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Have you ever thought about owning a home in beautiful Thailand? Whether it’s a modern condo in Bangkok or a peaceful beach house in Phuket, owning property in Thailand is easier than you might expect! From finding the right property to understanding the buying process and handling the money transfers, we’ll guide you through each step. Excited to make Thailand your new home? Let’s explore How to Own Property in Thailand? how you can make that dream come true!
Can foreigners own land or buy property in Thailand?
In general, it is restricted for foreigners to own land directly in the country by law or regulation in Thailand. In other words, Thai law does not allow a foreigner to own land in their capacity but this could be done in theory, for it has not been put into practice yet. Generally, Thai law does not allow foreign entities, whether natural persons or legal entities, to directly own the land. However, there are legal ways through which foreigners can purchase property. One of the most readily available choices is the extended leasehold of a piece of land over 30 years with an option to renew the lease for another 30 years. Another possibility for foreigners is using condominiums since Thai law allows foreigners to acquire condominium units directly. The total foreign ownership in the condominium cannot exceed 49% of its gross area.
This has made condominiums a favorite of foreigners who wish to invest in the Thai property market. Another important thing to recognize is that foreigners are permitted to construct and own constructions and buildings which are located on the land leased by foreigners. This also implies that although the land itself may be under a leasehold system, the foreigner has the absolute right of ownership of any building, house, or any other structure erected on that piece of land. This clause allows economic nonresident individuals to own a house or a villa without contravening the provisions of the legislation on the ownership of land. The idea of property is divided between structures and land; this way, foreign investors are guaranteed security.
How to own property in Thailand?
1. Understanding property ownership laws in Thailand
Thailand has specific restrictions on foreign property ownership. Foreigners cannot directly own freehold land; however, they can own but how? Here are some points about How to Own Property in Thailand:
- Buildings or structures on the land
- Leasehold interests in land for up to 30 years (often renewable)
- Freehold condominiums, provided foreigners don’t own more than 49% of the total area of the condo project
2. Choosing the Right Property
Do you want a luxurious condo on the skyscraper in Bangkok or a beautiful villa on the seaside in Phuket? Everybody can find what he or she is looking for in the Thailand real estate market! If you are searching for an investment or that ideal place to spend your holidays, our local agent can assist. They can show you where there are better chances of getting higher appreciation or higher rental yields so that you make a decision that is best suited to your needs. Therefore, what kind of life do you expect to have in your Thai paradise?
3. Financing Your Thai Property
Financing a property in Thailand might seem like a challenge at first, especially when Thai banks often have strict rules for foreign buyers. But don’t worry—there are options! Some banks and financial institutions offer services specifically for international clients, making the process smoother. Alternatively, arranging your finances back home in the UK and using services like Equals Money to transfer funds gives you access to competitive exchange rates, helping you maximize your investment. Have you considered how the right financial planning can turn your dream into reality?
4. Navigating the Buying Process
Buying property in Thailand can seem a bit complex, but breaking it down step by step makes it much easier to manage:
- Making an Offer: After the choice of the land, the next step is to make an offer formally. Exciting, right?
- Sales Agreement: Once the product has been accepted, then there is a clear contract of sale and this will indicate all the key features for the sale, the terms of sale as well as the payment structures.
- Due Diligence: This is what I call the ‘peace of mind’ step; to ensure there are no other debts in the business and that the seller owns the business.
- Transferring Funds: In the process of advancing as a business, you will need to transfer funds from GBP to THB. It is at this point that issues to do with competitive exchange rates are given an upper hand.
- Finalising the Sale: Last of all, the buying process will be ended by registering your new asset at the Thai Land Department. The process may sound quite complex, but this is where the right kind of help comes in handy and things go incredibly well. What are your ideas on how your dream Thai home will look like once it finally becomes yours?
5. Enhancing Value with GBP to THB International Money Transfers
When it’s time to transfer money for your property purchase, every little saving can make a big difference:
- Currency Exchange Specialist: Engaging with a provider such as Equals Money will provide much more competitive rates compared to the traditional banking system and could potentially save you thousands of pounds over the life of your investment.
- Forward Contracts: Concerned with weekly and monthly volatility of the exchange’s rates? Always safeguard yourself by fixing a rate through a forward contract especially if you are expecting a change in the future. Though you will not be able to gain from further rate enhancements, the sense of steadiness could be beneficial. Isn’t it convenient to eliminate the risk factor from such a critical purchase?
- Monitor Exchange Rates: Another strategy is to personally monitor GBP to THB exchange rates and swap your money when possible at the best possible range. This is your chance to try and take those savings and create something unique!
Can you become a resident in Thailand by owning a property?
After discussing How to Own Property in Thailand? If you buy a property in Thailand, it’s possible for you to become a resident of the country.
Long-Term Resident Visa
Since 2022, it has become possible to become a resident of Thailand by buying a property. The Thai government has introduced a new visa called the Long-Term Resident (LTR) Visa to facilitate this.
The LTR Visa has different categories, and one of them is called “Wealthy Global Citizens.” To be eligible for this category, one of the requirements is to make an investment of at least $ 500,000 in Thai government bonds, foreign direct investment … or Thai property.
Nevertheless, meeting the basic property ownership requirement is not sufficient to guarantee qualification for the LTR Visa. Therefore, it is important to note that you must fulfill additional criteria (such as owning a significant amount of assets) to obtain residency under this scheme.
Thailand Elite Visa
To reside in Thailand, consider the Thailand Elite Visa, offering 5, 10, or 20-year stays based on the package.
Important: This visa program is separate from property purchase, meaning that there is no requirement to buy property to obtain the Elite Visa.
Although the authorities categorize the Elite Visa under the Privilege Entry Visa (PE), which is a type of tourist visa, it offers many benefits typically associated with residency packages. These benefits can include visa validity, multiple-entry privileges, airport services, government concierge services, and various other perks.
So, while it is technically a tourist visa, it provides similar advantages to a residency package.
Is it better to buy or rent a property in Thailand?
It’s better to rent a property in Thailand if:
- You plan to stay in Thailand for a short duration or are uncertain about your long-term plans in the country.
- You prefer convenience, as renting often comes fully furnished, ideal for expatriates or those staying temporarily.
And it’s better to buy real estate in Thailand if:
- If You’re interested in urban living (then, owning a condo could be a viable and attractive option)
- You’re considering long-term investment (Thailand’s real estate market has historically shown growth and potential for investment opportunities)
- You desire the freedom to customize and renovate your living space according to your preferences.
Conclusion
Still, in case you can not decide whether it is better to purchase a property or rent it in Thailand, it is possible to consider rent yields. You can calculate the rental yield as a percentage of the annual rent relative to the total sum of the initial cost of investment. In Thailand, it is possible to come across any expected rental return in the scope of 1,5%-5%. However, the decision now entirely lies in your hands and is based on your current financial status and the targets that you want to achieve. If you could get a return on your capital in the form of a share in a company or buying a government bond that gives you more than 5% it may be cheaper to pay rent and utilize the capital in those areas. But if such returns appear unattainable, it is better to invest your money in acquiring a property in Thailand and not have to pay the rent. Ita all about How to Own Property in Thailand? Purchasing a property is also likely to have the possibility of long–term gains and bring stability at the expense of housing.
References:
https://blog.listglobally.com/en/different-ways-foreigners-can-own-property-in-thailland
https://bambooroutes.com/blogs/news/thailand-real-estate-foreigner
https://www.juslaws.com/articles/how-to-buy-property-in-thailand
