Thailand Property
If you are a foreigner wanting to buy property in Thailand, whether a villa or condo but not certain as to how this is done. Here, you will find the basic breakdown of what needs to be done and how to buy property or any real estate in Thailand.
1. Select a Property Agent in Thailand
Since you will be looking for property in a foreign country you need expert local assistance. The real estate agent knows how to communicate in Thai and they're familiar with the geographical area. The agent will save you valuable time in selecting and showing you the property in your price range that meets your needs.
Purchasing directly from the developer isn't going to save you money as compared to buying property in Thailand from a property agent. A quality property for sale in Thailand is generally offered at a fixed price by the Seller. The best benefit of using a property agent is that they will act as a liaison between you and the Seller. They will obtain a fair price for you and act on your behalf to represent your best interests throughout the entire process.
2. Legal Planning with your Property Lawyer in Thailand
Remember that you are spending part of your life savings to acquire this property and you must carefully plan your steps in the process. You are buying property in Thailand as a foreigner and you need to know the correct legal process for you to acquire the property. Before you sign any deposit agreement or contract, you should sit down with a Thai property lawyer to discuss the legal process. Our firm can guide you through the legal process. Please contact us for more information.
3. Do a Title Search
A comprehensive examination of a title deed recorded at the Land Office should be done. You need to verify that the Seller has a clear and legal title deed of the land before you enter into a contractual agreement.
The title search will trace the land to its first possession. It will reveal any registered interests on the land such as mortgage or liens. This title search will also verify the rights reserved to access to your property; the residential zoning, environmental and planning codes applicable in the area It is a good idea to make sure that you can build a structure on the land.
4. Make a Deposit
When you feel satisfied with the property, you will be asked to make a deposit to show your good faith to continue the process.
In return, the Seller will reserve the property for you and start the process by drafting the contracts for purchase. Unless you specifically write a "get-out" clause in the deposit agreement, for example "subject to clear title" or "subject to agreement on the contract terms," the money deposited is non-refundable.
5. Review of the Thai Property Contract
The Seller will have the property contract prepared for you. Since the Seller will write the contract, it is highly recommended that you have a property lawyer to do a property contract review and the terms and conditions. You will want protection for your interests should there be a delay in the property being built. A proper remedy should be stated in the contract.
The Purchase and Sales Agreement (PSA) will contain a clause for penalty if you are late with your payment. This should be fair and reasonable to both parties should the Seller default.
Your payment schedule and its ration should be reasonable and practical. Normally, a first payment is 25 percent. Thereafter payments are made on a progressive basis: 25 percent when the roof is on, 25 percent when the door and windows are secure; and 25 percent when the fixtures and fittings are completed for instance.
Common Questions about Buying Property in Thailand
Can foreigners buy a condominium unit in Thailand?
In Thailand, foreigners may only own a condominium in his/her own name. Foreigners can take ownership of a condo by either purchasing a condo unit with a freehold title or entering into a long lease agreement, commonly known as "Leasehold". Foreigners may acquire freehold ownership of a condo unit within the set foreign ownership quota of a condominium. By law, foreigners can own up to 49% of the total saleable area of a condominium project. The remaining 51% can be acquired under leasehold ownership. Leasehold gives the right of use and possession of the unit for a set period of time and is fully transferable. The maximum lease period is 30 years with additional 30 years renewal. In most cases, developers of condominiums will offer a total of 90 years ownership (30yrs + 30yrs + 30yrs).
There are very few requirements for buying a condo in Thailand as a foreigner. However, a foreigner must remit foreign currency into Thailand in order to purchase a condo.
What are the taxes associated with and additional running costs to owning a condominium?
There is a property tax associated with owning a condo depending on the property price. All co-owners will also have to contribute to the general upkeep and running of the condominium, this required payment is known as a CAM Fee (Common Area Maintenance Fee). Your fee will be calculated per month based on the total square meter of your condominium unit.
