Property Purchase Guidelines

GUIDELINES FOR PURCHASING A CONDOMINIUM PROPERTY IN THAILAND 1. Financial Transfer Procedures for Foreign Buyers of Condos Under the 1991 Condominium Act, non-residents who purchase condominium units must transfer the funds to pay for the unit from overseas, with the money entering Thailand as foreign currency. Purchasers need to obtain a “Foreign Exchange Transaction Form” certificate for each payment from the beneficiary bank, and all these certificates must be shown to the Land Department in order to register the condominium. 2. Taxation Individuals who invest in property in Thailand are often unaware of the tax liabilities that may arise on either buying or selling the property. Typically, foreigners invest in real estate either through purchasing a condominium unit which they hold in their own name or by taking out a lease on a landed property. A tax analysis by Mazars, one of Thailand’s leading international accounting, audit and tax advisory firms, shows that an individual or other legal structure will always be subject to taxation on the sale of the property. 3. Property Transaction Costs and Ongoing Expenses for Houses and Condominiums Transfer fee: There is normally a 2% transfer fee for houses and condos which is either paid by the vendor, the buyer, or is split between both parties, depending on what has been agreed.   Sinking fund: For a new condominium project, the buyer pays a one-off lump sum upon transfer of the property from the developer to the purchaser. This money is to be used for major renovations and replacement of equipment when necessary, to ensure the maintenance of the building and ultimately its value in the future.   Utility meters: There is a payment for the initial registration of the electricity meters in new residential properties, and a transfer of registration fee for the re-sale of properties.   Lawyers’ fees: Each party pays its own legal fees.   Common area management fee: These fees are paid by owners for the upkeep of the common areas of condominiums and housing estates. For new residential developments, it is common to pay up to several years’ management fees in advance. 4. Visas for Foreigners There are different types of visas for foreigners entering Thailand, including tourist visas, work visas and retirement visas. For more information, please check the websites of the Ministry of Foreign Affairs and the Thai Government’s Department of Immigration. 5. Financing Financing for foreigners to purchase real estate in Thailand is complex and changes regularly. We recommend that you check with your bank to get the latest details. For more information on financing from the UOB Bank, please contact Ms. Yupadee Boonchawal on +66 (0) 81-696 2355 or yupadee.boo@uob.co.th.  For other Bangkok Condo information