A number of changes to property legislation in Thailand has helped make the country more attractive for international buyers and boost interest, reports media outlets. Among the points of interest for property purchasers from abroad is the fact Thailand has no capital gains tax and more flexible land lease terms.
“British buyers benefit from low property taxes when they buy a home in Thailand. Much of the costs are often paid by the seller, including the Transfer Fee which the Thailand Land Department charges 2 per cent of the assessed value of all the transfers of land and property,” Robert Green, Managing Director of Sphere Estates, the UK-appointed agent for Samui-based project Samujana, to OPP.Today. “This fee is expected to be paid by the buyer when the day of the transfer of the ownership occurs but can also be shared between parties if so negotiated. Stamp duty of around 0.5 per cent of the value of the property or the purchasing price, depending on the highest amount, is normally paid by the seller.”
And while the Thai real estate market has recorded ups and downs in the past 10 years, the country is still an attractive place to purchase property, especially for those seeking a lifestyle home or condo unit. Holiday locations such as Samui and Phuket are the most popular spots for these lifestyle home buys.
“In recent years, minor changes in Thai law have allowed non-residents to explore the Thai real estate market. A foreigner can have a 30-year renewable lease, under which the buyer registers at the Land Office an option to renew the lease contract indefinitely, for further 30-year period, says Green. “A foreigner cannot own the land on which the villa sits freehold unless through a company with majority ownership being Thai.”
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