Example: CAM Fee 50 baht per sqm, per month, condo unit size 100 sqm, total yearly fee = 50 baht X 100 sqm = 5,000 baht per month X 12 months = 60,000 baht per year.
Condos also have a special reserve fund for major repairs and upgrades of the building, this is known as a "Sinking Fund Fee".
Can foreigners buy land in Thailand?
If the foreigner wishes to acquire land and build a house, he/she should obtain a long term lease on the land (for a period not exceeding 30 years each term). Read more about "Leases in Thailand".
The foreigner should apply for the construction permit to build the house in their own name. This way the foreigner owns the house and has a secured long term lease on the land. The lease can be written with the option to reassign to another person (if you sell), ability to sublease and with a purchase option (should the law change in the future to allow freehold ownership by the foreigner). Therefore, a lease is the most common legal method for the foreigner to acquire property in Thailand.
Am I allowed to build and own any structure on land?
Legally, any building is considered as being a part of land over which such building is constructed. However, a building may be considered as a separation part when it is a tenant of land who builds a building under a leasing agreement. Therefore, a foreigner may own any building on his rented land in Thailand.
If your spouse is Thai, and you are planning to build a house on his/her land, you are recommended to sign a lease agreement with your spouse indicating that you are a tenant. This way, you shall have a joint ownership over such structure together with your spouse but not the land.
How to Buy Property through a Thai Company?
Some property buyers may prefer a holding structure, with more ownership rights than a leasehold title. In this case, it is possible to set-up a Thai company for property acquisitions, this method sits in the "grey-area" of the Thai legal system. The Thai government and the Land Offices overseeing property transfers across the country, do not encourage this practice.
For a company to be classified as a "Thai Entity", at least 51% of the shareholding needs to be held by Thai nationals. The main concern of the authorities is the unauthorized use of "Nominee Thai Shareholders", that are essentially "fake investors" used to facilitate property purchase.
However, provided foreign buyers comply with the law (Using "real" shareholders/ Thai partners), this option offers a good degree of indirect ownership and control.
This ownership structure is commonly used by investors to purchase landed property such as villas with their spouse or foreign developers looking to acquire developable land plots.
Should foreigners buy a condo or a landed property?
Ultimately it comes down to the buyer’s personal lifestyle preferences or investment objectives. Landed property oftentimes offers amazing value on a price per square meter basis; there is also the extra advantage of greater control over the land and the building. Comparatively condominiums due to their communal nature, can severely restrict refurbishments, renovations, general privacy and control. On the other hand, condominiums offer the most straightforward and liquid property type, offering foreign buyers a hassle-free purchase with a simple "exit strategy". The ease and flexibility offered by condominiums make it an appealing choice for many foreign buyers.
Why Hire Siam Legal?
In particular, our team of Thai property lawyers offers various services that are designed to protect the rights and interests of foreigners wishing to acquire properties in Thailand. Our firm offers a wide array of property-related services to best suit our foreign and Thai clients’ property needs, to include:
Title Search
- Conducting a search on the title and relevant documents of the land;
- Ascertaining that the title document is in order;
- Ensuring that a seller is the current owner of the land;
- Confirm the lack of mortgage, and the lack of further encumbrances;
- Check actions against the seller in both court and the Central Bankruptcy Court;
- Verifying whether there is any restriction on the development of the land.
Due Diligence
- Conduct a physical inspection of the land or property
- Inspection of building permits
- Research on the Seller or Developer's Credential
Prepare the Sale and Purchase Agreement
- Verifying the sales agreement;
- Providing comments on clauses of the sales agreement;
- Negotiate modifications as needed to protect your interest.
Transfer or Registration of Title
- Preparing the application and supporting documents;
- Registering, on your behalf, at the Land Office
You can visit our head office in Bangkok at the Two Pacific Place, 18th Floor, Unit 1806; or if you have any property questions or issues that need to be addressed, call us using the phone numbers below.
