Investing in Thailand real estate can give you profitable returns. In Thailand, the foreigners will not be liable of paying taxes after they sold their properties to private buyers. There are lots of regulations concerning property ownership in Thailand. The first step in buying a real estate property is to find a house in Thailand. You can seek the help of a real estate agent if you can’t seem to find a property in Thailand. Many foreigners are interested in buying houses in Thailand but they are not familiar with the procedure. You must hire a registered lawyer in Thailand when shopping for houses. Many foreigners face problems after buying the houses in Thailand because they don’t know about the regulations.
Before buying a property in Thailand, it is important that you understand the local regulations. In Thailand, foreigners can register the ownership of the property under their names for residential purposes. The maximum size of the property that a foreigner can own cannot be beyond 1 Rai. If you want to profit from investing a Thai real estate property, you must prepare no less than 40 million Baht. The 40 million Baht must be transferred to a Thai bank account. You must get the permission from the Minister of the Ministry of the Interior.
After you have purchased a property in Thailand, you can set up a Thai company. It is important to consult a registered Thai lawyer about the purchase of the property before putting down your signature in a document. Since foreigners cannot own a house under their names, they have to set up a company. By setting up a Thai company, you will be able to register the ownership of the house under the name of your Thai company. There are many different types of business entities foreigners can register in Thailand. There are a few criteria that you need to meet when setting up a limited company in Thailand. American real estate buyers must obey the rules in the Thailand Amity Treaty. You are advised to check with the regulation of the corporate tax before owning a house.
The property which you purchased in Thailand cannot be resold in a period of 5 years. After 5 years, you may sell the property to a buyer and profit from the sale. Foreigners can secure a property ownership via several ways. Foreigners are allowed to own freehold condominium. You are allowed to own a freehold condominium if you have less than 50% of the ownership. The share capital of the company is divided into 2 classes including Ordinary Shares and Preferential Shares. By dividing the share capital into 2 classes, it is able to preserve the interest of the foreign investors. When a foreigner purchase the condominium, he will receive a document that shows that he own lesser than half of the property after sale. Since the past few years, there have been exceptions to this law. However, the law has now returned to the original state.