Buying a villa or condominium, freehold or leasehold, find everything you need to know to become a property owner in Thailand as a foreigner
Buying a freehold property is comparable to purchasing property in France, so you own your unit outright. However, it's important to note that you can't acquire just any unit. In a condominium, no more than 49% of the apartments can be sold or transferred to foreigners.
This is what is called the "Foreign quota". The remaining 51% represents the "Thai quota".
To avoid wasting your time unnecessarily, or even having to deal with unpleasant surprises, we can only advise you to use a reliable real estate professional, such as Obsido Immo, to secure your investment.
You will then have the assurance of obtaining a valid and indisputable title deed. You can then enjoy your property as you see fit, rent it out or resell it as you please.
The only difference from the practice in France is that the contract is not signed at a notary's office but at the Land Office in the presence of the seller and the buyer or their legal representatives (lawyers). You will then have to pay various transfer taxes. These can represent 5 to 7% of the property's value, depending on various criteria, such as the property's age.
This type of transaction is safe in Thailand, a country with a very clear regulatory framework for real estate. We simply advise you to keep your proof of purchase and bank statements confirming payment in foreign currency. Obsido Immo is here to help you make a sound investment.
In summary: Freehold ownership is a good option for a foreigner who wants to become a property owner in Thailand. However, it's advisable not to undertake this venture alone to ensure the investment is secure.
The experts at Obsido Immo are ready to listen to you.
The purchaser of a property under a leasehold agreement is a tenant, not the owner. The lease is for a long term of 30 years.
It is also renewable twice, according to the terms of the contract, thus allowing a lease right for a period of 90 years.
At first glance, this seems uninteresting compared to freehold, yet it can prove advantageous. Many developers offer more favorable rental terms for this type of transaction than for freehold units. This can translate into buyback guarantees at various timeframes. Another advantage is reduced registration fees. On a completely different note, it can also have tax benefits.
Since the property is rented, it does not form part of your real estate assets and is therefore not subject to taxation, if applicable. However, leasehold purchases also have drawbacks that are important to consider before committing. The main pitfall lies in the fact that the investor is "dependent" on the Thai individual or entity that owns the property.
This can be a disadvantage when transferring ownership of the property or in the context of an inheritance of the leasehold right, in particular. There are, of course, contractual guarantees on these points.
However, if the owner is an individual, they can only bind their descendants with their consent. It is therefore important to take precautions, for example, by requiring the owner's descendants to co-sign the lease agreement.
And if the owner is a legal entity, such as a company, it's best to take steps to ensure it's reputable, financially sound, and financially sound. Obsido Immo is available to assist you with your project.
In summary: Leasehold is an easy-to-implement and legally secure solution. It is also economical since registration fees are reduced. However, it is crucial to be very vigilant and obtain transparent guarantees regarding the lease and its renewal.
OBSIDO IMMO, YOUR DREAMS HAVE AN ADDRESS
As a foreigner, you can certainly own your house. However, you cannot own, in your own name, the land on which the villa was built or will be built. This is a disadvantage from the outset.
In fact, not really, since you have the option to lease the land for a long period (Leasehold), the maximum duration of which is currently 30 years, but the contract is renewable several times for the same duration (conditions to be defined beforehand with the landowner).
This rental agreement registered with the Thai administration (Land Department) cannot be cancelled without the agreement of both parties.
If a foreigner cannot own land outright, they can legally be a minority shareholder and director of a company that can own land. However, it is crucial to understand that in this case, the company must have genuine economic activity.
Creating a company with "fictitious" shareholders solely for the purpose of owning land is illegal in Thailand. As everywhere in the world, buying a villa therefore requires taking all necessary precautions before signing a contract. Don't hesitate to request that all documents be translated and to seek the assistance of a reliable and transparent professional. Obsido Immo is available to advise you.
In summary: A foreigner can own their villa in Thailand, but not the land on which it is built. It is therefore advisable to consult a Thai real estate expert to take all necessary precautions before signing the contract.
A foreigner can absolutely own an apartment in Thailand and use their property as they see fit. However, three conditions must be met:
These requirements make it inadvisable for a foreign investor to undertake an investment project alone. With Obsido Immo, you have the assurance of investing in a property that meets all regulatory requirements. Given its in-depth knowledge of the Thai market, your agency is also able to offer you a wide selection of properties to precisely meet your expectations and needs, within your budget.
Our portfolio of properties is particularly extensive: studios, spacious apartments, properties located near the beach or nestled in nature, residences equipped with amenities and services (swimming pool, concierge, rental management services, etc.). With us, you'll find the apartment of your dreams!
In summary : Becoming an apartment owner in Thailand is not only a very smart move, but also quite simple. However, given the rules to follow and the (reliable) information to gather, it's best to rely on the expertise of a local real estate agency like Obsido Immo.