Real Estate Koh Tao Thailand
Real Estate Koh Tao Thailand
How To Acquire Real Estate In Thailand

Enjoy Your Retirement in Thailand

A quite life on a white sandy beach in Thailand, a beach chair, a cocktail glass a good book and a cigar. This is the dream of so many Westerners who plan to escape the cold winter and the tremendous cost of living in their home country.  Foreigners come to Thailand for many different reasons. Be it to finally retire from a stressful working life or just to relax for a couple of month per year to regain strength and energy. Thailand offers foreigners a vast amount of benefits such as world class health care, beautiful beaches, tasty food, friendly people, and most of all; inexpensive properties and real estate. Living and retiring in Thailand is supposed to be an enjoyable and relaxing experience and if you prepare and plan thoroughly in advance, you will be rewarded for your efforts with your dream coming true.

Choose the Right Partner or Real Estate Agent

Once you have made the decision to stay longer in Thailand or even retire in the country of the smile, the ability to acquire property becomes a major issue. You don’t want anything to go wrong here. And since you will be looking to acquire real estate in a foreign country you are in need of trustworthy local assistance. Your partner in Thailand should be able to communicate in Thai, in speaking and writing, and must be familiar with the geographical area where you desire to buy or lease your property.

Your partner or agent will save you valuable time in pre-selecting properties and showing you only the property that fits your price ideal and meets your desires. We recommend though, that before you pay any money or sign any deposit agreement or contract to or with anybody, you should sit down with a solicitor or lawyer and discuss the legal process of purchasing real estate or property in Thailand. You must understand the exact rules for foreigners to acquire realty in Thailand including as well all the possibilities you have to finance your purchase. Some banks in Thailand will offer you up to 70 % financing and the re-payment terms can be up to 20 years. Read more about property financing and investment in Thailand.

The Legal Structure to Purchase Property in Thailand

Property – We feel that the best way to purchase land and build your own dream villa in
Thailand is to lease the property for 90 years. The leasing contract can be renewed after it’s termination for another 90 years to follow. The cost of the renewal after the first 90 years is only 15% of the original purchase price and honestly, who cares what will be in 180 years?

Condominium – A foreigner may own up to 100% of a condominium in his/her own name in Thailand. If though the project is over the 49% quota in the foreigner’s name, one needs to draft a lease contract for a transaction to be recognized as the legal owner. 

Investigate the Land Titles before You buy

A thorough examination of the title deed recorded at the Land Department must be done for your safety. You need to have a verification of the Seller’s clear and legal title of the land that you are about to purchase before you enter any contractual agreement. The title search will trace the ownership of the land back to its first owner which is in almost any case the King of Thailand. Do Not take the word of anybody, telling you that the title deed has been checked somewhat before. You need to possess a full report and a printed copy of the title deed in English and Thai language.

Deposit and Payments

Once you have the title deed and feel satisfied with the real, you will be asked to make a deposit on your property purchase to show your good faith and continue the process. In return, the land owner will reserve the property for you and start the process by drafting the contracts for purchase. Please note that unless you specifically add a “get-out” clause into the deposit agreement, e.g. “subject to clear title” or “subject to agreement on the contract terms,” the deposited money is non-refundable.

90 years Leasing Contract

Here at Supisha Limited we usually make the following agreement that has satisfied many customers since it is fair and reasonable to all parties:

Please contact our office in Koh Tao if you need any further information or assistance to purchase real estate or property in Thailand. If you happen to be on Koh Tao, please visit our office in Sairee and we will be happy to assist you and show you around. Our new project at Lighthouse, in the north east of Koh Tao offers beautiful spots to build a Villa with a stunning view over the Gulf of Thailand. Have a look at the pictures of each plot, you are gonna love it.

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Acquisition of Land in the Kingdom of Thailand

The law about acquisition of land by foreigners in Thailand states that certain requirements have to be fulfilled and we have listed them below.

Acquisition of Land in the Kingdom of Thailand for Residential Purpose by Foreigners

A foreigner who is bringing money, not less than forty million Baht as specified in the Ministerial Regulation, into the Kingdom for investment may apply for acquisition of land for residential purpose. Not more than one rai in area. Provided also that permission has been obtained from the Minister. Under section 96/bis of the Land Code, the application for such an acquisition of land shall be in accordance with rules, procedures and conditions prescribed in the Ministerial Regulation as follows:

1. In the case of a foreigner, who brings money for investment and wishes to apply for permission to acquire land for residential purpose, shall lodge an application (Alien 4 Form) to the competent official under section 71 of the Land Code together with the following documents:

1.1 An alien identification card issued by the Police Station in whose jurisdiction the foreigner is domiciled or a certificate of residence issued by the Immigration Division, National Bureau of the Royal Thai Police Force or a passport indicating the nationality of the foreigner.

1.2 Evidences of an investment in the business or activity that falls under Ministerial Regulation prescribing rules, procedures and conditions concerning the acquisition of Land for residential purpose by aliens B.E. 2545.

1.2.1 Letter of investment confirmation from bond seller and bonds of Thai Government, bonds of Bangkok of Thailand, bonds of State Enterprise or bonds which the Ministry of Finance secures the capital or interest.

