Foreigners are allowed to own commercial buildings, condominium units and houses in their own
name. Foreigners are not allowed to own Thai land in their name. However, foreigners have several different
ways how they can buy land.
- Investment (BOI) : A foreigner, who invests up to 40 Million Baht for no less than 5 years, is entitled to buy up to 1,600 Sq.M of land for residential purposes. However, the permission from the Ministry of Interior must be obtained.
- The romantic solution : For single buyers, meet and fall in love with a Thai person you trust then marry her and buy properties in her name. To protect your rights, you can rent the house back from her in your name. The long-term rental agreement you best set up before you buy the property. This beautifully and simply solution is one of the most romantic solutions in Thailand.
- Set up Thai limited company : One of the strongest structure to purchase land for foreigner client is through a Thai Limited Liability Company. In Thailand, a Limited Company which is a Thai Juristic Person has long been the most popular way of enabling foreigners to purchase properties in Thailand. In a simply way, the company owns the land. And you, as a foreigner owns the company shares. Though, the foreigner can own a limit of 49% of the company
shares. However, you can legally be the only signed director who can control any contractual dealings. This
Option allows the foreign buyers to have complete and secure control over the company and all its assets.
The yearly cost for manage this company will be depend on your lawyer or on your bookkeeper. Our Lawyer
charge from 50,000 – 70,000 baht. - 30-year renewable lease with purchasing option : As mention above, foreigners can own villas in their own name and in the same time they can lease the land on which the villa is built. Land leasing is legally the simplest, most straight forward way to own land in Thailand. Land leasehold contracts cover a period of 30 years with an option to extend 2 times. The leasehold agreement protects the rights of the buyer at all time, even when you want to resell your property in the future. The land title can be converted from leasehold into freehold at all time. Therefore, leasing is currently seen as a reliable solution until a more agreeable option is introduced. From the moment the law changes in the way that foreigners can own land in Thailand, we will register the transfer right away into your name.
Steps of purchasing Thailand property
A reservation fee and down payment deposit is required from the buyer to secure the booking of a unit. Once the project has been completed, the remaining amount should be paid in full. The buyer’s national passport is also required. For foreign buyers who have previously purchased property in Thailand, it is necessary to ensure that the spelling of the buyer’s name in Thai is identical to that used for previous purchases. Buyers can purchase property in Thailand via:
- Booking by cash or credit card
- Overseas foreign funds transfer
The requisite information a buyer needs in order to transfer payment to either a seller’s bank account or designated accounts as follows:
- Bank account name
- Bank account number
- SWIFT code
- Bank name
- Bank address
- Purpose of transfer (i.e. Purchase of property)
SOURCE OF FUNDS DECLARATION
Non-resident foreigners who buy a condominium in Thailand must present a Source of Funds Declaration to the District Land Office when registering ownership. All funds must be remitted into Thailand as foreign currency, after which the receiving bank will exchange the amount into Thai Baht.
FOREIGN EXCHANGE TRANSACTION
The receiving bank will issue a Foreign Exchange Transaction Form (FET) for amounts greater than USD 50,000 and a Credit Note for lesser amounts.
MONEY TRANSFER
Buyers with bank account opened in Thailand may transfer money from the account directly to the seller’s account. However, buyers shall request the bank to issue a Foreign Exchange Translation (FET) form to use as an evidence for registration of ownership at the Land Department.
Buyers can also transfer money to the seller’s bank or issue bank draft payable to the seller and the seller then applies for issuance of Foreign Exchange Transaction (FET) form to use as evidence for registration of ownership at the Land Department.
Note: The amount transferred must be equivalent to or slightly higher than the selling price to show at the Land Department.
An overseas transfer must be issued with evidences to get approval from the Land Department. The money transfer must be made under the same name as appeared in the purchasing contract and must be foreign currency only. Buyers must specify the objective of the money transfer in the payment order.
CUSTOMS DECLARATION FORM
It is necessary to declare the amount and currency to customs, who will issue a receipt for incoming funds. The receipt can then be presented to the bank in order to acquire a Confirmation Letter.
It is recommended that foreign buyers consult a lawyer to assist with their purchase.
Source: https://www.properties.in.th