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PURCHASING PROPERTY IN THAILAND
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PURCHASING PROPERTY IN THAILAND
Date Added: December 24, 2011 12:45:09 PM
Author: mark terry
Category: Real Estate

Purchasing property is a long term investment and you need to consider many things and aspects for you to make sure that you can have a good deal. Though price can really be an important consideration, having the necessary finances to acquire property is not the only factor involved in choosing the kind of condominium unit you will be buying. It can be quite complex and often confusing so we have compiled some basic guidelines that will help you cruise your way into the real estate business specifically in purchasing the condo of your dreams in Thailand. • Financing Getting a piece of real estate in Thailand will require you to be aware of the involved policies regarding financing and can be quite complex since it changes regularly. It is highly recommended to consult an expert or you may go to your bank to get the latest updates about this. • Visas for Foreigners For foreigners who are planning to go to Thailand the different types of visas are: the tourist visa, work visa, investment visa and retirement visa. More information about this is available at the website of their Ministry of Foreign Affairs or Thai Government’s Department of Immigration. • Property Transaction Costs and Ongoing Expenses for Houses and Condominiums o Transfer Fee There is usually a 2% charge as transfer fee for both houses and condos which can be paid by the vendor, the buyer, or can also be split between the two parties; all of these of course depend on what is agreed upon during negotiation. There are also Withholding tax and Business Tax/Duty Stamp to be paid which depends on the previous type of ownership and is a seller’s tax, but are often negotiated to be equally share between seller and buyer. o Sinking Fund If the condominium project is new, the buyer would need to pay a one-off lump sum upon the transfer of the property from the developer to the buyer. This money will generally be used if needed on major renovations and replacement of equipment, just to ensure that the building is properly maintained and ultimately to keep its value in the future. o Utility Meters During the initial registration of the electricity meters in a new residential property, a payment as initial registration is required as well as a transfer of registration fee for the re-sale of the property. o Lawyers’ Fees The common arrangement regarding attorney’s fee is for both parties to settle it individually or independently from each other. o Common Area Management Fee This particular fee is paid by the owners so that there can be a fund used in the upkeep on the common areas of condominiums and housing estates. Also for new residential development, they usually require you to pay up to several years’ worth of management fee in advance. • Taxation If you have investments in property in Thailand then you need to expect certain tax liabilities that may arise if you are either buying or selling it. Most foreigners who do invest in real estate either opts for purchasing a condominium unit which they hold in their own name or they can also take out a lease on a landed property. An individual or other legal structure will always be subject to taxation on the sale of the property as was confirmed by a tax analysis of Mazars, which is one of Thailand’s leading international accounting, audit, and tax advisory firm. • Financial Transfer Procedures for Foreign Buyers of Condos As stipulated in the 1991 Condominium Act of Thailand, a non-resident who purchases condo units must transfer the funds to pay for the unit from overseas with foreign currency money as it enters Thailand. Purchasers are also required to obtain a “Foreign Exchange Transaction Form” certificate for each payment coming from the beneficiary bank, and all of these certificates are needed to be shown to the Land Department so that the condominium can be registered. For more information about buying property in Bangkok please visit http://www.bkkcondos.com and/or contact Bangkok Condos & Apartments at +66 2 2532663
 
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