Do foreigners need to know about the rules for purchasing real estate in Thailand?

Investing in real estate in Thailand

Foreigners looking to invest in real estate are increasingly turning their attention to Thailand, known as an ideal place for both personal living and rental opportunities. This country is becoming more and more attractive to potential buyers each year, thanks to unique offerings from developers that provide stable returns on investments.

As a result, there is a noticeable increase in the number of real estate transactions. For example, in the first nine months of 2023, foreign participants purchased 10,700 apartments, which is 38% more than in the same period of 2022.

The real estate market and the interest of foreign investors

According to available statistics, Thailand has established itself as a key player in the real estate market in Southeast Asia, attracting the attention of foreign investors. The majority of transactions are concentrated in appealing locations such as:

• Chonburi with the famous resort of Pattaya,
• Bangkok,
• The famous island of Phuket.

Legal aspects for foreign citizens

Speaking of legal aspects, it is worth noting that foreign citizens have the right to acquire any real estate in Thailand, including residential houses with attached plots. However, it is important to consider that the process of property registration has certain restrictions for non-residents.

Forms of property ownership in Thailand

There are two main types of property ownership in Thailand:

• FreeholdThis is the full right of ownership of an object. Thus, the owner gains the ability to sell, inherit, gift, and rent out their property. They hold a certificate of ownership, known as a chanot.
• LeaseholdThis is a temporary right of ownership, usually for a period of 30 years with the possibility of extending it for another 60 years. Although this form is a type of long-term lease, leasehold provides the owner with the same rights as freehold, such as the right to sell, inherit, or gift. The lease agreement must be registered and certified in the land department.

Acquisition of apartments and private houses

Foreigners can purchase apartments in condominiums under freehold conditions. These multi-apartment complexes have individual owners for each apartment, while the common areas are owned by all residents of the complex. In practice, developers can sell only 49% of the total residential space to foreigners; the remaining 51% must be arranged under a leasehold system.

When it comes to private houses, townhouses, or villas, buyers can register ownership either under the freehold scheme or the leasehold scheme. This creates numerous opportunities for foreign investors and contributes to the formation of secure and profitable transactions in this sunny and attractive corner of the world.

Conclusion

The active real estate market in Thailand continues to attract attention, contributing to the further development of this sector at the local level.

Features of real estate in Thailand

Real estate in Thailand has its unique aspects, especially when it comes to ownership structures. The main rule is that land and buildings can only be purchased by foreigners through a leasehold system. However, there are certain exceptions that allow foreigners to acquire land in full ownership – this requires the transaction to be conducted through a legal entity. It is essential that the condition is met whereby 51% of the company's shares must be owned by a Thai citizen.

Forms of ownership: freehold and leasehold

Different types of ownership have their distinctive features. For example,freeholdprovides the opportunity for complete control over the property for an unlimited period, which means that the owner can dispose of the real estate as they wish – sell, gift, or bequeath it.Lickhold, in turn, grants the right to use and manage the property for a period of up to 90 years and offers limited opportunities for transferring rights to this property.

Real estate price

The prices of real estate properties, depending on the different ownership systems, also vary significantly:

• Properties that are in freehold status typically cost about 10% more than those that are under leasehold arrangements.
• The registration tax for freehold is between 2% and 4% of the total property value, while for leasehold purchases, this rate is significantly lower at 1.1%.

The process of selling real estate

When selling real estate that is in freehold status, owners are not dependent on previous owners, which provides greater freedom and flexibility in conducting business. However, if the property is under leasehold, the sales process becomes more complicated, as it is necessary to sign the appropriate documents with the landlord, which can lead to a number of difficulties.

Acquisition of real estate through legal entities

When it comes to acquiring real estate through legal entities, there are two main approaches:

• Creating a new company. According to local laws, foreigners are allowed to own a maximum of 49% of the shares, so it is important to involve local citizens in the process to meet the required number of shareholders and ensure that decisions are made in the interest of the foreign owner.
• Acquisition of an already operating company that owns the desired real estate, with the transaction taking place through a change in the composition of shareholders.

