Thailand is one of the most popular tourism destinations in the world, with more than 30 million visitors every year, while there are many foreigners who reside in the Royal Kingdom of Thailand, from retirees to entrepreneurs who prefer to live year-round in a tropical paradise. If you are thinking of relocating to the Land of Smiles, you have come to the right place, as we offer useful information about buying real estate in Thailand.
Foreigners are not permitted to own land in Thailand
This law was introduced in the 1920s to prevent Japanese buying up Bangkok and while many think it is an unfair law, it is still in place. There are, however, ways around this, you could set up a Thai limited company with a Thai holding a minimum of 51% of company shares, while a foreigner can hold the remaining 49%. The company must be trading and it is possible to buy real estate in the company name, which is what many foreigners do, as they can combine their business interest with a real estate purchase. This would be how you could acquire one of the Phuket luxury villas for sale by a leading Thai real estate agent.
There are exceptions; if, for example, you are prepared to invest 40 million baht in Thailand, you can buy up to 1 rai of land for residential purposes.
Build on your spouse’s land
Indeed, many foreigners build their home on land that is owned by their Thai partner’s family; in such a situation, you can draw up a contract that protects you in the event the relationship ends. The number of foreigners living in the northeast, the region known as Isaan, is rising exponentially and the majority build on their wife’s family land. The cost of building is somewhat cheaper than in Bangkok and popular coastal areas and this is a beautiful part of Thailand that has not seen the same kind of development as other regions.
Long term lease
Known as the 30×30 lease, you can lease a plot of land for 30 years with a further 30-year option, then you can build your dream home and have a degree of security. The price would be similar to freehold and make sure that you get an English-speaking Thai lawyer to look over the lease before you sign it. This is probably the most common way to secure a plot of land on which to construct a home, as it protects you legally. Click here for ways to stay connected when moving around the world.
Popular destinations for foreigners in Thailand
There are several locations that are popular with foreigners, which are as follows:
- Phuket Island
- Samui Island
- Hua Hin
- Pattaya
- Rayong
- Chiang Mai
Coastal areas are obviously sought-after and properties are reasonably priced; pool villas make for a great long-term investment, due to the rapid value appreciation.
Sourcing your dream home
If you are looking for a ready-to-move-in luxury pool villa, look no further than the established real estate agents with offices in Phuket, they have the top listings and can arrange a private viewing for any property you are interested in. If you are currently in Europe, you can create a list of properties to view and take a short holiday. The real estate agent would facilitate the acquisition, as they understand the process of transferring funds from abroad and filling in certain documents. You must show evidence that the funds have come from abroad, which your bank can provide.
The importance of legal advice
When buying any property, it is important to seek legal advice, even more so when you are buying in a foreign country. The real estate agent works with English-speaking Thai lawyers, so you won’t have to worry about this; contracts are naturally in English to avoid any confusion.
If you are planning to set up a business to support you and your family, you can buy your dream home in the name of the company, otherwise, a long-term lease might be the best way forward. Check out the Board of Investment website for further information on setting up a business in Thailand, which should answer any questions you might have. Again, we recommend hiring an English-speaking Thai lawyer to facilitate the business registration process to ensure that everything is as it should be.
Many retirees prefer to buy a condo unit rather than a villa, as they do not require much living space and there are no restrictions on condo purchase for foreigners, other than the development must have at least 51% Thai ownership.
We hope you found this blog post on A Foreigner’s Guide to Buying Real Estate in Thailand, useful. Be sure to check out our post on Choose a Property In The Northern Province of Thailand for more great tips!
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