Legalization of the purchase of real estate in Thailand for foreign citizens

Buying real estate in Thailand by foreign citizens has always raised many questions and requires knowledge of certain legislative nuances. Thailand — is one of the most popular destinations for investing in foreign real estate due to its climate, beautiful beaches and stable economy. In this article, we will look at the process of legalizing the purchase of real estate in Thailand for foreign citizens, and also give recommendations for safe investment.

Basic provisions of the legislation

Thailand has strict rules regarding foreign ownership of real estate. Under Thai law, foreign nationals cannot directly own land, but can purchase apartments and condominiums subject to certain conditions.

Condominiums: Foreign citizens can own up to 49% of the total area of all residential units in a condominium complex. This is the most popular way to invest in Thai real estate among foreigners. The Cabinet of Ministers is currently considering a bill allowing foreigners to own up to 75% of the total condominium area.

Land parcels: Direct ownership of land by foreigners is prohibited. However, there are several alternative ways:

• Lieshold (rent): Foreigners can rent a plot of land for up to 30 years, renewable. The new bill also includes a term of up to 99 years.
• Company creation: Foreigners can create a Thai company where Thai citizens will own a majority stake. The company may own a plot of land.

The process of legalizing the purchase of real estate

1. Property selection
The first step — is to choose the right property. It is important to conduct a thorough check of the documentation and ensure that the facility is legally clean.

2. Documentation check
The following documents must be checked before purchasing:

• Title Sheet: Confirms ownership of real estate.
• No encumbrance certificate: Ensures there are no liens or other legal encumbrances on the property.

3. Conclusion of a preliminary agreement
After selecting the property, a preliminary agreement is concluded, which stipulates the terms of the transaction, including cost and terms.

4. Transfer of funds
Foreign citizens must transfer money to purchase real estate from abroad in foreign currency. This transfer must be registered with a bank in Thailand to obtain a Foreign Exchange Transaction (FET) certificate required to register ownership.

5. Registration of ownership
After all the conditions of the preliminary agreement and the transfer of funds have been fulfilled, registration of ownership takes place in the Thai Land Department. At this stage, all taxes and fees associated with the purchase of real estate are paid.

Benefits of Real Estate Investment in Thailand

1. Stable income
High-income investments in Thai real estate, especially in popular tourist areas such as Phuket, can provide stable rental income.

2. Real estate value growth
Thailand's real estate market is showing steady growth, making investment profitable in the long term.

3. Pleasant living conditions
Thailand offers a high standard of living, a favorable climate and a rich culture, making it attractive for long-term living.

Property in Phuket

Phuket — is one of the most attractive regions for investment in Thai real estate. There is a high demand for rental real estate, especially during the tourist season. Investments in Phuket real estate can provide high income and capital growth.

Legalizing the purchase of real estate in Thailand for foreign citizens requires attentiveness and knowledge of the law. Following all rules and procedures guarantees the security and success of the transaction.

We, TOKENS Real Estate, are ready to help you at all stages of the — transaction from site selection to legal support and paperwork. We offer both information and legal assistance to ensure that your investment in Thai real estate is as profitable and safe as possible.