The big question: Is buying property in Thailand a nightmare for expats?

Aung Myint wanted to move in with his girlfriend two years ago in Phuket, Thailand. He received 5–6 calls from real estate agents who promised to offer better deals on rental agreements. However, these agents were unknown to him and didn't provide any information on Thai property laws.

Like Aung, you may also need to know certain facts before buying property in Thailand. For better property registration, keep a note of the main areas:

Land Possession Rights

If you’re from Myanmar and moving to Thailand, you may face land ownership issues under the Land Code Act. Without an exception under Section 96, you can’t apply for house registration documents in Thailand.

Exception:

• A letter from the Thai Military on confirmation of the presence of other specific property
• Investment of 40 million Baht on government bonds for 5 years

2. Land Taxation Fee

You must pay a 2% transfer fee on the property and a 5% stamp duty fee based on the appraised value. Complying with these two tax obligations is essential for owning land in Thailand.

3. Property Return

Beware of misleading property deals!

It involves the purchase and return of property at the end of the agreement under Thai civil law. As per Section 1332, “When a person has in good faith purchased property at a sale by public auction or from a trader dealing... not be bound to return it to the true owner, unless the latter reimburses the purchase price.”

4. Land rental as a foreigner

If, in the future, you plan to settle in Thailand, you'll be required to lease the property for 30 years under the Civil and Commercial Code (sections 537 to 571). Under the total registration rental agreement, it is important to consider a 1% registration fee throughout the term.

Therefore, settling across Thailand’s serene beaches won’t be a nightmare.

At Konrad Legal, we commit to reliable property buying and registration in Thailand.

To get legal help in property, contact at [email protected]