How to Own
Property in Thailand
CONDOMINIUM
Purchasing a condominium is the easiest way to own property in Thailand
a you can purchase in your own name without having the hassle of nominees.
Foreigners are permitted under Thai law to own up to 49% of the units
is any condominium block. You will also have to prove that the money
for the purchase arrived from abroad as a foreign currency to Thai Baht.
You cannot buy a condo without a Tor Tor 3 form, so when transferring
money for the purpose of purchasing a condominium in Thailand ensure
that the transferring bank does not convert to Baht prior to the transfer.
When you have chosen your preferred Condo, obtained your Tor Tor 3 form
you can then go ahead with your purchase.
LAND AND HOUSES
This is the easiest method of house purchase. All you really needs to
complete this form of house purchase is, money and a Thai national who
is willing to own a property that you the buyer have paid for.
This is probably the safest way to buy a house and land in Thailand.
You still require a Thai Nominee but the deal is made safe for the buyer
by having a lease registered on the land. There is a tax payable on
the lease income however this is minimal. The lease is a legally binding
document registered at the lands office. The initial term of the lease
as well as the extension periods are declared as paid in advance and
incorporated into the agreement is an option
allowing the Lessee (buyer) to purchase the land outright should the law change
and permit foreigners to own land in Thailand. This is the closest you can
get to freehold property ownership in Thailand.
This is a very safe method of house and land purchase. Once again you
will need a Thai Nominee in order to effect a property purchase in this
manner. Instead of a lease agreement. this purchase method relies upon
a mortgage to secure the buyers investment. The way this works is, the
buyer has a Thai Nominee to buy the property then the property is registered
as mortgaged at the lands office. Once again there is a tax applicable
to this,it is however minimal. The property cannot be sold until the
mortgage lender signs the title documents declaring the mortgage cleared.
This once again give 100% control over the property although not ownership.
The buyer may remove the nominee should any problems arise and transfer
in a new nominee at any time.
This is probably the most popular method of property ownership. To own
property through a company you need 7 (seven) partners (shareholders)
including yourself. Each
of the six Thai shareholders have a portion of the 61% that must be owned
prior to the house purchase (this is reduced to 51% after the house is
purchased). There is only one director (the buyer) who is also sole signatory
for the company. The buyer will also have to obtain documentation through
the lawyer who forms the company giving the buyer 100% control of the
company. Being a company, there will be a tax obligation, as there would
be in any country, however the costs here are minimal and your lawyer
will have an accounting department able to assist you with the above.
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