What Foreign Buyers Need to Know When Buying Property in Thailand
Thailand has emerged as a favored destination for foreign investors seeking to buy property. Its vibrant culture, breathtaking landscapes, and booming real estate market make it highly appealing. However, buying property in Thailand as a foreigner requires a thorough understanding of specific legal regulations and market dynamics. This comprehensive guide aims to help you navigate the process, with a special emphasis on Millennium Residence, one of Bangkok’s most esteemed condominiums.
Legal Framework for Foreign Property Ownership
In Thailand, various types of property include apartments, condominiums, land, and land with houses. Foreigners can legally buy condominiums with the same rights as Thai nationals, but only units located in the Freehold Section of the building. Freehold means that foreign ownership in a condominium does not exceed 49% of the total building spaces. This rule ensures a balance between local and foreign ownership, maintaining market stability.
All funds for purchasing a condo must be transferred from abroad in a foreign currency, unless you are a foreigner who has been working in Thailand and have paid taxes on your earnings. In that case, you are allowed to use the money you earned in Thailand to purchase a condo, and the title deed of the condo will display the foreigner’s name.
Foreigners are not permitted to own land in Thailand. If they wish to buy land or land with a house, they need to have a Thai partner or be married to a Thai national, who can purchase the land in their name. Consequently, the title deed of the land will be under the Thai national’s name, meaning the Thai national owns the land while the foreigner owns the building on the land. If you plan to buy land, your Thai partner must have a Blue Book, and you must obtain a Yellow Book. The Blue Book is the house registration for Thai nationals, and the Yellow Book is the house registration for foreigners. Foreigners also receive a Blue Book when they purchase a condominium, but it will not include their name.
However, there is a way for a 100% Foreign Leasehold. This means that a foreigner signs a lease with the owner of the house, equivalent to the sales price of the property. The foreigner signs the lease, pays for the house, and gets to live on the property for 30 years. The foreigner’s name will be included in a Yellow Book but not on the title deed. As long as the title deed remains unchanged, you can stay on the property. With the appropriate paperwork, you have the freedom to sell your leasehold anytime you wish.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Transfer Taxes and Fees
The seller is responsible for paying all taxes and fees associated with the sale of real estate in Thailand, except the transfer fee, which is normally shared between the buyer and seller. The transfer fee is determined based on the property’s valuation as assessed by the Land Department. However, this valuation is typically lower than the market value.
If a property is owned by a corporation or by an individual for less than 5 years, a specific business tax of 3.3% of the declared sale price is imposed. If an individual has owned the property for over 5 years, a stamp duty of 0.5% is applied. Furthermore, a withholding tax of 1% of the property’s assessed value, as determined by the Land Department, is also imposed.
Before you enter into any deals, ensure that all paperwork is reviewed by one of our property experts. Millennium Residence offers full transparency in all transactions. Our team assists buyers with comprehensive due diligence, ensuring every aspect of the purchase is clear and legally sound.
Conclusion
Buying property in Thailand as a foreigner can be a rewarding investment, provided you understand the legal and financial landscape. With its strategic location and exceptional amenities, Millennium Residence is an excellent choice for foreign buyers looking for a luxury condo in Bangkok. Visit our website for more information and start your journey to owning a piece of Bangkok’s skyline today.
| SUMMARY | |
