Looking to buy property in Phuket?

If so, are you feeling a certain level of uncertainty or confusion? 

You’re not the only one. Lots of investors feel an initial apprehension and lose their way when investing in a foreign country.

This blog is making sure you’re fully aware of the top ideas to consider when buying Phuket Property so you know your way around your buying process.

1. The agent-lawyer search

Amongst the most important aspects of buying Phuket property is the agent you choose. You real estate agent has to be trustworthy and reputable and be capable of guiding you through the whole buying process. Trouble is, there are so many agents nowadays to choose from, good with the bad, the fake with the real.  Look for an agency with a history of success, ideally more than 3 years. A good agent helps you across every hurdle you face and guides you through the whole process, starting to finish as opposed to staying for the initial part of the deal and running off after their commission has been received. This is important as you not only need your agent to negotiate and keep you updated on progress of the development, you also require them to take care of registration details post the sale. With legal matters, the agent usually has good opinions to share and can handle some groundwork in the sale and purchase contract, but you need a qualified lawyer to handle legal matters. The situation with law firms in Thailand is very similar to real estate agencies- there are many, but not all are trustworthy. A good, qualified lawyer has experience with international clients and must know property law. Your agent should be able to introduce you to law firms who offer quality services which are worth the cost. With an agent who knows the property and a lawyer who is capable of owning the due diligence procedures, you are well on your way to investing in Phuket property.

2. Location

When you buy property for investment and not to reside in it, you need to make sure the property hits a few key objectives and expectations. While there are many who can mislead you into believing in a pipedream,  you need to stay grounded and be practical about aspects of your property such as

1. Can you sell the property in a given timeframe and still hit profit?
2. Can you find GP Surgeries and hospitals close by?
3. Can you find retail outlets for food and entertainment nearby?
4. Can you find schools and colleges nearby?

If the answer to these questions is a reasonable yes, then you have chosen a valuable property which will pay off.

3. Tax

Thailand has a few unique rules when it comes to foreign investment.But before you invest, look into the tax rules in your homeland as you don’t want the frustration of double tax payment- ever.

You pay the following taxes when you invest in Thai property

1. Registration tax- If you choose the Freehold option in ownership, you pay 6.6% of the total value. In case you choose a leasehold, it’s 3.3% you need to pay. Registration tax adds up in 3 ways- stamp duty, administration tax and transfer fees. The details of who pays these taxes are not clear cut and it usually comes down to the contract agreements made between buyer and seller. Sometimes, the buyer pays, sometimes the seller pays and sometimes they share the monetary burden.
2. Income tax- If you are renting out the property you own, you will need to pay tax for that income, usually charged at 15%.
3. Capital gains tax- Capital gains tax is levied when you sell immovable property and is charged at the normal income tax rates. The capital gains referred to is the selling price or market value of the property excluding deductions. These deductions are in the form of percentages which are based on factors like how long the property was held prior to the sale or transfer. The tax can be added for the aggregate income or taxed separately, in which case the tax liability is subject to a special calculation and the maximum rate that can be applied is 20%. 

Conclusion

Now that you have a fair idea of the tax laws in Thailand, are you interested in investing in Phuket property? If so, IbgProperty.com is your one-stop solution for all your Phuket real estate buying, selling and renting needs. Hop on to our website today and make your passive income dreams come true!