Buyer’s guide

Can foreigner own property in Thailand?

Thailand “condominium Act B.E. 2522” from the year 1979 allows foreigners purchase 49% of sellable area or freehold units from condominium with 100% ownership. Not more than 49% of the condominium sellable area or units can be owned by foreign nationals under freehold ownership. 51% units must be owned Thai nationals, or Thai registered company. These units are called Leasehold units.

Condominium leasehold units has a maximum registered lease term of 30 years, which can renew total 90 years ownership (30yrs + 30yrs + 30yrs). Because of this, leasehold condominium units valuations may be lower than equivalent freehold units. Most condominiums units that foreigners purchase from Thailand are freehold units.

Purchasing Villa

Under a Thai law foreigners cannot own directly land in Thailand, but they can own the house or structure built thereon. There is two common and reliable ways that allows foreigners manage their land plot.
Set up own Thai Limited Company to own the land on your behalf.

– Foreigner can hold up to 49% of the company’s shares and the rest of must be held by Thai juristic persons. The foreign owner always has a majority of votes in the company. The land can be owned by the company and the Managing Director & single majority foreign shareholder can still control the company. (American citizens can own 100% of a firm under the Thailand-US Amity Treaty).

Leasehold Ownership.

– Maximum registered long term land lease is 30 years which can renew 30yrs + 30yrs + 30yrs. The most common lease terms are 30 years + 30 years + 30 years, giving the foreigner total 90 years ownership for the land.

Purchasing procedure & funds transfer to Thailand

If you are purchasing a property in Thailand under foreign ownership, you must have FOREX form equivalent to the purchase price mentioned in the Sale and Purchase Agreement under your name.
A Foreign Exchange transaction form (referred to as a FOREX/FET, FOREX or FET is an official bank document issued by the receiving bank upon receipt of foreign currency from overseas.

– The original FOREX form must be submitted to the land department in order to register a condominium in a non-resident foreigner’s name. The FOREX form is important under foreign ownership as you will need to show it and supporting documents if you want to sale your property in the future and transfer the funds back to your home country out of Thailand.

– Foreigner can set up own local bank account in Thailand in the name of purchaser and forward funds into the account.

– Transfer funds directly to property developer account and developer organize all appropriate paperwork/Forex Transfer Form/certificate.

– Funds currency conversion to Thai Baht has to be done in Thailand, and not before transfer in your home country.

– When transferring foreign currency funds into Thailand, it is required that the name in the Forex Transfer Form is the same as the name written in the Sale and Purchase Agreement. The total amount of transferred funds must not be less than the net price in THB of the condominium unit specified in the Sale and Purchase Agreement.

– Phuket Real Estate Agency always recommend to use authorized law firm to assist trough funds transferring and the whole purchase process.

Due to demand, the value of the land is high and it is reflected in prices. The availability of a plot of land is limited by the fact that Phuket is an island and there are several national parks and rainforests. Because of this, construction is very tightly regulated. In addition to Bangkok, Phuket has the most valuable properties in Thailand.

Why to invest in Phuket?

Phuket offers world-class beaches, culture & heritage, magnificent temples, shopping malls, energetic nightlife and world class sport and fitness activities. Phuket International Schools, world class Hospitals and shopping malls make it an ideal place to stay for family and retirement people. The island has several top-class golf courses, world famous diving waters and an archipelago with a great sailing opportunities.

The Phuket region is developing fast and the number of large investments has increased year by year. The central location in Asia, good infrastructure and a growing number of tourists and residents provide a good platform for business and business.

Half of the world’s population lives within a 4-5-hour flight. The asian major economic centers Bangkok, Hong Kong, Kuala Lumpur and Singapore are all within a short flight distance. The growing number of tourists from China is also a significant addition to Phuket’s economy.

Phuket Airport is Thailand’s second busiest airport after Bangkok, Suvarnabhumi. Since 2000, the number of passengers on the field has increased from 3.5 million to 13 million. The new airport opened in 2016 is likely to further increase the number of passengers, as the old field was already too small in capacity. largest arrival rates.

Phuket’s economic growth is boosted by Thailand’s recent membership in the Asian Economic Community. It facilitates Member States’ trade and labor mobility. Many people are already living in Phuket and are working for example in Singapore.

The change in visa rules for charter cruise crews has been made easier. Thus, it is easier to leave ships and large yachts in the harbor for longer. As a result of this change, all three major marinas in Phuket have invested heavily in expansion and are expecting a strong growth as a charter cruise destination and a major yacht storage port.

Phuket’s infrastructure is constantly being improved. For example, the road and the water treatment plant have invested heavily in recent years. Phuket is planned to have both a train route from the mainland to the airport and an internal train route to the island. If implemented, these projects would have a very positive impact on mobility and thus on the development of the whole region.

For real estate investors, Phuket offers an interesting destination. Year-on-year growth in the number of tourists and residents has increased the demand for rental property and increased property prices.

Due to demand, the value of the land is high and it is reflected in prices. The availability of a plot of land is limited by the fact that Phuket is an island and there are several national parks and rainforests. Because of this, construction is very tightly regulated. In addition to Bangkok, Phuket has the most valuable properties in Thailand.

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