Buying and Selling property in Thailand | Property Rentals in Thailand
1. Can a foreigner own property in Thailand?
|
|
|
Yes, a foreigner can own property in Thailand, either a condo or a building but they cannot own land. However, it is possible for a foreign individual to own land through a Thai limited company, or to lease the property up to 90 years with each method having its pro's and con's. The restrictions in place for Condominium ownership are different from land ownership.
|
The only restrictions on purchasing a condominium, are that the percentage of units sold to foreigners cannot exceed forty nine percent (49% - although this has varied at times) of the total number of units in the condominium block; and that the funds used to buy the condominium have been remitted from abroad and correctly recorded as such by a Thai Bank on a Tor Tor Sam.
The other circumstances in which a foreigner can purchase the freehold to
a condominium are
|
1.
|
Individuals who are permitted to have residence in Thailand under
the Immigration Act.The documents required are either a passport,
residence permit and house registration.
|
|
2.
|
Individuals who are permitted to enter Thailand under the Investment Promotion Act.The documents required are a passport plus a letter from the Board of Investment of Thailand certifying permission to live in Thailand under the Investment Promotion Act.
|
2. Can a foreigner ask for a mortgage loan from local bank?
|
|
|
Foreigners generally cannot purchase properties in Thailand with a mortgage, however, most of the financial institutions in Thailand provide loans for real estate purchasing to Thais and Thai companies. It is common for a real estate developer to arrange for his customers to have a financing package from a financial institution.
|
In case you are a foreigner who is not working in Thailand and want to buy a condo unit, you will have to transfer the exact amount of that unit to a Thai bank account and state that the money is to be used to purchase a property.
In most real estate development projects, a down payment can be made in installments from 10 to 24 months. After the down payment has been paid, the sale contract will be made and the balance amount is paid through the loan which is financed from a financial institution.
3. How much tax do I need to pay when I buy property in Thailand?
Whenever a property in Thailand is bought and sold, there are four taxes that need to be taken into account:
|
3.1
|
Land registration (transfer fee) of 2.0% of assessed value of the land.
|
|
3.2
|
Stamp Duty / Fee of 0.5% of the assessed value or
the sale price - whichever is higher.
|
|
3.3
|
Specific Business Tax of 3.3% of the assessed value or the sale price - whichever is higher - this will be applied to all sales by companies and to any private sales that occur within 5 years of the date of purchase.
|
|
3.4
|
Withholding tax - In practice, this will work out to be lower than 2% of the price for low to medium value properties, and up to 3% for higher value properties.
There are no set rules on who pays for which taxes and it is just another part of the bargaining process - make sure you discuss it with the agent and your own lawyer.
|
4. Why should I use a property agent?
|
4.1
|
Property agent's can help you sorting out the property list which fit your requirements and can direct you to your best choices.
|
|
4.2
|
Property agent's can help you negotiate with owner to bargain terms and conditions as well as assist you with process of signing an agreement. An agent will ensure the process runs smoothly and saves you time and energy.
|
|
4.3
|
Property agent's can guide and consult you on the area you like with consideration for your limitations, benefits and potential for investment in the future. Don't waste too much time on home research when you can have agent with local knowledge advise you.
|
|
4.4
|
Not only can a property agent help you on buying process but they can also advise you on the related services you need for your new home such as maintenance services, Cable TV subscription, telephone and internet services etc.
|
|
4.5
|
Property agent's have many resources available to them that will assist you in your home search. Sometimes a property is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties that are suitable for a client.
|
|
4.6
|
When selling your home, your property agent can give you up-to-date information on what is happening in the marketplace as well as the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best possible price, quickly and with minimum hassle.
|
|
4.7
|
When a property is marketed with the help of a property agency, you do not have to allow strangers into your home. Your property agent will prescreen and accompany only qualified prospects to your property.
|
Page: 1 2 Next