Buying property in Thailand as a foreigner: what you need to know
Thailand attracts many investors and expats every year who want to buy a property, whether to live, to invest or to enjoy a second home in the sun. However, buying real estate in Thailand as a foreigner involves a clear understanding of the legal restrictions, available options, and precautions to take.
In this article, we take a look at the key things to know before buying, so you can approach your project with more clarity. Each section discussed here can then be deepened in specific articles.
Property rights for foreigners
Unlike other countries, foreigners cannot become full owners of land in Thailand. However, there are several legal solutions to get around this limitation and secure your investment, including the purchase of condos, long-term leases or the creation of a legal structure.
Buying a condominium in Thailand
The simplest and most popular option for a foreigner is to buy a condominium (condominium apartment). This type of property is accessible provided that the shares held by foreigners in the entire building do not exceed 49%. It is a safe and legally regulated way to acquire a property in full ownership.
The leasehold: renting over 30 years (and more)
Another common option is to sign a leasehold, i.e. a long-term lease, usually 30 years, renewable. This allows a foreigner to occupy real estate, often a house on land, while still complying with Thai law. It is essential to draft the lease in a secure manner, with the help of a local lawyer.
Buying through a Thai company
It is also possible to own real estate through a limited liability company (LLC) registered in Thailand. This method is more complex, requires strict control of capital (at least 51% Thai) and rigorous management. It is often used in the context of investment or commercial activity.
Purchase fees and taxes
Buying a property in Thailand generates additional costs to be anticipated: transfer taxes, notary fees (or registration fees at the Land Office), transfer fees, any property tax, etc. These costs vary depending on the value of the property and the method of acquisition chosen.
Verification of title deed
Before finalising a purchase, it is essential to have the title deed (Chanote) of the property verified. Some titles do not offer the same rights or do not allow for easy resale. It is highly recommended that you use a local law firm to carry out all the necessary checks.
Administrative and legal procedures
Buying as a foreigner requires providing a number of documents, including proof of transfer of funds from abroad for payment (Foreign Exchange Transaction Form). This step is crucial for you to be recognized as a legitimate foreign buyer.
Financing your purchase in Thailand
It is very difficult for a foreigner to get a mortgage in Thailand. The majority of buyers finance their acquisition through personal funds, transferred from their home country. Local financing options sometimes exist via international banks present in the country.
Buying in Thailand to live in or invest?
It is important to define your objective: main residence, second home, rental investment… This will influence the choice of the type of property, the location, the ownership regime, and the applicable taxation.
Call on reliable professionals
Finally, to secure your project, it is essential to surround yourself with competent professionals: real estate agent, lawyer, notary (or local equivalent), accounting firm… Never sign a contract or pay money without consulting independent legal counsel.
Conclusion: Buying Real Estate in Thailand as a Foreigner
Buying real estate in Thailand as a foreigner is quite possible, but it involves being familiar with the local legal framework. Whether you choose a condo, a leasehold or a corporation, each option has its specificities, advantages and risks.
In the next articles, we will come back to each of these aspects in more detail to help you make the right choice according to your profile and your project.
