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Expat Business Service provide very reliable and professional property services in Bangkok, Pattaya, Hua Hin, Phuket, Koh Samui and Chiang Mai, Thailand. We are able to provide a complete range of property services. These include but are not limited to the following:
The Thai government wishes to preserve its land for its people and this means in practice that anything built on the land is affected in this way. However, it welcomes tourists and those wishing to make a new life here and has recognised the need to allow them to stay somewhere permanently. For that reason, the Condominium Act facilitates this by allowing 49% of the units in all larger condo blocks to be available for purchase by foreigners ie. Non-Thai citizens). This means in practice that condos are either available to be purchased in a foreign name because they are already in a foreign name or because the building in question is below the 49% quota. If they are not available to be purchased in a foreign name, it is because they are already in a Thai name or Thai Company name and the building has no more space in its 49% quota and can allow more foreign ownership. Most people see an advantage to owning the condo in their name but there are of course around half the condo units here not in a foreign name and the owners are very happy too. There are pros and cons both ways Although the law does not allow foreigners to own land in Thailand, they can own the buildings on the land. However, there are exceptions:
Leasehold Thai law allows a maximum lease period of 30 years, with the possibility to extend for a further 30+30 years. At the end of each term, both parties must register the renewal with the Land Department and pay government fees, including stamp duty. This gives the lessee "ownership" of the land. The downside is that the Lessor may not wish to renew, or the law may change to your detriment in the future. Any capital you invest into leased property is therefore liable to be lost. In addition, leased land is not easy to trade. Nominee You can nominate a Thai to own the property for you. Definitely not recommended. Nominee with a mortgage You can lend the price of the property to a Thai under a legally executed mortgage or loan agreement. There is a small fee payable at the Land Office to register it. The advantage to this is that the nominee cannot sell the property until the mortgage or loan has been repaid in full. Our lawyers will also set up a Last Will & Testament when they set up this type of transaction so that if the foreigner dies first the mortgage or loan is discharged in full and the Thai can inherit the property. If the Thai nominee dies first the foreigner can inherit the land, but must sell it to a Thai within 12 months. We always recommend that foreigners buying property in Thailand also write a new will to avoid any future problems for the Executors and Beneficiaries. Freehold Foreigners can buy and own condominiums Freehold, giving you full ownership rights to buy, sell, trade and bequeath your condominium. However, the law states that foreigners may only own up to 49% of any condominium building. So make sure your lawyer checks this before buying a property. The seller must also provide a document from the Juristic management office stating that the condominium is free from all debts. Company Ownership We recommend setting up a company when buying a house, land, or other property that is not a condominium. Our lawyers can help you do this and ensure that you control the property without interference from your nominee Thai partners. Frequently Asked Questions (FAQs) A: A condo or apartment can be bought either in your own name or not depending upon the circumstances of the condo. A house, land or commercial property can never be bought in your own name, however it can still be bought using other means in the same way as houses, land and commercial property. Q: What government taxes are charged when buying in Thailand? Q: What taxes are payable on investment properties or capital gains? A: There is no capital gains tax on the sale a condominium or apartment. The profit on the sale of a house or land is 30% on the declared profit which is always a conservative government figure. When it comes to houses, usually the Thai company is sold with the property. In this case all that is required is for a change in the name of the director and therefore there are no taxes due. Q: What is the cost of legal fees when buying and selling? A: We have access to a selection of excellent and reasonably priced lawyers. Many clients do not see the need for extensive legal help or even legal help at all but should they wish for assistance prices will vary according to the type of sale from only 5,000 THB to around 35,000 THB. Q: Are there any council taxes and rates? A: There are no annual council taxes or water rates in Thailand to pay. Q: What would a typical water bill be for an average size villa or condo? A: The average water bill for a villa or condo ranges between 250 & 450 THB a month. Q: What would a typical electricity bill be for a villa or condo? A: The average electricity bill ranges between 1000 & 1500 Baht per month. However, if you love 24 hour air conditioning, it can rise to as much as 3,000 THB a month. Q: How do foreigners pay for properties purchased in Thailand? A: Buyers should always transfer foreign currency into Thailand and this is a very easy process. The buyer’s local bank will provide a receipt of the transfer and this should be faxed immediately to the recipient so the transfer can be traced and confirmed. Typically 10% is paid immediately and then the balance at an agreed date but any reasonable amount from the ATM can secure property in the short term before you arrange funds transfers. Q: Is Thailand a safe place to live? A: Security is an issue anywhere in the world these days and Thailand does have crime. However, overall, Thailand is a far safer place to live statistically than most other countries and sensible precautions are the only real requirement to ensure a happy life here. Q: Is Thailand an expensive place to live? A: Thailand is a very cheap place to live compared to most western countries - budget on life here costing you a quarter to a fifth of that back home. Of course, you can go mad but generally it is easy to have a higher standard of living for far less than you are used to. This has made Thailand the no.1 tourist destination in the world yet again for another year running. Q: What makes Thailand so special? A: Thailand is not perfect – where is? However, most people settle here because the combination of amazing climate, good food, lovely people and amazing scenery is unbeatable. Q: What makes Pattaya/Jomtien so special? A: The Pattaya/Jomtien bays are simply the nicest combination of beach, resort and creature comforts you will find. There are more remote and quiet locations and there are busier ones, but most people find this area ideal overall. Q: What are the costs for the external and internal maintenance of a villa or condominium? A: The cost of maintenance for a villa depends on the size of the land. At a typical villa the charge is 7 baht per square metre per month and paid annually in advance. The maintenance charge for a typical condo is between 4,000 and 9,000 baht per room (per year) annually, paid in advance. Q: Is it expensive to import furniture or even my car? A: The import duties can be very expensive especially for items like a motor vehicle and furniture. We strongly recommend you purchase these items in Thailand especially as the quality is surprisingly high. Q: How easy would it be to rent out my property? A: Pattaya is the biggest and most well-known tourist resort in Asia so there is no shortage of demand for accommodation here. Jomtien, in particular, is highly sought after by tourists and long-term residents alike. Investors can expect a conservative return of about 10% to 12% on their investment providing they buy in the right areas. Q: How can I be sure I’m buying a safe investment? A: Nothing in life is 100% certain but property prices here have climbed steadily to a point now where they increase 20%+ every year and sometimes more in good locations. All the new investment locally and the new airport now open should ensure this trend continues. Q: How is land measured in Thailand? A: Finally, everyone always asks us ‘how is land measured in Thailand?’..... Well, the answer is with some difficulty (!) but here is our easy guide to land sizes: Thailand is metric so things start in square metres.... about 10 square feet in old money. 4 square metres (2m x 2m) is 1 square Wah (or Talang Wah, as they say) 100 Talang Wah is 1 Ngan (we’re at 400 square metres now - just about right for a small to medium house) 1 Rai is 4 Ngan (or 400 Talang Wah or 1,600 square metres) Mostly you’ll hear about Rais in Thailand If you are used to Acres, then 1 Acre is 2.5 Rai. If you are used to hectares, then 1 Ngan is exactly 1 hectare! |
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