FAQ Your Right To Know
Here, we have compiled answers to common queries to provide you with quick and helpful information about our company, products, and services. If you have a question that is not addressed here, feel free to reach out to our customer support team for further assistance.
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Real Estate in Thailand has taken off in the past decade with more foreigners’ wishing to retire in Thailand.
You must consider the following:
Always make use of registered lawyers in Thailand
Always make use of reputable estate agents when taking advice on real estate in Thailand.
See the Thailand Real Estate Outlook, the glossary of Real Estate Terms and the Real Estate FAQs when you start your search for Real Estate in Thailand
Buying any Real Estate in Thailand be it a house or a condo requires the services of a reputable law firm. Once you have decided which real estate you are going to purchase, always consult a lawyer before signing any documents. The following would be checked amongst other property services:
1. A title search over the property
2. Note the type of Title Deeds in Thailand
3. Review the contracts before signing
The considerations to bear in mind when you are buying a condo off plan:
1. You would need legal advice as to buying in pre-construction projects.
2. There is also the cost of transfer or tax for your condominium.
3. Thailand property taxes. Use the property transfer calculator to check your fees payable.
4. See the compressed version on buying real estate and the common property problems in Thailand.
To execute a sale and purchase agreement and to negotiate the sale and purchase price, the amount of the deposit, and the allocation between the seller and the buyer of the costs of transfer including taxes and completion date.
The amount of the deposit is anything between 25% to 30%. Our recommendation is to keep the amount of the deposit as low as possible and to organize the transfer of the unit as quickly as possible after the date of the execution of the land department.
In order to be allowed to purchase a condominium unit freehold the foreign buyer will have to prove that the whole amount of the purchase price declared at the land department is to be paid out of foreign currency transferred to Thailand by the foreign buyer. To be able to provide this proof the name of the foreign buyer must appear at one or the other end of the transaction.
1. The fund must be transferred in foreign currency only.
2. The fund must be transferred from an account under the name of the foreign buyer or to an account in Thailand with the name of the foreign buyer.
3. Add on the transfer mention that the funds are transferred to purchase a condominium.
4. If you purchase the condominium unit jointly with your wife add a mention that the money is transferred on behalf of both spouses (not mandatory).
The Gateway of Asia Exotic Thailand is Asia’s top tourist destination and offers a world class tourist industry at affordable prices, making it a magnet for visitors, re-locators and property investors alike. In many key locations in Thailand, the local economy relies heavily on tourism and increased property investment in these locations is now good news for domestic economic growth and good capital returns.
Since you have bought the condominium, seller will issue the selling and purchasing agreement which is explain payment terms, completion date, room materials and etc. Once the condominium ready to transfer ownership, seller will send the invitation letter for invite buyer to check defects and next is transfer ownership process before due date 3 months in advance. In the same time buyer has to complete all the payments remittance from oversea in foreign currency (cannot be Thai Baht) once completed and room has been perfected seller will make appointment with buyer to do transfer ownership at land office but usually, buyer give the power of attorney to their lawyers or agents or seller to complete this procedure with the document as follow:
1) Passport
2) Document of Power of Attorney
3) Immigration stamp with the period has shown you are in Thailand
4) Foreign Exchange Transaction Form (FET Form) issued by seller
Through this action, they change the name on the title deed of the condominium.
Thailand is allowed foreigners can own Condominiums in their own names, but the total number of foreign held units does not exceed 49% of the total number of units in a particular condominium block. Also, the money used to buy the condominium should be remitted from abroad in foreign currency to a bank in Thailand, (in the name of the person that will be registered on the title deed), with the remark “to purchase a condominium”. The prospective buyer should also obtain a “Thor Tor Sahm” form issued by bank where the transferred money arrives. The owner of each condominium obtains a certificate of unit ownership.
Condominium normally has common area such as Garden, Swimming Pool, Fitness room and Co-working spaces which is on the selling and purchasing agreement will put how much is the maintenance fee and sinking fund some has carpark fee as well, the service charges are rather low in Thailand. They are used to maintain the common areas of the building also the sinking fund that is set up when the condo units are initially purchased, is in many cases replenished by the service charges which are payable every year. Service charges are quite moderate however, they vary considerably according to the degree of luxury provided by the existing infrastructure.
A FET (Thai known as Thor Tor 3 “Thor Tor Sahm”) this document needs when you transfer ownership the condominium at land office. It is a bank document that is issued by the receiving bank when you deposit foreign currency into bank account in Thailand. Owner account must ask the receiving bank for a Thor Tor 3 when buyers are remitting foreign currency into Thailand and the exchange of foreign currency into Thai baht for the purpose of buying a condominium contains at least the following information:
– the transferred amount in foreign currency,
– the transferred amount in Thai Baht,
– the name of money sender,
– the name of money receiver,
– the purpose of transferring the money
Before 1998 any Thai woman married to a foreigner lost her right to purchase land in Thailand, but she could still retain land that was in her possession prior to marrying the foreigner. That has now changed. According to a ministerial regulation decreed in 1999 Thai nationals married to foreigners can purchase land, but the Thai spouse must prove that the money used to buy that land is legally hers and has not been provided by a foreigner. This can be achieved if the foreign spouse signs a declaration, declaring that the funds used to buy the property belonged to the Thai spouse prior to the marriage and that the foreigner has no claim to it.