Other related topics:
1. How to Buy Property in Thailand
2. Title Search in Thailand
3. Due Diligence in Thailand
4. Review of Contracts in Thailand
5. Transfer of Thai Property Title
6. Re-selling Your Condo in Thailand
Call Us:
| Local Office Numbers: |
| Bangkok: | 02-254-8900 |
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| phu*ket: | 084-021-9800 |
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| Chiang Mai: | 053-818-306 |
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| Pattaya: | 084-021-9800 |
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| International Numbers: |
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| US: | 1-877-252-8831 |
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| UK: | 0207-101-9301 |
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| Australia: | 028-015-5273 |
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| Thailand: | +66 2254-8900 |
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FAQs
Are Foreigners allowed to own land in Thailand? Generally, foreigners are not allowed to directly purchase land in Thailand. Simply put, Thai laws prohibit foreigners from owning land in their own name, although theoretically there is an exception but it is yet to be seen in practice.
What are the rules for foreigners buying property in Thailand? ›
Foreigners aren't permitted to buy land in Thailand, but you can buy apartments and condominiums as a non-citizen. However, foreigners can't make up more than 40% of the apartment block or condo's total unit owners. Interestingly, you can buy the whole building as a foreigner, but not the land on which it is built.
What are the requirements to own property in Thailand? ›
Land ownership in Thailand is governed by the Land Code Act and under Thai land laws only Thai nationals are allowed to own land or have a confirmed right of possession of land. Foreigners may not own land unless there is a treaty or exemption allowing the foreigner to own land in Thailand (section 86).
Can you stay in Thailand if you buy a house? ›
As a result, a foreigner can obtain a residence permit together with the real estate for 5, 10 or 20 years. With such a residence permit you can enter the country an unlimited number of times, live in Thailand and enjoy various privileges.
Can Americans live in Thailand permanently? ›
You can become a permanent resident in Thailand after three years of legally staying in the country. To do so, you must apply for a permanent residence permit at the local Thailand Immigration Office. The residence permit never expires. In addition, you have to apply for a Thailand residence certificate.
Can US citizens retire to Thailand? ›
The Thai retirement visa for US citizens is issued to retirees or applicants who wish to visit and retire in the Kingdom of Thailand. Please note that you must first obtain a 90-day visa from your home country or country of residence prior to your application for the Thai Retirement visa in Thailand.
How long can you stay in Thailand if you own property? ›
Thailand's investor visa is a de-facto permanent residence. You can indefinitely extend it for another one-year as long as you maintain the original ten million baht worth of real estate, bonds, or deposits.
Do I need a lawyer to buy a house in Thailand? ›
Buying property in Thailand can be a great investment, but it can also be a complicated undertaking – especially if you are not native to the country. One of the best things you can do to ease the process and protect your investment is to hire a local lawyer.
Can foreigners open bank account in Thailand? ›
You can open a bank account in Thailand if you're on a non-immigrant visa or extension of stay, a visa exemption stamp, or short-stay visa, and have an established residence in Thailand (more on this soon).
Does Thailand pay property taxes? ›
It is to be stated that there is no general annual property tax in Thailand, but if individual owners rent out or put their property to commercial use, housing and rent tax is imposed at the rate of 12.5% yearly.
There are numerous good reasons to invest in Thailand property. The country has shown strong and steady growth in recent years and looks set to continue that trend. House and land prices are generally on the rise, as are rents, and this presents some interesting property investment opportunities in the market.
Can you own a villa in Thailand? ›
Buying a Villa
Given restrictions on land ownership, foreigners cannot own a villa outright, rather they must purchase a leasehold agreement. In general, this process is straight-forward and you should expect an offer of a 30-year lease on any villa or home, which is the maximum duration for any leasehold in Thailand.
How much of a down payment do I need for a house in Thailand? ›
Buying procedure for new properties
In general, projects located in Bangkok will require a down payment from 20% to 30% of the property value.
