Interested in buying property in Phuket Thailand?
Here you can find helpful information on buying different types of property in Thailand.
Condominiums
For overseas buyers (Non-Thai Nationals), buying a condominium is seen as the simplest process due to Thai law allowing foreign freehold ownership of condominium properties. The foreign freehold ownership of a condominium block is limited to 49% and the remaining 51% must be held by Thai nationals.
This means that developers will usually offer a choice of two ownership options, “freehold” or “leasehold”.
A simple explanation of how this works is that the land on which a condominium sits is owned collectively by the individual condominium owners with a majority Thai shareholding. It is governed by a corporate body (a juristic person)which is usually set up by the owners or in most cases at time of registration of the condominium by the developer.
Buying Freehold
When purchasing a foreign freehold condominium certain rules must be followed:
a) The overseas buyers must send the funds for the purchase in foreign currency from a bank outside of Thailand. They must be accurately recorded as such by a Thai bank in the form of a foreign Exchange certificate, or also know as a “Thor Tor Sam”. This certificate provides evidence to the Land Department that foreign currency has been deposited into an authorized local bank and presented at the time of ownership transfer into the buyer’s name.
b) The Thor Tor 3 must specify that the purpose of the remittance of foreign currency is for the purchase of a condominium unit or units and must in total equal or exceed the price of the condominium. This message should be clearly added when remitting funds from your bank. The Thor Tor 3 certificate is readily available from all major banks in Thailand.
Buying Leasehold
Should you find a suitable condominium but find the foreign freehold quota of 49% has already been allocated then the Thai property law allows a foreigner to lease property for a maximum of 30 years, with lease renewal(s) option of 30 years. This is seen as a maximum of 90 years ownership (30+30+30). This purchase should include all the legal benefits like a freehold unit, including the right to sell, rent or leave to heirs. Always seek a lawyers help to set up all the correct legal procedures and paperwork needed for this type of purchase.
Land & House
If you are interested in buying land and/or House you should know that Thai law in general prohibits foreigners from owning land in Thailand. A house would come with a title deed (Chanode) that will also show a certain amount of land with the house, which will be registered to the owner of the property as well.
It is however possible to acquire land either by leasehold (30+30+30 years) or ownership via a registered Thai Company but often the land department will require that Thai partner to own at least 60% or 70% of a company in order to register land ownership.
The registered company can be setup to have the foreigner as the managing director and the only signatory for the company. The managing director may then sign for property purchases and the company (managing director) owns the property (house and/or land).The firm will be organized so that you have all the economic and juridical rights.
Please note that this information is for guidance only and that you should always consult appropriate legal advice ensuring your current legal rights.
