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Buying an Apartment in Thailand

Apartments in Thailand are executed by the latest technologies of the highest quality building materials from leading manufacturers. Typically, this is a multi-storey apartment complex , "condominium", with a complete fitness center , spacious and convenient parking and restaurants. All the apartments are sold in full ownership to third parties who, in turn, have the right to use them only for their own purposes . Enjoyable moment is the fact that real estate in Thailand not liable for tax . Once you have purchased a house, apartment or other real estate, you do not need to worry about taxes.

There are 2 ways to purchase apartments in Thailand:

1. Purchasing a condominium in new buildings

2. Buying an apartment on the secondary housing market

Purchasing an Apartment in New Buildings.

One of the advantages of buying an apartment in new buildings is that the buying process can be carried out remotely, ie without visiting Thailand, while it can be a great investment, because if you enter into a contract to purchase a condominium on stage announcing the construction project, you can count on low-cost housing. The further construction, the higher the price.

Once you have chosen the project, it is necessary to conclude a contract with the builder .

The contract can be signed personally or being at home, by email. In the second case, the developer will need a copy of your passport, postal address and phone number. Paying a deposit, you will receive a contract from the builder and account for a down payment, after the payment of which the contract takes effect. Apartments best buy in your own name, then you will not have any problems if you want to sell or rent out it.

One of the advantages of buying an apartment in new buildings is installment payments . You pay an initial payment at the conclusion of the contract, the balance is divided into several parts that you make on the account of the developer gradually in the process of building a house. The sum of the payments may be different, it depends largely on the size of the down payment. Many builders offer customers an installment payment up to 10 years with minimal interest.

Buying and selling property in Thailand is taxed. The amount of tax is determined by many factors, one of which is the purpose for which you decide to buy property in Thailand.

Buying an apartment in a new building, you only pay the Transfer Fee - fee for change of ownership. It is often paid by the customer. Payment of this fee is made at the Land Department, as a rule, its value does not exceed 1.4-1.6% of the purchase price. No more property taxes in Thailand are not charged.

As for the other expenses, the purchase of an apartment in a new building involves the payment of Sinking Fund - sinking fund. This payment will be charged one time for buying a new flat, its size varies from 350-700 baht /sqm for ordinary housing and can reach 1000 baht /sqm, if you purchase a luxury housing.

And last payment - Maintenance fee is a fee for apartments service and service of contiguous territory, such as the swimming pool, parking, etc. Its value ranges 15-60bat/sqm often pays for a year or two ahead.

Once all the formalities are settled, you get the documents proving your ownership of a condominium. The main document is a certificate of ownership - Chanoot , which sets out all data of the purchased apartment and all its owners during the existence of the apartment.

The second document - passport ownership / House book. Its preparation is mandatory for Thais, to foreigners its presence is not necessary.

Buying an Apartment in the Secondary Market of Thailand.

While buying an apartment in the secondary market, you need to open an account in one of the Thai banks . Once the account is opened, you can get the necessary certificate for the purchase of an apartment - Foreign Exchange Transaction, without which you can not buy a condo in private ownership. This certificate officially confirms that your bank account has been converted and received the necessary funds to purchase an apartment.

You can add funds with traveler's checks or transfer money from a foreign bank. All the money is automatically converted into Baht at the bank rate at the time of receipt of the money. As the cause of payment, select "Purchase of property in Thailand."

The next step is to sign the contract with the owner of the property . There is no standard form of contract , but it should contain name of the seller and the buyer , a description of the object of purchase / sale , its cost , the amount of advance tax payer , the validity of the contract. Contract must be executed either in Thai or English. Amount of advance usually does not exceed 10 % of its value . Full payment must be made within 1-2 weeks , but may be extended or reduced by agreement of the parties . If, after the conclusion of the contract , you decide to withdraw from the transaction or can not make a payment , the contract is terminated , but the advance will not be refunded.

