Foreigners can only purchase condominium units and flats in Thailand. Foreigners are not permitted to possess over 40% of the condominium units. A foreigner, on the other hand, can purchase an entire structure, excluding the plot in which this is constructed.
When acquiring Property in Thailand it is critical to retain the services of a real estate attorney. Since the real estate sector in the nation is still uncontrolled, a professional will be able to give more protection than a conventional real estate salesperson.
There are essentially two vital papers required: a passport and an Exchange Control Form. However, if the option of purchasing through a corporation is desired, the following documents are required:
- Certificate of registration of the incorporation certificate
- A certified copy of the memorandum and articles of association is required.
- Certificate of Notaries
- Shareholders’ List (in English with Thai translation)
- Minutes of board meetings including a resolution to acquire the property.
- Advice letter on a specific signature.
- Power of attorney – if a person, as a governor, will be absent from the transactions.
- Letter of release from debt Letter of foreign co-ownership.
- A certified copy of the authorised director’s identification is required.
- Certified proof of the authorised director’s residence registration.
- The condominium unit’s title deed.
Before signing contracts and making deposits, independent research should be performed. Before indulging in the financial transaction, it is prudent to request that the lawyer do a caveat analysis and check the property’s true state. When the seller signs a contract, his attorney will construct a purchase agreement. This should include who pays the legal expenses, transfer fees, and taxes, along with many other things.
A 10% payment will be required at the time of signing. Keep in mind that security deposits are still uncommon. Moreover, deposits are non-refundable except when the vendor cancels. In that instance, he must pay you twice the sum for damages.
Closing normally takes between 30 and 60 days. This comprises contract exchange and reimbursement of the outstanding balance. After this is completed, the title deeds will be submitted to the Land Ministry for registration and payment as described in the form.
The spherical experience transaction charges embody all fees related to buying and sooner or later reselling assets, which include lawyers’ fees, notaries’ fees, registration fees, taxes, and company fees.
- Fee For Transfer- A flat 2% transfer charge is imposed.
- Real Estate Agent’s Charge- The fee for a real estate agent is from 3% to 5% of the property’s worth.
- Withholding Tax- A withholding tax of 1% of the predetermined amount or the assigned value of the property is charged, whichever is greater.
- Stamping Duty- It is 0.50 per cent of the prescribed value or the appraised capital value, whichever is greater.
- Registration Cost- The registration cost is typically 2% of the stated amount or the assessed value of the property, whichever is greater.
- Special Business Tax-The Special Business Tax is charged at a fee of approximately 3.30 per cent of the assets fee. In place of VAT, it is levied on the sale of immovable property.
- Fee for Legal Counsel- Legal expenses can be negotiated.