How to Buy Real Estate in Thailand in 2024: Terms for Russian Citizens
In recent years, there has been a growing number of attractive real estate offers in Thailand for Russian citizens, particularly in the apartment sector. Most of these properties are condominiums sold with «freehold» status, meaning full ownership of the apartment. Common areas, such as hallways and lobbies, are jointly owned by the residents.
Key Rules for Buying Real Estate in Thailand
Thailand strictly regulates foreign property ownership to prevent foreigners from purchasing an entire residential complex. Under local law, foreigners are allowed to buy no more than 49% of the total number of apartments in any one condominium project.
However, private properties like villas and townhouses can also be sold with «freehold» status, but with certain restrictions. Foreigners can own the building itself, but not the land on which it is built. To use the land, a long-term lease can be arranged, typically for 30 years with two possible extensions, totaling 90 years. Many developers assist with this process.
The Benefits of «Leasehold» Status
Real estate with «leasehold» status is often more affordable than «freehold» properties. Purchasing property in a resort area with «leasehold» can quickly pay off through rental income. Unlike renting, «leasehold» owners have more rights, such as selling, gifting, bequeathing, or renting out the property.
The Property Buying Process
Today, technology allows Russian citizens to buy property in Thailand remotely through online platforms. However, many buyers choose to work with real estate agencies that offer full transaction support, including translator and legal services. The buying process begins with signing a reservation agreement and paying a deposit, usually up to one-third of the property's price.
If purchasing on the secondary market, it is advisable to hire a lawyer to verify the property’s legal documents. Low prices may sometimes indicate that the property requires significant repairs.
Finalizing the Transaction
The process of finalizing a property purchase in Thailand is similar to that in Russia. The contract outlines the obligations of both parties and details of the transaction. Once the contract is signed, the buyer must pay taxes and will then receive draft versions of the agreement in both Thai and English. Once the documents are verified, they are submitted to the Land Department for final registration. The contract must be signed within 30 days of the reservation. The remaining balance can be transferred through a foreign or local bank.
After the transaction is completed, the buyer receives a «Title Deed» document, confirming full ownership of the property.
On Obtaining Citizenship
Buying property in Thailand does not guarantee citizenship. However, property owners can apply for a targeted visa, which can be extended over a three-year period. Once this period is completed, the owner can apply for residency and, after five years, for citizenship.