Foreigner Buying Land in Thailand
When you're looking to buy land in Thailand, you have a number of options to consider. Listed below are a few of these options. In Thailand, the land is generally owned by a Thai company. A foreigner can buy up to 49% of the shares. The foreign managing director of the Thai company will have the power to control the voting rights of the other shares.
Land Measurements in Thailand
When buying land in Thailand, it is important to understand the Thai system for land measurement. The Thai system is based on Rais, which are 400 Talang Wah. A normal house plot requires between fifty to hundred and fifty-five Talang Wah of land. If you're planning to build a house on your land in Thailand, you'll need to consider these rules to ensure that your purchase is legal and eminently acceptable to local authorities.
The Thai government is working to make it easier for foreigners to own land. They have recently introduced new long-term (10-year) visas to facilitate foreign property purchases. However, foreigners will need to pay a steep entry fee in order to own land in Thailand.
Land Classification in Thailand
In Thailand, there are several types of land that foreigners can buy. One of these types is landed property, which is a plot of land with a building on it. For this type of property, foreigners can lease the land from a freeholder (an individual or company that owns the land). These types of properties usually have different rules regarding ownership than other types of properties, so it's important to know about them before buying a piece of land in Thailand.
In Thailand, the land is classified differently than in the UK, the US, or Europe. For example, a plot of land may be listed as Wah or Talang Wah, instead of a rai. Land in Thailand may also be purchased as a freehold or with a leasehold property option. Freehold properties can be bought at a higher price, but they are more difficult to sell.
Thai Property Transfer Taxes
The total transfer fees when purchasing property in Thailand can vary a great deal, from a few hundred to several thousand baht. These property transfer taxes are split between the buyer and seller. Usually, they are equal but may be more or less based on the seller's income tax and the agreement between the seller and buyer.
If you're a foreigner looking to purchase land in Thailand, you'll need to pay a 2% transfer tax. You'll also be required to pay stamp duty, which is a 0.5% tax. The amount of stamp duty will depend on the type of land you're purchasing, but you can usually negotiate a lower amount.
Thai property taxes are less strict than in many other countries, but still, a significant portion of the value of land will need to be paid in tax. Property taxes for commercial real estate in Thailand are about 12.5% of the rental value. There are also small annual local land development taxes.