Q. Can I own a condo in Thailand?
Yes, as a foreigner living in Thailand you can own a condo outright in your own name 100%. The law in Thailand for condominums requires a minimum of 51% of the internal area the apartment building excluding the common areas to be owned by Thais nationals or Thai companies. The remaining units can be owned outright by a foreigner. When buying a condo in Thailand it’s important to remember; you must purchases a condo with funds sent from abroad and sent in foreign currency, Do not sent money in Thai Baht. This must be correctly recorded as such by the receiving Thai Bank on a document called a Tor Tor Sam (3). Condo purchases by foreigners come under the jurisdiction of the Condominium Act B.E. 2535 (1992).
Q. What is a Tor Tor Sam (3) or foreign currency remittance form in Thailand?
A Tor Tor Sam is an official bank document issued by the receiving bank for the receipt of foreign currency to your bank account in Thailand. You must request a Tor Tor Sam from your bank when you are sending funds to Thailand for the purpose of purchasing a condo and the Tor Tor Sam must specify that the remittance is solely for the purpose of purchasing a property and that the funds used to buy the condo have been sent from abroad in foreign currency and correctly recorded as such by a Thai Bank on Foreign Currency Remittance Form.
Q. Do They Have Title Deeds in Thailand?
Title Deeds are given only for areas of Thailand which have been surveyed and are known as a Chanote. For areas that are not surveyed, there are other documents for land possession such as evidence of the possession of the right to utilise the land or other interests in the land. These documents are called "Nor Sor Sam (3) and Nor Sor Sam (3) Kor". Unlike the Title Deeds, these Nor Sor documents are issued to show the possessors' exploitation of the land. Though these documents do not provide ownership rights, as do Title deeds, they can still be registered for transfer of the lands for which they are issued. A Chanote or Land Title Deed is evidence that an individual owns property. It is a certified document issued by the local land office providing documentation as to who the legal owner of record is for a given property.
Q. Can I have a bank account in Thailand?
Yes you can open a bank account in Thailand and we can help with the advantages and disadvantages of the various local and foreign banks that operate in Thailand. We can arrange appointments for you and assist you in opening bank accounts with your chosen bank. Internet banking is available from most of the local banks and we can help with setting up these accounts.
Q. Are There Property Taxes in Thailand?
There are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the west, however, the most comparable taxes on properties in Thailand are the Land Tax and the Structures Usage Tax. The Land Tax levied on land is so miniscule, that in practice the body charged to collect it, rarely bothers to do so, and if they do, they usually wait several years until the amount accumulates. The second tax, the Structures Usage Tax, relates to buildings, is collected by the municipal office or district office, and is only applied to properties used for commercial purpose.
Q. What Costs and other associated fees are Applicable to Purchasing a Property in Thailand?
On all purchase/sale of property in Thailand there is a stamp Duty of 0.5%, a transfer fee of 2%, a business tax of 3.3% levied against an owner who has been in registered possession of the property less than 5 years, and Income Tax, this is determined by the land office in Thailand. We can assist you with property registration at the land office and recomment the best legal solicitors to help with the transfer. There is no Capital Gains Tax in Thailand, unlike many countries, and Income Tax (usually between 1.0 - 3.0%) on property based upon the Government evaluated price. There are no set rules on who pays the income tax, and it is just another part of the bargaining process, as with all the other costs of the transfer of ownership. The basis of the tax is the government appraised value less a deduction of between 50% and 92%, depending on how long you own the condo, this is determined by the land office when you go to register the property in your name. The longer you own the condo, the lower the deduction from the appraised value, and therefore your withholding tax liability is higher.
Q. Does Thai law provide for warranties on condominiums and houses?
New condominium units and houses purchased from developers are protected by 5 year statutory warranties. These warranties are for structural damages to the condominium or house. Warranties to the inside of the property are stipulated in the purchase and sale agreement. Warranties for air conditioners, sanitary fittings and other fixtures vary based on the manufacturer.
Q. What is an Environmental Impact Assessment (EIA Approval)?
Condominium buildings of greater than 80 units or 10,000 sq meters require an evaluation on the impact to the environment. This evaluation is called an Environmental Impact Assessment (EIA). Building proponents must submit a report to the Environmental Impact Evaluation Division (EIED) of the OEPP. The EIA report may be in the form of an initial environmental examination. The EIED examines the report to determine its adequacy. If the report is acceptable, the review process begins. An Expert Review Committee, which consists of people qualified in various technical disciplines, makes the final decision. The Committee may approve or reject the report, or may request additional information or revisions. If the report is approved, the permitting agency grants the permit for the project with conditions of mitigation measures and monitoring programs.
