| Legislation and rules |
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It would appear in the first instance that the laws relating to property ownership for foreigners in Thailand are complex and complicated. This is not in point of fact the truth. The laws are understandable and in matter of fact very easy to comprehend if you are given the correct information to start with. Question: Foreigners cannot own property or land Thailand period. Question: I have decided to lease a property but I can only get a 30 year lease. Question: You can only buy a property in Thailand if you put everything in your Thai girlfriends or a Thai national name. Question: A foreigner can only own a property in Thailand if he is a resident here/on a work permit/or super rich. Question: If I set up a company with 51% Thai shareholders, do I have to pay them dividend every year. The information below will further explain Thai property law: There are two main ways in which you can legally own property in Thailand. Both of these are 100% legal and will ensure your interests are protected. Thai Limited Company This is the most commonly used way to buy a property in effect it is the Ltd. company that is buying the land, not an individual entity. The freehold title to the land belongs to the Ltd. company. You are the sole director of that company and you are the only person who can legally bind the company to any transaction including selling the house or the land that is built on. This legislation written into the memorandum of articles effectively gives the minority share holder control of the company. One of the other benefits of buying a property in this way is that in the event that you chose to sell your property all you have to do is transfer your shareholding to the new buyer. This is beneficial for two reasons; firstly there is no land transfer tax on this transaction and secondly there is no requirement to register the property at the land registration department. One must remember that in this instance in the event that you chose to sell your property that you are actually selling a company which has an asset being your property. Lease Most foreigners who own land and houses (as opposed to condos, which can be owned outright) go for a leasehold agreement of typically 30 years, with two prepaid 30-years renewals. The lease will include clauses that automatically allow freehold ownership if the laws of foreign ownership change in future, and the right to sell and/or transfer the property. This gives you 90 years with strong backup, making it effectively ownership. Condominium Buying a condominium is perhaps the simplest and easiest option to own property in Thailand. Living in a condominium is quite inhabited in Thailand and in fact they are mostly very luxurious. A condominium block mostly has its own swimming pool, sauna, fitness centre and restaurant. Condominium ownership is much more straightforward, you simply buy it on your own name. There is a law that stipulates that in event that the condominium block was to be more than 49% foreign owned you would have to revert back to the Ltd. company scenario. In our experience this is most unlikely. Documents The above information is in no way meant to deter you from purchasing a property in Thailand much the opposite; it is a statement of fact. If you follow the rules and take due diligence it's actually quite easy. At Thai Homes we are here to assist you with your perspective purchase and will be there to help you every step of the way this is the part of the personal service you are guaranteed when purchasing a property from Thai Homes Property Co., Ltd. Of course buying property in Thailand will brings along legal papers much the same way as anywhere else in the world. We have listed below an essential check list for any prospective buyers. Title Deeds A Title Deed is the only form of evidence that an individual actually owns the property or peace of land he is trying to sell. Title deeds are given only for areas of Thailand which have been surveyed. Chanotte Ti Din are title deeds with land accurately surveyed. If you have a Chanotte Ti Din title deed, it gives you incontestable possession of the land. It is worth notice only approximately 15% of land is under this title. Most titles around the country Are Nor Sor Sam or Nor Sam Kor. They are title deeds in as much as clear records of ownership are maintained, and they may be sold or leased. The two titles mentioned above should give you ownership as good as a Chanotte. IF YOU ARE OFFERED ANY OF THE THREE FOLLOWING TITLE DEEDS PLEASE BELIEVE US, THEY ARE NOT EVEN WORTH THE PAPER THEY ARE WRITTEN ON TO YOU. The Sor Bor Kor is also a true title deed, accurately surveyed and pegged (like a Chanotte). But the big but is that they cannot be leased, sold or transferred. Taxes The taxes in Thailand are not comparable to the West. But currently Land Tax and Structures Usage Tax are claimed. The Land Tax levied on land is so miniscule that in practice the board charged to collect it, rarely bother to do so, and if they do, they usually wait several years until the amount is accumulated. The Structures Usage Tax relates to buildings and is collected by the municipal office or district office. The information above is based on the educated opinion of Thai Homes Property Co., Ltd., we cannot however be held responsible for any losses incurred by using the above information. We would however like to point out that as mentioned before if you use due diligence and professional services your property purchase would be an enjoyable and worthwhile experience. For your info |