7 things to know before buying properties in Thailand
Here’s some basic information for the foreigners planning to purchase some properties in Thailand.
A lot of people, with a dream of living in a gorgeous land, decide to buy properties in Thailand. Some, on the other hand, want to purchase it for business purposes. However, being a foreigner, you might have to deal with several problems to fulfill it. As par the Thai laws, there are some restrictions on the foreign ownership over lands in the country. So, if you are really interested to buy properties in the Land of Smiles, following are the major points to keep in mind prior to any investment.
Although you cannot directly buy the property, there’s an option of leasing the land for a period of 30 years or more. For that, you have to make some contracts with the landowner. Also, you can renew the leasehold once it gets expired.
You can set up a Thai Limited Company to buy properties in Thailand. However, being a foreigner, you cannot hold more than 49% of the shares in the company. This means that a minimum of 51% of the company’s shares must be Thai owned. If you go this way, beware that your business is going to be thoroughly monitored by the immigration office.
Marrying a Thai citizen is a very common way for the foreigners to purchase properties in Thailand. In that case, you get access to the land through the ownership of your spouse. But there arise some complications if you decide on filing for a divorce.
Nowadays, most of the foreigners, prefer purchasing condos or apartments, instead of a land, in Thailand. As par the 1979 Thailand Condominium Act, you can own a condo or apartment (located at any place in Thailand) fully, if the building is 51% Thai owned. A huge number of the condos in Bangkok are now owned by foreigners.
Most of the foreigners, even those who have been living in Thailand for years, face various complications while trying to get loans from the Thai banks. So, in that case, it’s always a better idea to apply for a loan to some overseas banks.
As you’re purchasing properties in another country, it’s very much important to do an extensive research before signing the contract or making the investment. First, discuss with your lawyer about all the legal process related to the matter. Also, while buying a condo, consider doing some research about the area, the building as well as the owner.
After deciding on buying the property, you first need to make a deposit (generally, it’s 10-15% of the total price) that will reserve the property for you. The money will be deducted from the price. But make sure to read all the terms & conditions carefully regarding the deposit.