Can I retire and live in Thailand? ›
Whether you have family in Southeast Asia or are purely looking to move to paradise, Thailand is a popular retirement destination — and for good reason. The low cost to retire in Thailand means your savings will stretch further. Friendly locals and a large expat community ensure you'll feel at home.
How long can you live in Thailand as a tourist? ›
Typically, a short term extension of stay is granted up to 30 days for tourist visas or non-immigrant visas, while if you need to extend your stay for longer, on a non-immigrant visa it's possible to apply for an extended stay for one year, for the following purposes: Business.
Can you be a dual citizen of US and Thailand? ›
Can I Have Thai Dual Citizenship? Yes, you can. The Thai Government does not require you to renounce your prior nationality after obtaining Thai Citizenship. Similarly, if you apply for the nationality of another country while holding a Thai passport, you can still keep both citizenship/passports.
Can you live on $3000 a month in Thailand? ›
How much it costs to live in Thailand per month will differ based on individual needs, wants, and budgets. As the food and utility costs are affordable in Thailand, you can expect to shell out anywhere between $650 to $3,000 per month — which is around 2.6 times less than what you'd spend living each month in the U.S.
What are the requirements for a US citizen to retire in Thailand? ›
Thailand Retirement Visa Criteria
- You must be at least 50 years of age.
- You must have a passport that is valid for at least six months; the passport must have at least two blank pages.
- You must fulfill the financial requirements: ...
- You must be a citizen or permanent resident of the country you are applying from.
Social Security Tax
Employees contribute 5% on the first 15,000 THB they earn, and employers match this by paying an additional 5%. Thailand's government adds an extra 2.5%. If you are self-employed, you must pay both portions (employee and employer) of your Social Security payments.
Why do Americans retire in Thailand? ›
Many prefer retiring in Thailand. Its beautiful beaches, delicious food, affordable prices, and tropical climate simply makes it the closest thing to paradise. This is why expats and retirees from all over the world prefer enjoying the remaining years of their lives in the country.
A budget of $1000 is enough for a person to live in Thailand for 4-8 weeks. This will include accommodation ($7), 3 meals ($6), 3L of water ($2),transport ($2) per day. This comes to a total of $510 per month.
How much is a visa for Thailand for US citizens? ›
The amount payable may vary depending on your nationality. However, US citizens need to pay the following: Single entry Tourist Visa - USD 40. Multiple entry Tourist Visa - USD 200.
How can I live in Thailand permanently? ›
In order to apply to become a Thai Permanent Resident, you must meet the following criteria: You must have had a Thai non-immigrant visa for at least three years prior to the submission of your application. Holders of multiple NON-Immigrant visas can not apply.
How many times can you enter Thailand by land? ›
A Multi-Entry Tourist Visa allows foreign nationals unlimited entry to Thailand over a 6-month period. It is issued to people who visit the country for tourism, leisure, or medical purposes. A multi-entry visa allows the holder to stay in Thailand for up to 60 days per visit.
How do you pay for a house in Thailand? ›
How to pay for the property in Thailand?
- Cash. Firstly this is not the most saving and convenient method. ...
- Foreign ATM cards. Thailand has a perfect bank system. ...
- Travelers' Cheques. Holding travellers cheques is convenient to transport money to buy both secondary market property and new flat. ...
- International bank transfer.
In 2021, 57 percent of millennials or Generation Ys in Thailand owned a house while 43 percent of them did not. Owning a house has been one of the leading things millennials in Thailand aspire to have in their life.
Where is the best place to buy property in Thailand? ›
Bangkok is a sought-after place for expats and native Thais alike to live and work, and it is debatably recognized as Thailand's economic centre. As an expat hub, Bangkok is the best places to invest in real estate in Thailand. The Chao Phraya River delta is where the capital city of Thailand is situated.
What American banks are in Thailand? ›
Foreign banks (North American)
- American Express Bank.
- BofA Securities.
- Citibank Thailand.
