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frequently questions and answers

Buying Real Estate in Pattaya

Frequently Asked Questions

Have questions about buying property in Pattaya? Find the answers you need here. Our FAQ section covers everything from the buying process to legal considerations and lifestyle tips.

  1. Transfer Fee: 2% of the property’s assessed value.
  2. Withholding Tax: 1% of the assessed or declared value, typically paid by the seller.
  3. Specific Business Tax (SBT): 3.3% if the property is sold within 5 years of acquisition.
  4. Stamp Duty: 0.5% (waived if SBT applies).
  5. Income Tax: Calculated based on progressive tax rates or a fixed rate if a company is involved.
  1. Cash Purchases: The most common method, with funds coming from abroad in foreign currency.
  2. Foreign Currency Loans: Some Thai banks offer mortgage loans to foreigners, but usually, only a few banks do this.
  3. Offshore Financing: Loans from banks in your home country or an international lender.
  1. Due Diligence: Engage a lawyer to verify the property’s legal status and ownership.
  2. Sales Agreement: Sign an agreement outlining the purchase price, payment schedule, and transfer date.
  3. Deposit: Pay a deposit (usually 10-15% of the purchase price).
  4. Final Payment and Transfer: The balance is paid on the transfer date at the Land Department.
  5. Transfer of Title: The title deed (Chanote) is transferred to your name.

Yes, but with restrictions. Foreigners can buy condominiums outright (up to 49% of the total units in a building). However, they cannot directly own land. For land, foreigners often lease it for up to 30 years or set up a Thai company to purchase it.

  1. Freehold: You own the property outright and indefinitely. Foreigners can hold freehold title for condos.
  2. Leasehold: A long-term lease (often 30 years, renewable twice) with ownership reverting to the lessor after the lease term.
  3. Superficies: Allows foreigners to build a structure on land they don’t own.
  4. Usufruct: Grants the right to use and enjoy the benefits of someone else’s land or property for a limited time, often up to 30 years.

Generally, no, but there are a few workarounds:

  1. Leasing the land for up to 30 years (with potential extensions).
  2. Forming a Thai company (requires at least 51% Thai ownership).
  3. Investment schemes: Buying land through the Board of Investment (BOI) if investing at least 40 million THB in certain approved businesses or activities.
  1. It is highly recommended to use a lawyer to conduct due diligence, draft contracts, and ensure compliance with Thai laws. they cannot directly own land. For land, foreigners often lease it for up to 30 years or set up a Thai company to purchase it.
  1. This document is required when bringing foreign currency into Thailand to purchase property. It’s necessary for registering the property in your name, especially for condos.
  1. Yes, foreigners can rent out their condos. However, for short-term rentals (less than 30 days), you need to comply with Thai hotel laws, which may require a license.
  1. Land and Building Tax: An annual tax based on property usage (residential, commercial, etc.).
  2. House and Land Tax: 12.5% of the annual rental income (if renting out the property).
  1. Reservation Fee: Pay a reservation fee to secure the unit.
  2. Down Payment: Usually 10-20% of the purchase price, paid in installments during construction.
  3. Completion and Handover: The remaining balance is paid upon completion before taking ownership. remaining balance is paid upon completion before taking ownership.
  1. Foreign Quota: Check if the foreign quota (49%) for condos is available.
  2. Hidden Costs: Be aware of additional fees such as maintenance fees, sinking funds, and utility connection charges.
  3. Resale Restrictions: Understand any restrictions on reselling, especially for leasehold properties.
  1. Buying property does not automatically grant a visa. However, there are options like the Thailand Elite Visa for long-term residency, available to those who invest a significant amount.
  1. It’s not mandatory but highly recommended to protect against natural disasters, theft, and damage.
  1. It’s not mandatory but highly recommended to protect against natural disasters, theft, and damage.

These FAQs cover many of the essential aspects of buying property in Thailand. However, it’s crucial to conduct thorough research and seek professional advice to navigate the complexities of Thai property laws effectively.

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