Buying Property in Thailand - FAQs
Can I get a long stay permit (visa)?
Are there any property taxes to pay?
How to purchase a property in Thailand?
- Once you decide which property you wish to buy, we help negotiate the price and terms acceptable to you and the seller.
- If agreed by both parties a booking fee is paid.
- Then we recommend appointing a lawyer (licensed in Thailand) to act on your behalf. We are happy to provide a list of recommended lawyers or you can check the official site of the chamber of lawyers in Thailand which can be found here. The lawyer will perform a complete due diligence and inform you of any problems prior to signing the contracts.
- At this point a deposit is paid and the contract is signed by both parties or via power of attourney.
- Later the agreed purchase price is paid to the seller according to the terms in the contract and the property is transferred at the land office with the help of your attorney and realtor.
- Taxes are paid at this time to the tax office and the property is registered in your name or the name of your company.
What are the costs of buying a property in Thailand?
- Applicable transfer charges and taxes, calculated for the transaction
- Legal fees, agreed in a written quotation for the work required
- Property management (CAM) fees are usually paid 1 year in advance and might or might not be part of closing costs. Check the project’s actual fee schedule, budget and payment terms.
- Bank fees, exchange costs and transfer charges, confirmed with the providers
- Realtor fee (paid by the seller or developer)
How do I register my vehicle?
If you are going to be living in Thailand for any length of time you'll naturally want to have you own vehilce to get around. It just makes life so much easier. Buying property does not automatically provide every document needed to register a vehicle. Ask the Department of Land Transport or the dealership for current identity, residence and registration requirements for your circumstances.
Can I open a bank account in Thailand?
If you are living in Thailand for an extended period of time, you will want to open a Thai bank account as a foreigner. Requirements vary by bank, branch, residency and account type. Ask the bank for its current eligibility rules, required documents and deposit terms before relying on an account for a purchase.
How can I pay utility bills in Thailand?
In Thailand, it's a simple process to pay your utilitiy bills and this can be done at your Bank or Post Office during normal working hours. Payment channels and fees depend on the utility provider. If you will be away, check available bank-payment, online or advance-payment arrangements with the provider.
Who offers property insurance in Thailand?
There are many companies offering insurance in Thailand. You will find policies of all sizes and rates are competitive. Compare policy wording, exclusions, limits and excesses for your particular home or condominium. A policy does not cover every possible loss.
Does Phuket have an International airport?
Phuket has an international airport serving domestic and international routes. Routes, frequencies and travel times change, so check the airport and airline schedules for the journey you need.
What can a foreigner buy?
Eligible foreign buyers can own registered condominium units freehold, subject to the legal requirements and foreign quota. Villa buildings and rights to the land require separate checks. Foreign land ownership is generally restricted, with limited statutory exceptions. Ask an independent lawyer to review the rights offered with your property.
What does freehold mean in Thailand?
Freehold is the most complete and absolute ownership interest that can be held in property. Freehold is where the property belongs to the owner indefinitely (rather than rights limited to a lease term; renewal promises are not equivalent to an already registered 90-year lease).
Can a foreigner own land in Thailand?
Under the current laws of Thailand, foreign ownership of land is restricted. The Land Code of Thailand generally prohibits the ownership of land by foreigners; this applies to both individuals and legal entities. A lease does not transfer ownership of the land. Have your lawyer review the available lawful arrangements and any limited statutory exception relevant to your circumstances.
What are the main types of land title deeds?
Land titles are the most common evidence to prove land rights of possession and other interests in land. In Thailand, there are various types of land titles that each provide a different level of security for the buyer. We suggest only considering these 3 land titles for leasehold.
The most secure land titles in Thailand are:
1) Nor Sor 4 (Chanote)
2) Nor Sor 3 Gor
3) Nor Sor 3
The highest land title in Thailand is "Nor Sor 4" commonly referred to as "Chanote". Have your lawyer verify the document, boundaries, registered interests and applicable procedures before relying on a proposed subdivision or transfer.
Are there any loans available for foreigners?
Financing availability depends on the lender, applicant, property and ownership arrangement. Obtain current written eligibility requirements and terms directly from the lender before making a non-refundable commitment.
What amount of rental income can I expect?
Rental income varies by property, permitted use, operating arrangements and costs. Do not assume a market-wide yield: request available operating records and distinguish gross income from net income and forecasts. To maximize rental income, it is important to buy where there is proven rental demand and in recognized developments.
How do I know I am getting a good deal?