Warnings when buying a business

Nevertheless, when purchasing an existing company, one should be extremely cautious: it is important to thoroughly investigate the company's history to avoid pitfalls such as hidden debts and liabilities that may transfer to the new owner. In recent years, local authorities have begun to tighten control over so-called "sleeping" companies that are not actually conducting business but hold assets. Legal loopholes are gradually being closed, and potential penalties for nominal shareholders can be quite severe, including prison sentences.

Recommendations from lawyers

Lawyers strongly recommend conducting transactions through companies only if you genuinely plan to do business in the country. It's also important to understand that owning property through a legal entity comes with additional costs:

• Company registration (from 2000 to 3000 dollars)
• Maintaining accounting (around 1000 dollars a year)

Be sure to consult with qualified professionals before making a purchase.

Residence rights in Thailand

Regarding the right to long-term residence in the country, it is important to understand that purchasing real estate in Thailand does not guarantee automatic receipt of a residence visa or citizenship. Such procedures require additional steps and the submission of relevant applications, which are not related to property ownership. Therefore, it is advisable to clarify all the details in advance to avoid unpleasant surprises in the future.

Visa requirements for property owners in Thailand

Property owners in Thailand should consider the specific visa conditions. The country has a program called Thailand Privilege, formerly known as Thailand Elite, which offers the opportunity to obtain a visa for a period ranging from five to twenty years with an investment of no less than25 thousand US dollarsMany construction companies in the luxury real estate segment offer their clients visa processing as part of the housing purchase through this program.

Responsibilities of property owners

It is important to note that even with property ownership, foreign owners do not automatically acquire the right to permanent residence in the country for the entire year. There are certain obligations that owners must fulfill, such as:

• The obligation to pay annual taxes.
• Payment of utility bills.

In addition, when registering property with the land management office, investors must pay one-time fees, which amount to approximately5 to 6% of the market valueobjects that are typically split in half between two parties — the seller and the buyer.

Duties of tax residents of Russia

Tax residents of Russia who spend more than183 days in a yearThey are also required to comply with certain obligations to the Russian tax authorities. In particular, they must notify about the existence of bank accounts in foreign banks or the establishment of foreign legal entities.

Real estate search

Searching for real estate in Thailand can be done in many different ways using open sources of information. Some of these include:

• Websites.
• Printed informational materials.
• Specialized exhibitions.

Exhibitions provide a unique opportunity to communicate with realtors, developers, and other professionals in the real estate field, allowing for on-the-spot expert advice. To gain a deeper understanding of the local market's specifics, it is helpful to study articles and keep up with the latest news about Thailand.

Real estate database

The availability of an extensive real estate database in this country is presented on various online platforms. Here you can:

• Sort the sentences according to the required criteria.
• Save the objects of interest.
• Subscribe to news updates.

Additionally, there is an option to submit a request for housing that meets specified criteria, after which realtors will provide a selection of interesting properties.

Do you need a realtor?

The question of whether to hire a realtor for those intending to purchase real estate in Thailand remains relevant. Typically, foreign citizens turn to agencies to search for and arrange the purchase of housing. Although hiring a realtor is not mandatory, it is not always wise to ignore their services, as often the commission fees for the agent's services are borne by the seller, especially in the primary real estate market. This confirms that the demand for professionals in this field remains relevant and justified.

The role of a realtor in real estate transactions

Understanding all the nuances of real estate transactions can be quite complex, and knowledge of the Thai language becomes essential for successful communication with various organizations. In this situation, the role of a realtor is exceptionally important. This specialist is responsible for many key tasks, among which the following stand out:

• Searching for real estate properties that meet the client's requirements.
• Organization of viewings for selected properties.
• Conducting negotiations with the property owner regarding the price and terms of the deal on behalf of the buyer.
• Determining the order and deadlines for completing the transaction.
• Preparation of all necessary documents and agreements, as well as checking the properties for any possible encumbrances.

Choosing real estate in Thailand

A crucial step when buying real estate is compiling a list of verified companies, including real estate agencies and construction companies in Thailand. The options available are diverse. For example, it's worth paying attention to villas that are available for purchase.

