The law of buying real estate
"Chanote" and "Nor Sor Sam" and "Nor Sor Sam Kor" is the only land titles, making it possible to own or rent land and build houses for a company with foreign shareholders. For "Nor Sor Sam" or "Nor Sor Sam do" titles, it means that the land is manually measured in relation to adjacent land pieces, while a GPS system is used for "Chanote" land.
All land and houses we offer on the home page has "Chanote", "Nor Sor Sam" or "Nor Sor Sam Kor" titles and has been controlled with the land office (concerning size, connecting road, loans etc)
2. How to buy and rent in Thailand?
There are several ways for a foreigner to legally own land or property in Thailand:
3. Starting a Thai company
The most popular method of owning land and property in Thailand (to work in Thailand is illegal with a tourist visa) is to start a business. A foreigner can have total control over this company, by agreement with the other shareholders.
The company must be majority owned by the Thais (49-51 or 39-61 for a brokerage firm). The foreign director has total control over the company by a written agreement with the Thai shareholders. The foreign part owned by the alien is "worth more", ie they are worth 10 times more, which means 10 x one vote at the annual meeting, while the Thai shareholders are worth normally ie 1 vote = 1 part. This means: 39 x 10 (votes) = 390 votes against 61 x 1 (voice) = 61 votes. Whatever the response, the alien has complete control over the company. Moreover, in most cases, most Thai partners already do sign over their shares to the foreigner and therefore can not claim rights to any of the company's possessions.
This is the most common method, and the safest solution for those who want to invest money to open a businesses or to build their own house...
We can help you to start a business in cooperation with the lawyer we use.
4. Prices for services
Property tax for the transfer of land
Depending on the sales price, about 4% of the total price.
Starting a business
The easiest solution if you only buy land or houses for accommodation. The cost is normally: 30.000-45.000 baht.
It costs about an initial 15,000 baht and then a minimum of 2000 baht in income tax, each month. Also 1100 baht has to be paid every 3rd month for the renewal fee. If you need more than one work permit, you will have to add 2,000,000 baht in capital. This means an additional fee of 30,000 Baht, for each work permit.
Taxes and fees for business
From 10 to 20,000 baht in annual tax for the company and from 12,000 baht and up, depending on individual profits, for a company. Add approximately 1000 to 3000 baht per month in accounting fees.
5. 30-years lease renewal contract
A foreigner may also own land with or without a house up to 30 years. This period can then be renewed for 60 or 90 years. However, many land owners do not accept this type of contract and it is more a temporary investment solution.
The costs and taxes are relatively low and it is not necessary to open businesses. You will have to pay tax when you first are signing the lease, which are usually 1.5% of the amount. You must also pay the same amount at each renewal of the contract every 30th year. You will also have to pay a "land tax".