Things to Consider When Buying Property in Thailand

When you're looking for property in Thailand, it's important to know your rights as an expatriate. Although you are free to purchase property in Thailand, you must adhere to a few rules and regulations. Read on to learn more. Here are some tips to make your buying experience as smooth as possible. Also, consider purchasing a property in a popular tourist destination like Bangkok or Hua Hin.

 

Property Transfer Taxes in Thailand

When buying a property in Thailand, it is important to understand the different property transfer taxes that are applicable. These taxes are assessed and calculated at the time of transfer. Individuals and companies must pay WHT at a rate of 1% of the sale price or municipal value. The tax rate is also progressive. Individual sellers are responsible for collecting WHT, and the tax rate is 5% for the first 100,000 baht.

The withholding tax is determined under the Revenue Code of Thailand. This tax is deducted from the price of the property at the time of transfer and paid to the Revenue Department. The rate varies depending on the year in possession, with more years of possession resulting in a higher deduction. The withholding tax rate can vary from 0% to 37%, depending on the type of property and the state of possession.

 

Lease or Usufruct in Thailand

Whether you want to lease or use usufruct, you'll need to understand the different types of property rights available in Thailand. While some Usufructs are free, others are for money. In most cases, any clause you choose will be upheld, as long as it doesn't violate the law. Purchasing a Usufruct is a great way to secure your real estate investment in Thailand. Depending on the size and type of property, you can choose from a lifetime lease or usufruct agreement.

You can buy a Usufruct for a single rai, or one that is 100 rai or more. Just remember that the Usufruct must be registered on each Title Deed. Several Supreme Court cases have ruled on Usufructs, and the Land Department has published a guideline for its use. Usufructs are a type of ownership that originated in Roman Law, and they have been common in Civil Law countries for centuries.

 

Buying Property in Bangkok

Before purchasing a condominium, it's worth checking out the amenities of the project. A large majority of condominiums have some sort of construction problem by the time they're five years old, from cheap flooring to leaking plumbing. To avoid buying a shoddy condo, try to contact other owners of the same building and ask them questions about its quality, construction, and maintenance. Legal agencies are also a good place to look for condominiums.

In addition to amenities, location is the most important factor for buyers. While swimming and fitness facilities are expected, amenities like a Co-working space, cinema room, and pet-friendly policy will also impress buyers. However, location is still one of the most important things to consider when buying property in Bangkok. A property near public transport is convenient, but may not be as desirable as a condo near a high-end shopping mall or the beach.

 

Buying Property in Hua Hin

If you're interested in purchasing property in Hua Hin, Thailand, you've probably already gathered information on the area. But before you dive in headfirst, there are a few things to keep in mind. First and foremost, the location is vital. If you're looking to buy a condo, you may not want to purchase one far from the nearest public transportation. In addition, the price of condos near transportation can be quite high. In such cases, it's best to keep your expectations in check and be prepared to sacrifice one thing for another.

Second, don't be tempted by cheap property in Hua Hin. Although property in Thailand looks cheap when compared to the cost of living in your home country, the build quality is far less than in Europe. Many first-generation properties are not built to the highest standard, and often fail to consider running costs or Eco solutions. This negatively affects resale value. Third, Thailand's standards were far behind those of European countries until a few years ago, so you should be cautious when looking at property in Hua Hin.

 

Buying Property in Pattaya

There are several important things to keep in mind when buying property in Pattaya. With the introduction of unclear foreign ownership issues, the Pattaya real estate market has experienced a slowdown, but the demand for property in Pattaya remains high. Listed below are some of these considerations. The right location is a vital factor. The city has excellent infrastructure and is only two hours away from Bangkok.

First, choose a reputable real estate agency. An experienced real estate agent will be able to give you the best advice on the right property and will also handle your investment while you're away. They will also ensure a professional after-sales service. A professional agent can alert you to potential problems and recommend safe developers. Remember that a reputable real estate agent will strive to get you to repeat business.