HOW TO BUY PROPERTY IN PATTAYA, THAILAND.
THAI PROPERTY PURCHASE PROCESS
Below is the standard purchase process in Thailand, and issues that may affect that purchase:
Thai law allows foreign freehold ownership of a condominium. Forty-nine per cent of a condominium block may be of non-Thai ownership, with some blocks allowing this to rise to 100% if the developer has acquired the appropriate condominium license.
Freehold or leasehold ownership options are available to the overseas buyer. A freehold may be purchased if a condominium is still within its 49% quota for foreign ownership, The land on which a condominium is built falls under the collective ownership of the individual condominium owners, with a majority Thai shareholding, governed by a corporate body usually set up by the owners.
Freehold ownership rules require overseas buyers to send the purchase funds in foreign currency from a bank outside Thailand to a Thai bank. On receipt, a Foreign Exchange Certificate, Thor Tor 3, will be issued. This certificate is used to provide evidence of the sale or deposit of foreign currency in an authorized local bank. A Tor Tor 3 can be obtained at all major banks in Thailand.
A freehold to a condominium may also be purchased by an overseas buyer if the individual in question is permitted to have residence in Thailand under the Immigration Act. Individuals are permitted to enter Thailand under the Investment Promotion Act (IPA). The required supporting documentation comprises a passport and a letter from the Board of Investment of Thailand certifying permission to live in Thailand under the terms of the IPA.
A leasehold will be offered if the foreign ownership quota for the condominium has been fully subscribed. The initial lease duration is for 30 years, with an option to renew for two additional 30-year terms -providing an effective lease of 90 years.
Hyde Park Residence Building 2 – From only 1.29 Million Baht@Thappraya Soi 4
Sunset Boulevard Residence – From only 1.69 Million Baht@Pratumnak Hill Soi 4, Sea view.
Park Lane Jomtien Resort – From only 1 million Baht@Close to Jomtien Beach
Costs of a standard property purchase in Thailand include the following taxes and duties:
- Land Tax is a land levy set at a very low level. It may be allowed to accumulate over a number of years to be collected by the relevant authority. In practice this levy is often not collected.
- The Structures Usage Tax only relates to properties used for commercial purposes and is collected by the municipal or district office.
- TStamp Duty of 0.5% payable on purchase or sale of property.
- SBT will only be imposed if you are selling your property, which you have own less than a period of five years. The tax rate is 3.3% of the selling or assessed price of an asset (whichever is higher).
- The Transferring fee is 2% of the registered value of the property.
- Income Tax, imposed on property of between 1.0 and 3.0%. There is no Capital Gains Tax.
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