Purchasing property in Thailand.
Step by step for buying property.
Thailand has always protected their country, for example by not allowing foreigners to purchase property with full majority. It is not very different from other countries around the world we just often don\'t realize it because we don\'t have to worry about it, when we are purchasing property in our home country.
However there are legal ways to purchasing property in Thailand, loopholes made by the government partly to have money flowing into the country and to make Thailand competitive on the world market. Here is a small guide on how to purchase property in Thailand.
Fact is, for all the examples listed below, foreigners cannot owe more then 49% of any kind of property, they want to purchase. There are however small differences as listed below.
No matter what you are interested in buying, always consult an attorney you find reliable, and have them look at the contract.
Condominiums
Legally: Condominiums are the easiest to purchase as a foreigner. The Thai law on this area is very clear and simple, since you will not be buying the land itself, but only a unit or more in the building. This means you can purchase the condo directly from the owner and have yourown name on the deed (If you however want to purchase the whole condominium complex, look under "property").
Foreigners in general cannot owe more the 49% of the total number of condos a complex!
Step by step: Having found what you are looking for, the procedure is straight forward. Have the attorney look at the contract to see if there is anything out of the ordinary. If you want to make any changes to the condo, make sure it is written in the contract before signing it.
Deposit: Is paid on the same day as the contract is signed. When buying a condominium in a new project, the deposit is often around 100,000 THB as a holding deposit. If it is a resale, the deposit is also often 100,000 THB, but the amount can be negotiated.
Payments: If it is a new project, the payment is normally done in rates starting from day of signing contract to the condo is finished. If resale, the full amount is often paid at one time, normally on the day of changing names on the deed at the land office.
All other property
(Land, house, businesses)
Legally: Foreigners cannot own more than 49% on paper by law, so how can foreigners be sure the dream property isn\'t taken from them?
The procedure is easy, simple and legal.
Since you can only owe 49% you must have some kind of insurance you can never lose the property. First step is to register a Thai company in your name. Again because of the Thai law, you can only owe 49% of the shares, but by splitting the other 51% in smaller parts, we ensure 100% majority of power & security for the foreigner purchasing property. This way the foreigner can have his/hers legal registered company owning the property without any risk. This is the most preferred and recommended way by attorneys in Thailand.
Observe regarding houses. Some projects offer the possibility of leasing the house on a 30 years lease. This lease can be extended for up to a 90 years maximum.
Step by step: As mentioned earlier, the first step to become a property owner in Thailand is to register a Thai company in your own name. This is done by a Thai attorney. First you must choose 3 different names of your own choice for the company. Then the registration papers are signed, managing director/s are chosen (The person/s who register the company) as well as the shareholders. The registration fee is paid at this stage. No invoice for the registration fee is issued by the lawyer at this point because of tax; you will first receive an invoice when the company is registered.
Approx. 3-4 days later the company name is approved, and 10 days later the company is registered. This process can take longer time if the chosen names are too similar to already chosen company names, or in case of public holidays. All the papers are send to the foreigners home address for signing, then sent back to the attorney in Thailand, who will issue memorandum, tax numbers, stamps ect.. All this is kept by the attorney, to do the yearly tax reports for the company. After the company is registered, you will need to open a bank account in Thailand personally.
If you already know you want to purchase some property in Thailand, we can start the company registration process before you arrive. In this case please contact 2nd-home minimum 3 weeks prior to your arrival.
When all the registration papers are signed and the registration fee is paid, it is time to place the deposit and signing the contract. If you have any changes, terms or conditions regarding the property, make sure you state them in the contract, before signing.
Deposit: Is paid on the same day as the contract is signed. In the case of a new house project, the deposit amount is often from 100,000 - 200,000 THB as a holding deposit. If the house is a resale, the deposit can be negotiated but is often 100,000 THB. For land and business estates you will normally pay 10% as a holding deposit. The concept of holding deposits is made to give time for the company to get registered, and the size is chosen, so it won\'t cause any problems with the tax department in your home country.
Payments: If it is a house project, the payment is normally done in rates starting from day of signing contract to the house is completed. If it is a resale house or other property, the full amount is paid at one time, normally on the day of changing names on the deed at the land office. A power of attorney can be issued to a Thai lawyer, making him act on the foreigner\'s behalf, in case the foreigner is not in Thailand at that specific time.