Buying a condominium in Thailand.
While buying and fully owning a house (or land) in Thailand has proven to be difficult for foreigners, purchasing a condominium is relatively easy and much more straightforward. The only limitation levied upon foreign ownership is that foreign owners are not allowed to own more than 49% of all units within each condominium property.
Title deed search
Firstly, the foreigner (buyer) is advised to check the correctness of the title deed of the desired property, its liens, encumbrances and the details of the owners specified in the title deed. This process is referred to as a title deed search (or title deed verification) and usually takes one day to complete.
Next, all required documents have to be prepared and gathered according to the internal regulations of the land office. One of the requirements for foreign buyers is also transferring the funds from abroad to a Thai bank account (note that merely having the funds in a Thai account is not sufficient). With the documents ready, the sale and purchase agreement must be made in writing and signed by both seller and buyer.
At this point, both parties are ready to proceed to the authorised land office, where the transfer of the ownership takes place. It is important to note that neither party has to be present at the land office in person, but instead The Power of Attorney can be prepared and given to the representatives of the seller and buyer. Subsequently, the existing Title Deed can be amended, now containing the name of the new owner.
There is a number of taxes and fees that both parties have to face when buying a condominium (regardless of whether the buyer is a foreigner or not). Supposing a seller was selling a condominium for 2M THB, the fees at the land office would be as follows:
|Transfer fee at the land office||2%||40,000 THB|
|Stamp duty||0.5%||10,000 THB|
|Specific business tax||3.3%||66,000 THB||Does not apply If the previous owner owned the property for more than five years.|
|Personal income tax (levied on the seller)||Up to 15%||Calculated by the land officer||The percentage decreases with the number of years the condominium was in the possession of its previous owner.|
|Total||Condominium + Fees||2,166,000+ THB||The burden of fees can be shared between both parties or taken care of solely by either side.|