Land & Property Ownership for Foreigners in Thailand
As a foreigner, buying and owning property in Thailand is straightforward. But you should comply with Thai law / regulations to safe-guard your investment.
Star Property Hua Hin has over 10 years expertise in helping foreigners purchase property in Thailand and can guide you through all necessary steps.
Here we discuss the purchase of different property types within Thailand, and necessary approaches required to comply with Thai law and own your property legally.
Purchasing a Condo in Thailand as a Foreigner
Under Thai law, foreigners can legally own condominium units in Thailand.
The building must be registered as a condominium with the land department. A minimum of 51% of the project must be Thai owned, therefore up to 49% of units are available for foreign ownership.
The process for a foreigner purchasing a condo in Thailand is as follows:
- Title Search: Verify the ownership status of the land on which the condo project is located
- Review Sale & Purchase Agreement: Use a lawyer to assess legal paperwork documenting the selling price and terms and conditions of purchase
- Payment. For new projects typically there is a small initial reservation fee, down payment and balance on handover payment structure. For second hand units 100% is paid at time of purchase.
- Registration of ownership: Following payment, the property title is transferred into the foreigners name. At this time the registration fee, stamp duty an withholding tax must be paid.
Purchasing Land (or property on land) in Thailand as a Foreigner
Thai law prevents foreigners from owning land in Thailand. However, there are four possible approaches to legally owning land in Thailand as a foreigner.
Option 1: Land is Owned by a Thai Company
Land can be owned by a company registered in Thailand. 51% of shares in the company must be held by Thai citizens, and up to 49% can be held by foreigners.
Option 2: Marriage to a Thai Citizen
Property can be owned by a Thai-foreigner couple. However, an act was passed in 1999 to protect Thai citizens whereby the foreign spouse must sign a declaration that all funds used to buy the land/house are that of the Thai citizen, essentially wavering all ownership rights
Option 3: Lease Land in Thailand as a foreigner
This is the least complex option to acquire land in Thailand as a foreigner. Under Thai law, a lease agreement of up to 30 years can be issued (which option to renew written into contract). Land leases over 3 years in duration must be registered with the land department.
Option 4: Structure Ownership
A Thai registered company or the Thai spouse of a foreigner can grant a Right of Superficies to a foreigner, giving the right to personally own all construction situated on a land plot. Using this arrangement a foreign national can register as the owner of a property without owning the land. The Right of Superficies can be granted for a period of 30 years.
Whatever your situation, Star Property Hua Hin can guide you to purchase property in Thailand, and safe-guard your investment for the future.
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