Five Ways through which Foreigner can buy real estate in Thailand
Thailand is one of the most well-liked travel destinations and places to live overseas in the world. It is land with white sand beaches, and palm trees are the first images that come to mind for many. Thailand is enough developed to provide comforts to the visitors and wild enough to offer off-the-beaten-path adventure. Thailand is one of the world’s most popular tourist destinations; it’s no secret that Thailand is home to some truly fabulous places.
In Southeast Asia, on the one hand, Thailand’s success in attracting huge numbers of tourists is extraordinary. On the other hand, an underdeveloped infrastructure has created a lot of problems for the government. The under-developed infrastructure is getting the attention of local and international developers for such high potential growth country regarding real estate. Therefore, Thailand’s Real Estate has got the attention of foreign investor because it’s a right time to invest because of the following reason:
- A.Consistent increase in gross domestic product (GDP) of Thailand’s
- B.Growing foreigner tourist volume in near future
According to the Land ownership in Thailand is governed by the Land Code Act, an expat cannot buy real estate in the jurisdiction of Thailand’s. If a foreigner wants to buy the real estate, there are various following ways they adopt. The Land ownership department under the section 86 exempts and allow the foreigner to buy the real estate in Thailand.
- Buy a Condo
- Lease land in Thailand
- Purchase land through registered
- Foreign Investment in Freehold Land (exemption)
- Foreign Husband & Thai Spouse
Purchase a Condominium:
Buy an independent real estate (i.e., House or condominium) is one of the easiest ways to acquire a real estate as an expat in Thailand. According to the 1979 Thailand Condominium Act, expats can buy a house/condominium/apartment anywhere in Thailand just as long as the building housing is 51% Thai owned. Currently, Total 20 % independent real estate property owned by the foreigners.
Leasing land in Thailand
When it comes to rent or lease of immovable property in Thailand, foreigners have the same rights as Thai nationals. Hire of immovable property (land, house, condominium) for residential purpose is governed by Civil and Commercial Code (sections 537 to 571) and further specified by the Thailand Supreme Court. An expat can carefully purchase the right to use the land and register with your own name for 30-year maximum lease. Real Estate professionals are considered it as a safe investment because according to the local laws property lease can be renewed for three times which is equal to the 120 years. It is always recommended to hire the local professional lawyer to extend the lease otherwise it would be dangerous for your investment. Professional lawyer means having experience, and well-reputed firm specialized in leasing.
Purchase land through registered company
As earlier mentioned, a foreigner is not allowed to own the real estate in Thailand with their name. Although, they allowed buying real estate through the registered company as it is the most common method to buy a real estate in Thailand among foreigners. The law identified certain sections under which a registration of company owned by the foreigner is allowed to buy a real estate. Please carefully consider the local tax laws for registration a company in Thailand. Thai Limited company registration is a common way to register a company. According to Thai Investment Board, an expat, who invests at least minimum or equal to one million Baht in Thailand for no minimum prescribed period, is entitled to buy up to 20 Rai of land for residential purposes for employees. The Investment board will extend the land from 20 Rai in special cases where the company is required to own land if it is used for an activity promoted by Board of Investment.
Foreign Investment in Freehold Land (exemption):
According to Thailand Land Code Amendment Act (1999), if expat invest 40 million Thai Baht is allowed to purchase and own a land up to 1600 square meters is equal to 1 Rai which is local land measurement scale. Thai Investment Board has limited this 40 million baht only to specified assets or specified governmental bonds with the intention to direct benefits to Thai’s economy. Please note that this type of property investment is non-transferable by inheritance and the lifespan of real estate is limited to the lifetime of expat.
Foreign Husband & Thai Spouse:
As per Thai real estate law, an expat can buy the real estate in Thailand as he has Thai spouse. The law has mentioned three following limitation to protect the local Thai spouse:
- The non-Thai spouse officially declares that she doesn’t have any right on the land; and no right to claim the property in future.
- The couples may be asked to sign the declaration at the Thai real estate department about the funds used are the separate property of the Thai spouse.
- The Real estate, though bought by a foreigner, cannot be in your name but will have to be in the Thai spouse.
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