FAQs

Property taxes when buying or selling a property in Thailand are relatively low, however there are often more taxes involved when selling a property (up to 6.3% depending on ownership structure). The property taxation system in Thailand is quite complex and so it is important to engage with a lawyer to get full information before putting your property up for sale or committing to a sale.

Government Fees and Taxes

Normally shared by Buyer and Seller

– Transfer registration fee of 2% 

– Withholding tax of 1% 

– Specific business tax 3.3% 

– Stamp duty of 0.5% 

Another type of property investment in Thailand consists in buying off-plan properties. This means buying a condominium unit or a house or a villa before it has been erected out of the ground. Buying properties off-plan allows you to achieve substantial discounts and potential long-term capital gains, since “pre-sale” purchase prices are lower than the average market. The risks associated with buying a property that is not yet tangible are offset by the preferential rates and payment flexibility. Depending on the estimated completion date, it is likely to get flexible payment terms over the course of the property construction. Payments can be made as per construction progress or as per schedules, upon contracts. In practice, an off-plan property investment is often spread over few payments over the course of one or several months.

All other extra charges explained: when buying a property in Thailand : CAM fees, sinking funds, Elec/Water meters installation

CAM fees stand for Common Area Maintenance and are the maintenance fees for the property common areas such as swimming pool, gym, garden, elevators, etc. CAM fees are calculated per surface area owned on a per month basis and in most cases are to be paid a year in advance in a single or double payment. CAM fees range between 40 to 160 THB per sqm per month.

The sinking fund is a one-off sum paid by owners for a new property ONLY. The budget is the responsibility of the legal entity of the condominium, which uses it for unforeseen expenses outside the budgeted costs of the property. Basically, the sinking fund is a reserve fund managed by the condominium, for major structural works such as roofing, walkways or elevators. This fund is different from the CAM, which is used for the day-to-day running of the complex. The sinking fund can represent from 500 to 1500 THB per sqm

Electrical and water installation fees cover the installation of meters for your personal use in our property and are a one-time payment, all together around 20,000 THB average only.

Thailand does not support the cryptocurrencies as a foreign currency in regards to foreign ownership. However, with the help of a broker associated with a Thai bank , to issue the FET form, You can possibly buy a villa or a condo with a payment made with cryptocurrencies..  See FETF / Credit Advice.

The Credit Advice / FETF

For every transfer of funds to a Thai bank, the beneficiary Thai bank issues a credit advice document proving the origin and amount paid in. When purchasing a property in Thailand, a foreigner must prove funds are coming from overseas in a foreign currency. To prove it, the beneficiary bank in Thailand who received and exchanged the funds into THB must issue a credit advice or a Foreign Exchange Transaction form (FET or FETF) depending on total amount.

The FETF document is holding 2 names, the name of the sender of the funds overseas and the name of the receiver of the funds. It is mandatory that one of those 2 names (sender or receiver) is the buyer. The transfer description shall also clearly indicate the property name and the condominium unit to be purchased:

Broker can assist and guide you if you would like to purchase a property in crypto, most cryptocurrencies accepted are: Bitcoin, Tether and Ethereum, respectively: BTC, USDT, ETH

The Bank Guarantee Letter – Bank Reference Letter

Usually to be issued at the same time with the credit advice or FET form by the beneficiary bank, the letter accompanies the credit advice / FET form, engages the bank’s responsibility and specifies the name of the buyer, the total amount received in foreign currency with dates and stamps to proceed at the Land department 

Yes, you can, when you buy a property in Thailand to make it simple. It is true that for security reasons, opening a bank account in Thailand for a non-resident is getting challenging. Rest assured, in most cases, with few major local banks, you will be able and entitled to open a bank account if you can justify that you own, or will own anytime soon a property in Thailand. The following set of documents must be presented to the bank:

• Sales and purchase agreement signed by developer and buyer.
• Official receipts from the developer.
• Original Buyers’ passport with last arrival stamp from immigration.
• A Minimum deposit. (Few thousands THB)

You will have a Thai bank account, a debit card, and access to the banking Apps, enabling you to pay or withdraw money anywhere in Thailand. When you buy a villa or a condo through your personal Thai bank account, you need to obtain by yourself, from your bank, the necessary forms to be presented at the Land department that justify the foreign origin of the funds and a letter of reference from the bank with details of the property you like to purchase. 

Foreigners may not own a land in their name; however, a Thai registered company in the foreigner’s name may own the land. Thailand has different types of business entities, with the most commonly used being a Thai Limited Company. For Americans, the Thailand Amity Treaty is one way to legally own property. As there are many types of company structures that comply with Thai laws, it is best to consult your real estate agency or lawyer to find a company that best fits your situation. For more information, check out our guide to buying property in Thailand below:

When you hear the words “Thai quota,” it is referring to the foreign freehold ownership quota. This law deems that foreigners cannot own more than 49% of the total unit floor area in a condominium. The majority, or 51% of the ownership must be in the name of a Thai national. For more information about buying property in Thailand, check out our guide below:

Banks offer a range of financial services to Thai people from credit cards, business loans to personal loans for education, medical treatment or general use.

