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Home Buying Guide

Things to know when buying a house In Thailand

Related issues

Before buying a house

01. Can foreigners buy real estate?

Can.

According to Article 19 of the Condominium Act of 1979 (Convention No. 2522 , amended in 2008 ) , foreigners can own freehold condominium units in Thailand. In each condominium project, foreigners can purchase up to 49 % of the saleable gross floor area.

For example,
in an apartment building with 100 units (each unit being the same size), foreigners may purchase up to 49 units. This holding rule also applies to detached houses or land.

Can.

Foreigners are not allowed to own land, detached houses, or ground-floor shops in Thailand unless they establish a company there.

1 Rai = 1,600 square meters;
1 Talang Ngan = 400 square meters; 1 Talang Wah = 4 square meters

Can.

Anyone can jointly hold a property by presenting their passport, with a maximum of five people. In addition, applicants must be 21 years of age or older to purchase and register the property.

After purchasing the house

05. Do I need a visa to enter Thailand?

A visa is required to travel to Thailand, and there are two types: Tourist Visa – Single Entry
 Validity: 3 months
Stay Limit: No more than 60 days

   1. Original passport (valid for at least six months)

   2. One copy of both sides of your ID card (if under 18 years old, please attach a copy of your household registration certificate)

   3. One 2-inch color photo with a white background, head 3.6-3.2 cm in size (taken within the last six months)

   4. Visa fee: 1,200 RMB

Visa on Arrival (VOA) – Single
 Entry: No more than 15 days. 

  1. Original passport (valid for six months)

   2. One recent

   passport-sized photo (taken within the last six months) 3. Confirmed return ticket within 15 days

   4. Individuals must carry 10,000 Thai Baht, and families must carry 20,000 Thai Baht or equivalent foreign currency
 
   5. Must provide a verifiable address in Thailand
   6. Visa fee is 2,000 Thai Baht.

Yes,
you can get a loan from the local Industrial and Commercial Bank of China (ICBC), but the review process is strict, the procedures are complicated, and the interest rates are too high. Therefore, it is not recommended for investors to take out loans locally. The loan interest rate is 5.25% (fixed) in the first year, 5.75% (fixed) in the second year, and for the third year and above, it will be based on market rates, ranging from 6.00% to 6.50% (fluctuating).

For water and electricity meter name change and deposit, transfer authorization letter, marriage certificate (notarized by Taiwan Notary Public Office, Ministry of Foreign Affairs, and Thai representative office if married), recent Thai entry record, proof of 100% bank transfer, buyer’s passport, copy of Taiwanese identity document, and developer’s sales contract, if all documents are complete, the transfer can be completed within one day.
A Thai entry record within the last two months is required for the transfer.

When handing over the house

08. Transfer fee

Leasehold Rights: Lease Registration Fees.
Leasehold rights fall into two categories, both of which protect your rights and ensure the contract is enforceable in court. For short-term leases of three years or less, registration is not legally mandatory. However, leases exceeding three years or up to thirty years must be registered with the Land Department to ensure court enforcement. Currently, the lease registration fee is 1.1% of the total rent for the lease term, usually paid equally by the lessor and lessee.

Freehold title: Title transfer fee.
The title transfer fee is calculated at 2% of the government-assessed value. The buyer is obligated to pay the title transfer fee, but it can be paid by either the buyer or the seller, depending on the agreement between the parties. The title transfer fee must be paid to the Land Office after the registration of the transfer of ownership is completed.

The public fund serves as a reserve fund for major building repairs or emergencies. It is a one-time payment made by the owners upon the building’s completion to cover any one-off repairs or improvements required for future development projects (such as repainting the exterior every few years). This fund must be paid upon handover of the apartment to the buyer. Its amount depends on the apartment’s size, so it is quoted per square meter.

Property management fees are generally calculated per square meter, depending on the building regulations. For residential properties, the fee is approximately 30-100 baht per square meter, while for commercial properties, it is approximately 20-40 baht per square meter.

When renting out a property, the management fee is usually borne by the landlord, unless otherwise agreed upon with the tenant.

Internet costs approximately 599 baht per month, cable TV costs approximately 400 baht per month, electricity costs 1-3 baht per unit, and water costs 15 baht per unit.

Home purchase process

STEP 1

Briefing

STEP 2

On-site house viewing

STEP 3

Order on the spot

STEP 4

Overseas remittances

STEP 5

Signing a contract

STEP 6

Inspect the house in person

STEP 7

Property transfer

STEP 8

After-sales service

Rent or Sale

rent

Is the property management center acting as a rental agent for the developer? What are the fees?

Most developers in Thailand own their own property management companies and sign management contracts with homeowners, providing services such as property management and rental agency services. Depending on the terms of the rental and management agreement, Thai real estate agents typically charge one month’s rent as a rental agency fee, while the management fee is generally 7-10% of the rent. When renting out a property, the tenant will give the landlord two months’ rent as a security deposit.


Stamp duty 0.1%

income tax (calculated according to the rental bracket table).


Example:
Monthly rent 30,000 Thai Baht, the tenant deducts 5% withholding tax monthly.
The landlord can receive 30,000 * (1-5%) = 28,500 THB per month.
Total annual withholding tax = 30,000 * 5% * 12 months = 18,000 THB.
Annual personal taxable income = 30,000 * 12 months * (1-30%) – 30,000 = 222,000 THB.
Calculate income tax = 150,000 * 0% + (222,000 – 150,000) * 5% = 3,600 THB.
Since the withholding tax already paid is 18,000 THB > the income tax payable is 3,600 THB,
a refund of 18,000 THB – 3,600 THB = 14,400 THB can be applied for.

Sell

What taxes do homeowners need to pay when selling their property?

Transfer Fee  – 2% (1% each for buyer and seller)

Specific Business Tax  – 3.3% (for sales within five years)

Stamp Duty  – 0.5% (for sales after holding for more than five years)

Capital Gains Income Tax

Example of property holding period calculation:

The announced selling price was 3,678,200 (transaction price 5,480,000).
Taxable income per year of holding period: (3,678,200 – 92% * 3,678,200) / 1 year = 294,256
. Calculated income = 294,256 * 10% = 29,426.
Capital gains tax = 29,426 * 1 year = 29,426.
Transfer fee = 3,678,200 * 1% = 36,782.
Special business tax = 5,480,000 * 3.3% = 180,840.
Brokerage fee = 5,480,000 * 3% = 164,400.
Stamp duty = No tax if held for less than five years.
Total cost = 36,782 + 180,840 + 164,400 + 29,426 = 411,448.

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