Villa in Samui

One of the attractive options is a villa on the island of Samui, which is priced at415,000 eurosThis is a spacious living area, with an area of700 m²located in a picturesque jungle area. The villa is situated in a quiet neighborhood of Mae Nam, just ain 10-20 minutesby car from the center with its diverse entertainment life, supermarkets, as well as inin seven minutesfrom a wonderful beach with white sand and coconut palms. It is the perfect place for those seeking solitude and a connection with nature.

Villa in Phuket

Another attractive option is a villa in Phuket, which costs1,655,201 eurosThis house has an area of591 m²It includes five bedrooms and is beautifully located on the shore of a picturesque lagoon. Nearby, there are shops, a beach, and leisure facilities, creating a comfortable living environment. The lagoon fills the space with fresh air, adding sophistication and tranquility to everyday life.

Apartment listings in Phuket

Don't overlook the apartment listings in Phuket. For example, an apartment in a residential complex priced at414,536 euros, with an area of103 square metersThis project includes two bedrooms and one bathroom. Launched in December 2022, it offers the opportunity to purchase apartments at the initial stages for more favorable prices. Some apartments stand out with their unique features, such as private pools and spacious terraces, which will be a great place to relax.

Studios and apartments

Additionally, it is worth considering the offer for the apartments priced at68,150 eurosThis is a studio apartment located in Phuket. It is in a modern residential complex that offers all the necessary amenities for comfortable living. The complex consists of several eight-story buildings and includes:

• A large swimming pool with a children's area.
• Fitness center.
• Tennis court.
• Spa salon.
• Restaurant.

This is the perfect space for those who prefer an active lifestyle and the conveniences of modern residential complexes.

Luxury house in Phuket

To conclude our review, we present a luxurious house in Phuket, which is priced at1,010,000 eurosThe total area of this property is407 m²It includes three bedrooms. The complex is located in the prestigious Bang Tao area and consists of nine single-story premium villas, offering a high standard of living and comfort.

Conclusion

When making a real estate purchase in Thailand, a key factor is choosing a reliable realtor who can assist at all stages, from finding the right property to handling all the necessary paperwork. When investing in real estate, it is crucial to consider not only current prices but also the potential for increasing investment value in the future. This multifaceted process requires patience and a deep understanding of the local market's nuances. Therefore, collaborating with professionals ensures a successful and comfortable completion of the real estate transaction in Thailand.

Unique villas with modern design

Each individual villa, hidden under modern roofs with unique geometry, offers stunning guest and dining areas with high ceilings, as well as a cozy kitchen fully equipped with all necessary appliances. Investing in such real estate in Thailand looks appealing.

An example of an attractive investment

An example of this is a studio from Mercury Group in Pattaya priced at €54,082. This apartment, with an area of 24 m², is perfect for both permanent living and rental, providing an annual yield of about 8%.

• The terms of purchasing real estate allow for payment in rubles.
• Installment payment options are available.
• High-quality technologies and finishes make this apartment fully ready for occupancy.
• It includes all the necessary furniture and appliances.
• The nearest beach is just 100 meters away.

Seven Seas Cote d'Azur

Seven Seas Cote d'Azur is yet another magnificent project by Universal Group Thailand, developed in a condominium format. This residential complex combines the very best, creating ideal living conditions for its residents.

Luxurious villa on Bang Tao beach

The DDA Real Estate complex offers a luxurious villa on Bang Tao Beach, priced at €726,702. The total area of this exquisite home is 323 m², featuring 4 bedrooms and 3 bathrooms. The villa includes a swimming pool measuring 3.80 by 8.80 meters.

This project consists of 12 exotic villas in Balinese style, each designed to create a comfortable and spacious living environment for a fulfilling life.

Apartment in Phuket

An interesting option is an apartment for sale for €131,867 on the island of Phuket. The area of this apartment is 35 m², and it includes one bedroom.

