2. Can foreigners own property in Thailand?

The purchase of an apartment in Thailand for foreigners

Foreign citizens can purchase freehold apartments in condominiums from the so-called foreign quota, which cannot exceed 49% of the residential area of the condominium. The rest of the apartments (51% of the living area) can also be purchased by foreigners, but by registering them for a long-term lease (leasehold) or for a Thai company.

• Freehold (Freehold) - property in full ownership, without any restrictions. The easiest and most reliable way to own an apartment in Thailand for a foreigner.
• Leasehold - ownership for a long-term lease (30 years with subsequent extensions twice for 30 years, which in total will allow you to own real estate for 90 years). However, this form of real estate ownership has its advantages. The cost of apartments in leasehold is lower than in freehold. The cost of taxes and fees when registering with the Land Department is also lower (1.1%). It is possible to re-register with a Thai company during the long-term lease agreement.

There are also several options for foreign citizens to purchase land plots, houses and villas:

• Purchase of land for a Thai company. You are the owner of the company, and the company owns the land.
• Registration of a long-term land lease agreement (leasehold) for 30 years with subsequent extensions twice for 30 years, which will total 90 years).

There are various options for using the above opportunities to buy houses, villas and other buildings located on individual land plots. You can register land for long-term lease (leasehold), and the house on it in full ownership (freehold), you can re-register real estate to a Thai company during the term of the long-term lease agreement. It is also important to choose a reliable lawyer to register a Thai company and make a number of provisions in the constituent documents that will allow you to fully control your company and reliably protect your property. Our company will become your reliable assistant in all matters of registration and support of real estate transactions.

3. What is the cost of real estate in Thailand?

The minimum cost of real estate in Thailand starts from $ 30,000 for a small studio not in the beach areas. Apartments in close proximity to the beach will cost an average of $70,000. Prices for quality homes and villas can start from $ 100,000. The cost of luxury real estate with sea views reaches from one to several million dollars. Also on our website you can find offers for the sale of commercial real estate: hotels, restaurants and other operating businesses.

4. How do I choose the best region in Thailand?

When choosing a place to buy a property in Thailand, pay attention to the following factors:

• Cleanliness of the sea and coastline, quality of beaches
• Availability of developed infrastructure
• Variety of tourist activities in the region (island tours, tours to neighboring provinces, entertainment shows)
• Transport accessibility, availability of an international airport with direct flights to major international destinations.

The highest quality resorts in all respects attract the largest number of well-off tourists. Investments in such regions bring the greatest income.

All this will affect the ratio of the price and payback period of your property when renting or selling.

To date, the highest payback rates favorably differ from the island of Phuket. Its clean beaches and turquoise sea attract millions of tourists from all over the world, and the developed infrastructure designed for European standards has long made it the most attractive place in Thailand for expats from different countries.

5. Why is it profitable to invest in real estate in Thailand?

Thailand is the most popular destination in Southeast Asia among millions of tourists from all over the world. Thailand's economy and currency are highly stable. This attracts many investors from different countries every year. The main advantages of investing in real estate in Thailand

• fast payback of purchased real estate when renting it out
• high demand for rental property due to the large tourist flow
• stable growth in real estate prices, high profit on further sales
• economic stability
• clean sea, wonderful nature and warm climate
• best value for money and quality of life for expats in Asia

6. How much can you earn on letting your property in Thailand?

Leading developers in Thailand offer guaranteed return programs of fixed income from purchased property.

You can get a guaranteed passive income from 7 to 10% per year of the property value.

Another option is self-renting or renting through real estate agencies. Accordingly, your income may be higher.

Advantages of investing in Thai real estate

• High profitability;
• Annual growth in the cost of housing in Thailand;
• Possibility to use the property for your own recreation;
• Low utility bills;
• Stable demand from tenants from all over the world.

7. Can foreigners take out a mortgage in Thailand?

Thai banks provide mortgage loans to foreigners.

