Welcome to B & W Premier Properties

Buying a property in Thailand

A number of things to think about

When you have decided to buy a property in Thailand there are a number of things to think about.

hand_shake

Can I Own a Condominium in Thailand?

Buying a condominium is perhaps the simplest and easiest option available to foreigners. Purchases of condominiums by foreign individuals come under the jurisdiction of the Condominium Act B.E. 2535 (1992).

Condominiums can be owned by foreigners in their own names provided that the total number of foreign held units does not exceed 49% of the total number of units in the condominium block.

The funds to purchase the condominium, should be remitted from abroad in foreign currency to a bank in Thailand, (in the name that is to be registered on the title deed), with the remark 'to purchase a condominium’, and the relevant form (Thor Tor Sam) can then be obtained from the said named bank.

The owner of each condominium is issued with a certificate of unit ownership. The certificate also has a statement saying exactly what percentage of rights over the common areas of the building each owner has.

Can I Own Land and House in Thailand?

Ownership of land is governed by the Land Code BE 2497 (1954), the Civil and Commercial Code, Land Reform for Agriculture Act BE 2518 (1975) and the regulations set forth by the Ministry of the Interior.

Although you are able to own a house or structure in your own name, Thai law currently prohibits foreigners from owning the land the building is erected on.

However there are a number of ways in which you can structure the purchase to own and invest in land:

Different ways to own a property

- Become a Thai resident or citizen

- Be the principal investor in a new export orientated Board of Investment (BOI) approved company [the current maximum size limit of freehold ownership rights is one Rai of land (1600 Sqm.)]

- Make an approved investment of over 40 Million Baht left for a minimum number of years [the current maximum size limit of freehold ownership rights is one Rai of land (1600 Sqm.)]

- Invest in a Thai private limited company. This involves the incorporation of a private limited company of which the foreigner holds 49% of the shares. The remaining 51% of the shares is held by Thai Nationals

- 30 year lease with options, acquire the leasehold interest in land in the name of the foreigner. This can be done via a registered 30 year lease (residential) to the foreigner in the foreigner’s own name with pre-paid options to contractually renew for a further two periods of 30 years each. The foreigner may also be given the option to purchase the land should the law in respect of foreigner’s land ownership rights change.

Under Thai law, the foreigner can own the structure (for example a house) erected on the land. In order to be enforceable, any lease for a period of longer than three years must be registered, which involves payment of a registration fee and stamp duty based on a percentage of the rental fee for the whole lease term. The original registered lease remains in force and effect even if the property is sold.

In practice, the method most commonly used by foreigners is to invest in a Thai private limited company which owns or intends to acquire freehold land. The Articles of Association can be varied to allow greater protection for foreign minority shareholders where majority Thai ownership is required under the Alien Business Law.

Thai law requires that 51% of the shares be held by Thai juristic persons, however, any company with more than 40% foreign interest that purchases land may be investigated by the Central Land Office in Bangkok (under Section 74 of the Land Code) to ensure that the company has not been organized in an attempt to circumvent the prohibition against foreign ownership of land.

This results in the foreign ownership of the company being limited at 39%, but with the recommended changes to the Articles of Association, the foreigner can be the only director of the company, and the only officer of the company who can commit or bind the company in any contractual dealings - effectively giving the minority shareholder control over the company.

The company is required to submit an annual balance sheet once per year, and there will be a tax obligation, however the costs are minimal and your lawyer will have an accounting department able to assist you with the above.

Tor Tor Sam

A Thor Tor Sam is an official bank document issued by the receiving bank upon the receipt of foreign currency into your bank account in Thailand.

You must request a Thor Tor Sam from your bank when you are remitting funds to Thailand for the purpose of purchasing a condominium, and the Thor Tor Sam must specify that the remittance is solely for the purpose of purchasing a property - Code 5.22.

Invest in Phuket

Tropical paradise beaches together with international lifestyle is a winning combination. Phuket is one of the worlds most attractive tourist destinations and a popular choise among expatriates who has decided to invest in a new home.

Phuket was recently awarded as Luxury Tourist Destination of the Year by New York Times.

Read the article here >>

The growing marine industry draw a new kind of tourists to the island. With an international regattas, spectacular diving, excellent fishing waters and more marinas under construction Phuket draw people that love the life on the sea.

Find a reliable real estate agent

The most important thing when you have decided to buy a new home in Thailand is to find a reliable real estate agent. We have more than 20 years experience in the real estate market in Thailand, mainly focused on Phuket. You tell us and describe your needs and wishes and we assist you in finding the right property.

Perhaps you want to move permanently or invest in a vacation home. Or perhaps you want to buy a property just as an investment. Regardless B & W Premier Properties has close cooperation with other actors on the market such as insurance companies, banks etc.

That means that we can give you full service when you have decided to move to Thailand or any other country. Apart from the property itself we can also assist you with things like tax problems, insurances, pension, move your company, bank accounts and a lot more.

Phuket advantages

- Top tourism destination in South East Asia with 14 million+ air arrivals in 2007, and 30% growth YTD.

- Booming condominium sector. The sector has grown to be the largest real estate segment in Thailand, with steady price growth in resort destinations, especially on Phuket.

- Luxury segment emerged just a few years ago with very little existing supply and has created quite a high demand from local and international investors who see greater value for money compared to other countries in the region.

- Global investment interest with buyers comprised of over 60 nationalities - B & W Premier Properties receives hundreds of enquiries a month, 68% on Phuket, 24% in other Thai resort destinations and 8% in Bangkok. This diversity of nationalities and locations to invest in puts Thailand in a position to experience long-term growth in the real estate sector.

- Solid yields and capital gains. Both Thais and foreigners can buy freehold condominiums in Thailand, and leverage their investment throughout the construction period with attractive payment structures. Rental yields have been averaging 6-10% per annum on our properties and buyers have enjoyed a significant capital increase.

A country with many faces

Thailand is a country with many faces and the selection is enormous when you have decided to invest in a home here. The real estate market in Thailand is still growing and there are no signs of stagnation . In Phuket the value of a property has increased with between 10 and 30 % a year for the last 20 years depending on the location. The world economy and local problems affects of course but it doesn´t stop the market, it rather slows it down for a short while.

B & W Premier Properties Phuket 9/92 Chalong Parkview Chalong Muang, 83130 Phuket | Phone: 076-282 140 | Fax: 076-283 164

B & W Premier Properties Stockholm Phone: 08-23 67 11 | info@bwpremierproperties.com | B & W Premier Properties are members of Thai-Swedish Chamber of Commerce