Purchasing property through a company with limited liability has so far been the most popular method for foreign investors. The regulations vary throughout Thailand, but the Land Office generally requires that Thai nationals must hold a majority interest in order to be able to purchase land legally. In the light of recent government directives, it is most important to seek competent professional advice on the implications of obtaining land ownership by this method.
Usually when you buy a new property in Thailand especially a Freehold Condominium, it is preferred that you pay directly from your account in your home country directly to the developers account as to obtain a Freehold title you will need to show the local land office that the money used to buy the property has originated from outside of Thailand this is provided by a Foreign Transaction Form (FTF) which is issued by bank. Thai bank upon arriving in Thailand in the case that the transferred amount is 20,000 USD or over, these FTFs need to be kept and presented at the land office upon transfer of the title deed. It is possible to open account to pay for a property, so buyer have to prepare
1) Immigration Visa Expiry date before 15 days
2) Selling and Purchasing Agreement Condominium and Quotation
3) Passport
4) Driver license (Must be translate to English or Thai language)
5) ID card (Must be translate to English or Thai language)
From a Thai bank account after transferring money from abroad to your Thai bank account, again in the case for a Freehold condominium be prepared to provide evidence (FTFs) at the local land office to show that the money originated (before in came to your Thai account) from outside of Thailand. For leased property you are not required to provide such documentation.
Of course it is possible to sell your property in the future, even leasehold property can be resold, on the transfer ownership date at land office you have to pay for expense as well it’s up to how do you has agreed with buyer for the expenses following:
1) Transfer ownership fee which is 2% calculating from the higher price of either evaluating cost or selling price which can be negotiated who is the payer between seller and buyer.
2) Stamp duties fee is the stamp duties cost that the seller must pay in an alienation registration process which is 0.5% calculated from the higher price of either evaluating cost or selling price.
3) Special business tax; In case seller possesses the property less than 5 years (Counting from day to day), they need to pay a special business tax. However, it is exceptional for possessing over than 5 years or has the name in that house registration certificate. This tax is 3.3% calculated from the higher price of either evaluating cost or selling price. Also, the stamp duties fee is exceptional when you pay this particular business tax.
4) Withholding tax; Due to selling a property is an income so, it is a must to calculate for an income tax and deduct as a withholding tax. It is calculated by evaluating cost.
In the case that a freehold property is resold and you would like to take the money back out of Thailand you will need the Foreign Transaction forms to show to the bank that the money used to buy the property originally came from outside Thailand and then upon transferring the money back out of Thailand you will only be taxed on any profit you have made from the resale of the property and not on the total amount.
Land in Thailand is measured using a local measurement of “Wah”, “Ngan” and “Rai”. Very simply 1 “Wah” = 4 Sq.m, 1 “Ngan” = 100 Sq.Wah or 400 Sq.m, 1 “Rai” = 400 Sq.Wah or 1,600 Sq.m. Furthermore 1 Acre is approximately 2.5 Rai.
Transfer fee 2% of the registered value of the property
Stamp Duty 0.5% of registered value. Only payable if exempt from business tax
Withholding tax 1% of the appraised value or registered sale value of the property
(whichever is higher and if the sellers a company). If the seller is an individual, withholding tax is calculated at a progressive rate based on the appraisal value of the property.
Business tax 3.3% of the appraised value or registered sale value of the property (whichever is higher). This applies to both individuals and companies.
Purchasing a Condominium:
Under the Condominium Act (1979) foreigners can own the freehold of 49% of the total unit space in any legally registered condominium building. The purchaser must request a letter of guarantee from the condominium juristic person setting out the proportion of foreign ownership which must be submitted to the Land Department upon transfer of ownership.
Foreign nationals may own:
1. A unit in a registered Condominium.
2. A building distinct from its land.
3. Registered leasehold of up to 30 years for all types of titled land or buildings.
Foreign nationals may not own:
1. Freehold land. More than 49% of the shares in a Thai company that owns freehold land.
As foreigners cannot claim ownership over land as freehold, the preferred method of acquiring land is through leasehold.
A foreigner can safely acquire the right to use the land and register the right for a maximum lease term of 30-year lease at the Land Department.
Lease term – A lease agreement will usually guarantee the initial 30-year lease term.
Renewal of lease in Thailand is not in Perpetuity. There is no automatic right to renewal and parties must take an active step to renew the lease towards the end of the initial term.
It is difficult but possible and success will depend upon careful drafting of the clause regarding the intention to renew and there it will still subject to the Registrar’s discretion.
Renewal periods thereafter the initial period must not exceed 30 years.
If you are looking for long staying in Thailand, Thailand Privilege Elite Visa provides Thailand’s privilege Residency Program Privilege Entry Visa (PE) is categorized as a Tourist Visa, which does not allow the holder to legally apply for a work permit to work and study in Thailand. Privilege Entry Visa (PE) can only be used with the nationality that the applicants used to apply (only 1 nationality). Hence, members are not allowed to change or switch nationality during their membership period.
Foreigners can apply to be membership as long terms visa as follow:
1) Gold Membership: 5 years validity, membership fee 900,000 baht
2) Platinum Membership: 10 years validity, membership fee 1,500,000 baht
3) Diamond Membership: 15 years validity, membership fee 2,500,000 baht
