Purchasing property in Thailand can be a very challenging endeavor. There are a number of issues that you will need to consider before making your purchase. It is important to seek the advice of a property lawyer in Thailand in order to ensure that you are able to get the property you are looking for. You will also need to complete due diligence before signing any agreements.
Property transfer is a common activity for foreigners, but it can be complicated. The process of property ownership in Thailand is governed by the Civil and Commercial Code. It is important to ensure that you follow all the necessary procedures, such as registering your contract with the Land Department. You will also need to pay the appropriate fees, including withholding tax, income tax and stamp duty. It is important to use the services of a good Real Estate Agent to handle the transfer of property ownership.
The Department of Land is responsible for collecting and withholding taxes on real estate transactions. The withholding tax is based on the assessed value of the property and is fixed at one percent of the purchase price. There are exemptions in certain situations.
The Land Department has branch offices throughout the country. Before a transfer of property ownership can take place, it is important to register the sale agreement with the Department of Land. You will also need to register the lease agreement if the property is leased for more than three years. It is also important to check the title of the property before making a purchase. It is common for a title deed to be fake. You can check this by using a title search.
The buyer will also need to pay withholding taxes and condominium transfer fees. These fees are typically 1% of the purchase price of the property. However, condominium transfer fees are waived for the purchase of newly built government licensed condominium developments. The buyer may also use the collective bargaining agreement as a tax credit.
The buyer will need to complete a Foreign Exchange Transaction form to be eligible for transfer of property ownership. The form must be completed and submitted with cashier cheques and the amount of the purchase price. The buyer will also need to obtain a Foreign Exchange Transaction Certificate from his bank. This is a document that is issued by the bank when a foreign currency is exchanged for Thai baht.
If you are planning to buy property in Thailand, you may want to obtain a Power of Attorney. You will need to obtain a notarized Power of Attorney in your home country and sign it before you leave Thailand. The Power of Attorney will allow you to transfer the title deed to your representative. Typically, a representative is a lawyer or a member of the Keller Henson team. They will make sure that the title of the property is clean and free from any detrimental items.