Although foreigners are legally prohibited from owing land in Thailand, there are proven and effective ways in which you are
able to purchase land and own it while complying with Thai laws. One form of land purchase, popular with foreign investors is
through a Limited Liability Company. The foreigner can own a maximum 39% of the company shares, but can easily - and
legally - organize to be the only director of the company who can commit or bind the company in any contractual dealings.
This effectively allows the buyer total and secure control of the company and its assets. Another form of land purchase for
foreigners is through a Leasehold Agreement. These are generally written up as 30 year leases with two additional prepaid 30
year renewals for a total of 90 years. The lease will include clauses that automatically allow freehold ownership if Thai law
ever changes to allow foreign ownership, and the right to sell, sublet, or transfer the property. This makes Leasehold purchase
effectively ownership.
Costs:
On all purchase/sale of property in Thailand there is a stamp duty, of 0.5%, a transfer fee of 0.01% and a business tax of
0.11%levied against an owner who has been in registered possession of the property less than 5 years, and income tax.
There is no capital gains tax in Thailand, unlike many other countries, and Income Tax (usually between 1.0 - 3.0%) on
property is the comparable replacement. 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.
Titles:
A freehold title gives the owner absolute proprietorship over the land in perpetuity. Leasehold property is held on a government
lease for a period of 30 years. At the end of this period, the landowner applies for an extension of lease, which in nearly all
cases is granted. The lease can be extended for a period of up to 90 years at which time the lease must be renewed.
Although a freehold title would be of distinct advantage, a leasehold title bears no specific disadvantage to the purchaser.
Both forms of purchase are safe and effective means of property ownership by foreigners.
Inspection Trips:
Once you have selected the properties or type of property you would like to view, we can arrange an inspection visit.
If required we can then book your flights for you and arrange your accommodation. Our representative will meet you at Phuket
airport and take you to your accommodation. We can then arrange a time with you to take you out to visit the various properties
and surrounding areas. Other properties may be suggested to you which would match your criteria. There will be no pressure
from us for you to property or land, and you will find our English guide full of information about Phuket, and Thailand and will be
able to answer any questions you may have about living in Phuket and what the island can offer you.
We understand that buying a property is something that can not be done on a whim and is something that needs time to consider
all the implications and benefits. Please note that all inspection visits will be paid for by you and reimbursed upon any purchase.