1.2.2 Letter from the Asset Management Company confirming that an alien has invested in property mutual fund, property mutual fund or mutual fund for resolving financial institution problems established under the law on Securities and Stock Exchange, and an evidence of investment in such fund.

1.2.3 Evidences concerning investment in share capital of a juristic person who is granted promotion of investment under the law on promotion of investment, certificate of registration as a juristic person, name list of the juristic person’s share holders, and a certificate indicating that such juristic person is granted promotion of investment from the Board of Investment.

1.2.4 Evidences of engagement in an activity that entitles for being granted promotion of investment under the law on promotion of investment according to the announcement made by the Board of Investment, certificate of registration as a juristic person, name list of the juristic person’s share holders, and the Board of Investment’s letter indicating that an activity being operated entitles for being granted promotion of investment.

The evidences mentioned in paragraph. 1.2.1 – 1.2.4 either the evidence in one paragraph, or one combined with the other(s) can be used but the total amount shall be not less than forty million Baht.

1.3 Evidences of bringing a foreign currency into the Kingdom or the withdrawal of the money from a foreign currency account or from a non-resident Baht account for investment.
Either one or more of the above mentioned evidences can be used but the total amount shall be not less than Baht forty million.

1.4 In the case of the land to be acquired is not located in Bangkok Metropolis, Pattaya City or Tessaban (Municipality); the letter of confirmation from the Provincial Office of Town and Country Planning is required certifying that the land to be acquired is located within a residential zone under the law on Town Planning.

1.5 Letter of Ministry of Defense or of the agency concerned confirming that such land is not located in a military safety zone under the law on Military Safety Zone.

1.6 The sketchy map showing the location of land seeking for permission.

1.7 In the case where an applicant has already had right on land by the time the application is being lodged, an applicant shall produce such land right document.

2. A person who is granted permission shall maintain the investment period not less than five years. He/she is required to produce the evidence of possession in the investment in 1.2 as the case may be as current, which shall be not less than Baht forty million, to the competent official according to section 71 once a year, on five consecutive years and each year shall be no later than the date making the acquisition registration of the aforementioned land.

3. A person who is granted permission shall utilized such land for a residential purpose of his/herself and the family in a way that is not contrary to the local custom or good living of the local community.

4. A person who is granted permission shall inform such land utilization for a residential purpose to the competent official of land office according to section 71 within sixty days as from the date of utilization.

5. A person who is granted permission shall facilitate the competent official supervising the use of such land to ensure that the utilization is in accordance with rules and conditions prescribed in the law once he/she receives the written notifications from the competent official under section 71.

6. If a person granted permission withdraws an investment in the business or activity before the due date of investment in 2, he/she shall inform in writing to the competent official according to section 71 within sixty days as from the date of making the withdrawal.

7. A person granted permission shall utilize such land for residential purpose within two years as from the date of the land acquisition registration.

8. If a person granted permission does not comply with the rules and conditions in 2-6, the Director General shall have the power to order such person to dispose of the land in a portion of his possession within the period of not less than one hundred eighty days and not more than one year. If the time limit elapses the Director General shall have the power to dispose of such land. Also, if the person does not comply with the condition in 7, the Director General shall have the power to dispose of such land.

9. Any foreign language document shall be translated into Thai language. The translation shall be certified according to the Ministerial Regulations (B.E. 2540) issued under the Purview of Administrative Procedure Act B.E. 2539. (Phraratchabunyat Vithipratibut Ratchakarn Thangpokkhrong B.E. 2539)

10. In case of a person bringing money into the Kingdom to the amount of Baht forty million for investment and has bought the land less than 1 rai, if later and within the period of investment, that person wishes to buy additional land, in this instance, the documents attached to the current investment can be used along with the application for acquisition of the additional land.



Conversion Table for Land Measurement in Thailand

LAND MEASUREMENT CONVERSION FOR THAILAND
Land in Thailand is measured in rai, ngan and wah. Land prices are expressed in baht per rai or baht per wah for smaller plots. The tables below will help you convert measurements:
1 sq. wah = 4 sq. m.
1 acre = 2.471 rai or 43,560 sq. ft.
1 ngan = 100 wah or 400 sq. m.
1 hectare = 6.25 rai or 10,000 sq. m.
1 Rai = 4 Ngan or 1600 sq. m.

sq. Wah

sq. ft.

sq. m.

Ngan

Rai

Acre(s)

Hectare(s)

1

43

4

100

4,305

400

1

0.25

0.10

0.04

400

17,222

1,600

4

1

0.40

0.16

800

34,444

3,200

8

2

0.80

0.32

1,200

51,667

4,800

12

3

1.20

0.48

1,600

68,888

6,400

16

4

1.60

0.64

2,000

86,111

8,000

20

5

2.00

0.80

2,400

103,333

9,600

24

6

2.40

0.96

2,800

120,555

11,200

28

7

2.80

1.12

3,200

137,777

12,800

32

8

3.20

1.28

3,600

155,000

14,400

36

9

3.60

1.44

4,000

172,222

16,000

40

10

4.00

1.60

32,000

80

20

8

3.20

48,000

120

30

12

4.80

64,000

160

40

16

6.40

80,000

200

50

20

8.00

96,000

240

60

24

9.60

112,000

280

70

28

11.20

128,000

320

80

32

12.80

144,000

360

90

36

14.40

160,000

400

100

40

16.00