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Condominium Act

According to the condominium act, as a foreigner you can own 100% of the condominium unit. 49% of units available for foreign freehold ownership in every condominium. Other 51% shall be owned by thai citizens or Thai companies LLC. 

But, if foreigner wants to buy a condo at the condominium, where the 49% quota was exceeded, they can apply for a leasehold. Which exactly means a lease of the property, usually lease period is 30 years with 2 extensions, means 90 years in total. We call it protected lease – because it considered as a legal right to use the property within this time.

Here are some of the visa options:

Thailand Investment Visa

Should you wish to purchase a property and stay up to three months, this is the option for you. This option is perfect for those who would want to invest a minimum cash amount of  10M THB in Thailand combined with any of the three options below:

Purchase a freehold or leasehold condo with the minimum value of 10THB in cash (approximately 315,000 USD) with an intention of keeping the property for a minimum of 3 years or more.

A deposit payment into a Thai government backed or Thai state enterprise bonds.

A deposit payment into a Thai Bank account in the form of fixed-term deposit.

What’s more attractive about this option is it does not have any age limit and could even be renewable after a year. However, make sure that you first comply with all the legal requirements such as doing due diligence before you officially avail of this service. 

Thailand Elite Visa

Another option is the Thailand Elite Visa, a government-supported initiative aimed at helping individuals whose goal is to stay in Thailand for 1 to 20 years. To avail of this type of visa, please take note of these packages:

First entry level package. Payment of at least 500K THB (just under USD 16000) where foreigners are allowed entry and a five-year period residence anywhere in Thailand.

Second level package. Payment of around 800K THB with up to 10 years of residence

Third level package. Payment of around 1000000M THB which is the 20-year residence

These options may have added features for family members and choosing higher packages could even have additional perks including  spa treatments, activities and other added benefits.This visa requires upfront payment for anyone whose age is from 20 and above.

Retirement Visa

For most foreign nationals whose choice is to have Thailand their home as they retire, the obvious and most common choice is the retirement visa. One of this visa’s most-loved and known features is how it could be extendable on an annual basis. To avail of this, here are some requirements:

Only eligible are individuals whose age is 50 and above, and who have successfully passed specific criminal, health, and background checks.

Visa applicants must also provide proof of sufficient funds to support themselves while in the country. Documents such as either a regular monthly income of over 65,000 THB or a lump-sum savings of 800K TBH amount shall be required.

You will also have to certify your financial statements through your country’s embassy.

1) Withholding Tax- This expense must be paid by the dealer of the property for a juristic individual 1% of the aggregate sum must be paid. For an individual 3% to 5% of the aggregate sum must be paid.

2) Transfer Fee- This expense must be paid by the Buyer of the property. It is 2% of evaluated esteem. If you have bought a new property then you won’t have to pay or worry about this Tax.

3) Stamp Duty- This expense is 1 Thai baht of each 200 Thai baht of the worth or 0.5% of the evaluated worth and is to be paid by the Seller.

4) Business Tax- 3% of the surveyed worth and it is to be paid by the dealer. In case you’re the purchaser you’re required to pay around 30,000 baht to 100,000 baht on legitimate charges. A portion of the costs may be negotiable.

5)Property Annual Tax- The Thai government introduced the new Land and Building Tax Act B.E. 2562, which has been in effect since January 1, 2020.The tax rates on properties were previously assessed on an income-based method. The Act replaces this method with an assessment based on the property’s appraised value. For maximum tax rate in Thailand for residential is 0.3%

6)Extra Expenses- Some extra expenses that you might have to pay are the registration cost which will be paid by the seller of the property. The registration cost is around 2% of the total amount. An average extra expense for the buyer is around 2% and for the seller the average is around 9-10%. These are some extra expenses you will have to see through.

So, this is the most often question we get from our client – that’s why we decided to create a special report for you to make it very clear and simple.

All foreigners, who want to apply for finance we can split into 2 main categories:

People with Thailand Residency – it can be a Long Term Visa, work permit and income source in Thailand. These people have a Thai Tax ID.

Foreigners who love Thailand and come here for holidays, maybe for a few months and they don’t have any income sources in Thailand and don’t pay any taxes in Thailand.

1.Bank mortgage.

People with permanent residency can try to apply for a Bank mortgage in Thailand. Theoretically, there is an option for people who have a decent and stable income for 2 years before application. Also, the applicant should have a Work permit in Thailand which allows having a job. There are a few banks, who offer mortgage service for foreigners in Thailand

UOB Bank interest rate is 5,5 – 7%

ICBC Bank interest rate 5,5 – 6,5%

For foreigners without income in Thailand: Not possible.

2.Financial institution.

There is one big company in Thailand, which provides a very special service to provide a mortgage service for foreigners. The company name is MBK Guarantee. 

Almost anyone can apply for a mortgage with the following terms:

50% Down Payment

Only Foreign freehold condominium

Prove of income for last 2 years

The interest rate is 8,5 – 9,5%

3.Buying property with a special installment from IBG Property. 

Our company’s special project can help you to apply for finance for certain properties up to 8 years of special installment with a low interest rate of 3-5%. Contact us for details.

Research the developer and their previous developments. This will not only help you with the developer’s financial standing (going with established developers is always more advisable) but can also help you get a feel for the aesthetics of your development, if similar to previous builds.

Research the Final Product – when looking into the developer look at previous builds and compare the outcome to their promotional materials. How accurate of their renderings?

Clear terms – make sure what you are getting for your money is clearly laid out.