There are certain requirements for both the property and the borrower's income. Your chosen property must cost at least 1 million baht and be sold in freehold (full ownership in a foreign name). You will need to document the amount of your income. Please contact us for a full list of loan requirements by email info@skypropertyphuket.com

8. What are the tax rates in Thailand?

When registering a real estate purchase and sale transaction in Thailand the following taxes and fees are paid:

1. Transfer Fee – 2% of the estimated value of the property.
2. Stamp duty - 0.5% of the highest value of real estate (specified in the contract or estimated value). Paid if the property was owned by the last owner for more than 5 years.
3. Business tax (Specific business tax) - 3.3% of the highest value of real estate (specified in the contract or the estimated value established by the Land Department). The tax is paid if the property has already been resold within the previous 5 years.
4. Income tax (Withholding tax). This tax is calculated using a formula that takes into account the estimated value of the property, the length of time the seller owned the property, and the individual income tax rate for that person.
5. The amount of taxes paid depends on many factors, the exact amount is calculated by employees of the Land Department. Total average rates for taxes and fees when buying a freehold from 3.5% to 6.8%.

When registering a leasehold, 1.1% of the estimated value or the value specified in the contract is paid, whichever is higher.

When buying housing on the secondary market, the issue of paying taxes and fees is resolved by the parties through negotiations and is specified in the contract. Most often, taxes are paid by the buyer and seller equally (50% to 50%). When buying a new home, the developer often takes on the payment of taxes and only the transfer fee - 2% (Transfer fee) is paid in half by the buyer and seller.

9. How to choose the right property in Thailand?

First of all, you need to choose a reliable real estate Agency that will responsibly select the property, conduct the transaction without risks for you and will provide assistance on all related issues and after registration.

When choosing an Agency, pay attention to the following points:

• The company must be registered in Thailand, in the province where it offers real estate. Otherwise, you run the risk of running into intermediaries who simply copy other people's ads, inflate the price and have nothing to do with the property itself or with Thailand as a whole. Information on the websites of such intermediaries is unreliable, and they will not be able to provide transaction support, legal and visa support, as they are not located in Thailand.
• Every serious company should have a catalog with a wide selection of real estate on its website. This is proof that the Agency has existed for a long time and is working on its real estate database. Do not buy real estate on one-page one-day sites that will disappear at the end of the season and will not answer any of your questions and requests for help after you sign the purchase contract and pay the first payment. Our legal service is contacted every year by abandoned clients of such temporary workers.
• Be critical of all kinds of advertising promises made by agents. Everything that is not listed in the contract is not required for execution. The more they promise, the less they usually do. Perhaps they are just being lured to sell non-liquid with a large commission in value.

Really approach the choice of real estate based on well-known factors and common sense.

• Object location. Proximity to the sea and infrastructure. Other related location factors. This will directly affect how profitable you can rent this object and how quickly and at what price you can then sell it.
• Reliability of the developer. History of its built objects (portfolio).
• Price-quality-location ratio. In any case, do not compare only the price per square meter. This doesn't work in Thailand. There are no typical buildings and neighborhoods that are homogeneous in their structure and location. You can buy two completely different objects in the same area for a single cost of sq. m., one of which will bring income, and the other will not.
• Do not buy real estate in places that are not intended for this purpose: in booths selling excursions, from travel companies, from people who obsessively distribute advertising brochures on the street or in shopping centers. You do not buy a car in a bakery, but products in a furniture store? Do not overpay intermediaries. Do not risk your money by entrusting the deal to non-professionals who are ready to sell you anything to make money on you. Contact directly professional real estate agencies that have been dealing with real estate for years and are experts in their field.
• Communicate with the agent in person, call, meet. Look at what car the agent arrived in, ask if the car is owned or rented. Successful people usually do not hide such things and will be happy to tell you about their well-being. The one who managed to earn for himself, will earn for you. Pay attention to how the agent owns the information, whether it answers your questions in detail or is confused and says what needs to be clarified. Ask about the experience of a real estate agent. Experience counts for a lot. Your request will be handled by a specific person, not the company as a whole. Some companies have a constant rotation of staff and each season new untrained staff without personal experience is hired. In advertising, such companies can write that they are the first and only ones and the company itself has existed for many years in a row. Only personal experience of employees is important.

10. How to choose a lawyer in Thailand?

The most important thing to remember once and for all when choosing a lawyer in Thailand:

• Only a Thai citizen with a specialized education and a lawyer's license can work as a lawyer in Thailand. Feel free to ask to see the license. If you don't see a license, you're not looking at a lawyer.
• All foreigners who call themselves "lawyers in Thailand" can be anything: intermediaries, translators and even scammers, but not lawyers. They will not take any responsibility for how the work on your case will go (or whether there will be any work at all after receiving payment). Unlike them, a Thai lawyer risks losing his license, which he values, if he does not fulfill his obligations to the client.