THAILAND PROPERTY SALES GUIDE
Considering Buying or Selling Property in Phuket ?
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Buying & Selling Property in Thailand
Thailand offers a wide range of property opportunities, from condominiums and private villas to residential developments and investment properties. The ownership structure, purchasing procedure and transfer costs can vary depending on the type of property and whether the buyer is Thai or foreign. Guidance from an experienced property agency can make the process clearer and help ensure a well-managed transaction.
Property Ownership
Foreign buyers can own qualifying condominium units on a freehold basis, subject to the foreign ownership quota and other legal requirements. Under the Condominium Act, foreign ownership generally cannot exceed 49% of the total area of all units in a registered condominium.
For villas and other properties involving land, the ownership structure requires particular consideration because foreign ownership of land in Thailand is restricted. Depending on the property and circumstances, transactions may involve leasehold or other legally permitted structures. Professional legal advice should be obtained before committing to a purchase.
Due Diligence & Legal Checks
Before purchasing, buyers should verify the property title, ownership, permits, outstanding obligations and any restrictions affecting the property. For condominiums, the foreign ownership quota should also be confirmed. Independent legal advice is recommended before signing agreements or making substantial payments.
The Buying Process
A typical purchase begins with an agreed offer and reservation, followed by legal due diligence and preparation of the Sale and Purchase Agreement. Deposits and subsequent payments are made according to the agreed terms, with the final transfer of ownership normally registered at the relevant Land Office.
For a foreign-freehold condominium purchase, additional documentation is required, including evidence relating to the condominium's foreign ownership quota and, where applicable, evidence concerning funds brought into Thailand.
Selling Property
Before marketing a property, sellers should confirm the ownership documents, registered owner, property details, existing leases or obligations, and any outstanding common-area fees where applicable.
Once a buyer is secured, the parties agree the commercial terms, complete the required legal documentation and prepare for ownership transfer and handover.
Taxes & Transfer Costs
Property transfers may involve a transfer registration fee, withholding tax, specific business tax and/or stamp duty, depending on the property, ownership structure, seller and circumstances of the transaction. The standard registration fee for a transfer of immovable property is generally 2% of the official appraised value, while the actual allocation of costs between buyer and seller should be clearly agreed in the contract.