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The Best Way to Buy Thailand
Date: 08/06/2005Dear International Living Reader,
It's easy for you to own land in Thailand.
All you have to do is invest $1 million in a project considered "useful for Thailand" (not real estate, mind you). That minor detail out of the way, you then have to select the land you want from a list of approved areas (you didn't think you could buy anywhere you want, did you?) Finally, you can only sell if your original investment is still in Thailand (if your $1 million investment leaves the country, you have a limited amount of time to sell the land). Piece of cake, right?
If, like me, you don't have a spare million dollars lying around (or the temperament for the above rigmarole), there is a better way to own real estate in Thailand.
Restrictions on foreign ownership in Thailand are similar to elsewhere in Asia. I've mentioned before some of the options you have to structure a real estate purchase here (see How to Buy Thailand).
Although foreigners can't own land freehold (with the $1 million exception) there exist several structures through which foreigners can legally purchase real estate, all of which have stood up to testing during the past 30 years. Unless you're buying a condo in an approved complex, the best structure--recommended to me during my recent trip to Asia--is a combination of rights of superficies (a type of leasehold) and company title (you own property through shares of a company).
The set-up cost for such a structure is approximately $1,500; the annual maintenance costs (including accounting fees and a corporate secretary) are approximately $1,200. There may be some property taxes payable, depending on the nature and price of the property purchase but these should be low. If possible, try to keep the accounts of the holding company balanced in such a way that the company does not incur corporate tax.
Although expats will line up to tell you it's worth it (either as a second home or an investment), buying real estate in Thailand isn't easy. You'll need help. You'll get it at International Living's first-ever Ultimate Event (Oct. 18-21, 2006). One of the many areas covered by yours truly will be Asia’s best locations (Vietnam and Thailand). I don't know how many places are left, but it isn't sold out...yet. For more information, click here.
Lief Simon
Real Estate Editor, International Living
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