Property in Thailand

Buying property in Thailand whether it’s a condo, a house/villa or a piece of land is fast becoming popular among foreign investors who would like to have a holiday home in Thailand or simply as a form of investment. The form of ownership can be either freehold or leasehold depending on the type of property to be purchased. Our law firm is experienced in assisting foreigners with their property purchase. Always take legal advice from a property lawyer in Thailand.

Buying Property in Thailand

If you are going to buy real estate in Thailand then you need to ensure that you understand the real estate laws as well as the procedures when buying. There are also property transfer costs as well as checking that the real estate is not encumbered by a mortgage bond, usufruct, servitude, superficies or that the zoning is incorrect. Most people will complete a due diligence before they purchase real estate.

Since foreigners cannot own property in their own names. This without a large investment and only able to buy a small piece of land. Many opt for placing the property in the name of their Thai wife. This comes with its own dangers and you need to consult an attorney.

This at a legal firm in Thailand for sage legal advice. There are many options such as a usufruct which has become common with foreigners who try to protect their property rights in the event of a divorce in Thailand. A Bangkok law firm will be able to assist you in these circumstances. Always consider a Thailand law firm be it an expatriate or locally staffed Thailand law firm for assistance.

Buying a Condo

Buying a Condo

Buying a condo in Thailand seems to be the most popular real estate transaction among foreigners in the Kingdom. The popularity of this practice may be that condominiums generally are easier to buy and sell.

Speak to a property lawyer in Thailand first before you decide to buy real estate in Thailand as the Title Deeds are very complex especially if you want to buy a house. The property transfer process is also very complex.

Property Transfer Taxes

The buyer pays certain taxes while the seller pays the other. See which party pays which taxes when transferring property in Thailand. See the other articles on the buying process. 

Money Transfer for Property

When buying a condo in Thailand the transfer of the money has to conform to the 1991 Condominium Act. Making your deposit for your property has its own process. 

Title Deeds in Thailand

The title deeds system in Thailand is not like anything in the West and many times this creates problems when foreigners buy real estate in the name of their Thai wife and don’t get what they thought they would.

Due Diligence

If you are going to buy property in Thailand then you should do a due diligence on the property before signing. Check for servitudes, usufructs and other issues with the property and property developer.

Building & Investing

Rental Agreements

New property laws in Thailand had been brought in during May 2018 with regards to rental agreements and removing some of the grey areas when it came to renting a condo.

Property Investment

Depending on what you wish to do you can either buy a condo to live in while you work in Bangkok or come on holiday each year. What type of real estate are you looking at.

Property Developers

If you are buying from a developer that does not have much of a reputation, then again you would have to look at projects they had done 2-3 years ago as a project reference. Bangkok is full of uncompleted projects.

Property Rights

If you are married to a Thai then the property rights are defined by the Civil and Commercial Code. These laws had mainly been written for Thai nationals so there are additional issues when it is a Thai and a foreigner.

Property Issues

Habitation Rights

What you need to know about the right of habitation and how it affects you in Thailand. Read more online before you sign a sales agreement. The right of habitation is not commonly used in Thailand. 

Superficies

If you are considering investing in property in Thailand then you need to ask your lawyer to do a due diligence on the property you are wanting to buy especially when you build a house in Thailand under superficies.

servitudes

When you are buying real estate in Thailand you need to have a due diligence report done on the property not only to check the title deed but also to ensure that there are no servitude’s registered against the title.

Property Zoning-

It is also now very important to view property before you buy it. Many people have also discovered after buying the property that there was something about its location that they did not like.

Building Restrictions

If you are considering buying a condo in Phuket, then you should consider the rules for real estate development as you don’t want to buy a condo unit and have legal problems later.

usufruct

You may encounter a usufruct when buying property in Thailand. Understand what a usufruct is and why you dont want to buy the property. Ensure the due diligence covers this.

Property in Thailand FAQ

CAN FOREIGNERS BUY A CONDOMINIUM UNIT IN THAILAND?

Yes you can buy a condominium unit in Thailand. Foreigners however are not allowed to own more than 49% of the units in the building. You will need to check if the unit can be registered in your name.

IS IT POSSIBLE FOR A FOREIGNER TO BUY A HOUSE IN THAILAND?

Foreigners are normally not allowed to own a house in Thailand. You cannot own land in Thailand however you can own the house on the land. The land may in the name of your Thai wife while the house is registered in your name. This is called registering a superficies.

HOW CAN I BUY A HOUSE IN THAILAND?

You cannot own a house in Thailand as foreigners cannot own land. You can however own the building or house on the land without owning the land itself.

CAN I BUY PROPERTY THROUGH A THAI COMPANY?

Yes you can however there are tax implications. If your are the director in the company who holds the property and you live in it, then you will be asked about your tax status while living in a company house as a benefit. This is a grey legal area in Thailand.

IS BUYING A CONDO IN THAILAND A GOOD INVESTMENT?

You will have to take proper investment advice when buying property in Thailand as an investment. The property market however changes and certain condo units have good returns while others have not. Good investments tend to be close to the mass transit system build by reputable developers.

CAN FOREIGNERS BUY LAND IN THAILAND?

No. You can only hold a leasehold agreement or usufruct over the land.