Banks have their own policies when lending to foreigners and for a foreigner to be able to access bank loans, they must meet the following criteria:

• At least a one-year work permit or a Thai resident permit
• Proof of employment in Thailand and annual salary (including payslips)
• In some cases, banks may require the employer’s company documents
• Pass a credit check conducted by the bank
• The applicant’s age combined with the loan period must not exceed 60 years
• Must have a stable and secure job
• Total income must be at least three times higher than each installment.
• The aggregate amortisation of the loan must exceed seven years (for some banks)

In general, each bank has its own requirements for lending funds to foreigners.

Financing is an important issue for many foreign property buyers in Thailand. We are so used to having access to financing in our home country that we do not realize how difficult it may be to access a loan when purchasing in a foreign country. There is a lot of information out there in relation to financing for foreign buyers but essentially it comes down to three choices. Purchasing with cash outright, re-mortgaging a loan in your home country or obtaining a local loan from a bank with subsidiary networks in a regional country, namely, Singapore. There are other options for obtaining local financing from domestic banks in Thailand but they are not usually available to non-residents and therefore are often more difficult to obtain. These options will be examined in turn below.

Cash is King

Using cash to purchase your dream property in Thailand is certainly the easiest financing option. Some people with excess liquidity are able to do this quite easily. Others choose to borrow from family or friends to fund the investment. Although this is the easiest option, it may tie up your funds unnecessarily. This is especially the case when purchasing properties as these assets can have slow liquidity. Obtaining institutional financing, if done carefully, can serve as a useful investment tool even if you have more than sufficient cash to cover the purchase.

Re-Mortgaging in Thailand

Many buyers are taking advantage of the capital increase of their principal homes in their own country. Typically, you can get a re-mortgage on your home to release the surplus equity. This will then generate the financing required for that holiday home in Thailand. You still have to show that you have the means to meet the repayments after re-mortgaging your property. If you intend to generate income from the property in Thailand, then it may be necessary to show a rental agreement to the bank. The main advantages and disadvantages of this method vary according to individual circumstances. However, some important factors to consider may be the following.

The Advantages

• The service and all the necessary documents are available in your own language making the process more familiar and trouble-free.
• Your credit history with your current lender may make the loan easier to obtain as you are borrowing on the strength of your home.
• More competitive and flexible terms and conditions from a more developed financial system.
• If the equity from your home is sufficient, you can purchase the property in Thailand in cash which may result in a better price and more bargaining power.

The Disadvantages

• Variable rates may have adverse effect on your ability to meet payments.
• May spend years paying off extra repayments well into your retirement.
• Failure to meet payments for any reason may result in you losing your home in your own country.
• A re-mortgage on your personal home may hinder your ability to obtain further funds for emergencies in the future.

Obtaining Finance in Singapore

Over the past few years, we have seen the Singapore branch of Bangkok Bank working hard to provide a respectable lending scheme to foreigners wishing to buy a property in Thailand. It has been met with good success although certain political elements in the country over the past year or so have lessened its eminence slightly. Nevertheless, the scheme is still available to qualified purchasers. In fact, over the past year, other banks have begun introducing their own schemes such as Singapore’s United Overseas Bank (UOB) which has branch offices all over Thailand.

• The Advantages: This has been good news for Thai property buyers worldwide. Local financing has meant greater access to the property market and more flexibility in investment choices. The main advantage of this type of lending scheme is that you can obtain financing upon the strength of your property in Thailand. The mortgages are available in either Singapore or US Dollars meaning that borrowers have the option of choosing a more stable currency to work with. However, care must still be taken if your income is not in either of the two currencies as fluctuations can have an adverse effect on your repayment abilities.
• The Disadvantages: The main disadvantage of obtaining a local loan is that it usually has a low Loan-to-Value (LTV) ratio. Some countries allow financing for up to 90% of the property. In Thailand, the LTV ratio is 70% at most although generally it is around 50%. Amortization rates are also usually fairly low with the average period of loan standing at between five to ten years. There is also a requirement that the mortgage has to be fully repaid before you turn 65 years of age.

Other Options

There are other banks, both domestic and international, offering lending facilities to foreign nationals in Thailand. These include HSBC, Siam Commercial Bank (SCB), Thai Military Bank (TMB) and TISCO Bank. These banks offer more competitive rates but they do have strict residency requirements. At a minimum, borrowers must hold an Alien Registration Book indicating their permanent residence status in Thailand.

Final Word

Financing a dream property in Thailand is not as mystifying as many believe. Although it is not as straightforward as some countries, financing is accessible for property purchases in Thailand depending on individual circumstances. As outlined in the foregoing, there are indeed some serious matters to consider before you plunge yourself into the deep end. Keep in mind your ultimate objective in buying a property in Thailand and have a plan ready should you become unable to keep up the repayments or unable to sell off the property in the future.

