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Property in Thailand. What you need to know.
On this page you will find some basic information
about buying property in Thailand. We suggest that if you are interested
in having a second home in Thailand that you consult with a good lawyer
before signing any contracts.
Can Foreigners own a house and land in Thailand?
Under Thai law, any person can register any type of building in their
own name. So the good news is that foreigners can own their
houses. However, the ownership of land is restricted. It is
virtually impossible for a foreigner to own land freehold. Therefore,
most buyers will opt to own their house, but lease the land it is built
on.
Foreign buyers can have a 30 year lease with a
prepaid option to renew for a further two periods of 30 years each,
making a total of 90 years. The
contract will also give the foreigner the option to purchase the land should the
law change in the future and to sell or transfer the land at any time.
The lease will be registered at the local government land office.
If this is not done the enforceable period of any lease, regardless of
what is written on the contract, is only 3 years.
In the past foreign buyers set up Thai registered
shell companies and used these to buy land. However, this is not
easy to do at present and so isn't recommended unless you plan to open a
'real' business in Thailand.
Property Taxes
These are very low in Thailand. On a lease
agreement you will only have top pay approximately 1.1% of the purchase
price in taxes when you register the lease at the government land
office. If you were buying freehold the tax would be approximately
5.3% of the purchase price.
** As of mid-2008, the Thai government announced
that property taxes would be lowered to approx 0.2% of the selling price
in order to stimulate house sales. **
Land Title Deeds in Thailand
There are four types of Land Title in Thailand:
Chanote - A Chanote is a title deed
that has been issued by using GPS to set the area and boundaries of the
land, which is a very accurate method. This is the
most secure type of land title.
Nor Sor Sam Kor - This title deed
is basically the same as a Chanote. This title and the Chanote are
the only ones that a Thai bank would take as mortgage collateral from a
Thai customer. The front of the title deeds will show the current
owners name, the land area and also have a small map of the plot which
will show any boundaries such as the sea, river, roads etc. The
rear of the title deed shows the names of previous owners and also if
the title has been used to secure loans or has been leased to a third
party.
The above two titles are the ones that a registerable
right of ownership or lease can exist, and so are the only titles that
most buyers will consider.
Other titles include:
Nor Sor Sam - Land with this
title cannot be transferred immediately, a 30 day public notice must be
posted before any sale can occur.
Por Bor Tor Ha / Sor Kor Neung - These
are farmland title deeds. Only for Thai buyers and expats married
to Thais who understand the local way of doing things will consider land
with these titles.
Land Measurements
You will see large plots of land listed as being a
number of 'Rai'. Smaller housing plots often use 'Talang Wa'.
1 Hectare = 6.25 Rai
1 Acre = 2.5 Rai
1 Rai = 1,600 sqm = 4 Ngan
1 Ngan = 400sqm = 100 Talang Wa
1 Talang Wa = 4sqm
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