Joanna James
As one of Asia's most lucrative markets for investors, more and more foreigners are looking to cash in on the Thai property market. Buying land or property in Thailand is a complex matter that should be entered into with caution and due diligence.
If you've heard the good news about no taxation on property ownership in Thailand, you've heard correctly. One of the main advantages of investing in condominiums in the country is that there are no property taxes involved. Those who buy land or other types of homes and buildings, however, will be taxed. While there are no annual taxes for overseas condo owners, there are taxes associated with the purchase and when reselling while documentation fees, transfer fees, and other extra costs will be part and parcel of any purchase or resale. It is recommended that a lawyer be present when all these figures are calculated as the Thai government's taxation policies are subject to change.
While the prospect of buying land or a second home in the form of an estate or bungalow may appeal to the vast majority of foreign investors, these areas are not the most lucrative areas of the local property market. Those who wish to earn good returns on their investment would be wise to invest solely in condominiums; this is because the 1979 Thailand Condominium Act allows an overseas resident to own 100% of the property as long as the building containing the condo or apartment is owned by a Thai resident. The local must own 51% of the building meaning the foreigner will own the remaining 49%; this means a foreigner can possess 100% of a freehold condo in the country.
When it comes to buying land or any other property other than a condo unit, the usual practice is to lease the venue for a period of 30 years. Unless one is married to a Thai citizen, foreigners cannot own land in Thailand at 100% ownership. Foreigners can alternatively establish a Thai Limited Company and have a Thai resident be a 51% stakeholder and have them sign over the land to the foreign party after some time has elapsed. US-born and American investors have an added advantage in this regard as they have a treaty with the country, which secures US citizens full ownership of Thai land if they do invest in the country.
Finding financing to buy property from Thai banks will prove difficult for most foreigners unless they have spent several years working and living in Thailand. This history is what banks will consider when granting loans as they like to look at work permits, work history, and other financial data to ensure the loan will likely be repaid. This is especially true when asking for loans to purchase one of the luxury villas for sale such as those belonging to Avadina Hills by Anantara and other renowned property developers.
Investors should keep in mind that there are numerous poor quality condo complexes for sale in Thailand due to insufficient regulatory oversight into building practices. To avoid buying a condo with structural and other deficiencies, one should conduct a thorough background check into the property history and the developers.
A true believer that the pen is a mighty weapon, ventures into reaching the minds of every reader with the earnest hope of leaving an indelible stream of thought.
A travel writer who has a pas...
