Property in Thailand
Perks of Owning Thailand Property
Thailand is a country known for its natural beauty and rich culture. The country is very popular among tourists and is currently the most visited country in all of Southeast Asia. The pull of the Thailand is, however, too strong for many of its visitors so that many home buyers consider making a home in the country. The good thing though is that buying real estate in Thailand satisfies not only the desire to have your own place in such a beautiful country but is a sound investment as well. Granted that Thailand property will not give the highest returns it is still offers great medium-term profits. Aside from the reasonable returns investing in real estate in Thailand is smart move since Thailand is an emerging market and is set to increase even more in popularity as the government and other foreign investors pour more resources into developing Thailand's tourist infrastructure and economy. What this simply means is that while property in Thailand might not yield very high returns right now it is sure to do so in the future.
For those interested in owning property in Thailand the good news is that there a lot of excellent property developments all over the country from Pattaya to Bangkok. All you need to do is find a good property agent to help you search for the one that best fit what you have in mind.
Overseas Buyers
When purchasing property in Thailand, anywhere else for that matter, it is very important to know the law. Overseas or foreign buyers are not allowed to own Thailand property. This problem is however easily circumvented via any of the following means:
- Buy condominium units – You can own up to as much as 40% of the units in the building.
- Set up a Thai limited liability company – Your limited liability company can buy property in Thailand as long as it is only 49% foreign-owned. The maximum share of an individual should be 39% of the company.
- Thai spouse – You can buy Thailand property in your spouse's name. However, you should have clear proof that you do not have any marital problems.
- Leasing land – Foreigners are allowed to lease land for up to 30 years with an option to renew the contract for another 30 years.
Whatever means you decide to be able to own Thailand property it is important to remember that you will need a good agent as well as a lawyer to facilitate the purchasing procedures for you. If you wish to set up a limited liability company the same set of lawyers can help you with the company formation as well as the purchase of the property.
Buying Thailand Property: Fees
When buying property the fees that you need to keep in mind include:
- Deposit – During the initial purchase agreement you will be required to give a deposit to be able to secure the property. Generally the deposit is 10% of the assessed property value although this depends on your agreement. Deposits are refunded if the deal does not push through and it not your fault.
- Reservation Fee – Applicable to condominium buyers, an initial reservation fee, usually worth $1,250, is required upfront. This reservation fee is deducted from the total price of the property. Deposit is still required on top of the reservation fee.
- Other Fees – Other fees include a stamp fee, transfer fee, and taxes. All in all these fees usually amount to about 2 to 3% of the property market value. Taxes in Thailand include property taxes (land tax and structures usage tax) as well as income tax. Income tax is the equivalent of capital gains tax in Thailand.
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