Head of real estate and commercial law practice
Specialist in the field of commercial law and process. Real estate, construction support; land law and protection of property ownership.
Support for the purchase of real estate (apartment, house) in Thailand
Buying an apartment or house in Thailand for foreigners requires a good understanding of local legislation. You can buy real estate here personally or through a company that provides for the use of a foreign quota. The whole process involves choosing a property, making a deposit, signing a main contract and registering the title to the property with the new owner. To learn more, we recommend that you read the article below.
What types of housing can be purchased in Thailand?
In Thailand, you can choose for permanent residence:
- condominiums (apartments in residential complexes);
- villas, townhouses;
- block houses.
The only exception to direct ownership in the country will be land, which by law can only be registered as property by citizens. As a general rule, you can register a freehold or long-term lease for real estate in Thailand (for a maximum period of 90 years).
What regions should you pay attention to when buying real estate in Thailand?
When choosing a region, you should focus not only on the budget, but also on the balance between tourist demand and infrastructure development for the most comfortable life. The first will have an advantage for those who also plan to rent out their home for short-term rent (for example, for a vacation in another country). The most popular areas in Thailand for purchasing housing by Ukrainians are:
- Phuket (key tourist hub);
- Bangkok (business center of Thailand);
- Samui (for premium class);
- Pattaya and Hua Hin (offer more budget options).
What are the legal aspects of purchasing housing (apartment, house) in Thailand?
The legal aspects of purchasing real estate by foreigners are closely related to legal restrictions on land ownership. As already partially noted earlier, a person can issue a Freehold (subject to the use of a quota and for apartments, if such ownership does not exceed 49% of the total area of all apartments in the complex) or Leasehold (gives the tenant almost complete control over the house, villa or townhouse from 30 to 90 years inclusive).
In addition, as in any other country, in Thailand the buyer pays a number of additional payments for the transaction:
- registration tax (transfer of rights to the apartment) – 1%;
- tax for registration of the lease (for the house) – 0.5%;
- stamp duty – 3.3%;
- commission of a notary and realtor (involvement is mandatory) – 3% and others.
It is worth emphasizing that after purchasing housing in Thailand, a person will also have to pay systematic mandatory payments for its maintenance and ownership. To learn more, we recommend that you book a consultation with one of our lawyers on purchasing real estate abroad.
Support for purchasing residential real estate in Thailand: what are the main stages?
The purchase process consists of several key phases:
- preliminary stage – selection of the object and legal due diligence, reservation and payment of a deposit of up to 10% of the total cost of the apartment, house;
- main stage – conclusion of a preliminary purchase and sale agreement, payment in installments (if necessary), down payment for housing up to 30% of the cost;
- final stage – registration of ownership, payment of the full amount of the transaction (the balance of the cost), receipt of a certificate of ownership or registration of a long-term lease.
Important to know! To recalculate the cost of an apartment or house, you must obtain confirmation of the legality of the origin of funds in foreign currency and proper conversion of the amount from a local bank. This applies to amounts of funds exceeding $ 50,000.
What do the lawyers of the company “Prikhodko & Partners” offer?
Contacting our lawyer is crucial for the correct purchase of real estate in Thailand. Having proven partners in this country and having knowledge of local aspects of the real estate market, they will provide you with the following services:
- introductory consultation (in particular, regarding the specifics of using a foreign quota);
- legal due diligence of the object before purchase;
- correct calculation of all taxes and mandatory payments;
- support in concluding preliminary and main contracts of sale of an apartment, house;
- development of a draft agreement with the seller or developer;
- opening an account in a local bank and confirmation of the legality of the origin of funds in foreign currency;
- support in registering the right of freehold (for an apartment) or long-term lease (for a house);
- re-registration of service contracts for the object.
Therefore, buying real estate in Thailand by foreigners is a multi-stage process that requires legal support. It is necessary to involve a lawyer already at the stage of choosing the type of housing, region and ownership rights, since they differ in cost, tax burden, and future disposal features.
To find out the cost of supporting the purchase of real estate (apartment, house) in Thailand from our lawyer, please fill out the form below.
Calculate the cost of services
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Do you want to buy an apartment/house in Thailand?
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Do you need advice on choosing housing in Thailand?
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Are you interested in drafting a contract for the sale and purchase of an apartment in Thailand?
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