The short answer is “yes, it’s possible!”. People often worry that Thai Property Laws are complicated and confusing. Rest-assured, buying property in Thailand is straightforward and the laws are easy to follow and understand.
Foreigners purchase property in Thailand for various reasons such as a retirement home, a vacation home, or for investment purposes. The purchase of a second home in Thailand is gaining popularity in many places in the world, due to the low acquisition cost.
Here are a few options for foreigner looking to own a Thai property.
Legally a condominium and apartment are the only properties a foreigner can ‘own’ under his name. Foreign ownership of condominiums is restricted to ownership of 49% of the available sales space. In general, should the condominium has hit its quota of 49%, foreigner will not be able to purchase a unit under the foreign quota.
One option is simply to acquire land on a leasehold basis; in Thailand the maximum lease on land is 30-years, with the possibility to have a contractual agreement for two subsequent renewals (Total of 90-years lease). While a leasehold may not offer ownership, it does offer the leaseholder exclusive rights to the use of that property. Leasehold rights are registered on the title deed (or Chanote) and can be a simple way to enjoy a property without the hassle of additional and ongoing paperwork. Retirees looking for a holiday home, may find this solution attractive!
Foreigners are not allowed to own land in Thailand by law. However, there are a few save ways to ‘own’ landed property in Thailand;
Foreign ownership of the company must be 49% or less. With Thai citizen holding the rest of the shares.
However, the foreigner can still maintain control of the company via handing control to foreign directors, giving foreign partners greater voting rights or through the legal power of attorney from the Thai shareholders. Therefore, getting a lawyer to help with all the processes is necessary.
One of the more common ways to ‘own’ land in Thailand is to marry a Thai citizen and put the deed in the Thai citizen name. This can be dangerous for the foreigner as the land will be legally owned by the Thai citizen. Should the foreigner be evicted, there are no legal avenues to fight this. Should the marriage end in divorce, the property will be owned by the Thai citizen.
The foreigner must take steps to protect his investment because if he is married to a Thai citizen and the marriage ends in divorce, the property will be owned by the Thai citizen.
The Thailand ‘Board of Investment’ allows foreign investors to buy and own freehold land up to 1 rai (1600 square meters), on the condition that the land is used for residential purposes only
A minimum investment of THB 40 million is required, in assets or government bonds deemed beneficial to the Thai economy. It is important to also note this ownership is not transferable by inheritance and is therefore limited to the lifetime of the foreign owner.
Summary
There are many ways for foreigners to purchase Real Estate in Thailand, but they are some restrictions too. The most common question is whether foreigner should buy condo or landed property.
Landed property oftentimes offers great value on a price per square feet basis; there is also the extra advantage of greater control over the land and the building.
On the other hand, condos offer foreign buyers a hassle-free acquisition with a simple “exit strategy”. The by far is the most straightforward, hassle-free and liquid property type due to the essential support services offered by condo building management. The ease and flexibility offered by condos make it an appealing choice for many overseas buyers using it as an attractive turnkey rental investment.
The ultimate choice will depend on the buyer investment objective and personal lifestyle preference. We can help you find a competitive mortgage loan to help realized your dream!
homeloancompare.sg specializing in mortgage loan for overseas condos and homes. Whether you are buying or refinancing an oversea property in Malaysia, Thailand, Australia or UK, our mortgage team can assist you or alternatively contact us on enquiries@homeloancompare.sg
