How to buy an apartment in Thailand - More

How to Buy an Apartment in Thailand: A Complete Guide for Russians

The dream of acquiring property in Thailand can become a reality if approached wisely. Housing here is in demand, and foreign investments are growing each year. This article will explain how to buy an apartment in Thailand and what benefits it brings. Purchasing condominiums for rent. The return on investment can reach 5-10% annually, especially in popular resort areas like Phuket and Pattaya. Buying villas or houses for short-term rental. High rental rates during the season, particularly on islands (Samui, Phuket). Investing in off-plan properties. Acquiring housing at below-market prices during construction. Potential value growth by up to 30% by the time of project completion. Reselling properties. The market allows profitable resale after construction completion or several years of ownership. Commercial real estate. The opportunity to purchase shops, office spaces, or hotel apartments. High returns in tourist and business centers.

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Why Invest in Thai Real Estate?

  1. Why invest in Thai real estate? Foreigners, including Russians, often become investors by purchasing property in Thailand. Let's explore the opportunities and advantages of buying housing in this country:
  2. Purchasing condominiums for rent. Return on investment can reach 5-10% annually, especially in popular resort areas such as Phuket and Pattaya.
  3. Buying villas or houses for short-term rental. High rental rates during the season, particularly on islands (Samui, Phuket).
  4. Investing in off-plan properties. Acquiring housing at below-market prices during construction. Potential value growth by up to 30% by the time of project completion.
  5. Reselling properties. The market allows profitable resale after construction completion or several years of ownership.
  6. Commercial real estate. The opportunity to purchase shops, office spaces, or hotel apartments. High returns in tourist and business centers such as Bangkok.
  7. Purchasing property for personal use with the possibility of renting it out. Using the property for vacation or living during the off-season. Renting it out the rest of the time to cover expenses and generate profit.
  8. Investing in projects with guaranteed returns. Some developers offer programs with fixed income (usually 5-8% annually) for several years.

Advantages of Buying Property

Most foreigners are interested in Thai real estate due to affordable prices, ease of transaction, and the ability to earn real income.

  1. Why else is it beneficial to buy an apartment in Thailand?
    1. Moderate cost. Compared to other countries in Asia and Europe, Thai apartments are cheaper.
    2. Sufficient level of profitability. The flow of tourists to Thailand does not subside, allowing property owners to earn regular income. The most sought-after housing is located in areas with developed infrastructure and easy access to the sea/ocean.
    3. Obtaining a long-term visa. Owning property and investing in Thailand's economy allows obtaining a long-term visa, which grants foreigners the right to stay there for several months without needing to cross the border back.
    4. Ease of opening a bank account. It is quite difficult for foreigners to obtain a card from a Thai bank. However, when purchasing property in Thailand, this process is simplified. Visitors from other countries who have become apartment owners can open an account and receive a plastic card in just one day.
    5. Remote transaction execution. You can purchase housing remotely using the services of a broker.

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Potential Risks and How to Avoid Them

As in any country, purchasing property in Thailand has its risks:

  1. Political/administrative. Deterioration of the overall situation and frequent protests by the public complicate the free choice of potential purchases.
  2. Financial-economic. Inflation does not bypass Thailand either, so prices may rise suddenly while the buyer is still flying from their home country. Additionally, transactions are conducted exclusively in the national currency of the Kingdom, meaning you need to constantly monitor exchange rate changes.
  3. Construction-related. The process of obtaining necessary documentation can take a long time – up to 1 year. Another significant aspect is the violation of construction deadlines if purchasing an apartment in Thailand "for the future." This is due to adverse weather conditions or the unprofessionalism of the developer.
  4. Marketing-related. At the stage of developing the project concept, specialists often make mistakes that ultimately lead to reduced profitability of the object.
  5. Legal. Ignorance of local laws establishing requirements and restrictions will not exempt from liability but may force additional expenses.

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How to Buy an Apartment in Thailand, Minimizing Risks and Avoiding Financial Losses:

  1. Choose only large and verified developers;
  2. Consider projects that offer income even during construction;
  3. Focus on construction objects whose developers have signed a contract with a hotel operator.

The above recommendations ensure a safe transaction and the possibility of achieving planned income in the future.

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How to Choose a Neighborhood for Buying an Apartment?

Thailand has more than 130 populated areas. The right decision for a foreigner would be to choose a convenient and profitable neighborhood to invest in housing.

Phuket, Pattaya or Bangkok: Which One to Choose?

So, where is the best place to buy property in Thailand for a Russian citizen? Today, tourists prefer Phuket, Pattaya, and Bangkok, and in this matter, you should focus precisely on them.

  1. Benefits of buying property in Thailand in these neighborhoods:
    1. Phuket. Boasts numerous new residential complexes whose construction never stops. Apartments here vary in price category and comfort level, allowing you to find an option based on your preferences.
    2. Pattaya. Famous for its many beaches, nightclubs, cafes, and restaurants. This area will undoubtedly appeal to lovers of city life dreaming of combining it with picturesque views of the sea and surroundings.
    3. Bangkok. A large bustling city with a developed infrastructure, unique architectural objects, huge shopping centers, and frenetic traffic. Those who are accustomed to constant movement and do not want to change their lifestyle prefer coming here.

