Any cross border property transaction involves more than just going through the buying process. It entails many considerations that are often not given any thought when buying in one’s home market.
Laws governing ownership of property by foreign nationals
Thailand has certain restrictions regarding the acquisition of fee simple property that can be legally owned by foreign nationals.
Condominiums generally can be purchased fee simple. However, the purchase must be within the 49% quota reserved for foreign ownership as Thai law requires that any landed property must be majority owned by Thais. Since condominium owners share joint ownership of the underlying land, majority Thai ownership of 51% fulfills this requirement.
Landed property (houses commercial properties) generally are reserved for Thais only. However, with qualified legal advice, landed property transactions can be structured to assure fee simple ownership. For more information see our Concierge Service Section.
Currency issues
There are no limits on bringing foreign funds into Thailand. However, certain reporting requirements may apply depending on how funds are brought into the country.
Note:
When acquiring property in Thailand, specific regulations must be observed in how to bring currency into the country. If not done correctly, a later repatriation of funds out of Thailand may be very difficult. For more information see our Concierge Service Section.
Tax Issues
Like any country, Thailand has a body of tax law that is also applicable to foreign buyers of Thai property. Prudent consideration of the tax effects prior to purchase allows for an efficient tax structure to be put in place. For more information see our Concierge Service Section.
Financing/Banking
Foreign nationals are not allowed to finance property in Thailand. Banks are directed by law not to lend to foreigners. Therefore any real property purchase must be paid for entirely in cash. There are some exceptions for foreign nationals working in Thailand.
Medical care
Thailand is a major medical tourism hub featuring world-class hospitals and clinics. While the cost of medical treatment is often lower than in the US and Europe, the quality of the treatment and equipment are “state of the art”. Many of Thailand’s physicians have received training overseas.
Bangkok has the most advanced medical tourism infrastructure in Thailand, with the likes of the world-renowned Bumrungrad Hospital, which sees 1,000 foreigners a day. The popular holiday destinations of Phuket, Koh Samui, Pattaya and the northern city of Chiang Mai also have excellent hospitals for medical tourists.
All types of procedures are undertaken at very reasonable cost without compromising on quality. It is therefore not surprising that more and more foreigners are choosing Thailand for medical visits. Treatments range from major surgery to dental and extensive checkups. Lasik eye surgery and cosmetic surgery are also very popular. In addition to the excellent staff and medical equipment, hospital rooms are more akin to a five star hotel than a hospital.
For a list of the best hospitals kindly visit our concierge section.
Safety and Security
In general Thailand is a very safe place for tourists and long term residents alike. Although the crime threat in Bangkok and most of the countries tourist spots remains lower than that in many U.S. cities, petty crimes such as pick-pocketing, purse-snatching, and burglary are not unusual. You should be situational aware when walking in crowded markets, tourist sites and bus or train stations. However, violent crimes against foreigners are relatively rare.
Criminal penalties
Foreign laws and legal systems can be vastly different than those in your home country. They nevertheless apply to you. For example, Thais hold the King and the royal family in the highest regard, and it is a serious criminal offense to make critical or defamatory comments about them. This particular crime, called “lese majeste,” is punishable by a prison sentence of three to fifteen years. Purposely tearing or destroying Thai bank notes, which carry an image of the King, may be considered such an offense, as can spitting on or otherwise defiling an official uniform bearing royal insignia. If you violate Thai laws, even unknowingly, you may be expelled, arrested, or imprisoned.
Politics
Thailand has had a history of political instability. There have been a number of military “Coup d’Etat”. However, most of them have been peaceful and of little danger to foreign citizens. Nevertheless, do stay away from political gatherings and mass demonstrations of any sort during these times. The most recent demonstrations in Bangkok in the summer of 2010 are an example of this political instability. Fortunately, the problems are of internal nature and not geared in any way towards foreigners. Property rights have not in any way been affected because neither political side has any interest in loosing the large number of foreign tourists and residents visiting the country.
Visa requirements
For more detailed and most recent visa updates, kindly visit your country’s Thai consular website and /or our concierge section.
If you cannot find your Thai consulate below or need additional information on embassy location and other information go to http://embassyinformation.com/ or http://thailand.visahq.com/embassy.