The complex where the apartment is located is renowned for its popularity among tourists and is situated incredibly close to Kata Beach, providing convenient access to the local infrastructure.

• restaurants
• massage parlors
• stores
• markets

Luxurious apartments in Pattaya

In addition, Villas offers luxurious apartments in Pattaya for €708,454. These stunning villas are located in the The Ozone Lagunia complex, just 5 minutes from Bangtao Beach, known for its elite beach clubs like Xana Beach Club and Dream Beach Club. There is also a golf course nearby that hosts international tournaments.

Apartments in Bangkok

For those looking for housing in the capital, it's worth considering the apartments in Bangkok from Azure Home Co Ltd, offered for €368,269. This spacious accommodation has a total area of 141 m², featuring two bedrooms and two and a half bathrooms.

This apartment offers a high potential rental income, as there is a stable flow of tenants at 30,000 baht per month, with a fixed parking space and a six-year contract.

Apartment in the center of Phuket

Another attractive offer in Phuket is an apartment with an area of 39 m², priced at €200,000. It is located in the very center of the island and is perfect for both vacationing and permanent living, or as an investment property.

Thanks to their prime location and high standards of comfort, these apartments will be an excellent choice for numerous buyers. In summary, the real estate market in Thailand offers a variety of attractive options for living or investment, suitable for any budget and preferences.

General overview of the complex

In the heart of Phuket, there is a complex that provides easy access to a variety of cultural and entertainment venues. Mercury Group offers the opportunity to purchase apartments on this picturesque island at a price183,779 €where the total area is54 square metersThe project includes two buildings, each with six floors. You have access to spacious apartments that can be chosen with one, two, or three bedrooms — such an option is perfect for living on this island with its unique nature.

Infrastructure of the complex

Four different zones have been created within the complex:

• Leisure spots
• Gastronomic corners
• Sports grounds
• Business centers

The business hub allows for convenient meetings, bank transfers, and productive work in a comfortable environment.

Apartments in Bangkok

The company Exotic Property offers exclusive apartments in Bangkok for334,458 €with an area41 square metersThese residential units can include three bedrooms and two bathrooms, and they also offer the possibility of obtaining citizenship through an online viewing and remote transaction.

These apartments would be an excellent choice for those who prefer an active lifestyle in the popular Thonglor area, known for its vibrant atmosphere and appeal to urban life enthusiasts.

Investment opportunities

This is an extremely profitable investment with high rental demand and returns from5%Moreover, there is an option for installment payments, and a stunning panoramic view of Bangkok is available. Park Origin Thonglor offers a variety of amenities that contribute to creating a comfortable and stylish atmosphere for its residents.

Apartments on Koh Phangan

In addition, DDA Real Estate offers an attractive apartment on Koh Phangan for70,739 €, with an area of38 m²This apartment includes two bedrooms and one bathroom. Additionally, there is the option for online viewings and remote transactions with payment in rubles.

Unique apartments on the bright and sunny island of Phangan are an excellent investment option, offering a return of7%Notably, they are just a few steps from the beach and fully furnished, which makes them particularly attractive. The company7 Palmoffers conditions for a secluded getaway near one of the most beautiful beaches, where white sand and picturesque coves create the perfect setting to enjoy nature.

Stylish apartments in Phuket

If you are looking for stylish and modern apartments in Phuket, DDA Real Estate offers another great option at a good price.112,158 €and an area of33 square metersHere you can find one-bedroom apartments that perfectly blend with coziness and comfort, making them a great choice for relaxation.

These apartments are located just a few minutes from Kamala Beach, which also provides convenient access to shopping centers and local attractions.

Luxury apartments from Habita International Estates Ltd

In addition, Habita International Estates Ltd offers luxury apartments in Phuket at a price1,850,000 €, with a total area of215 m²Discover a true oasis of luxury and effortless elegance in tropical Phuket.

This new living space will become your ideal sanctuary in a minimalist style, harmoniously blending into the idyllic landscapes and the soothing waves of Bang Tao Beach. This hotel-residence is located on the central west coast of Phuket Island and is the first and only of its kind, offering its residents a unique experience.