Russians should look closely at these regions for purchasing property in Thailand to achieve subsequent profits.

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Comparison of Property Purchase in Phuket, Pattaya, and Bangkok

Criterion Phuket Pattaya Bangkok
Type of property Condominiums, villas, houses Condominiums, houses Condominiums, apartments
Average cost Condos: $2500-$4000/sq.m., villas: from $400,000 Condos: $1500-$2500/sq.m., houses: from $250,000 Condos: $3000-$5000/sq.m., luxury: from $500,000
Location Island, mainly near the sea Coastal, closer to the capital City, mainly business districts
Rental yield High during the tourist season Moderate, depends on the season Stable throughout the year
Infrastructure Developed but limited by island geography Well-developed, diverse environment available Excellent, access to all services and business
Target audience Tourists seeking a quiet vacation Tourists and long-term tenants Businesspeople, expats, students
Legal specifics Standard for foreigners (condominiums) Standard for foreigners (condominiums) Standard for foreigners (condominiums)
Advantages Picturesque views, beaches, high demand for rentals Closeness to Bangkok, affordable prices Capital, well-developed infrastructure
Disadvantages Relatively high cost, seasonal demand Less prestigious than Phuket Relatively high prices, intense traffic

Tips for Choosing Property for Living and Investment

You can successfully buy property in Thailand for a Russian citizen in any region. However, buyers sometimes make mistakes that hinder achieving their goals.

  • Several practical tips on how to buy an apartment in Thailand and avoid mistakes:
    1. Buy properties located near the beach or in an area with developed infrastructure;
    2. For rental purposes, prioritize studios up to 35 sq.m;
    3. In advance, check the quality of construction to prevent the property from losing its appeal over the years;
    4. Pay attention to the surroundings: the best view from the window is the sea or ocean - this segment should occupy at least 1/3 of what is visible from the house;
    5. Remember that it is not worth buying property too high; a compromise floor is 3-4, as from here you get beautiful views, and you can easily and quickly reach the apartment.

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Legal Aspects of Buying Property in Thailand

How to buy an apartment in Thailand and conduct a transaction without breaking the law? Thai laws differ from Russian ones, so the rules of your own state should not be applied here.

Restrictions for Foreign Citizens

Purchasing property in Thailand is possible but with certain restrictions:

  1. Foreigners can only buy (freehold) apartments in condominiums and houses located on leased land.
  2. The area of apartments in multi-family buildings owned by citizens of other countries must not exceed 49% of the total area of all objects in this building.
  3. Land can only be registered for a long-term lease (leasehold) for up to 90 years.
  4. To purchase large property in Thailand (e.g., luxury villa), it is necessary to create a legal entity within the Kingdom.

These rules are enshrined in the law on ownership rights of the Kingdom and are mandatory for compliance.

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Requirements for Russian Citizens

Russian citizens can buy property in Thailand under the same rules as residents of other countries. However, there are some nuances:

  1. When purchasing property from a citizen of a friendly country (to which Thailand belongs), no restrictions on the transaction are provided.
  2. If the purchase is made from a citizen of an unfriendly country, such as those from the EU, special permission from the Ministry of Finance may be required.
  3. All payments must be made through accounts of Russian residents in foreign banks located outside Russia (opening an account must be reported to the tax authorities).
  4. It is also important to remember that all payments for property in Thailand must be made exclusively in the national currency - Thai baht.

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Main Stages of the Transaction

How can a Russian citizen buy an apartment in Thailand? The procedure for acquiring housing includes several important stages:

  1. Selecting an object and reserving it by paying a deposit.
  2. Checking the quality of construction, the reliability of the seller, and the cleanliness of the transaction through government agencies in Thailand via requests, for which additional payment is required.
  3. Drafting and signing the contract.
  4. Transferring payment in the amount specified in the contract.
  5. Registering ownership rights.

These activities can be performed both during a personal visit to the Kingdom and remotely through a broker.

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What Taxes and Fees Need to Be Considered?

Mandatory payments in the form of taxes and fees form the state budget, so they must be paid even when buying an apartment in Thailand and using it further.

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Annual Property Taxes

Tax Type Rate
Property transfer tax (at the time of the transaction) Up to 2%
Registration fee Up to 1%
Annual property possession fee 0.03%

If a foreigner is not a citizen of the state, they may face expulsion beyond the Kingdom's borders.

Cost of Maintaining an Apartment

We have explained how to buy an apartment in Thailand, but the costs associated with acquiring property are just the beginning. Whether living in the new apartment yourself or renting it out, the owner will have to pay other fees:

  1. Utilities, internet, TV;
  2. Use of public spaces (some residential complexes located near entertainment venues and interesting infrastructure objects charge an additional regular fee).

