Live and Invest in the Heart of Phuket

Yes, foreigners can purchase property in Thailand. There are two types of property rights for foreigners in Thailand: Leasehold and Freehold.

Freehold — full ownership for an unlimited time, allowing the property to be resold, gifted, or bequeathed. Key features:

• independence from the previous owner upon resale;

• freehold property is more expensive than Leasehold;

• registration fees are higher than for Leasehold.

Leasehold — the right to use and manage the property for a limited time (typically 90 years) with the ability to resell, gift, or bequeath the property. Key features:

• Leasehold property is about 10% cheaper;

• Registration fees is lower;

• the lease agreement must be renewed every 30 years in the Land Department;

• no shared ownership of common areas in a condominium;

• simplified payment procedure;

• not subject to taxation and does not require declaration as foreign property.

When registering Freehold property, the following taxes and fees are payable:

• Transfer Fee: 2% of the property value;

• Specific Business Tax: 3.3% of the appraised value of the property. However, it is only payable if the property is sold within the first five years of ownership by the same person. If not, stamp duty will be charged;

• Stamp Duty: 0.5% of the highest property value (either contract price or appraised value). When a specific business tax is applied, stamp duty is not required, so it is either one or the other;

• Withholding Tax: This tax is calculated using a complex formula that takes into account the appraised value of the property, the period the seller owned the property, and the individual income tax rate for that person. The Land Department will provide the actual calculation, which can be requested in advance

The amount of taxes and fees paid depends on many factors, with the exact amount calculated by the Land Department. On average, taxes and fees for Freehold purchases are around 5−7% of the transaction value. 5–7% of the transaction value.

In a typical transaction, the buyer and seller split the 2% Transfer Fee equally (50/50). The seller pays the other taxes. However, both parties can negotiate and decide individually which taxes each party will pay.

When registering a Leasehold, the following taxes and fees are payable:

• Registration Fee: 1% of the property value in the contract;

• Stamp Duty: 0.1% of the property value in the contract.

In total, it is 1.1% of the property value and is usually paid by the buyer.

In condominiums there are monthly maintenance fees for the upkeep of common areas, which include:

• 24-hour security;

• cleaning and maintenance of common areas;

• gardening;

• maintenance of the fitness center;

• pool cleaning;

• lighting of common areas, etc.

Depending on the level of the condominium, monthly fees can range from 50 to 80 THB per square meter of the apartment area. Upon purchase, a one-time sinking fund fee is also applied, averaging 600−800 THB per square meter..

For villas either a fixed fee for the maintenance of common areas within the complex is established, or it is based on the total land area of the villa. Additionally, separate fees are payable for garden and pool maintenance.

Yes, you can purchase property remotely, and the process is completely safe. The transaction follows the same steps as if the buyer were present on the island.

1. Contact our manager
   We will select options remotely and send you all the necessary information (floor plans, photos, layouts, payment terms, and a sample contract).
   We offer our services for free to the buyer, with a comprehensive catalog of properties and all necessary information. We will check all the documents and ensure your interests are protected;

2. Property Selection
   Online consultation with an expert to determine your purchase goals, objectives, and budget. Then we will select options that best match your criteria. For the properties you like, we will conduct an online tour of the showrooms and a consultation with the developer’s manager;

3. Reservation of the selected property
   After the final selection, the reservation agreement will be signed online, and a deposit of 100 000–200 000 THB THB will be paid by bank transfer to the developer’s account. The reservation agreement includes details of the parties, property information, and payment schedule. Payment of the deposit removes the property from the market;

4. Contract signing
   After the deposit is paid, the purchase agreement has to be signed, outlining the terms of purchase, costs of the transaction and maintenance, and penalties for contract violations. The original purchase agreement and the invoice we will send to you via express mail;

5. Payment
   Payment will be made by bank transfer to the developer’s account from abroad. You will provide the bank with the original purchase agreement that you already have received;

6. Property handover and registration of ownership
   After full payment and completion of construction, you can either come for property handover personally or our real estate agent can do it for you. Registration can be done in your presence or remotely with a power of attorney to the developer’s lawyer and with our real estate expert present.