Villa in Phuket from Mercury Group

A villa in Phuket, offered by Mercury Group, is available for 400,000 euros and has an area of 190 square meters. It is part of an elite residential complex consisting of private villas with their own pools, set in a picturesque tropical environment in Thailand. If you are interested in this property, contact Mayalanya, where a similar villa is priced at 366,000 euros.

The location of the complex is favorable — just a 10-minute drive to Phuket Airport. The project includes stylish townhouses designed in a Japanese style, situated in the Thalang area, surrounded by beautiful nature and the majestic mountains of the island.

Legal services of law firms in the real estate sector

In most cases, law firms that specialize in real estate issues offer a wide range of services related to various aspects of buying and selling properties. The main services include the following:

• Analysis of the legal status of the land plotThis includes information about the owners and any possible encumbrances. The starting cost for such checks is approximately 700 US dollars.
• Research of the selling companyto determine who has the right to represent its interests. Important issues such as the composition of the founders, the amount of authorized capital, and other critical details are also assessed, and such a service will cost approximately $700.
• Detailed analysis of the contract termsAdjusting any changes and coordinating all details with the seller. This costs about 500 dollars.
• Registration of a transaction in the land cadastre– this is yet another important operation that will cost at least 300 dollars.

Primary and secondary markets

In the primary market, clients typically limit themselves to just checking the contract, whereas for secondary housing, a thorough legal review becomes necessary, and it is most often requested by the buyer. This investigation can be conducted either before the deposit is made or after, depending on the agreement between the parties.

Legal verification in the secondary market

When purchasing an apartment or house on the secondary market, it may also be necessary to assess the legal purity. Usually, one to two weeks after the deposit is made, the buyer receives a preliminary contract from the seller for review and discussion of the terms, especially if the seller is a developer.

In the case where the transaction takes place on the secondary market and one of the participants is an individual, a preliminary agreement is often developed by a law firm or an agent. This document outlines all the characteristics of the property, its prices, and the terms of the transaction. It also mentions all expenses related to the registration and maintenance of the property, as well as possible penalties in case of violations of the contract terms.

In addition to such an agreement, copies of identification documents from both the seller and the buyer are attached, as well as documents confirming ownership of the property.

Financial aspect of the deal

The next stage of the deal involves the financial component. Various payment methods are available in Thailand, depending on the type of market.

• In the primary marketFunds are transferred to the bank accounts of the developers specified in the contract. The payment can be made from the buyer's bank account, regardless of which financial institution it was opened in; the main condition is that the account must belong to the buyer.
• Use of a legal entity, whose founder is the buyer, for making payments.
• Cash transactions and cryptocurrency- also common payment options.
• Customers can make payments through Russian banks....that are not subject to sanctions, but it is necessary to consider the requirements of currency control and possible delays.

Conclusion

As for the secondary market, it will be necessary to open a bank account in Thailand, to which funds will be transferred from the buyer's bank account in their country or elsewhere. Ultimately, buying and selling real estate in Thailand involves many key stages, each of which requires a carefully considered approach and relevant professional knowledge. This will help avoid unpleasant situations and ensure the successful completion of the entire transaction.

During the property registration process at the land office, the buyer hands the seller a receipt for a previously agreed amount. It is important to note that citizens from other countries can open accounts in locally based banks. To do this, they will need to provide a purchase agreement for the property. In some cases, it is sufficient to show one of the long-term or tourist visas. Complete information about the process of opening a bank account in Thailand can be found in our specialized guide.

Features of real estate registration

It should be noted that when acquiring property under freehold (full ownership), the funds must come from abroad. This detail is checked when processing the transaction at the land office. To confirm the legality and purpose of the funds, the Thai bank receiving the international transfer issues a special FET certificate. This document certifies the legality of the payments made for the purchase of a specific property. In the case of leasehold (long-term rental), the payment process can be carried out in various ways.

