Thailand is a country in Southeast Asia known for its picturesque beaches, culture and hospitality. With a stable economy and developed infrastructure, real estate in Thailand is becoming increasingly attractive to foreign investors.
Advantages of Buying Thai Real Estate
The main advantage of buying real estate in Thailand is high rental yield. It is due to the high demand of the country as a tourist destination, which ensures stable demand for renting Thai housing, especially in resort areas. Among other positive aspects:
- Affordable prices. The cost of real estate in Thailand is often lower than in European countries, which makes it attractive to investors.
- Ease of registration. Foreigners can buy real estate in Thailand without significant bureaucratic obstacles, especially when it comes to condominiums.
- Variety of offers. The market offers a wide range of properties - from modern apartments in megacities to cozy villas on the coast in Thailand.
- Favorable climate. The warm tropical climate and natural beauty make life in Thailand comfortable and enjoyable.
Popular Areas to Buy Real Estate in Thailand for Foreigners
Foreign buyers often choose the following regions to buy a home:
- Bangkok. The capital of Thailand with developed infrastructure and business opportunities. The average cost of an apartment here is about $4,000–$5,000 per sq. m.
- Phuket. A popular resort island with beautiful beaches. Housing prices range from $1,800 to $4,200 per sq. m.
- Pattaya. A famous resort with an active nightlife. The cost of apartments starts from $53,000 for small studios.
- Samui. An island with picturesque beaches and a calm atmosphere, attracting those who seek privacy.
Cost of Thailand Real Estate for Sale
The local real estate market offers a variety of options. Primary and secondary housing in Thailand is represented by both classic apartments and houses and villas:
- Apartments (condominiums). Small studios of about 30 sq.m. in Pattaya can be purchased for $23,300. In Phuket, apartments of 39 sq.m. with one bedroom cost about $100,000.
- Houses and villas. The cost depends on the location and size. For example, villas in Phuket can cost from $757,000 and up.
How to Buy Real Estate in Thailand
Purchase of Thailand property for sale to foreigners is available in the form of apartments in condominiums, while the foreign share in the building should not exceed 49%. Foreigners cannot buy land directly, but a long-term leasehold for up to 30 years with the right to extend is possible.
Features of purchasing real estate in Thailand:
1. Taxes and fees:
- Property transfer tax. Usually 2% of the assessed value of the property.
- Leasehold Registration Tax. 1% of the total rental value.
- Stamp Duty of 0.5% of the sale price.
- Withholding Tax on Income. This applies to the seller and depends on the length of ownership and value of the property.
- Additional fees may apply for condominium maintenance or management.
2. Transaction Documents:
- Buyer's Passport.
- Foreign Exchange Transaction Certificate (FET) to confirm payment from abroad.
- Property documents, including Chanote - certificate of ownership.
- Sales Contract.
3. Bank Transactions. Payment must be made from a foreign account in a Thai bank. All transactions are made in foreign currency, and the Thai bank converts the funds into baht.
Determine the type of property (apartment or house on leased land) and location, and check if the property is within the 49% foreign ownership quota, then:
- Hire a lawyer to check the documents, title and debts on the property.
- Sign the preliminary contract (Reservation Agreement) and pay a deposit (usually 10% of the property price).
- Transfer money from abroad to a Thai bank in foreign currency and get a Foreign Exchange Transaction Form.
- Sign the main sales contract with the seller and make sure the contract complies with Thai laws and has been translated.
- Visit the Department of Lands to officially register the property and pay taxes and fees (usually split between the buyer and seller).
- Get a certificate of ownership (Chanote) with your name on it.
- Hand over the keys and move into the property.
