HOW DOES THE PROPERTY PURCHASE PROCESS WORK IN THAILAND?
Step-by-Step Guide for Foreign Buyers:
1. Property Selection (1-4 weeks)
Key considerations:
– For condos: Verify foreign quota (max 49% of building)
– For houses/villas: Clarify land lease terms (standard 30+30 years)
– Check neighborhood infrastructure (transport, schools, clinics)
2. Legal Due Diligence (3-7 days)
Required documents:
– Resale properties: Original Chanote (land title), debt-free certificate
– New developments: Builder’s EIA license, escrow agreement
Verification includes:
– Plot boundaries matching Chanote
– Existing encumbrances (mortgages, lawsuits)
– For land leases: Lessor status and contract terms
3. Reservation & Deposit (1 day)
Amount: 10-30% of property value
Document: Preliminary contract specifying:
– Transaction timeline
– Deposit refund conditions
– Penalties for both parties
4. Documentation (7-14 days)
For condos:
– Sign sales contract at Land Office
– Transfer funds through Thai bank (mandatory for foreigners)
– Receive Tabien Baan (house registration)
For houses/villas:
– Register land lease at Land Office
– Separate structure ownership agreement
– Verify construction permit (if new build)
5. Property Transfer (1 day)
– Receive keys
– Inspect utilities and property condition
– Arrange insurance (recommended)
Special Considerations for Foreigners
1. Ownership Restrictions
Permitted:
Condos (max 49% foreign ownership per building)
Commercial property (via BOI or Thai company)
Partial Ownership:
Houses/villas (structure only – land lease required)
Prohibited:
Direct land ownership (leasehold only, max 30+30 years)
2. Financial Requirements
Funds transfer:
– Must use Thai bank with “property purchase” purpose
– Source of funds verification required (>$50,000)
Taxes:
– Purchase: 2% transfer tax + 0.5% stamp duty
– Land lease: 12.5% annual rental tax
3. Alternative Options
Thai company:
– Allows land ownership (51% Thai shareholders required)
– Annual audits mandatory
Long-term visas:
– Elite Visa ($15,000+) grants 5-20 year stay
– Enables Thai bank account opening
Recommendation: First-time buyers should consider liquid condos with professional management. Houses/villas require deeper local market knowledge.
Need assistance? Our legal team provides end-to-end transaction support with document verification guarantees.