- JPMorgan Chase.
Here we will detail the top five banks in Thailand for corporate banking for commercial and retail banks.
- Kasikorn Bank. One of the country's largest banks in terms of assets, deposits, and loans. ...
- Siam Commercial Bank. ...
- Bangkok Bank. ...
- TTB Bank (TMB) ...
- Krungthai Bank.
You can open an FCD Account for Non-Residents in a Savings, Fixed Deposit or Current Account with the minimum initail deposit at USD1,000, or the equivalent in another currency. * You can make deposits in 14 major currencies: U.S. Dollar (USD) Chinese Yuan (CNY)
Personal Income Tax ("PIT")
Source rule applies to foreigners who earn Thai-sourced income, and thus, are subject to PIT in Thailand, whether or not such income is paid in Thailand. Residence rule applies to foreign-sourced income, depending on the status of the foreigner as a tax resident in Thailand or not.
What is the tax on buying a house in Thailand? ›
For residential property, 0.3% tax will apply to the appraised value of the land, building, or condominium unit.
Do foreigners pay tax in Thailand? ›
Thailand taxes its residents and non-residents on their assessable income derived from employment or business carried on in Thailand, regardless of whether paid in or outside Thailand. Residents who derive income from abroad are taxable on that income if remitted into Thailand in the year in which it is received.
Can I live with $1000 in Thailand? ›
Yes. It is possible to live in Thailand with $1,000 USD per month, especially outside Bangkok. However it will be pretty tight and you'll have to pay attention very often to how much you spend. Also, you will have to plan your stays in time and book for long term to save on accommodation.
What is the benefit of living in Thailand? ›
The Pros of Living in Thailand
Additionally, Thailand's warm climate, beautiful beaches, and lush landscapes make it an ideal location for those who love the outdoors. Another benefit of living in Thailand is the delicious food. Thai cuisine is famous around the world for its bold flavors and fresh ingredients.
Is Thailand good place to settle? ›
Thailand has long been known as a land of smiles, but it has much more to offer. Its beautiful natural scenery, low cost of living, great and diverse food, and thriving expat and digital nomad communities make Thailand one of the best places to live as an expat.
How much land can a foreigner own in Thailand? ›
What type of real estate can foreigners currently own in Thailand? If you are a foreigner, ownership of landed property is currently impossible, though it is possible to be granted the restrictive option of freehold ownership. This allows foreigners to own up to 49% of a property's unit area.
What is the difference between a villa and a house in Thailand? ›
Villas are a more exclusive type of house and will often have a private pool and they tend to be located within gated complexes. All types can be found in 'villages', or 'Moo-baans' (หมู่บ้าน). These tend to be popular, partly because these villages have guarded secure entrances.
Can a foreigner own a resort in Thailand? ›
Foreigners as natural persons are not allowed to invest in hotels, they can only acquire strata-title units in principle for condominium projects. The only possibility as a natural person, is to buy a residence such as a villa and rent the land without the possibility of purchase.
Can a foreigner take a mortgage in Thailand? ›
The good news is that foreigners can indeed access mortgage loans in Thailand. However, you have to fulfill one of these criteria: working in Thailand legally, under a work permit for at least 1-2 years, and with a stable income prior to your mortgage application.
To purchase a $200,000 house, you need a down payment of at least $40,000 (20% of the home price) to avoid PMI on a conventional mortgage. If you're a first-time home buyer, you could save a smaller down payment of $10,000–20,000 (5–10%). But remember, that will drive up your monthly payment with PMI fees.
How much of a down payment do you need for a 500 000 House? ›
Using the parameters outlined above, your financial situation might look something like this: Purchase price: $500,000. Down payment: $100,000 (20% of your home's purchase price) Loan amount: $400,000.
Can I collect Social Security if I move to Thailand? ›
Can I Collect Social Security if I Live Outside the U.S.? If you are a U.S. citizen and qualify for Social Security retirement, family, survivor or disability benefits, you can receive your payments while living in most other countries.
