Buying Property in Thailand

Can foreigners own property in Thailand?

Yes! According to Thailand’s Condominium Act, foreigners can legally own condominium units under a freehold title in their name. However, ownership of land or land plots is restricted. Foreigners can acquire land through a long-term leasehold agreement or by setting up a Thai company. You can find more details in our comprehensive guide on property ownership in Thailand.

What taxes apply when purchasing property in Thailand?

The taxes depend on the type of property. When purchasing a condominium unit from a developer, the following taxes typically apply:

• Specific Business Tax (SBT) – 3.3%
• Withholding Tax – 1%
• Transfer Fee – 2%

In total, the combined tax rate is 6.3%, but in most cases, the buyer pays only 1-2%, with the remaining portion covered by the developer.

For properties purchased under a leasehold agreement, buyers must pay a lease registration fee of 1.1%.

Are there annual property taxes in Thailand?

Yes, but they are minimal. In 2019, the Thai government introduced the Land and Building Tax, which currently does not exceed 0.1%. Properties below a certain value used as a primary residence may be exempt from taxation.

What is a sinking fund and common area maintenance fees?

• Sinking Fund – A one-time payment made upon property handover to cover major future repairs and improvements. For instance, if a common area facility, such as a swimming pool pump, needs replacement, the cost is covered from this fund.
• Common Area Maintenance (CAM) Fees – An annual fee paid in advance for the upkeep of shared areas. These fees cover expenses such as security, cleaning, electricity for common areas, and general maintenance.

Both fees are typically calculated based on the unit’s size (for houses, the land area may also be considered), though fixed amounts may apply in some cases.

Can I rent out my property for investment purposes?

Yes! You can manage rentals independently or hire an agency. Many developers offer rental management services, which is common in resort areas where properties often operate under hotel-style management. Read more in our dedicated rental guide.

What is a leasehold agreement?

A leasehold agreement is an alternative to direct ownership when purchasing land or properties in Thailand. Lease agreements are typically structured as 30-year contracts, with the possibility of two extensions, allowing for up to 90 years of leasehold tenure. Leasehold arrangements are commonly used for purchasing land, villas, and properties in condominium projects where the foreign quota has been filled.

Can foreigners get a mortgage in Thailand?

Generally, Thai banks do not provide mortgage loans to non-residents. However, there are limited exceptions and alternative financing options available. Contact us for further details.

Do I need a Thai bank account to buy property in Thailand?

No. A Thai bank account is not required for purchasing property. Most transactions, especially when buying a freehold condominium, are paid directly to the developer’s account via international wire transfer.

What is the “foreign quota” in Thai condominiums?

Under Thai law (Condominium Act B.E. 2551 (2008)), foreigners cannot own more than 49% of the total sellable area in any condominium project. This is referred to as the foreign quota. When buying a resale unit from a Thai owner, it is advisable to check if the foreign quota is still available; otherwise, the transfer may not be possible (this also applies when converting a leasehold into a freehold title).

Does property ownership in Thailand grant long-term visas or residency?

No, owning property in Thailand does not automatically entitle foreigners to a long-term visa or residency status. However, Thailand offers several long-term visa options, including:

• Retirement Visa
• Business Visa
• Work Visa
• Student Visa
• Marriage Visa
• SMART Visa (for skilled professionals and investors)
• Thailand Elite Visa (long-term residency program)

For more details, refer to our visa guide.

Can I buy property in Thailand without being physically present in the country?

Yes. Contracts can be signed remotely via postal mail, and payments can be made through international transfers. The property transfer process can also be conducted through a power of attorney, allowing a lawyer or representative to finalize the transaction on your behalf.

Should I use a real estate agent or navigate the market independently?

There is no downside to using an agent in Thailand. Real estate commissions are paid by the seller, meaning that buyers incur no additional costs when using an agent. A reputable agent can provide invaluable assistance in navigating the legal and financial aspects of purchasing property in Thailand.

For more information on property investment in Thailand, feel free to reach out to our expert team.