ownership, this is only a very small amount and is due each year.

Inheritance Tax

There is 0% inheritance tax for all family members in Thailand.

Condominium Purchase

Buying a condominium is perhaps the easiest option offered to foreign nationals. The only limitations are when buying a condominium is the percentage of foreign people must only be 49% or less of the units sold in the condominium complex. The money used to purchase the condominium has to be transferred from out of the country, be documented by a financial instate in Thailand. This is processed with a Foreign Currency Transaction Form. In order to receive a Foreign Currency Transaction Form you to open a Thai bank account in the name your condominium will be registered in. This allows your Thai bank to document the transfer of funds. At the time of the transfer of the property you the new owner of the condominium will be issued with a certificate called a Chanood or the full Thai title is a Chanood ti din, which is the land paper. This is the only type of freehold property a non Thai can own in their own name.

Payment Instruction for Foreign Purchasers of Condominiums in Thailand Under the Condominium Act 1991, a non resident foreigner who purchases a condo unit must bring the funds to pay for the condominium from overseas. This means that the entire payment must be transferred into the country in a foreign currency. The beneficiary bank Local Thailand Bank will then issue a Foreign Exchange Transaction certificate which should be presented to the Land Department when registering the ownership of the condominium.

Payment Procedure for buying a Condo in Thailand

1. Send the funds from your bank in your foreign currency into the nominated bank account in Thailand

How To obtain a Foreign Exchange Transaction certificate

1. a: The name of the sender must be the same as the purchaser as indicated in the sale and purchase agreement
2. b: The money must be transferred as foreign currency. Do not convert the payment into Thai Baht before making the transfer
3. c: Always indicate the purpose of the transfer, To purchase a condominium at unit Number in the development Condominium name.
4. d: Always use the exact wording in order to avoid misinterpretation by the Land Department.

Disclaimer: The information provided on this web site is for informational purposes only. No warranty is expressed or implied as to any changes to the Thai government charges or rules. Before buying a property Thailand Property Centre will advise you to seek the advice of a qualified legal adviser/accountant or you can use our legal department that we recommend.

Look for Property TPC No.

999 (three digit code)

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