Do retirees pay taxes in Thailand? ›
Only income earned inside Thailand shall be subjected to tax during retirement. Therefore, you will not be obliged to pay any taxes for any income you have earned from overseas. Also, personal income taxes are not required for retirees in Thailand. Note that you can't work in Thailand while on a retirement visa.
Can I retire in Thailand with 150k? ›
Thailand
Your retirement checks will definitely go further in tropical Thailand. You can live comfortably anywhere in the country on $1,500 to $2,000 a month, including rent.
How long can you stay in Thailand as a US citizen? ›
The tourist visa must generally be used within 90 days from the date of issue and allows an initial stay of 60 days. After arrival in Thailand, a tourist visa may be extended at the discretion of an immigration officer once for an additional 30 days with the total period of stay no longer than 90 days.
Can a US citizen live permanently in Thailand? ›
You can become a permanent resident in Thailand after three years of legally staying in the country. To do so, you must apply for a permanent residence permit at the local Thailand Immigration Office. The residence permit never expires. In addition, you have to apply for a Thailand residence certificate.
Can an American move to Thailand? ›
In order to get a work permit, you'll first need to secure a non-immigrant or resident visa. You can apply for this via the Thai embassy and it must be obtained before you travel to Thailand. Once you've sorted your visa and moved to Thailand, you can apply for your work permit from the Ministry of Labor office.
How long can a US citizen stay in Thailand? ›
The tourist visa must generally be used within 90 days from the date of issue and allows an initial stay of 60 days. After arrival in Thailand, a tourist visa may be extended at the discretion of an immigration officer once for an additional 30 days with the total period of stay no longer than 90 days.
Is it worth buying property in Thailand? ›
With attractive property prices, increased rental demand, and tourist numbers on the rise, buying property in Bangkok remains a profitable investment opportunity.
How much it costs to live in Thailand per month will differ based on individual needs, wants, and budgets. As the food and utility costs are affordable in Thailand, you can expect to shell out anywhere between $650 to $3,000 per month — which is around 2.6 times less than what you'd spend living each month in the U.S.
Do foreigners pay property tax in Thailand? ›
Property Taxes for Foreigners in Thailand
Taxes must be paid by 15th of April though extensions can be obtained until the 15th of October. You are required to file tax forms if you are a foreigner in Thailand and have: a foreign bank/financial accounts. an investment company.
Can you have dual citizenship in the US and Thailand? ›
Yes, you can. The Thai Government does not require you to renounce your prior nationality after obtaining Thai Citizenship. Similarly, if you apply for the nationality of another country while holding a Thai passport, you can still keep both citizenship/passports.
How much do you need to retire in Thailand? ›
To retire in Thailand comfortably with Western standards of living, we recommend budgeting THB50,000–100,000 per month. That's not to say it's impossible to live comfortably on much less. To put things in perspective, the minimum wage in Thailand is around THB340 per day.
What are the disadvantages of living in Thailand? ›
Cons of Living in Thailand as an Expat
It can be very hot and humid in Thailand, meaning it can be muggy and uncomfortable for a lot of the time. The Thai rainy season can also present unpredictable weather and a lot of rainfall, the most being between August and October, depending on where you are in Thailand.
Is it safe to buy condo in Thailand? ›
Buying a condominium in Thailand is the easiest and most secure form of property ownership for foreigners, so that is our focus in this guide. We will give you an overview of property types and legal ownership rights (titles) before diving into what to look for and how to buy.
Do I have to pay US taxes if I live in Thailand? ›
Do US expats living in Thailand also have to file US taxes? Yes. Whether you're a Thailand resident or non-resident who paid Thailand taxes, if you're still a US citizen or Green Card holder, then you must file a US tax return.
Is Thailand good for retirement? ›
Thailand ranks 9th in 10 best retirement countries and the only Asian destination on the list complied by Forbes Magazine.
