Investing in Thai Real Estate
A step-by-step guide for investors: from choosing a property to receiving stable income
Property Purchase Process
5 steps from property selection to stable rental income
Property selection
We define your goals, budget and preferences. We create a personalized selection of properties with ROI calculations for each option
Viewing & choice
We organize viewings of selected properties. If needed, we conduct online tours via video call with detailed project presentations
Legal due diligence
Full verification of the developer, land plot and documentation. Contract analysis with licensed Thai lawyers
Deal execution
Preparation and signing of the contract, secure fund transfer via escrow account, property ownership registration
Management & income
Property handover to a management company, listing on rental platforms, monthly income reporting
Property Ownership in Thailand
Foreigners can legally own property in Thailand. We will help you choose the optimal form of ownership
Freehold
Full ownership of a condominium unit with Chanote title deed. Only available for condominiums.
Advantages
- +Full ownership rights, same as in your home country
- +Unrestricted inheritance
- +Perpetual ownership with no expiration date
Points to consider
- –Only for condominiums (max. 49% foreign quota per building)
- –Higher transfer fees (~6.3%)
- –Limited availability in popular projects
Leasehold
30-year lease with option for renewal (30+30+30 = 90 years).
Advantages
- +5–10% lower purchase price
- +Lower transfer fee (1.1%)
- +Available for villas and land plots
Points to consider
- –Renewal is contractual, not legally guaranteed
- –Theoretical risk during project transitions
- –May be harder to finance
Thai company
Registration of a legal entity to own land and villas. Full control while maintaining the shareholder structure
Important Due Diligence Notice
Regardless of the chosen ownership structure, we strongly recommend:
Independent legal review
Engage an independent Thai lawyer to review all contracts, permits, and land registry entries. Cost: approx. €800–€1,400.
Developer verification
Research the developer's track record: completed projects, construction delays, financial proof, building permits, and EIA approval.
Disclaimer: This information is for general guidance only and does not replace professional legal advice. Thai law is subject to change. Always seek individual counsel.
Taxation
Key taxes for property purchase and ownership in Thailand:
- Transfer fee - 2% of appraised value
- Annual property tax (Land & Building Tax) - 0.02–0.1%
- Rental income tax - progressive scale up to 35%
- We recommend consulting a tax specialist for your specific situation
Currency & transfers
Transactions are conducted in Thai Baht (THB). A FET (Foreign Exchange Transaction) certificate is required for property registration - confirming receipt of funds from abroad. We assist with optimal transfer routes
Frequently Asked Questions
Can a foreigner buy property in Thailand?
Yes. Foreigners can acquire condominium ownership on a freehold basis, provided the foreign quota in the building does not exceed 49%. For villas and land, long-term leasehold (up to 90 years) or company freehold structures are used. Proper contract structuring and due diligence are essential.
How does the remote purchase process work?
The entire process can be handled remotely: property selection via video call, reservation with a deposit (typically €1,400–€2,800), contract by email, payments by bank transfer. A power of attorney is issued to a Thai lawyer for property registration. Travel is not mandatory but recommended for due diligence.
How do I transfer money to Thailand?
International transfers are made via SWIFT from any bank account or through fintech services like Wise or Revolut (often better exchange rates). Important: for freehold purchases, a Foreign Exchange Transaction Form is required. Some developers accept cryptocurrency (USDT).
What taxes apply?
On purchase: transfer fee of 1.1% (leasehold) or ~6.3% (freehold, split between buyer and seller). Ongoing: land tax is minimal. Rental income: flat-rate or progressive taxation up to 35%. Tax advice for your specific situation is recommended.
What is the difference between freehold and leasehold?
Freehold = ownership in your name (for condominiums within the 49% foreign quota). Leasehold = 30-year lease agreement with the option of two renewals (30+30+30 = 90 years). For villas and land, Company Freehold is commonly used (ownership through a Thai company). Tax and legal implications depend on the structure.
Is buying off-plan safe?
Payment schedules are generally linked to construction progress. Whether escrow accounts are used depends on the project. The key is developer due diligence (track record, permits, financing, contract framework). We recommend review by an independent Thai lawyer.
How does rental management work?
Professional operators handle marketing, guest communication, check-in, cleaning, and maintenance. You get access to an online portal with booking and income reports. Payouts are typically quarterly to your bank account. Typical operator commission: 15–30% of rental income.
What are the ongoing costs?
Common Area Maintenance (CAM): approx. €1.4–€2.2 per sqm/month. Sinking Fund (one-time at purchase): approx. €11–€17 per sqm. Utilities by usage or included in operator agreement. Insurance: approx. €80–€220 per year. When renting out, costs are typically covered by rental income.
Can I use the property myself?
Yes, most operator contracts allow 2–8 weeks of personal use per year (depending on contract and season). Outside the rental pool, you are free to use your property. For longer stays, consider a long-term visa (Thailand Elite, retirement visa), as tourist visas are limited to 60–90 days.
How can I resell the property later?
Resale is possible at any time, including to other foreigners (for freehold, subject to the 49% quota). The Phuket market is liquid with growing demand. We assist with resale. Capital gains tax in Thailand: progressive up to 35% on profit.
What documents do I need?
For reservation: passport copy. For the contract: passport (notarized copy for power of attorney). For freehold: Foreign Exchange Transaction Form (proof of international transfer). For due diligence: we recommend review by an independent Thai lawyer.
What is the currency risk?
Purchase prices and rental income in Thailand are denominated in THB. The EUR/THB exchange rate can fluctuate and affect actual returns. Recommendations: THB account for current income/expenses, staggered payments, defined exchange rate window, and (for larger amounts) hedging via bank/fintech products.
Do I need a lawyer?
We recommend an independent Thai lawyer for due diligence and contract review (cost: approx. €800–€1,400). The lawyer verifies building permits, land registry, developer references, and represents you during property registration.
What returns can I expect?
Net rental yields in Thailand typically range from 5–8% p.a. (before taxes, after operator fees; highly dependent on location, occupancy and costs). Capital appreciation in premium locations has been 3–7% p.a. in recent years. These are indicative values - actual results depend on many factors. We are happy to prepare an individual calculation for a specific property.
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