The Phuket Landbuster

Frequently Asked Questions

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These are some of the most frequent questions I get:


:: Beach - private vs. public


:: Closing Costs


:: Cost of Construction


:: Income Tax - corporate or personal


:: Land Titles


:: Property Financing


:: Property Ownership - Thai or foreign

 Beach - private versus public

:: QUESTION: Can I have my own private beach in Thailand?


:: ANSWER: No, all beaches in Thailand are public!

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 Closing Costs

::QUESTION: What kind of fees can I expect on top of the purchase-price, when buying a property?


:: ANSWER:


FREEHOLD:

-    The Stamp Duty, Transfer Fee and Business Tax is in most cases, shared 50/50 between the seller and the buyer.

-    The Income Tax, comes as a surprise to many sellers, and the seller might ask the buyer to share this??


LEASEHOLD/MORTGAGE FEE:

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 Cost of Construction

:: QUESTION: What does in cost to built a house in Phuket?


:: ANSWER: Depending on materials used and how many stories; somewhere between 10,000 to 30,000 Thai Baht per m2!

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 Income Tax - corporate or personal

:: QUESTION: What are the tax-levels in Thailand?


:: ANSWER: Please check the web-site of The Revenue Department of Thailand for the current rates!

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 Land Titles

:: QUESTION: What are the different land-titles in Thailand and what do they mean?


:: ANSWER:

-    Chanote, Nor Sor 3 Gor & Nor Sor 3 are the only land-titles, where registered right of ownership or lease can exist, therefore any land-titles lower than these are not recommended for foreigners.


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 Property Financing

:: QUESTION: What kind of financing is available in Thailand?


:: ANSWER: General speaking, the Thai banks are very cautious when it comes to property-financing (mortgages), Thai national or not.

Owner financing (by Seller) is only available in a few cases.

Some of the bigger developments, might be offering some kind of financing (off-shore typically (and for qualified buyers only) against off-shore and/or overseas assets).


Also available:


MBK Guarantee Company Ltd. is offering financing of condos. Max 10 years & up to 50% of the property value: MBK Guarantee


United Overseas Bank (Singapore) is offering max 20 years and up to 60% for citizens / permanent residents of Singapore and Malaysia.

Further info: visit United Overseas Bank (Singapore)!


For Currency Conversion, please feel free to use: XE Personal Currency Assistant

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 Property Ownership

:: QUESTION: I am non-Thai national (foreigner), how can I own a property in Thailand?


:: ANSWER: Basically there are two ways of owing a property in Thailand: 1. Freehold, 2. Leasehold:

Under the current law in Thailand, foreign nationals (with a few exceptions) are not allowed to own LAND in Thailand, only the building / structure built on the land.


What foreigners do today is: go for the Leasehold-ownership (30 years, renewable, with a maximum 90 years total), buy in a Thai company name, or a combination of the two.


A Thai company with the majority of shares held by Thai nationals (51%) is allowed to own any property (including the land) Freehold, so you as a foreigner can set up a Thai company, where you maximum can posses 49% of the shares.


There are different ways to ensure that you, as the foreign minority shareholder, have complete control of the company in terms of management and finance.


Further info can be found at: Royal Thai Government -> Ministry of Interior -> Department of Lands



Finally, it's always recommended to consult a lawyer, before doing a property purchase!


(Disclaimer: The information provided on this site is for informational purposes only. No warranty is expressed or implied. Before taking any legal action, persons are advised to seek the advice of an attorney qualified in the area of law concerned.)

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