Registration of property rights

The final step is the registration of property rights. All actions related to the registration of apartments and houses are carried out at the land office, where the staff do not always speak English, and all documentation is prepared in the local language. For this reason, many foreign buyers prefer to bring local agents with them to simplify communication. When it comes to purchasing property on the primary market, the transaction is often registered by a representative of the construction company based on a power of attorney from the buyer.

On the day of signing the agreement at the land registry, the buyer receives a package of documents that depends on the type of property. For example, when purchasing an apartment that is being transferred to free ownership, the new owner receives the following documents:

• Sales AgreementIn Thai language, which is prepared in a standard form, indicating the full name of the new owner, information about the property, as well as the signatures and seals of the responsible persons.
• Land title (Chanote)a document confirming the right to the land under the house. On one side of the document, there is a layout of the plot, and on the other side, there is a history of all transactions made with this plot.
• House Book (Blue Book), containing information about the apartment's features and its address.

Each of these documents is significant for confirming ownership rights and is necessary to ensure the legal status of the owner. Therefore, during the transaction process, it is important to carefully monitor the accuracy of all document preparations and consider all nuances to avoid problems in the future.

Results

The process of acquiring real estate in Thailand may seem like a daunting task, especially for first-time buyers. However, with a knowledgeable approach and the assistance of experienced professionals, this procedure can be successfully navigated. The key is to pay attention to details and strictly follow the established rules to ensure the safety of your investment in international real estate. Remember to thoroughly check all aspects at every stage of the transaction to avoid any unpleasant surprises.

This way, you will be able to minimize risks and ensure peace of mind for the future. By following these recommendations, you will create a solid foundation for successful investment in real estate abroad, which is a significant step towards financial prosperity and security.

Life in Bangkok and Moving to Thailand

Life in the capital of Thailand and the question of moving to Southeast Asia have always sparked genuine interest among many people. Moving to Thailand promises a wealth of new experiences and encounters with exciting moments. However, before becoming part of this unique culture, it's important to consider several key aspects and features of the local way of life that one will need to get used to.

Personal Experience in Phuket

My personal experience living in a house for foreigners in Phuket has given me a wealth of knowledge about everyday life on this unique island. More than fifteen years spent in Phuket have allowed me to appreciate the pros and cons of living in this popular resort area. Stories from Russian-speaking emigrants in Thailand vary, but they are all filled with interesting details and personal experiences.

Remote Real Estate Purchase

Modern technology opens up opportunities for remote real estate purchases in Thailand. If you are considering buying property, there is no longer a need to be in the country to complete the transaction. Streamlined processes based on internet technologies allow transactions to be conducted without physical presence. The process of purchasing new construction involves several stages.

Stages of acquiring real estate

• First, you should choose a property that interests you. This can be done either on your own or with the help of a realtor.
• Then it will be necessary to make a deposit for reservation, which is a mandatory step in this process.
• After that, the first payment should be made according to the already signed reservation agreement.
• The next step is to finalize the main contract, which will be sent to the buyer via an international courier service.
• This document will serve as the basis for all subsequent payments.

Throughout this process, up until the final payment, it is not necessary to be in Thailand at all. However, it is recommended to visit the country once the construction is completed in order to take possession of the property. The main thing is to obtain all the necessary documents.

Obtaining a Certificate of Ownership

When the property is ready for use, the buyer will need to obtain a certificate of ownership. It is preferable to do this in person, although it is also possible to arrange for the documents to be obtained remotely. To do this, it is necessary to contact a notary in Russia, issue a power of attorney to a local lawyer in Thailand, and then translate it into English and notarize it. It is important to note that the certified translation into Thai must be prepared by a lawyer working at the agency.

Adaptation to Pandemic Conditions

In the context of the 2020 pandemic, when many borders were closed, Thai real estate agencies adapted and developed remote sales schemes that continue to operate successfully today.

Additional Expenses When Buying Real Estate

It is also important not to forget about the additional expenses that arise when purchasing real estate. Tax obligations include a one-time registration fee, the amount of which depends on the type of property being purchased (whether it is an apartment or a house) and the form of ownership (leasehold or freehold).