The distance from beach only concerns properties that are up to 50m from the beach. In this case limit is 6m.

Distance From The Beach Regulations

Within 10 meters from the beach: No construction at all is permitted.

From 10 to 50 meters from the beach: Only one-storey buildings are allowed to be constructed and must have a height that does not exceed 6 meters (roof included). The total built area cannot exceed 75 sqm. The roof structure should also be peaked and not flat.

From 50 to 200 meters from the beach: A structure can be up to 12 meters high (roof included) and the total built area cannot be larger than 2,000 sqm. The roof structure should also be peaked and not flat.

From 200 meters and further from the beach: A structure can be up to 12 meters high (roof included.) The roof structure should be peaked and not flat.

Sloping of Land

Less than 35 Degree Slope

No additional regulations.

Between 35 and 50 Degree Slope

The building must be a single home with land area a minimum of 480 square meters. Structures can be no larger than 80 square meters, 75% of the land must be green (unbuilt on) and 50% of this green land must have be planted with trees native to Koh Samui.

More than 50 Degree Slope

No building is permitted.

Decrease the slope by building a retaining wall down at the bottom of the plot, to turn yellow zone into green zone

Getting a mortgage in Thailand is hard but not impossible. A few Thai banks are known for being more foreigner friendly. The easiest way to purchase property in Thailand is by paying with cash. But, if you are needing a mortgage within Thailand, there are a few banks that can give mortgages to foreigners.

Mortgage application documents:

      – Passport

      – Visa

      – Work permit (over 2 years old)

      – Marriage certificate to a Thai person

      – Certificate of salary from work

      – Copy of bank statement (last 6 months)

      – Salary slip

      – Other bank books

      – Income tax statements

      – Other documents showing sources of income

      – Borrower’s age and installment period combined must not exceed 60 years

      – Must have income 3 times the monthly installment amount

      – Credit bureau check

      – Title deed, sale and purchase agreement, and valuation report

Having these documents ready and in order can streamline the loan application process for property purchase.

Recommended Bank in Thailand:

Thai Bank Krungsri (yellow bank)

Koh Samui, Thailand’s island paradise, is no stranger to the spotlight. With its pristine beaches, crystal-clear waters, and lush tropical landscapes, it has long been a coveted destination for travelers seeking serenity and adventure alike. However, the island is set to receive an unprecedented level of attention as the chosen filming location for the third season of the critically acclaimed TV series, “The White Lotus”.

The series, known for its sharp commentary on social issues and its stunning backdrops, has previously led to significant surges in tourism for its filming locations. The first season, set in Hawaii, saw a 425% year-over-year increase in web traffic for the featured property. Similarly, the second season boosted interest in Sicily, with the Italian island experiencing a spike in inquiries and bookings. This phenomenon, dubbed “The White Lotus effect,” is anticipated to redefine travel and tourism trends for Thailand in the coming months and years.

The filming of “The White Lotus” in Koh Samui is also set to influence the island’s real estate market. Historical data indicates that neighborhoods housing film studios often experience a rise in surrounding property values. This trend is expected to hold true for Koh Samui, where the allure of living near a famous filming location could drive up property values.

Moreover, the strategic integration of studios within mixed-use developments has been shown to transform the real estate landscape, attracting investments and invigorating local economies. Koh Samui’s real estate sector may see a similar pattern, with heightened interest from investors and homebuyers alike, looking to capitalize on the island’s newfound fame.

Koh Samui is one very popular tourist destination in Thailand. Tourists from all over the world love to visit this beautiful Island due to its state of the art and cheap accommodation together with a wide range of cultural, entertainment and sports possibilities. Because of these advantages, buying real estate in Koh Samui is seen as a very profitable venture. There are a lot of luxury properties in Koh Samui for you to make your choice from.

Currently, Koh Samui is making it big from its ascending real estate market because of the rising number of tourist who chooses to come to the Island for their holiday and the plenty business start-ups that are now modernizing the Island. People who come to Samui are those who prefer a balance between luxury accommodation and unspoiled nature. This post will highlight some reasons why buying real estate in Koh Samui is an opportunity that will benefit you. In the past year the value of the property increases by 35-40% Koh Samui is a trendy exotic holiday destination with never before seen sceneries

Like the rest of Thailand, Koh Samui features a lower cost of living than most Western countries. If you are interested in buying a property, check out our home buyer’s guide. For those looking to rent a house or condo, check out our available properties for rent!

Average costs of living for a single person living on Koh Samui start at:

• 7,000 THB/month rent
• 2,500 THB/month motorbike rental
• 2,500 THB/month health insurance
• 12,000 THB/month for food

Average costs of living for a family of 4 starts at:

• 20,000 THB/month for 3-bedroom villa
• 9,000 THB/month for car rental
• 8,000 THB/month health insurance
• 50,000 THB/month international school tuition for 2 children
• 25,000 THB/month for food

For further information about the current costs of living on Koh Samui, check out Cost of Living in Koh Samui and The Island Life on Koh Samui.