The main feature of buying Thai real estate is the ban on land ownership for foreigners. By law, all lands of the country belong to the King of Thailand, and he can grant the right to ownership of a particular plot only to a Thai. But a citizen of any country can become the owner of a house or apartment in a multi-story building, provided that the purchased apartment occupies no more than 49% of the total area of the building (condominium).
Finding suitable real estate in Thailand is not difficult. For example, on the website of the specialized company BizPhuket.net http://bizphuket.net/property/sale/ there is a huge selection of cozy villas, bungalows, apartments, condos and other types of residential real estate. And if you have found a suitable property, it is not difficult to negotiate a price in Thailand.
The same applies to the processing of documentation. But there is one catch – all the authorities that need to be visited require knowledge of the Thai language, which can be a big problem for a foreigner. The contract is also drawn up in the language of the Kingdom and is not subject to translation or duplication. The best option is to use the services of local organizations that officially help citizens of other countries to acquire real estate in Thailand.
As payment, a foreigner will not be accepted cash. The purchased real estate can only be paid by bank transfer. In this case, it is necessary to make a note "for the purchase of a house or apartment". All this must be done to confirm the legality of the money transfer and official conversion into local currency. Only a transaction paid in this way is recognized as legal.
If a foreigner is still determined to acquire land, the only option is to set up a legal entity. According to local law, the majority of shares of such a legal entity must be owned by a local resident, a Thai. In practice, this is not difficult to arrange – there are agencies that will gladly provide the opportunity to transfer shares to a third party for a fee. Then the owner or owners of the controlling stake write an official permission for the foreigner to use their land or issue a kind of power of attorney. Only after that the foreign citizen has the right to dispose of the land plot at his discretion.
It is not necessary to conduct real business activities in the country, but its registration must be officially confirmed. A person who registers an individual entrepreneur in Thailand will have to pay taxes and contribute funds to the state fund. The average amount of such fees, as a rule, does not exceed 310-330 US dollars. By paying the tax, the foreigner acquires full right to buy, sell or lease real estate and land.
For some types of buildings, special quit-rent taxes are provided, established by local authorities. You can find out about them in the municipal bodies of the locality where the foreign citizen plans to purchase land or a house.