There are many factors that we need to consider when talking about the value of a property: A) location. B) view. C) size of the property. D) state of the property. E) state of the market. Traditionally, location is considered the most important factor in determining the value of real estate worldwide. In our market it is no different and proximity to the beach in one of the biggest influence. A rental-yield calculation is one comparison tool, but its assumptions, expenses and supporting records need to be checked.
What is the best way to compare properties?
In most cases, comparing properties on a formal basis helps investors determine which one offers the best value. For apartments and condominiums simply divide the purchase price by the size of the unit to determine price per square metre.
Example: Price per m2 = (5,400,000/48) = 112,500
For villas, compare land area and built-up or usable floor area separately. Adding two different price-per-area ratios is not a reliable combined valuation. Use comparable properties with consistent area definitions.
Another measure is gross rental yield: annual rental income divided by purchase price, expressed as a percentage. Net yield deducts relevant operating costs. A calculation using estimated income is a forecast, not a promised return.
Example: Yield = (800,000/10,000,000) x 100 = 8%
How can I get the best foreign currency transfer rate?
Using a foreign currency transfer broker when transferring your funds abroad could save hundreds if not thousands of dollars and only takes a little planning. Foreign exchange transfers are key to maximizing the value of the currency you are sending. Fluctuations in the exchange rate and fees can have a huge impact on the overall cost of your property purchase. A currency broker is a cost effective alternative to the bank rate and you can find more information here.
Do I need a real estate agent in Thailand?
If you are buying property in Thailand, you will probably need to enlist the help of a real estate agent to view a selection of their property listings. A knowledgeable agent can usually save you both time and money. Not all realtors in Phuket are the same. Just remember to avoid treating the information and advice provided by a salesperson as undisputed truth.
Do I need a lawyer to buy a property in Thailand?
It is surprising how many buyers view legal advice as a cost rather than an investment. It is not legally required to hire a lawyer to complete a property purchase, but we strongly recommend doing so. The lawyer or solicitor will act on your behalf and typically they break the work down into 3 sections, due diligence, contract and contract review, and legal transfer of ownership (at the land office). Once engaged, your lawyer will then be available to offer to advise when needed.
Can I use my solicitor from back home?
Can I sign a power of attorney in Thailand?
Should I have an exit strategy?
Formulating an exit strategy for each property you buy just takes a few minutes of careful consideration. Knowing in advance your exit strategy will almost certainly influence a number of decisions that are subsequently made in relation to a property investment.
Are there zoning laws in Thailand?
Planning, environmental and building controls depend on the particular plot and proposed use. Have your advisers check the current zoning, height and coastal or hillside restrictions, access and required approvals. A general island-wide percentage or height rule is not sufficient for a purchase decision.
What's a reservation agreement in Thailand?
When you have decided on a particular property and reached an agreement with the seller a reservation is signed by both parties. A reservation payment or booking fee is made to secure the property and take it off the market. The amount, application to the price, reservation period and refund conditions must be agreed in writing for the particular transaction.
What is “off-plan” property in Thailand?
Off-Plan property is basically buying the rights to a property that has yet to be built, as opposed to buying a finished property. Any price concession and payment milestones depend on the contract. Off-plan pricing does not establish a discount to market value or guarantee a future capital gain. It’s important to choose a reputable developer with a good track record to minimize the associated risk. Keep in mind that your rental income will not start until after the project completion date.
What are guaranteed rental returns?
Many condominium developers are now offering Guaranteed Rental Returns to buyers searching for an investment property. For example a new property might offer “7% Guaranteed Rental Returns for 5 Years”. The guaranteed rental return will be in the contract and the owner is limited to the amount of time per year they can occupy their unit. Furniture-package requirements and other participation conditions vary by programme. Review the payment obligation, deductions, personal-use restrictions, operator and remedies for non-payment.
What are CAM fees in Thailand?
Common Area Management (CAM) fees cover such things as security, road access, and parking, shared swimming pools, gardens and landscaping, elevators, reception area and facilities such as gyms, clubhouse, library, saunas and steam room, water storage facilities and electrical infrastructure, pest control and garbage collection. CAM fees are usually paid one year in advance.
What is a sinking fund?
A sinking fund is a sum of money that is set apart by the developer to meet the cost of major replacements and repair work to the developments common areas. Owners are collectively responsible for funding the sinking fund.
How is land measured in Thailand?
In Thailand, while square meters are used for measuring floor areas of villas and condominiums, the unit of measurement used for land is “Rai, Ngan and Wah.” One Rai of land is equal to 1,600 SQm. (See Land Measurements for more details).
