Acquisition and Taxation in Thailand

Thai banks do not lend money to foreigners. It might be possible if you have resided in Thailand for many years and have a regular income there. The solution is then to contact your usual bank in your country of residence. In France, banks are generally hesitant to finance real estate abroad (over which they have no control), but everything is negotiable, especially if you already own property.

There's no problem with that. You just need to discuss it with your banker to determine the best way to secure the transaction. Your Obsido Immo advisor will also be able to advise you on this.

In Thailand, there is no inheritance tax below a certain threshold, currently 100 million THB (approximately 3 million euros). Above this threshold, taxes are payable, but they are much lower than those in France, around 5%.

No, this tax does not exist in Thailand. Depending on the city where your property is located, a garbage collection tax may be mandatory. In most cases, it amounts to a few tens of euros per year.

As soon as you receive rental income in Thailand, you must declare it to the Thai tax authorities and pay the corresponding income tax. The system is similar to that in France (but the rates are lower). You will therefore not pay taxes on this income in your country of residence if it has signed a double taxation agreement with Thailand. This is the case for France. However, you must declare this income to the tax authorities.

Good question, because you have every chance of making a significant capital gain! Thailand doesn't have a heavy capital gains tax, unlike France. A low tax of 20% applies, which is then reduced by a series of allowances based on the number of years the property is owned. After calculations, the capital gains tax is generally around 10%. In some cases, you're even exempt from payment. Another advantage is that you're not taxed in France thanks to the tax treaty between France and Thailand. You'll therefore make a very profitable investment by buying real estate in Thailand and reselling it a few years later.

No, because in Thailand, agency fees are always paid by the seller. They are therefore included in the advertised sale price of the property.

There isn't one for the simple reason that the profession of notary, as it's understood in France, doesn't exist. When signing your contract, you must go to the Land Department, which is the equivalent of the land registry in France, accompanied by the seller. You can be represented by your lawyer, for example. You will then have fees to pay; their amount depends on the property and the type of investment (see registration fees).

The amount of taxes differs depending on whether you invest in a leasehold or freehold property. In a leasehold, these taxes amount to 1.1% of the value declared in the lease agreement. In a freehold, the taxes are higher (between 5% and 7%) of the property's value. Several criteria are taken into account to determine the rate: the age of the property and the length of time the seller has held it.

The property development and/or hotel management company that pays you guaranteed rental income deducts a "withholding tax" from this amount. This tax varies between 3% and 15%, depending on the circumstances. It can be compared to a "withholding tax" and is not specific to real estate. It also applies to salaries, for example. Whenever a company makes a payment of taxable income to another company or an individual, it must deduct a percentage of the payment and remit it to the tax authorities. In other words, the payer is essentially paying income tax in advance, instead of the recipient. You can then deduct these payments from your annual taxes.

As in a French apartment building, co-owners of a condominium must jointly pay the expenses related to the operation and maintenance of the building's common areas, proportionally to the size of their unit. These condominium fees are called "maintenance fees." The principle is the same if you own a villa in a private development. The amount of these fees depends, of course, on the services provided and the shared amenities: swimming pool, security, maintenance of green spaces and gardens, etc.

Once you start receiving rental income in Thailand, you must open a bank account there. You will then be able to transfer funds from your Thai bank to your French (or other foreign) account. Your real estate agency can advise you on banks that offer this service; some even allow you to easily make transfers via smartphone using an app.