Buying Real Estate in Thailand: Villa Purchase Procedures for Turkish Investors
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- Şeyda Şen
- 12/10/2024
Thailand has become an attractive real estate market for Turkish investors in recent years. The country’s thriving tourism sector, in particular, has made it one of Southeast Asia’s popular holiday and investment destinations.
However, there are certain procedures that foreign investors must follow when buying real estate in Thailand. In this article, we will examine the procedures for buying villas in Thailand step by step.
Villa Purchase Procedure in Thailand
1. Land Purchase Restrictions
Foreigners are prohibited from purchasing land directly in Thailand. This poses a significant obstacle to purchasing villas. However, foreign investors can use the following alternatives when purchasing villas in Thailand:
Buying a villa through a Thai partner: A foreign investor can purchase a property by forming a partnership with a Thai citizen. The partnership agreement must be properly drawn up and the real estate owner must have a 51% local partnership right on the land.
Establishing a Company: A foreign investor can purchase a villa in Thailand on behalf of the company by establishing a company. However, in this case, the company must be operating and comply with local laws.
2. Payment Procedures
When purchasing a villa, foreign investors can send payments by making a foreign currency transfer. Transfers made from Turkey to a bank in Thailand must comply with legal procedures.
Foreign Exchange Transfer Document: Payments made to a bank in Thailand must be documented with the "Foreign Exchange Transaction Form" (FET). This document proves that the money entered Thailand legally.
Title Deed Transactions: During the villa purchase, the title deed registration procedures are carried out and the owner of the property is officially registered.
3. Taxes and Duties
There are some taxes and duties that you will need to pay when purchasing a villa in Thailand:
Title Deed Fee (Transfer Fee): This fee is 2% of the sales price and is paid by the buyer.
Sales Tax: If the seller sells the property within 5 years, this tax is applied and is usually paid by the seller.
Annual Taxes: Property owners are required to pay annual municipal taxes and property taxes.
4. Legal Advice and Procedures
Foreign investors should not neglect to seek legal advice when purchasing a villa. Real estate agents and lawyers in Thailand will help to implement the correct procedures during the property purchase process.
Thailand offers an attractive real estate market for Turkish investors. Contact us for detailed information.