Buying & Owning Property in Phuket, Thailand – FAQ
Are you considering investing in property in Phuket? With its breathtaking beaches, vibrant culture, and thriving real estate market, Phuket offers enticing opportunities for personal use and investment.
However, navigating the complexities of property ownership as a foreigner can raise numerous questions.
This article addresses the most frequently asked questions about buying property in Phuket, providing you with essential insights and practical advice to help you make informed decisions.
Whether you’re a first-time buyer or looking to expand your property portfolio, our comprehensive Q&A will guide you through the process.
Can foreigners own property in Thailand?
Foreigners can own up to 49% of the units in a condominium freehold, also referred to as foreign freehold. While foreigners can’t own land in Thailand outright, they can own structures built on the land, such as villas or houses, provided they lease the land or own the land via a Thai company.
Do I need a visa to buy property in Thailand
To buy property in Thailand, you do not necessarily need a visa, but obtaining a visa can facilitate the process. For long-term stays, an investment visa is available for those who invest a minimum of 10 million baht in property or other qualifying assets.
Other visa types for long-term stays include Thailand’s Long-Term Residents Visa, Thailand Retirement Visa, and Thailand Elite Visa.
Holders of the Thailand Elite Visa or Investment Visa can benefit from extended residency and specific investment opportunities, enabling them to purchase property more easily and securely.
What is the process for buying a property in Thailand?
The process typically involves selecting a property, conducting legal checks, signing a preliminary agreement, and finally a sale agreement.
What is the average property prices in Phuket?
Property prices vary widely based on location and type; condos can start from a few million baht and 50,000 THB / sqm for condos and 35,000 THB / sqm for villas to much higher for luxury options.
Explore property prices in different areas of Phuket and filter by amenities & features.
Is it possible to buy property through a Thai company?
While possible, it is complex and must be set up by a legal expert. Foreign ownership can not exceed 49% of the company, but the ownership can be structured so that the foreigner has control of the company, and as such, the property.
Can I buy property jointly with a Thai partner?
Yes, but ownership must be structured correctly to comply with Thai laws, typically through lease agreements.
What areas are best for buying property in Phuket?
Phuket offers diverse areas, from sleepy beachside villages to urban settings with modern amenities; the best choice depends on personal preferences and lifestyle.
Explore the best neighborhoods in Phuket for property investment.
Can I rent out my property in Phuket?
Yes, many foreigners rent out their properties, especially in tourist areas, to generate income. The yearly return on investment is typically between 5-15% from the rental income alone, not accounting for captial appreciation.
Read more about the investment potential for property in Phuket.
Is it neccessary to hire a lawyer when buying property in Thailand?
Yes, hiring a professional lawyer is crucial to navigate Thai property laws and ensure due diligence is conducted.
Discover the importance of legal representation in property purchases.
What should I inspect before buying a property?
We recommend that you hire a lawyer to go through all the paperwork and hire a professional property inspector to conduct a thorough inspection. This inspection typically involves assessing the property’s condition, including structural integrity, plumbing, electrical systems, and more and results in a detailed report that helps buyers make informed decision. Through our vast network of connections, this is something we at Storm Real Estate can assist our clients with.
How can I ensure the property title is clear?
Conduct a title search through your lawyer to confirm the current ownership and check for any liens or encumbrances.
Are there hidden costs when buying property in Thailand?
While not necessarily hidden costs, additional expenses to account for can include transfer fees, taxes, sinking fund and common area maintenance fees. At Storm Real Estate, we outline the monthly common area fee and sinking fund on all listings where applicable.
Read more to understand transfer fees and taxes for property purchases in Thailand.
Is property leasehold ownership in Thailand safe?
Leasehold agreements in Thailand are safe if properly structured with a Thai company as the lessor with clear extension and termination clauses and registered at the land office.
Are leasehold agreements in Thailand extendable?
In Thailand, the maximum duration for leasehold agreements is generally limited to 30 years. The agreements can be extended, but a well-drafted contract that includes an extension clause is essential. The Interior Ministry is looking into the feasibility of extending the maximum leasehold period for foreigners to 99 years.
What are the property tax rates in Thailand?
In Thailand, the Land and Buildings Tax is an annual tax levied on the appraised value of land and structures, with rates ranging from 0.15% to 1.2% depending on the property’s use (residential, commercial, agricultural, etc.). Foreigners owning condos are subject to this tax at the same rate as Thai nationals. Additional taxes may apply when buying, selling, or renting out property.
Read more about the building taxes and property taxes in Thailand.
Is financing available for foreigners buying property?
Financing options are extremely limited for foreigners. If offered at all, the bank will require a substantial down payment, and the interest rate will be far from favorable. For off-plan properties, the developer almost always offer deferred payment plans through the construction phase.
Find out more about financing property purchases in Thailand.
What legal documents are required for purchasing property?
Key documents include the sale agreement, proof of identity, and proof of funds, among others.
Understand the necessary legal documents for property purchase.
Do I need to provide proof of funds when buying?
Yes, foreigners must provide proof that the funds used for the purchase were transferred from abroad via a Foreign Exchange Transaction Form (FETF).
What should I do if I encounter legal issues with my property?
Consult your lawyer immediately to address any legal issues and explore your options for resolution.
Read more about handling legal issues in property transactions.
Can I buy a property in Thailand remotely?
At Storm Real Estate, our experienced team is dedicated to helping you navigate the local market with ease and confidence.
Whether you have specific questions about property types, legal requirements, or the buying process, we are here to provide you with personalized support and expert advice.
Don’t hesitate to reach out to us for further assistance—your dream property in Phuket is just a conversation away!
