Purchasing real estate in Thailand

23 Nov 2017 Real Estate

Purchasing real estate in Thailand usually takes one to two months for the entire purchasing process. The purchasing process include:

Inspection, signing of contract, delivery of deposits, remittances, bank to issue remittance certificates & checks, real estate land title transfer at the Land Office.

The process seems easy, but before you buy, be sure to check out the minefields that are easy to miss.

In general, foreigners can look for Thailand’s real estate and negotiate good prices. They can hire a lawyer to help them complete a series of formal procedures such as contracts. Once contract is signed, there are no going back. The first payment of 10% deposit are generally non-refundable if you change your mind.

Like other countries, there are stamp duties and taxes when you purchase real estate. A transfer fee of 2%, special commercial tax 3.3%, stamp duty 0.5% are charged. It is worth mentioning that special commercial tax can be exempted if owner hold the property for more than 5 years.

Generally, per real estate transaction, there is approximately 4 – 6% extra fees payable between the buyer and the seller. Agent’s fee is usually paid by the seller. In addition, according to Thailand’s new land tax law, land tax cuts expire in March 2013. The new law specifies that the residences must pay taxes of 0.01% – 0.5%. These taxes are:

  1. General building and land tax levy of no more than 0.5% of the tax base;
  2. If the real estate is not for commercial & business purposes, no more than 0.1% of the tax base;
  3. The land tax for agricultural purposes does not exceed 0.05% of the tax base.

Foreigners purchasing a home in Thailand can apply for a loan, but must meet certain criteria, such as having a valid work permit or a permanent residence permit, employer’s statement of employment, a business license or marriage certificate. Loan applicant’s age shall not exceed 60 years of age.