A Guide to Buying Property in Thailand
Apart from starting businesses in Thailand, people are also starting to buy property in Thailand. The reasons are many, including low entry prices, extraordinary locations to ‘Buy to Let’ potentials. The relatively unexploited nature of Thailand affects the price of the property. And hence, they remain below than those of the established European markets.
If you are willing to invest in one of Thailand’s property, there are certain legal nitty-gritty to be followed. For a foreigner to obtain a property in Thailand in his name, one can do it through the incorporation of a company in Thailand, wherein the majority should be Thai owned. The Thai shareholders’ financial standing will be investigated to see if they have actually paid up for their shares, including where the funds for the company to acquire the property.
Also once the company is incorporated, you and/or director of the company will need to take care of its accounting responsibilities (such as the half-yearly report and the annual audit – which would be approximately 30,000 to 35,000 Baht per year).
And even if the Thai shareholders are holding different classes of shares, however, they would still be treated and considered as the co-owner of the company (a company which owns a property).
However, you can avoid these hassles, provided you choose to rent other types of property, which is a condominium. If you do so, you as a foreigner will be able to own it in your name, only if you meet the following conditions:
- 1. Purchasing funds must be coming from overseas (that is for the Purchaser to transfer the purchasing funds from his/her offshore account into his/her personal bank account in Thailand; and
- • The foreign ownership quota must not exceed its limit (Let’s say that there are 100 units of a condominium with exactly the same size. There will only be 49 units that would be available for foreigners to buy); and
- • Upon the ownership transfer registration, the condominium juristic management must issue a certify letter that the purchasing unit is debt free (i.e. the unit does have any outstanding bills such as monthly common area fees).
In case of buying a land, a foreigner is given the right to own constructions on the land, when your company or your Thai spouse (if there) approves the Right of Superficies. Additionally, this right can be granted for 30 years with a provision for extension.
Credit: siam-legal.com/ justlanded.com
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