Buying Property in Pattaya: 9 most frequently asked questions
1. On what conditions can a foreigner own an apartment in Thailand?
Answer: Apartments in condominiums can be freely acquired by foreigners in private property in unlimited quantities. But it is necessary to take into account one nuance. In any condominium, the total living area (that is, the area of all apartments) is conditionally divided between Thais and foreigners: 51% must belong to the citizens of Thailand, and the remaining 49% can be owned by guests from other states. These are the so-called concepts of Thai and foreign quota. For example, the total living area of the condominium is 100 thousand m². In this case, 51 thousand m² must necessarily belong to the Thais, and 49 thousand m² are allowed to be bought out to foreigners. I repeat, quotas apply not to specific apartments, but to the house as a whole.
Initially, that is, in the primary market, the apartments do not belong to any of the quotas: the guests of Thailand can buy any vacant apartments, having registered them in the ownership of a foreign quota. In the secondary market, it is technically possible to purchase an apartment from a Thai owner and re-register it as an alien if the condominium still has a foreign quota.
As a rule, the apartments sold within the foreign quota are 10-20% more expensive than the housing reserved for citizens of Thailand. The owner of the apartments is given a chalet - a document confirming the ownership. It in the Thai language indicates the data on the apartment and all the owners of housing.
2. Can a foreigner buy land or a private house?
Answer: A citizen of another state does not have the right directly to own land in Thailand. He can formalize into private ownership only buildings located on the site, for example a house, a parking lot, a swimming pool.But it is allowed to rent land or a house for 30 years with the possibility of renewal, or another option - the registration of real estate in ownership of a Thai legal entity (that is, a company registered in Thailand), which receives the object of interest to your balance. In the latter case, the foreigner acts as the director of the company and the only one who is authorized to represent it in transactions. At the same time, 49% of the shares in this legal entity are in his possession. The remaining 51% is necessarily distributed among several Thais, and does not fall into one hand. Then the Thais write a refusal to dispose of their shares and transfer this right to a foreign director.
3. What does the purchasing process look like?
Answer: Acquisition of a house or apartment takes place in several stages. To start, you need (or do not need - it's up to you) to find a real estate agent, choose the right housing option, open a bank account in Thailand and transfer the amount necessary for the purchase to it. Then you should sign a sales contract and settle with the seller. The last stage is the registration of the transaction in the Land Department and the receipt of the container. On average, the process takes from 3 to 20 days.
4. Is it possible to purchase property in installments? Can I borrow a loan from a bank?
Answer: In the primary market, payment by installments is provided by the developer before the end of the construction of the facility. Terms of payment are determined by the seller. In the secondary market, installments are also possible, but it is extremely rare, as you are buying property from its previous owner. A foreigner can borrow a loan from a Thai bank under several conditions:
The client's age ranges from 21 to 65 years;
He has a work visa and a work permit (for a tourist or student visa, a loan will not be given);
He has a good banking history and high wages;
He can, if necessary, provide a guarantee from a Thai citizen.
The loan period varies, usually from 3 to 20 years. Issue a loan against property collateral and an average of 8% per annum.
5. In which language is the contract for housing purchased?
Answer: The contract is made in English. You can be provided with a Russian translation of the document, but it will not have legal effect.
6. How to deliver money from abroad?
Answer: It is more expedient to deliver money in one of two ways - by bank transfer or import of traveler's checks. In the first case, money can be transferred from the bank of the country of which you are a citizen, to your account in Thailand or directly to the account of the developer. The transfer of funds to the seller takes place on the basis of the invoice and the contract of sale. Banks take a commission for this operation: the percentage depends on the amount of the transfer. In addition, it should be noted that some of the funds will "eat" the conversion. And it is likely to be double. For example, if you make a transfer in rubles, the conversion will take place according to the "ruble-dollar / euro-baht" scheme. The second option is to bring money with you in traveler's checks. They must be declared at the customs. In the documents, please specify the purpose of transferring or importing money into Thailand: "buy property".
7. How are inheritance issues addressed?
Answer: With an apartment that is privately owned, a foreigner has the right to do anything: take, sell, give, bequeath. The heirs of the first stage are spouses, the second is children and parents, the third is a male relative who has reached adulthood and is the oldest among other relatives. At will, the owner can draw up a separate document on inheritance from any lawyer or indicate the heir in the container. It will cost an average of 5000 baht.
8. Will the death of a king affect the form of ownership of an apartment owned by a foreigner?
Answer: The apartment will remain private property of a citizen of another state in any situation. Even in the case of long-term lease of land / houses or their purchase on a legal entity, real estate will remain with a foreigner, since the land is owned not by the king, but by the state.
9. Does ownership of real estate have any advantages in obtaining citizenship?
Answer: No, it does not. It is difficult to obtain Thai citizenship. To this end, a foreigner must live in the Kingdom for at least 10 years, register a residence permit, know the Thai language at the level of the carrier, and have a regular job. The decision on granting the status of a citizen of Thailand is taken by a specially collected commission. In this case, a person will have to give up his former citizenship: dual citizenship in Thailand is not allowed.
Source: pattaya zagranitsa