During a decision of buying or investing in real estate across countries, there are varied regulations and law for foreigners to follow. In this lieu, it is vital to get all facts and documents necessary for the transaction. Below are some explanations hat expats and foreigners should ponder over whenever there is a real estate transaction in Thailand. Also, for researches on finding the right property in Thailand, you may visit thailandflat.com.
- Are Foreigners Allowed to Buy Property in Thailand?
According to Thailand’s law, foreigners and expats are not permitted to own their own land in the country. However, when they desire to purchase real estate, a foreign investor is given two (2) options. First is giving a 30-year leasehold. Second is thru buying the property through the use of a limited company.
For a fact, to form a Thai Limited Company, foreigners are not allowed to own half or more than half of the company’s dividends. In this lieu, at least 51% of the company is permitted to be owned by Thai locales.
Furthermore, foreigners can lease a property for thirty (30) years in Thailand, which is permitted for a renewal. Also, in Thailand’s law, detached houses, townhouses and houses are pertained to as “landed.” Therefore, a foreigner or expat cannot purchase one or any of these without the guidance of a Thai locale.
On top of these legal restrictions, a lot of foreigners decide on purchasing a condominium or apartment in the city. Additionally, a foreigner can only buy a condominium, given that there is at least 51% of the property is owned by Thai locales. In short, the condominium units purchased by expats or foreigners should not go over 49% of the total space of the development.
- Finance Alternatives
In an overall view, foreigners experience constraints in applying for financing from Thai banks. At the present, there are two (2) banks (UOB and ICBC) that can allow financing. You may reach UOB or ICBC in Thailand, wherein the staff will negotiate with their head office to step into transferring of funds into a foreigner’s bank account that concerns in buying property in Thailand. However, it is important to think that the lending criteria can endow constraints. Therefore, it would be much probable for foreigners to consider buying real estate with cash or acquiring a refinancing from an existing property back in their own country.
When a property is rightfully under a foreigner’s name, the funds has to generate from overseas instead. Even if a foreigner is a professional working in Thailand or got a loan from a Thai bank, they are asked to bring the fund in from their own country and the loan will be converted to a foreign currency.
- Down Payment & Additional Costs
For expats and foreigners, the deposit asked for off the plan stands for up about 20 to 30% of the purchase price, which means they are not obliged to pay anything until the completion of the transaction.
When there is a completed project, 10% to 20% of the deposit is asked from the foreigner or expats.