If you want to buy a condominium in Thailand, you must keep in mind that all developments are required to be majority Thai-owned. As such, foreigners can only purchase 49 percent of the units. However, foreigners can buy apartments from publicly-listed companies, since the developers are unlikely to face financial issues during the construction process. Nevertheless, it is important to have an adequate knowledge of Thailand’s legal requirements and regulations.
Freehold ownership
In Thailand, obtaining a freehold property is not a common practice. Freehold properties are owned by foreigners and generally cost more. While some developers may offer higher prices for freehold units, a leasehold unit has lower transfer fees and property taxes. Moreover, freehold properties often come with limited financing and maintenance fees, so purchasing one would be less of a burden. However, if you are interested in owning a property, make sure you are aware of all the risks associated with freehold ownership.
Taxes
While purchasing a condominium in Thailand for foreigners is possible, foreigners are regarded as aliens. Therefore, they must transfer their out-of-pocket investment into the country as foreign currency. This money must then be converted into Thai Baht at a licensed financial institution. Listed below are the tax implications of buying a condo in Thailand. This article will explore the implications of buying a condominium in Thailand for foreigners.
Legal requirements
Foreigners can buy condos in any city in Thailand. However, Bangkok is a popular choice for foreigners because of its high real estate market, modern facilities, and world-class city life. However, there are a few legal requirements you must be aware of. Here, we’ll go over some of these requirements. And remember, these are just general guidelines. For a smoother experience, hire an agent to handle the process for you.
Buying a unit
Buying a unit in Thailand for foreign nationals requires a few steps. In most condominiums, foreigners are allowed to own only 49 percent of the total units, and the remaining 51 percent can be bought through leasehold ownership. Leasehold ownership gives the lessee the right of possession for a set period of time, and is fully transferable. Depending on the developer, a lease term can last up to 30 years, but most developers offer 90 years.
Off-plan projects
Buying off-plan property in Thailand comes with its own set of risks, including currency exchange rates. You usually make a first payment when you reserve a property and pay the final payment when the project is completed. Condominiums can take up to two years to complete, and during this time, exchange rates can vary greatly, causing your final purchase price to be lower than it would be in Thailand.
Putting a unit to commercial use
One common mistake foreigners make when buying a condominium in Thailand is putting it to commercial use. While Thais usually prefer brand new condos, they don’t want to deal with older condos, either. To avoid such problems, it’s best to opt for an older condo, which is often less expensive and still has its appeal. Also, older condos give prospective tenants a better idea of the quality of construction.