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Approximate Monthly Maintenance Costs

District Average Monthly Cost
Phuket 10,000 baht ($300, 30,000 rubles)
Pattaya 9,500 baht ($280, 28,000 rubles)
Bangkok 12,000 baht ($350, 35,000 rubles)

Step-by-Step Guide to Buying an Apartment in Thailand

Setting the goal to acquire housing in Thailand requires careful study of the entire procedure. Each stage is mandatory for passing since the actions implied by it will guarantee a good result.

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Choosing Property: New Construction or Secondary Market?

Which is better to buy - new housing or secondary market property for a Russian citizen in Thailand? Most often, foreigners invest in under-construction housing since this decision allows capitalizing on investments. When potential apartments are still in the foundation stage, their cost is half that of a ready-made object. Moreover, such apartments always come clean, with new furniture. They fully meet expectations since projects are agreed upon between the developer and the buyer.

The secondary market offers to purchase housing that has already been used. But this does not mean that such housing is unsuitable for any purpose. In fact, the problem can be solved with the help of an agent or realtor.

Algorithm for Choosing a Developer in Thailand

How to buy an apartment in Thailand from a reliable developer? Follow this algorithm:

  1. Gather information about developers. Study reviews and ratings of developers on specialized websites and forums. Find out how many projects they have completed and evaluate their reputation in the market.
  2. Look at finished projects. Visit completed objects of the developer to assess the quality of construction. Check the condition of buildings a few years after delivery.
  3. Compare offered conditions. Study payment plans, possible discounts, and installment programs. Learn about additional services: furnishing, property management, and warranty service.
  4. Visit the construction site. Before purchasing an apartment in Thailand, personally inspect the construction site and its surroundings, evaluate the availability of infrastructure. Ensure the object is being built according to announced timelines.
  5. Evaluate risks and make a decision. Compare all collected data on several developers. Choose a developer with the best combination of quality, reliability, and purchase conditions.

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How to Check a Developer or Seller?

How to buy an apartment in Thailand from a developer and not fall into a trap? In addition to your own analysis, we recommend engaging a local lawyer to verify:

  1. Accounting reports;
  2. Confirmation of tax payments;
  3. Data on the authorized capital of the developer;
  4. Authorization documents for signing contracts;
  5. Title deed for the land where the object is located;
  6. Confirmation of absence of arrests, encumbrances, etc.;
  7. Compliance of the proposed contract signature with the norms of current legislation of Thailand.

The conducted measures will take time but will ensure safety for the buyer with the status of a foreigner.

Signing the Contract and Registering Ownership

The deposit brings a citizen of another country closer to purchasing an apartment in Thailand. After 1-2 weeks of transferring this amount to the seller or developer, the parties must agree on a preliminary contract. Its preparation should be handled by a lawyer or construction company, as it is important to know and understand all the nuances.

Necessarily attached to the contract should be copies of identity documents of the parties, as well as all papers related to the purchased property in Thailand.

If the preliminary version is successfully agreed upon, the seller and buyer sign the usual contract. After that, this document acquires the status of a title deed, and the transaction is considered complete.

The final step is registering ownership rights in the Land Department of Thailand. For this, all documents already held by the new owner (passport, visa, property documents) must be provided.

Typically, the registration process takes one day. As a result, having bought property in Thailand, a Russian citizen receives:

  • A purchase agreement in the established form and in accordance with Thai legislation;
  • A certificate of the land plot where the residence is located;
  • A house book with data about the apartment.

We recommend inviting a specialist for this stage. It is best to choose someone local, as they are familiar with the language and regulations applicable at the time of property purchase and registration.

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What Forms of Ownership Exist in Thailand?

Two forms are available to foreigners:

  1. Freehold - purchasing an apartment in Thailand with full ownership rights without binding to a specific term. The new owner can freely dispose of the apartment, i.e., gift, transfer by inheritance, or sell. Such objects are more expensive, and the registration tax reaches 4%.
  2. Leasehold - the possibility of use and disposal for up to 90 years. If desired, such housing can be resold, gifted, or inherited. Leasehold apartments are sold cheaper, and the tax does not exceed 1.1%.

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What Other Costs Are Associated with Buying Housing in Thailand?

When buying property in Thailand, a Russian citizen will need the services of a lawyer, broker, agent, translator, realtor, and employees of various government structures. Overall, it will cost from 3,500 baht ($100, 10,000 rubles).

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Which Real Estate Agency to Choose in Thailand?

Today, the market leaders are:

  1. High Rise - deals with property formalization and repair in Pattaya;
  2. Royal Property - a firm with its own lawyers, accountants, and translators;
  3. Exotic Property - part of the largest holding Exotic Group and provides services without commission;
  4. Hot Real Estate - a dynamically developing company providing services in Bangkok, Phuket, Pattaya, and Samui;
  5. Grandis Villas - an agency specifically for Russian citizens, has its own translators and helps with paperwork from start to finish.

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