Final payment to the seller takes place in the Land Department of Thailand, where all necessary documents proving your right to property are prepared. In order to perform these procedures, you must complete and submit a number of documents:

Certificate Foreign Exchange Transaction

A copy of the your passport

Copy of passport of the seller of apartments

Certificate attesting the ownership of the seller of apartments

Certificate for the seller's name, issued by the condominium management company

When buying an apartment from the secondary market, you need to pay the following taxes and fees :

Transfer Fee - fee for the transfer of ownership, the value of which is calculated in the Land Department of of Thailand.

Special business tax - business tax, the amount of which is calculated based on the maximum value of the apartment. This tax must be paid if the apartment was resold during the last five years.

Stamp duty. It is also calculated based on the maximum value of the apartment and is payable if the apartment belonged to the previous owner for over 5 years

Withholding tax - VAT is calculated based on many factors such as the cost of real estate, income tax rate, etc.

Signing a contract to buy / sell a resale property, worth pre-negotiate with the seller and make the contract items relating to taxes and other fees that pay at the Land Department of Thailand. As a rule, the landlord pays at least 50% (sometimes 100%) of their amount or simply subtracts it from the value of the apartment.

Just as in the case of apartments in new buildings, after all the formalities you get the documents proving your ownership of an apartment. The main document is a certificate of ownership - Chanoot , which shall include all data of the purchased apartment and all its owners during the existence of the apartment.

The second document - passport ownership / House book. Its preparation is mandatory for Thais, to foreigners its presence is not necessary.

Buying a House, Villa or Land Plot in Thailand

If you decided to buy a house or villa in Thailand , you need to know that according to the laws the Kingdom of Thailand, the foreign national can issue the house itself in a full ownership but the plot of land on which this house is built, has to be issued on entity - a limited liability company..

This mechanism of land tenure is the most popular among foreign investors, as the Charter of the Company can reliably protect in many ways foreign partners.

According to the Thai Foreign Business Act t 51% of the shares are held by Thai officials, however, as a rule, these are nominal shareholders are Thai law firm office workers or members of their families. Nevertheless, it is recommended to explicitly specify the charter company that only a foreigner can be a company director and he is the only one person who can represent the company in various contract deals.

When a company is registered, you will receive the following signed but undated documents from each of the co-owners of Thai: power of attorney, the document on the transfer of shares and resignation. These steps effectively guarantee full control over the company.

In reality, as a rule, one property is issued by a single entity. Respectively - from a legal point of view, the buying process is the legal registration of the change of one foreign shareholder and director (Seller) - to the other (the buyer). So you can quite legally buy a house in Thailand, cottages, villas and even a hotel.

There are several options of registration of land in the long-term lease:

1. Long-term lease of a citizen of Thailand, made ​​by a shareholder of the buyer, but not having the right to act on behalf of the company.

Thus, a citizen of Thailand buys a house / land, and you take it to rent for 30 years, renewable. To hire more than three years had legal force, it is necessary to register, which entails costs for registration and payment of stamp duty that is a percentage of the rent for the entire term. You can renew the lease twice more for a period of 30 years (a total of 90 years).

2. Thai man, chosen by the buyer or a lawyer with a house / land bail

3.you are the legal spouse of Thai citizen you can buy a joint land and place it on your legitimate Thai satellite. This option is very popular among mixed marriages.

4. If you are planning to invest more than 500 million baht to purchase land, the Thai government will give you the opportunity to draw the property in your name. These issues are dealt by Investment Committee of Thailand (BOI - Board of Investment). This requires more detailed legal advice to the consideration of all possible privileges.

Once you have resolved all matters connected with the opening of the company, or renting land, you need to make all necessary payments specified in contract of sale . Making transfers to Thai Bank , be sure to pay attention to paragraph "purpose of payment". In this column you must specify the "investment" or "acquisition of real estate", it will help you get the certificate in the future.

Once all the formalities are settled you can get the documents proving your ownership of the house and land. The main document is a certificate of ownership is Chanoot , which includes all data acquired property, as well as all of its previous owners.