Frequently Asked Questions
General Questions
Can foreigners buy property in Thailand?
Yes, foreigners can buy property in Thailand, but with important limitations.
The most straightforward option of investing in Thai property is to purchase a condominium. Foreign nationals are allowed to own condominium units outright in their own name, as long as the development is licensed under the Thailand Condominium Act and no more than 49% of the total unit space is foreign-owned. Foreign buyers must also bring into Thailand foreign currency at least equal to the full purchase price of the condominium unit and convert it into Thai Baht through a Thai bank.
Land ownership, on the other hand, is far more complex. Foreigners are generally prohibited from directly owning land under the Land Code Act. However, there are alternative legal arrangements such as long-term leaseholds, usufructs, or setting up a Thai majority-owned company. Given the complexity of such legal arrangements, foreign buyers are strongly advised to consult with legal professionals
Can foreigners buy land in Thailand?
No, foreigners cannot own land in Thailand under their own name. Under the Land Code Act, land ownership is restricted to Thai nationals. While there are legal workarounds to these restrictions, these do not grant full land ownership and can be complex to navigate.
Foreign buyers interested in alternative property structures should seek legal advice to ensure compliance with Thai law and avoid potential legal risks. We strongly recommend speaking with one of our agents or a qualified legal expert to explore the best solution for your purchase.
What’s the process of buying a property in Chiang Mai as a foreigner?
The process of buying a property as a foreigner in Chiang Mai involves several clear steps, each of which is important for a smooth and legally compliant purchase. Outlined below is a general step-by-step gide to the process:
1. Understand ownership options
Foreigners cannot directly own land in Thailand, but are allowed to own condominiums outright. See our other FAQs for more information regarding ownership options.
2. Search for a property
Use our website to browse listings and apply filters by property type, budget, location, and the number of bedrooms and bathrooms to find a property that fits your needs.
3. Schedule Viewings
Plan your visits in advance. Our agents can help you coordinate viewings and provide insights into properties that match your criteria.
4. Conduct Due Diligence
This includes verifying title deeds, conducting property inspections, checking for encumbrances, and reviewing the developer’s reputation and licenses.
5. Prepare Legal Documents
You’ll need a valid passport and visa, as well as proof of foreign funds for the purchase for the property. See our FAQ section on important legal documents and titles for more information.
6. Finalise the Sale
Once terms are agreed upon, you’ll pay a deposit, sign the agreement, and visit the Land Department to complete the title transfer. Upon completion, the property title will be issued in your name.
Need help getting started? Contact one of our agents today to get started on acquiring your first property in Chiang Mai. You can also explore listings on our website, where you can filter by property type, number of beds and baths, and budget to find the perfect match.
What are the costs involved when buying property (taxes, transfer fees, legal, etc.)?
When purchasing property in Thailand, it is important to factor in several taxes and fees beyond the purchase price. These can vary depending on your ownership type, property value and whether you’re buying as an individual or through a company.
Key costs include the Land and Building Tax, which applies annually and is based on the appraised value of the property. Transfer fees, typically around 2%, are usually paid by the buyer, though government incentives may reduce this rate for certain properties. If you’re financing your property purchase with a mortgage, a mortgage registration fee may apply.
Additional costs include stamp duty, withholding tax, and specific business tax, most of which are relevant at the time of sale and are generally borne by the seller. If you’re planning to rent out your property, rental income is taxable, and a separate property tax may also apply.
Finally, don’t overlook legal fees, which vary but are well worth the investment to ensure the transaction is secure and compliant with Thai law.
Contact our agents to learn more about which fees and taxes may apply to your specific situation.
Legal and Financial Considerations
What is a Chanote title and why is it important?
A Chanote is the most secure and authoritative land title deed in Thailand. Issued by the Land Department, it serves as official proof of land ownership and contains detailed, legally recognised information including the exact size, location, and boundaries of the land, as well as any encumbrances such as mortgages or liens.
The Chanote is essential for conducting property transactions that involve buying, selling or transferring of a property. Unlike less precist titles such as the Nor Sor 3 Gor, which indicate possession but not full ownership, a Chanote confers full freehold rights and the highest level of legal protection.
Before proceeding with any property purchase, it is critical to verify the Chanote’s authenticity, ensure the boundaries align with what is on the ground, and check for any legal issues or outstanding claims on the property. Our agents can help you review title deeds and ensure everything is in order. Contact us today to get professional assistance and avoid legal complications.
What other types of land titles are there and what do they mean?
● Tor Ror 5 (Foreign Ownership Certificate): Confirms a foreign buyer’s legal right to own a condominium unit
● Por Tor 3 (Sale and Purchase Agreement): Legal contract outlining sale terms and obligations
In Thailand, not all land titles offer the same level of security and legal clarity. Beyond the Chanote title, there are other types foreign investors should be aware of.
One common alternative is the Nor Sor 3 Gor, a less secure title that indicates the land has been surveyed but lacks the same legal certainty and precise boundary demarcation as a Chanote. Properties with this title may come with usage restrictions and cannot always be transferred or developed without further verification. While Nor Sor 3 Gor land can be converted to a Chanote title, this requires additional legal steps, surveys, and government approval.
Other documents include:
Additional documents such as the Sor Dor 30 (stamp duty receipt), Tor Dor 22 (transfer fee receipt), and Power of Attorney forms may also be part of the transaction process.
Unsure about a title or document? Contact our team agents who will be able to assist you in navigating these complex title deeds and documents.
Can I rent out my condo or house legally as a foreigner
Yes, foreigners can legally rent out their property in Thailand, but there are important legal and tax considerations to keep in mind.
Short-term rentals (under 30 days) are usually not permitted unless the property is officially licensed as a hotel. While enforcement varies between cities, fines have been issued in the past. Condominiums may individually impose their own limits on short-term leasing.
Long-term rentals are fully legal. All rental agreements must be registered with local authorities, and rental income is taxable.
If you are looking for a stress-free experience, contact one of our agents who will be able to assist you with professional rental management and property maintenance at a reasonable fee, so you can enjoy truly hands-free ownership in Chiang Mai.
The Chanote is essential for conducting property transactions that involve buying, selling or transferring of a property. Unlike less precist titles such as the Nor Sor 3 Gor, which indicate possession but not full ownership, a Chanote confers full freehold rights and the highest level of legal protection.
Before proceeding with any property purchase, it is critical to verify the Chanote’s authenticity, ensure the boundaries align with what is on the ground, and check for any legal issues or outstanding claims on the property. Our agents can help you review title deeds and ensure everything is in order. Contact us today to get professional assistance and avoid legal complications.
Disclaimer:
The information provided in this FAQ section is for general informational purposes only and is not intended as legal, financial, or professional advice. While 3 Kings Asia strives to ensure the accuracy and reliability of the information presented, we make no guarantees regarding its completeness or current validity. Real estate laws, market conditions, and policies may change and vary by location. For specific advice or the most up-to-date information, please contact 3 Kings Asia directly or consult with a qualified professional.
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