Ask yourself, how ready are you to buy an apartment in Thailand? Today the question is so relevant among us that because of this there are thousands of offers on the internet from hundreds of real estate firms. And then the first question arises, is it possible to prepare and make the deal on purchasing property in Thailand or should you contact a real estate agency that will take care of all these troubles.
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The first thing a buyer contemplating buying a property faces are two property options:
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- It is already foreign property and can be registered to him personally as a citizen of another country.
- If the apartment is still under Thai ownership, in which case it cannot be registered to him.
What are Thai and foreign quotas?
quota is a portion of a residential property divided among the owners in the ratio: 51% belongs to Thai citizens, 49% can be sold for ownership to foreigners. It is this part of the foreign quota will account for most of the proposals for sale from real estate agencies or from the developers themselves.
If the apartment is in the foreign quota will be in the apartment.
If the apartment is in the foreign quota, the tax is quite substantial and is paid by the buyer. For example, the cost of the apartment 2 million baht, registration at City Hall in Thailand 10-15 thousand baht, the tax on this property will be 6% of the value.
If the apartment is in a foreign quota.
The drawing up of the contract for the purchase of an apartment in Thailand
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Thai companies prefer to conclude contracts in Thai, foreign companies may offer you a contract in English with a Russian translation. Both variants are valid. That is, if the
In the case of a purchase contract in Thailand, the Thai contract will take precedence.
This is what a real estate purchase agreement in Thailand looks like
You should clearly understand that the Russian version of the contract to buy a property in Thailand will not have any legal force, and that the Thai and English versions are also better to check for consistency with each other. Your expenses that you will incur in addition to the basic payments for the property depend on this.
To buy an apartment in Thailand, first of all you need to pay attention to several nuances in the contract:
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- Which quota the apartment is in.
- Who incurs the financial costs of transferring ownership and paying taxes.
Buying an apartment in Thailand on your own
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- You should know English well, as the Thai civil servants are easier to speak in their native Thai or International English, and no one is obliged to know Russian.
- You yourself will have to deal with registration of all necessary documents for the purchase of an apartment and its subsequent registration in the City Hall of Thailand. Also, you will need to be familiar with the peculiarities of Thai laws.
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Think again about whether you are ready to take all the risks of buying a property in Thailand, or if you should seek the services of professionals to defend your interests. We also advise you to read about taxes on housing in Thailand, that you have to pay for the transfer of ownership.
Buying an apartment with a developer
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The builder may contract with the buyer of the property to share the cost of transferring ownership, this too should be kept in mind when entering into the contract, and again, do not forget about quotas.
The developer may share the cost of transferring ownership.
Developers in Thailand are divided into two types:
- Honest – will warn you right away that the apartment is already in the Thai quota and you need to open a company to buy it.
- After-the-fact honest – will put you in front of the fact when you get the right establishing documents, especially if you are buying an apartment in Thailand’s primary market, that is directly in a building under construction.
If you are caught after the fact an honest builder, and Thai apartment ended up in Thai ownership – it means the beginning of the procedure of registration of the property through the registration of the company with Thai founders, of course not for free. Therefore, with the help of a lawyer, check the documents that the company-developer in Thailand gives you. The lawyer will check your contract, the compliance of the Thai version of the English, or Russian translation, check the company documents, how reliable this company is. When the cost of the deal when buying property in Thailand of a million baht or more, calling on the lawyers is definitely a must.
What if you look at the apartment in the Thai quota
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In order to get an apartment with the Thai quota, you need to open a company in Thailand, and only after that do you have to register it. A number of peculiarities arise here.
1. Making financial investments
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Opening a company involves certain financial investments. First of all, the company opens with a share capital roughly equivalent to the cost of a flat in Thailand. The amount of registered capital determines the cost of opening a company. Then the company needs annual accounting service, even if it does not conduct any business. These are certain costs that a buyer of real estate in Thailand should be prepared for.
In addition, the company needs to have an annual accounting service, even if it does not conduct any business.
2. Thinking about security
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The question arises, how do you keep yourself safe? The Thai man who is the founder of your company should provide you with a letter of renunciation of his share in that company. This is a fairly quick and painless procedure, and with this letter in hand, you can change one Thai owner to another. And since the company already owns an apartment in Thailand, it automatically goes to the new people of the company. After buying your long-awaited home, it is worth familiarizing yourself with the community payments that will “fall on your shoulders” in the future.
We also recommend you to consider buying a house in Thailand and the the real estate market in Thailand in general.
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