Purchasing property in Thailand can seem daunting, but with the right information and research, it is possible. It is essential that you understand the legal framework and regulations. A thorough title search is vital, as it discloses the legal ownership and any liens or encumbrances.
Foreigners cannot own land directly in Thailand, but may purchase through leasehold agreements or Thai companies. A competent real estate agent will be able to provide you with a range of options.
Condos are a popular form of property in Thailand. They are like apartment buildings with improved internal infrastructure, such as parking, gyms, swimming pools, 24-hour security, reception and a lot more. As a condominium owner, you own the individual apartment but share ownership of the common areas with other owners.
Foreigners can buy condominiums in Thailand and there is no restriction on the number of units they can own. However, they can only own apartments in a condominium and cannot purchase the land the building stands on.
The condominium sale agreement is an official document that specifies the responsibilities of the parties and must be in Thai script. It also must comply with the Consumer Protection Act and the Condominium Act as well as other relevant laws. The transfer of ownership of the condo takes place at a local Land Office branch and a fee must be paid.
If you want to buy a condominium in a new project, it is best to contact the developer directly rather than a real estate agent. This way, you can avoid paying commissions to a realtor. In addition, if you are purchasing a condo from a reputable developer, there is usually no need to hire a lawyer as the developer will take care of the entire process for you. However, if you are not confident in your ability to handle the legal process, a reputable attorney can help you dot your i’s and cross your t’s.
Buying land in Thailand can be an excellent investment for those looking to live permanently in the country, or simply want to build their own house. However, it is important to understand that Thai land measurements are different from European or US sizes. This can make it difficult to determine the exact size of the property and may lead to misunderstandings between buyers and sellers. To avoid this, we recommend working with a real estate agent who is familiar with local measurements to ensure that the purchase is correct and legal.
Land purchases are a more complicated process than purchasing condos. Foreigners can only own land through a Thai company that has 51% of its shares held by Thai citizens, making it an expensive and time-consuming option. Additionally, land ownership through this method is subject to strict regulations, such as having to use the property within two years or risk losing it.
Although the restrictions on land ownership in Thailand are strict, there are several ways that foreigners can invest in Thai properties and still have full rights of ownership. It is recommended that foreigners work with real estate advisors and lawyers specializing in Thai property laws to avoid any complications. Furthermore, it is critical to remain aware of any policy changes that may affect foreign ownership in the future.
For expats seeking to invest in Thai property, leasehold represents a good option. Under this arrangement, foreigners can purchase a condo or apartment while leasing the land on which it sits. This allows the property owner to use the space as desired while still adhering to Thailand's laws on land ownership. It also eliminates the need for a mortgage, which can be difficult for foreigners to obtain in Thailand.
Moreover, leasing a condominium is more affordable for those with limited funds. In addition, the renter can enjoy a fractional ownership interest in the common facilities, such as pools and reception areas. This gives tenants the freedom to use their space as they see fit, making this a popular investment for foreigners.
While obtaining a leasehold, expats must be careful of the legal implications. The country’s law on land ownership is changing, and it’s important to work with experts who can monitor these changes and understand the impact they might have on your investments.
A common way for foreigners to gain more comprehensive property rights in Thailand is by setting up a Thai limited company. This process requires extensive legal knowledge, a legitimate business, and a competent lawyer to ensure that the company is run properly and complies with local laws. In general, this will allow foreigners to own up to 49% of the company shares, with Thai shareholders holding the rest.
Many people looking to buy a home in Thailand will purchase through a Thai friend or nominee. This can be a good option for people who want to avoid large legal fees or local laws and regulations that would otherwise prevent them from buying property in Thailand. However, there are a number of important considerations that need to be made before this option is considered.
Buying through a Thai friend can be problematic, particularly if it is discovered that the arrangement is illegal. This is because foreigners can only own land that is registered in their name. It is illegal for a foreigner to own structures and land that are on land that has been bought in someone else’s name.
A common solution for foreigners purchasing land is to set up a Thai Limited Company. This method allows the purchaser to own land and structures, as long as they follow all Thai corporate and tax laws. However, this is a complicated process and one that the government has been cracking down on recently.
If you are considering this option, it is best to consult a qualified lawyer or real estate agent before taking any further steps. In addition, you will need to have a thorough title search and research done before making any substantial deposits. For this, it is recommended to use an international money transfer service that can help with the process and save on exchange rates.