Q. What is a Sinking Fund?
A sinking fund is a reserve fund established, usually at the time a new condominium project is constructed, to pay for any non-routine, structural damages or repairs and replacements to common areas or infrastructure. This fund can be used only if agreed to by the condo association, this is a one off charge usually 500 Baht. • Transfer fees: 2% of the Registered Value of the Property • Stamp Duty: 0.5% of the Registered Value, Only payable if you are Exempt from Business Tax • Withholding Tax: 1% of the Land Department Appraisal Value of the Property • Business Tax: 3.3% of the Land Department Appraisal Value of the Property, payable if the property is sold within 5 years of Purchase (for Both Private & Corporate ownership), For Thai nationals if you own a property and Register the property as your residence (in the House Registration book) for a period of 1 year or more, then you will be exempt from this.
Q. Can I buy property in Thailand while out of the country?
Yes. A person wishing to buy property, including a foreigner, may purchase a property without being present at the time of registration of ownership at the Land Department. This shall be done by appointing, by a power of attorney, a lawyer or some other person to act on your behalf.
Q. Can I Get a Mortgage Loan or finance? Borrowing money in Thailand.
Yes as a foreigner you can borrow money and have a mortgage finance on a condo. We can help you obtain financing both here in Thailand and abroad in your home country. There is no requirement for employment in Thailand or permanent residence. For those over 60 years old, only 50% of the property value can be financed. We have access to Thailand's main bank lending. It is common for a real estate developer to arrange for his customers to have a financing package from a financial institution. In most real estate development projects, a down payment can be made in instalments from 10 to 24 months. After the down payment has been paid, the sale contract will be made and the balance amount is paid through the loan, which is financed from a financial institution. The financial institution requires you to mortgage the property with the condo as collateral against the loan.
Q. 0% Interest free Payment Plans
The payment Plan shown below is an example that is used by most developers. This payment plan can vary per developer. After you’ve chosen an apartment, this apartment will be reserved for you. The costs for a reservation lies usually between the THB 20.000,- and THB 50.000,- Please note that they also have a limited reservation time. • If you, within the given time limit, decide that you want to buy the unit then a contract will be made for you immediately. • 20 % of the purchase price must be paid within 10 to 14 days after the contract date. The reservation costs will be of course deducted on this amount. • 60% of the purchase price must be paid (monthly, quarterly or per 6 months) before the final completion date. • 20% of the purchase price has to be paid on completion. The interest you pay over the whole period is 0%
Q. Can I own and drive a car in Thailand?
It is reasonably easy for foreigners to own a car or motorcycle in Thailand, all you need is the correct visa, and an address in Thailand certified by the local immigration police. A foreigner can drive a car or motorcycle in Thailand using an international driving permit. However for long term residents it is necessary to acquire a Thai driving license. This is automatically issued to those carrying an international driving permit , you will also require proof of address(obtained from the local immigration police), a medical certificate and your passport along with recent passport photographs. If you do not have an international driving permit then you will require all of the above and have to sit a written and practical test. We can arrange appointments for you to meet with the local transportation office and assist you in obtaining the necessary documentation.
Q. Can a foreigner legally rent out property he owns in Thailand?
Yes. A foreign-owned property may be leased out to another third party. Rental revenue is subject to a 12.5% tax on the annual income. Land measurements in Thailand. Land is measured in Rai – Ngan – Talang Wah (Tw2) 1 Rai = 1600 square meters (1 Rai = 4 ngan or 400 Tw2) 1 Ngan = 400 square meters (1 ngan = 100 Tw2) 1 Talang Wah = 4 square meters • Insurance We can assist you in setting up insurance policies to protect your property and its contents from fire, theft and damages which may occur, giving you complete peace of mind and protecting your investment. • Legal Services Our team of independent legal experts can help with the full purchase process. • Property Management Here at Love Pattaya property we offer full property management from start to finish, allowing you to take advantage of a hands off investment. We look for a suitable tenant, draw up a legal binding tenancy agreements(contact) between both parties making sure you are fully protected when renting out your house or condo.