Foreigners who aspire to own real estate across the border make the mistake of generalization. Regardless of where you are coming from, in Asia, America, Africa or even Europe, take a deep breath and do your findings before buying property anywhere else. Houses in Thailand are great, but when you understand the complete information of what you are getting yourself into, it can be more impressive, and you will maximize profits.
Facts to Keep in Mind
Did you know that you are not allowed to own property wholly in Thailand as a foreigner? The law of the land prohibits foreigners from owning properties with only a few stringent exceptions.
Routes to Buying Property in Thailand
According to experts, there are three significant ways to buy property.
- You can buy a Condominium or a Condo Apartment in your name (this is an exception to foreigners’ right to own property). You can own a condo in your name wholly; this is under the Condominium Act.
- You can buy a property through a registered company and own 49% of that company. Here’s how this works: the law does not allow you to own more than 49% of any company, so you can incorporate a company and own it partly, or you can buy enough shares in a company and then use the company name to purchase any apartment of your choice. If you are an American, note that you can incorporate a property fully as an individual, own it in its entirety, and then use that company name to buy a landed property.
- You can take a long-term lease or rent over a landed property.
This process is not complex, but you should speak to an expert realtor and get a lawyer on board your transactions.
Buy a Big Enough Property
Another general exception (albeit challenging to execute) is buying a property worth more than 30 million Thai Baht, which is about $900 000. Every investor that does this automatically qualifies to apply for a waiver to own property as a foreigner. However, such waivers are usually extremely difficult to get from the government of the day. It is so tricky that some realtors consider it impossible.
Taxes
Now it is time to discuss the ‘give what belongs to Caesar to Caesar’ topic. Coming from Europe and many other western countries, there is usually a general apprehension about the various taxes that may be payable over realty in Thailand. In a nutshell, property taxes are not such as will weigh you down when dealing in Thailand. Only a few taxes are payable over landed properties, but they are minimal – an aggregate of all the taxes payable are not up to 5% on the year of purchase transfer and not up to 0.05% annually. As if those were not good enough, the government makes tax concessions now and then. There is a current tax concession over annual taxes payable over residential properties; although slated for December 2022, there may be an extension into 2023. Read more on the official website Thailand-Real.Estate.
What will the Year 2023 look like for Thailand’s real estate?
The forecast for 2023 is quite impressive in the Thailand market. According to verified news, real estate is likely to take a positive turn in Thailand following the relaxation of mortgage requirements, making the market more open and accessible to foreigners and ex-pats. The new policies will encourage mortgage banks to grant more aid to foreigners, and according to the government, coupled with the rise of the last leg of bans or border control due to covid 19, the realty market will pop up, reaching a four per cent increase in transactions and returns.
The previous paragraph indicates that it may be an excellent time to go into the real estate market in Thailand Kingdom. Additionally, foreigners may expect more because the realty market alone provides a whopping ten percent of Thailand’s Gross Domestic Product per capita income. The industry employs at least two million eight hundred people, and the revenue generated from the sector is no joke. As such, there have been many calls for more foreign investment in the sector and the removal of bans or blockades to foreign nationals.
Lastly, you need to know where to invest in Thailand, primarily for commercial purposes. Conclusively, there are many green lights in the Thailand realty market. Try a consultant, consider your options, and invest if the figures suit you.