Responsibilities when buying an apartment and renting

• If you are planning to purchase an apartment in full ownership, you will only need to pay the transfer tax, which amounts to2% of the estimated value.
• In cases of long-term rental, it will be necessary to take into account the fee for registering the rental agreement in the amount of1%and the stamp duty in the amount of0.1%from the contract value, which will ultimately amount to1.1%.

In addition to this, it is important not to forget about the realtor's fee. However, it is worth noting that realtor services are typically not the responsibility of the buyer: the commission is charged to the seller, which helps to reduce the financial burden for those purchasing property in Thailand.

Choosing real estate in the secondary market

In a situation where a detailed and professional approach is needed for selecting real estate in the secondary market, it is important to discuss the terms of service and commission rates with your agent.

The role of a lawyer in real estate transactions

As for the work of lawyers, their assistance is usually not required when purchasing properties in the primary market. This is due to the standardization of contracts and the fact that payments are made directly to the developer's account, which in turn handles the registration of property rights.

However, if your preference lies in the secondary market, the services of a lawyer become almost essential. This specialist will play a key role in preparing the purchase and sale agreement, conducting calculations, and registering rights to the property. Typically, such services will cost around one thousand dollars.

Language barrier

The language barrier can also significantly impact the process of acquiring real estate. Foreign citizens often turn to agents who assist not only in negotiations but also in communication with lawyers. Major developers often have teams of Russian-speaking specialists who handle the translation of necessary documents, which reduces the need to hire external translators.

One-time payment for new buildings

There is a one-time payment that needs to be made when purchasing a new building, and it is collected by the management company. These funds are directed to a reserve fund for capital repairs and are usually charged to the first buyers. The amount of this contribution ranges from $15 to $25 per square meter and applies only to properties in the primary market.

Market analysis of real estate in Thailand

When considering the real estate market in Thailand, it should be noted that according to local bank data, housing prices in the country are showing moderate growth amid increasing demand. In the third quarter of 2023, property prices rose by 3.3% year-on-year, taking inflation into account. On the island of Phuket, this trend is continuing with even greater intensity.

Price range of real estate

Real estate prices vary significantly and depend on the location and quality of construction. For example:

• On the secondary market in Pattaya, you can find a studio for 30 thousand dollars.
• Villas on the coast of Phuket can reach up to 10 million dollars.

Factors such as proximity to the coastline also significantly affect property prices.

Mortgage and installment plans for foreigners

It is noteworthy that foreign citizens in Thailand cannot expect to obtain mortgage loans from local banks. Despite this, many developers offer installment payment options. Typically, an interest-free installment plan is provided during the construction period, which can last from one to two years.

In such cases, the payment schedule will be outlined in the contract, and payments are made upon the completion of key construction stages. Some developers offer even more flexible terms and financing; in this case, the buyer needs to pay 50% of the property's cost, and this amount can also be paid over the construction period.

Conclusion

In conclusion, buying real estate in Thailand not only represents an opportunity to invest in a promising market but also offers a chance to acquire a unique place for relaxation or business activities.

Against the backdrop of growing interest from foreign investors, we, as potential buyers, should carefully examine all aspects of the acquisition process, including rights and obligations, forms of ownership, and the nuances of local legislation.

The importance of consultations

I emphasize that it is important not to overlook the value of consulting with experienced lawyers and real estate agents, who can provide invaluable assistance at every stage of the transaction. Understanding the differences betweenfreeholdandlizardThe possibility of purchasing real estate through a legal entity can significantly influence your decision.

Residence permit rights

Don't forget that while purchasing real estate will allow you to enjoy the beauty of this amazing country, it does not automatically grant you the right to residency or citizenship. Therefore, it is essential to first determine your priorities and goals.

Real estate market

Regardless of whether you intend to use the property for personal use or for renting it out, it is important to keep in mind the impact of the local market on the value and liquidity of your investment.

• Taiwan continues to remainone of the most attractive countries for foreigners looking for housing outside their homeland.
• With the confident growth in sales volumes, this attraction will continue to grow.
• Decision to purchase real estateMoving to Thailand could be one of your best decisions.