Belaws is pleased to announce the release of their latest eBook, Purchasing a Condo In Thailand as a Foreigner.
This comprehensive guide offers a detailed overview of everything an interested foreign investor needs to know in relation to buying a Condo in Thailand. While purchasing a Condo is possible, the process is often confusing, this eBook has been designed to remove this confusion by breaking down the information into clear and easy to follow parts. All the information contained within this eBook is based on the current laws, regulations and official practices in force in Thailand as of July 2021.
This eBook will cover the following key areas:
- Initial due diligence
- Why is due diligence important and what should you be aware of when purchasing a Condo in Thailand?
- Before purchasing a condo, it is important to gather as much information about the intended property as possible.
- Recommended areas of due diligence are as follows: Title deed search, Physical inspections of both your property and surrounding areas and the cost of common fees.
- Financing options
- What are your best options for financing a condo in Thailand?
- There are 2 possible options:
- Taking out a loan from a bank. There are a limited number of banks in Thailand who are prepared to loan money to foreigners (UOB and HSBC being the most likely candidates).
- Remortgaging any property or assets the purchaser holds in their home country.
- Reservation & Sale Purchase Agreements
- What are these agreements and why do you need them?
- A Reservation Agreement (RA) is an agreement made between the buyer and seller which is used to secure the booking of the unit. The RA also acts to establish a price through the payment of a deposit. The Sale Purchase Agreement (SPA) is a legally binding contract between two parties (the buyer and seller) which sets out and obligates the transaction between the parties.
- Remittance of foreign funds
- The funds for purchasing your condo need to come from abroad, how do you do this?
- The funds used to purchase a condo MUST be made in a FOREIGN CURRENCY only and NOT in Thai Baht. Foreigners must be able to present proof to the Land Department stating that the funds have been remitted into Thailand from overseas in a foreign currency. Without presenting proof to the Department of Land, it will not be possible to register the transfer of ownership of the condo to the foreign buyer.
- Payment & Transfer of ownership at the Land Office
- When to make the payment & what fees and taxes do you need to consider?
- Payment should be made prior to going to the Land Office to register the change in ownership (or at the same time by exchanging a bank cheque with the seller).
- In relation to taxes, typically, the buyer and the seller will both pay the transfer fee and split the cost 50/50. The remaining types of taxes are dealt with by the Seller. However, both parties can negotiate between themselves and decide how much of the payable tax will be paid by each of them.
- Post Payment Process
- How to apply for your house registration book (Tabien Baan)? Do I need to make a will in Thailand?
- When a foreigner purchases a condo, they will be issued with an empty blue book together with the condominium ownership title as standard procedure.
- If you own a condo in Thailand, it is highly recommended that you create a valid will in Thailand, otherwise settling your Estate could become a very confusing and time consuming process.
- Reselling your condo
- What taxes you need to pay and how to transfer your money out of Thailand?
- When you sell your condo as a foreigner, any taxes will be paid at the Land Office during the time of transfer. The taxes that will need to be paid include the transfer fee (the price should be agreed upon and included in the SPA), business tax or stamp duty and income withholding tax.