There are no significant restrictions on selling property in Phuket, and we can assist you with the resale process. Our agency can help you determine the current market value of your property to set a competitive selling price.

. We will advertise your property through our extensive network, including online listings, social media, and direct contacts with potential buyers. We provide full support with the legal and administrative aspects of the resale process, ensuring all necessary documents are prepared and submitted correctly.

We offer comprehensive property management services to handle everything from rental management to maintenance and repairs. Our team employs effective marketing strategies to ensure high occupancy rates.

Every quarter, you will receive detailed financial reports outlining income and expenses, helping you keep track of your investment. By utilizing our property management services, you can enjoy peace of mind knowing your property is well-managed and maintained, even when you are not in Phuket.

If you are a foreigner, a non-resident, and do not reside in Thailand for more than 180 days a year, your tax will be 15% on the profit. The tax is calculated immediately when the rental income is transferred to the property owner and is sent to the revenue department. After the 15% withholding tax is credited to the account, all obligations are fulfilled. This procedure completes everything, and your management company or hotel operator will act as the tax agent when paying you the income. You do not need to fill out and submit tax forms.

If you are a foreigner, a resident, and live in Thailand for more than 180 days per year, you can obtain a TAX ID and pay tax on a progressive scale from 5% to 37%, depending on your total annual income. Thailand uses a progressive tax rate, meaning the more profit you earn from in a calendar year renting out your property, the higher the tax rate will be.

The tax calculation is as follows:

• Income from 1 THB to 150,000 THB is tax-exempt;

• Income from 150,000 THB to 300,000 THB is taxed at 5%;

• Income from 300,000 THB to 500,000 THB is taxed at 10%;

• Income from 500,000 THB to 750,000 THB is taxed at 15%;

• Income from 750,000 THB to 1,000,000 THB is taxed at 20%;

• Income from 1,000,000 THB to 2,000,000 THB is taxed at 25%;

• Income from 2,000,000 THB to 4,000,000 THB is taxed at 30%;

• Income of 4,000,000 THB and above is taxed at 37%.

When paying income tax, property owners are entitled to a 30% tax deduction for property maintenance expenses. Therefore, only 70% of the received income is subject to tax, from which an additional 30,000 THB is deducted. Let’s see how the tax is calculated in practice.

Example 1:
If the annual rental income is THB 100,000:

• 70% = THB 70,000 is subject to tax;

• minus THB 30,000 = THB 40,000 taxable amount;

• since it is below THB 150,000, no tax is due.

Example 2:
If the rental income is THB 1,000,000:

• 70% = 700 000 THB;

• minus THB 30,000 = THB 670,000 taxable amount.

Calculation:

• first THB 150,000 – tax-free;

• next THB 150,000 – 5% = THB 7,500;

• next THB 200,000 – 10% = THB 20,000;

• remaining THB 170,000 – 15% = THB 25,500.

Total tax = THB 53,000.

Each case is unique and should be considered based on your purchase goals, budget, and property preferences. Here are the pros and cons:

Pros of buying a new build:

• best prices before and during construction;

• price increase of 25−35% by the time the property is completed;

• choice of the best options (layout, floor, view);

• possibility to modify the layout and design;

• convenient interest-free installment plans;

• developer’s responsibility for construction deadlines is outlined in the contract.

Cons of buying a new build:

• income from investment or living is delayed until construction is completed;

• there is a risk of construction delays.

Pros of buying a resale property:

• you can immediately see the property and evaluate the residential complex;

• rental income can be earned immediately after purchase, or the property can be used for living;

• the buyer typically receives a full set of furniture and appliances.

Cons of buying a resale property:

• no installment plans, the entire amount must be paid immediately;

• repairs may be required.