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Table of Contents:
1. Thailand’s Popularity in the Real Estate Market
Thailand attracts foreigners with its favorable climate, developed infrastructure, and high real estate investment returns. This article provides a detailed guide for property transactions, covering key aspects like ownership forms, taxes, and remote transaction options.
Thailand has become a preferred region for foreign investors, attracting them not only with diverse tourist destinations but also with real estate investment opportunities. Developers actively promote programs offering guaranteed returns, which drive investment growth. For example, in the first nine months of 2023, the number of apartments bought by foreigners in Thailand rose by 38%.
Thailand is the most sought-after location for foreign real estate buyers in Southeast Asia. Most transactions occur in Chonburi Province (Pattaya Resort), Bangkok, and Phuket Island, often raising prices unfavorably for investors. That’s why Koh Phangan Island is a true gem, where the market is less volatile.
Thailand has become a preferred region for foreign investors, attracting them not only with diverse tourist destinations but also with real estate investment opportunities. Developers actively promote programs offering guaranteed returns, which drive investment growth. For example, in the first nine months of 2023, the number of apartments bought by foreigners in Thailand rose by 38%.
Thailand is the most sought-after location for foreign real estate buyers in Southeast Asia. Most transactions occur in Chonburi Province (Pattaya Resort), Bangkok, and Phuket Island, often raising prices unfavorably for investors. That’s why Koh Phangan Island is a true gem, where the market is less volatile.
Read more about the benefits of buying property on Koh Phangan here.
2. Ownership Forms: Freehold and Leasehold
Foreign buyers can purchase various types of real estate in Thailand, though there are ownership registration restrictions:
Freehold: Full private ownership.
- Owners can possess and manage the property indefinitely.
- The property can be sold, gifted, or inherited without restrictions.
- Ownership is confirmed by a Chanote, issued by the Land Department.
Leasehold — Limited-term ownership.
- Ownership is limited to a maximum term of 90 years.
- The property can only be sold or inherited during the lease period.
- Ownership is confirmed by a Chanote specifying the lease term.
3. Purchasing Freehold Real Estate via a Legal Entity
According to Thai law, foreign individuals cannot directly own land or real estate on land. However, a Thai company, in which a foreigner is a co-founder and director, can own land and real estate on it. For the company to be considered Thai, 51% of shares must be owned by Thai nationals. However, each Thai shareholder signs a pre-sale document with no date or buyer name, ensuring investor security in unforeseen circumstances. The remaining 49% of shares belong to the investor. For any decisions, a shareholder meeting must be held with at least 75% attendance, making decisions without investor consent virtually impossible. The investor will also be the sole director with signing authority, thus controlling all property-related decisions.
4. Residency Rights
Buying property does not automatically grant residency or citizenship in Thailand. Homeowners are subject to standard visa requirements.
However, to own a Thai company, you need a business visa, allowing you to stay in Thailand year-round without entry or exit restrictions.
Thailand also offers the Thailand Privilege program (formerly Thailand Elite), granting visas for 5-20 years with an investment of at least $25,000 in the country’s economy. We can offer these visas as part of the property purchase package upon request.
However, to own a Thai company, you need a business visa, allowing you to stay in Thailand year-round without entry or exit restrictions.
Thailand also offers the Thailand Privilege program (formerly Thailand Elite), granting visas for 5-20 years with an investment of at least $25,000 in the country’s economy. We can offer these visas as part of the property purchase package upon request.
5. Transaction Stages
- Selecting and Reserving a Property. Signing a reservation agreement with a deposit.
- Property Condition Review. Option to hire a lawyer to verify the land title and the selling company.
- Contract Signing. Receiving a preliminary contract from the seller detailing the transaction and costs.
- Transaction Payment. Funds are transferred to the specified account, with options for cash or cryptocurrency payments.
- Ownership Registration. Registration with the Land Department, where required documents are obtained.
6. Remote Transactions
transaction procedures:
- Selecting a property
- Making a deposit through a deposit agreement
- Making the first payment under the reservation contract
- Coordinating the main contract via DHL
- Regularly transferring funds to the developer
7. Loans and Installment Plans for Foreigners
Local banks do not offer mortgages to foreigners. We provide flexible, interest-free installment plans with a payment schedule aligned with construction stages.
Learn more about installment conditions through our 7 Palms project..
8. Conclusion
If you plan to purchase property in Thailand, particularly on Koh Phangan, consult our specialists. Koh Phangan Estate offers several unique properties starting at 3,200,000 THB. Find out more about our projects via the links:
- Alma Terra Villas — Sea view two-level villas with a payback period of 4-5 years.
- 7 Palms — East living units with landscape design and a 25-meters pool.
Contact us
For additional information, ask questions to our experts via social media, messengers, or through provided contact numbers:
+66 93 553 2960 — Michael Skiba.
+66 93 553 2960 — Michael Skiba.
