Buying Property in Thailand

Chiang Mai, Thailand is a popular destination for many foreigners, and some of them decide to stay long-term or even permanently. Foreigners can buy certain types of property in Thailand, but it’s important to be aware of the limitations and regulations that apply to foreigners. Here’s what you need to know before you start your property search.

 

Thai law restricts foreign ownership of land. According to the law, foreigners are not allowed to own land in Thailand, but they can own buildings. This means that if you want to buy a house in Thailand, you will own the building, but not the land it’s built on. You can lease the land for a maximum of 30 years using what is called a “leasehold”, with the option to renew the lease for an additional 30 years. You will need to find a landlord or land holding company willing to sign a long-term leasehold agreement.

 

Condominiums are the most popular choice for foreign buyers as they can own the unit outright, as long as no more than 49% of the total floor area of all units in a building are owned by foreigners. It’s essential to check the ownership percentage before making a purchase.

 

Companies owned by foreigners can purchase land, but they must follow strict regulations. The foreign ownership percentage in a company can’t be more than 49%, and the majority of the company’s directors must be Thai.

 

When purchasing property in Thailand, it’s essential to use a reputable lawyer who is well-versed in Thai property law. They will check the property’s title deed and ensure that there are no legal issues with the property.

 

Another important consideration is that a foreigner must have a non-immigrant visa to buy property in Thailand. A tourist visa isn’t sufficient for this purpose.

 

Foreigners may have difficulty obtaining financing from Thai banks to purchase property. Banks typically require a significant deposit and may have stricter lending requirements for foreigners.

 

However, some developers offer financing options to foreigners, which may be more accessible.

 

In Thailand, buyers are responsible for paying several additional costs, including transfer fees, stamp duty, income tax, and property tax. Transfer fees are often split 50/50 between the buyer and the seller, but but each situation is a unique negotiation between the seller and buyer. These expenses can add up to a significant amount, so it’s essential to factor them into your budget.

 

While there are limitations to foreign ownership of property in Thailand, it’s still possible for foreigners to buy property in the country. Condominiums are the most accessible option, but buying a house is also possible with a leasehold agreement. Be sure to work with a reputable lawyer and factor in all additional costs when budgeting for your purchase. With proper planning and guidance, purchasing property in Thailand can be a successful investment.