Thailand enters the top of the most popular locations for investing in real estate in 2022. What attracts people to. It is rhetorical to ask about Thailand. Everything, without exaggeration: exquisite beaches on islands, the buzz of clubs, old temples, and the breathtaking underwater world. To make the dreams of many people of becoming owners of comfortable properties in the resort area, real estate agencies in Thailand offer outstanding housing units at affordable prices.
In this article, we are going to discuss what additional costs you need to be prepared for, how long it will take to complete the deal and what forms of ownership exist in Thailand.
Purposes of buying real estate in Thailand
When searching for a suitable property, first of all you should decide for what purpose you are buying it.
Housing for yourself.
Here the criteria will be the preferences, needs and financial capabilities of your family, the stage of construction, the method of ownership, and integrity of the management company.
Real estate as an investment.
The decisive factor – what income will bring you the acquisition. The size and timing of the return on investment depends on how favorable the location of the house is, whether there is a guaranteed return on investment from the builder, at what stage of construction you purchase the property and a number of others.
Selection of a house for the purchase usually consists of two steps: the consideration of several properties in absentia with the help of the agency and organizing a trip for a personal inspection and final choice.
The procedure of a property purchase and timing
The procedure for buying a completed property in Thailand takes from 10 days to 3 months – the period depends on the type of object. The process consists of the following stages:
- Conclusion of an agreement to reserve a villa or apartment and making a deposit, which usually does not exceed 100 thousand baht. This document contains information about the parties to the agreement, the cost of the object, the method and timing of payment, financial details of the seller.
- Signing the preliminary contract. Important nuance – if it is the secondary real estate market, without the assistance of a lawyer cannot do, the rates are too high, and the probability of being cheated is also high.
- Real estate registration with the Land and Architecture Department. This is the stage where the personal presence of the buyer is required. The signing of the reservation and preliminary agreements can be done remotely.
- Payment of the remaining amount and receipt of documents.
The execution of all documents is in Thai language, moreover, the clerks of the land department practically do not communicate in English, so without a reliable lawyer cannot do.
The fees while performing a deal
Fees for taking full possession of the property – Freehold:
- registration fee – 2% of assessed value;
- stamp duty – 0.5% of the value (contract or valuation – the higher rate is chosen);
- 1% tax – determined by the same principle as the stamp duty.
In the case of a long-term lease – Leasehold:
- registration fee of 1% of the assessed value;
- stamp duty 0.1% of contract or appraised value.
Opening a Thai legal entity for land ownership:
- establishment of a firm – 60-80 thousand baht ($1700 – $2,300);
- one-time registration fee – 6% of land value;
- record keeping – about 35 thousand baht per year ($ 1000).
Annual property tax (effective 2017):
- first homes worth up to 50 million baht ($1.4 million) are not subject to annual tax;
- second homes valued up to 50 million baht – from 0.03% of the assessed value per year;
- property valued at more than 50 million baht – from 0.05% of the assessed value per year.
Real estate in Thailand is a highly beneficial investment option. However, as any property purchase abroad, it requires professional assistance of a qualified real estate agent. The website Thailand-Real.Estate provides a list of the most successful real estate agencies with clear reputation and numbers of happy clients.