Non-residents looking to purchase real estate in Thailand have a variety of options available to them. Mostly, they are condos or buying land through a company registered in the country. Purchasing villas in Thailand to a foreigner is a feasible option too, but it is important to understand the legal requirements and the process involved. Let’s look at each of them in more detail.
Buying condominiums in Thailand for non-residents
Under Thai law, foreigners are able to purchase condominium units as long as at least 51% of the units in the building are owned by Thai nationals. In other words, a foreign individual is allowed to own up to 49% of the total unit space in a single condominium building.
Purchasing a condominium in Thailand as a non-resident is a process that requires attention to detail and compliance with legal requirements. To ensure a smooth transaction, it is important to be aware of the necessary documents and have them ready. Here is a checklist of the essential documents that a non-resident must have to purchase a condominium in Thailand:
- Valid passport: To verify identity and nationality, a non-resident must provide a current passport.
- Financial documents: To demonstrate the financial capability to complete the purchase, bank statements or a letter from a financial institution confirming the availability of funds may be required.
- Purchase agreement: This legal document contains the terms and conditions of the transaction, such as the price, unit details, and payment schedule.
- Property title deeds: The title deeds, including the Chanote and Nor Sor 3 Gor, must be provided by the developer or seller to the non-resident.
- Tax ID card: A copy of the non-resident’s Thai ID card or “Tabien Baan” will be necessary as proof of address in Thailand.
- House registration: A copy of the house registration document, known as the “Tabien Baan” or “blue book”, is required for the property.
- Foreigner quota registration: Non-residents must register with the Land Department’s foreigner quota registration to be able to purchase a condominium unit in Thailand.
It is important to note that the requirements may vary depending on the specific condo and location. Additionally, taxes and fees such as transfer fees and stamp duty may be associated with the purchase, and a lawyer can advise on these matters.
Villas in Thailand
If you decided to buy a villa, your first step, of course, should be careful and thorough research. Study the location and the type of villa that you are interested in. Look at the different options available, and take into account factors such as proximity to amenities and the overall condition of the property. Also, Thailand has different regions with various areas and districts, with each suited to a different lifestyle.
Once you have found a villa that you are interested in, you will need to sign a purchase agreement with the seller. This legal document includes the terms and conditions of the purchase, such as the purchase price and the payment schedule. It is important to conduct property due diligence to verify the property’s title and ensure that it is free from any encumbrances or legal issues.
Once the purchase agreement is signed and the property due diligence is completed, the transfer of ownership will take place. This involves paying the transfer fees and stamp duty and registering the transfer of ownership with the Land Department. And remember, that in case you plan to reside in the villa, it is necessary to obtain a work permit to make your stay in the country legal. You can find various villas options on this website Thailand-Real.Estate.
Buying land through a Thai company
Another option for foreigners is to purchase land through a Thai-registered company. This can be done by setting up a Thai limited company and registering it under the name of the foreign buyer. The company can then purchase the land, and the foreign buyer will have a controlling interest in the company. However, it is important to note that under Thai law, foreigners are not allowed to own land in their own name and must use a Thai company to hold the ownership.
Key moments to keep in mind when buying real estate in Thailand
It is important to note that when purchasing real estate in Thailand, it is crucial to seek the advice of a reputable lawyer who is well-versed in Thai property law to ensure that the transaction is conducted legally and smoothly.
Overall, Thailand has a lot of real estate options for foreigners, including condominiums, land through a Thai-registered company, and leasehold properties. Each option has its own unique set of advantages and disadvantages, and it is important to carefully consider all factors and get professional legal advice before making a decision.