The Process of Buying Real Estate in Thailand in 2024

The Process of Buying Real Estate in Thailand in 2024
In 2024, foreigners will still be able to purchase real estate in Thailand, including condominiums with freehold status. This allows private ownership of individual apartments, while common areas are jointly owned by all residents. It’s important to remember that foreigners cannot own more than 49% of the total units in a condominium complex.

CONTENT:

• The Process of Buying Property in Thailand: Main Stages
• Remote Purchase of Real Estate in Thailand
• Buying Property in Thailand: Stages of the Process
• Real Estate Prices in Thailand
• Property Taxes in Thailand
• Assistance in Buying Real Estate in Thailand

The situation is slightly different when it comes to private homes. In modern villa and townhouse developments, condominiums are also an option, but freehold ownership covers only the building itself, not the land underneath, which cannot be sold to foreigners. Instead, land can be leased for a long-term period. The standard lease term is 30 years, with an option for two renewals, each for 30 years, bringing the total lease period to 90 years. Developers often readily extend these terms.

Foreign buyers may consider leasehold properties, where houses or apartments, along with the land, are leased for 30 years with the possibility of two renewals. Leasehold properties are generally more affordable than freehold projects. If located in a popular resort area, such properties can offer a quick return on investment.

For those planning to purchase homes or apartments for long-term residence in Thailand, owning a property under leasehold can be a great alternative to renting, as it grants more rights to the owner. These properties can also be inherited, sold, gifted, or rented out.

The Process of Buying Property in Thailand: Main Stages
Let’s explore the key steps involved in purchasing real estate in Thailand. Nowadays, transactions can be conducted either in person or remotely. Given the restrictions on foreign ownership in the country, it is advisable to work with specialized agencies. Many companies that cater to foreign clients offer translation services and full transaction support.

Here are the main steps for buying a property in Thailand:

1. Choose a Property: Decide whether you prefer a long-term lease at a lower price or private ownership at a higher cost.
2. Reserve the Property: Sign a reservation agreement and pay a deposit, typically no more than 30% of the total price.
3. Legal Review for Resale Properties: For properties on the secondary market, ensure the broker conducts a legal review of the seller's documents and inspect the property’s condition (utilities, roof, floors, etc.).
4. Sign the Contract of Sale: This contract outlines the responsibilities of both parties, the property details, and tax obligations. The buyer receives a draft in both English and Thai. One copy is sent to the Land Department, and the contract must be signed within 30 days of reservation.
5. Transfer of Payment: The remaining amount is transferred to the seller's account, either through a foreign or local bank. The buyer typically covers bank transfer fees, while the seller bears other costs. Additional charges may apply if purchasing from a developer, such as for maintenance fees or meter installation.
6. Submit Documents: Required documents like passports, marriage certificates, and parental information must be submitted to the Land Department.
7. Register the Transaction: Finalize the purchase by registering with the Land Department and completing the final version of the sale contract.
8. Obtain the Title Deed: The buyer receives a certificate of ownership (title deed) upon completion of the process.

Remote Purchase of Real Estate in Thailand
In 2024, foreign buyers are not required to be physically present in Thailand to purchase real estate. Since the pandemic, the country has streamlined the process for completing real estate transactions remotely through intermediaries. Typically, brokers or lawyers from real estate agencies act as intermediaries, providing full support throughout the transaction, from selecting the property to finalizing ownership.

Remote purchases are particularly popular among investors who buy apartments and villas in Thailand to rent out. It is advisable to choose fully developed properties in residential complexes that offer various amenities. Another great option is a condominium with hotel-like services.

Developers or management companies may offer full management contracts for condominiums. In this case, the company handles all aspects of renting out the property, including finding tenants, preparing the unit for move-in, minor repairs, and maintenance. The owner, in turn, receives a fixed income, typically between 5% and 7% annually, though profits can be higher in resort areas.

Buying Property in Thailand: Stages of the Process
The process of purchasing real estate remotely in Thailand consists of several stages. Let's review these steps using the example of buying an apartment in a condominium under construction:

1. Select a property through specialized real estate portals or the developer’s website.
2. Reserve the property, prepare necessary documents, and sign a contract with the developer, which is translated into the buyer’s language.
3. Pay a deposit via a bank transfer.
4. After receiving the funds, the developer prepares a contract for the full payment.
5. Transfer the remaining balance to the developer’s account.
6. Once the building is ready, the buyer or their representative inspects the apartment and signs an acceptance certificate. The title deed is then processed. All procedures can be done independently or through intermediaries like brokers.

Purchase Real Estate in Thailand: Prices
To check the prices of real estate in Thailand, visit our website, where we list numerous properties from various developers and agencies.

Location plays a significant role in determining property prices. Small apartments and studios can be found starting from $30,000, typically located away from the beach and in less touristy areas. These properties are usually sold without freehold rights.

On the popular island of Phuket, where many foreigners invest, property prices are higher. Apartments here generally start at around $100,000. For this price, buyers can get modern apartments in a condominium with amenities. Phuket has well-developed infrastructure, making it a desirable location for rental investments.

Property prices also depend on factors like size, layout, views, and whether the complex offers hotel-like services and amenities.

Property Taxes in Thailand
In addition to utility costs, property owners must also consider taxes in Thailand. If you sell your property after owning it for at least five years, you will need to pay a government fee of 0.5% of the property’s value. If you sell it before five years, an additional business tax of 3.3% is applied.

Profits from resales are subject to progressive tax rates ranging from 5% to 35%, depending on the amount of profit.

There is also a 2% transaction fee based on the assessed value of the property, typically paid by the buyer. Sometimes this cost is shared between the buyer and seller.

Additionally, there is a 1% income tax, usually paid by the seller. Taxes are typically calculated based on the higher of either the assessed or actual property value.

For investors renting out their property, non-resident owners pay 15% of the rental income as tax. Tax residents with a Taxpayer Identification Number (TIN) are taxed on a progressive scale, ranging from 3% to 35%. Foreigners can obtain a TIN if they stay in Thailand for more than 180 days a year.

Most taxes in Thailand operate on a progressive scale, meaning the more expensive the property or the higher the rental income, the more tax is due.

Let Us Help You Buy Real Estate in Thailand!
Many new development projects are being built in Pattaya, Phuket, Bangkok, and other popular cities and provinces across Thailand. Developers offer properties at discounted prices during the construction phase, often with the option to pay in installments without interest. These properties tend to sell quickly. With our website, you can stay informed about new listings and have the chance to buy directly from developers. We do not charge commissions, as we work directly with sellers.

Our catalog is regularly updated with new listings from trusted developers and agencies. Using our advanced search filters, you can easily find the ideal property for your future investment in Thailand.