– No income tax, if you stay less than 183 days in Thailand.

– No property tax

– Low property tax

– No inheritance tax

– No wealth tax

– No double taxation (Double Tax Agreement DTA), for more information about the facts and the list of countries concerned, please contact us.

– Low tax on property income. The tax is calculated according to the income received during the fiscal year. For more details, please contact us.

– Low construction cost from 20,000 THB per m2. Several things are to be taken into account : height, quality, etc…

(buildings with more than 20 units built in the last 20 years)

Since 1992, the Thai law allows foreigners to acquire an apartment in full ownership in their own name, thus holding a Thai title deed (Chanot)

A real right, which offers the advantages of an owner, for 30 years

The civil and commercial code provides for a lease of a maximum duration of 30 years which, once registered with the Land Office, constitutes a real right and is opposable to third parties in case of resale of the land during the term of the lease. The duration of the lease with the name of the lessee is recorded on the back of the title deed (public register). There is no distinction according to the quality of the lessee, the Thai or foreign lessee is subject to the same regime.

The lease allows a foreigner to have full use of the land for 30 years. The foreigner is free to build a house, to own it and to sublet the land (during the lease period). In case the Thai owner (lessor) resells the land during the term of the lease, or if the lessor dies, the said lease is applicable to the new lessor so that the lessee will continue to enjoy the lease until the end of the term written on the back of the title deed.

In a word, for 30 years the lessee is at home!

European buyers used to the concept of absolute ownership often tend to consider that 30 years is not enough. In this case, there are contractual mechanisms to renew the lease for additional periods of 30 years each.

The maximum lease term is 30 years. At the end of the lease, there is no automatic renewal. If the parties wish to renew their lease for an additional 30 years, it is actually the registration of a new lease agreement which requires action by both parties (signing a new agreement and registering it with the Land Office).

However, it is possible to add a renewal clause in the form of an option for the lessee for an additional 30 years. In order to be enforceable, the renewal clause must contain the price (or a precise formula for determining the price), otherwise it is simply an option to enter into negotiations without any obligation to renew on the part of the lessor in the event of a disagreement on the price.

– Changes in legislation are likely to facilitate the process, such as an increase in the maximum lease term, a relaxation of corporate law and access to real estate ownership by foreigners under certain conditions.

The building permit must be issued in the name of the person who leases the land, i.e. the buyer, so the building permit will confirm the ownership of the building.

A foreigner will own the building in his own name for the duration of the lease (renewable), or until the date of the sale of his house.

– It is important to keep the invoices, the construction estimates because this will allow to make the accounting entries and also to evaluate the property at the date of the sale.

– If the lessor does not wish to renew the lease, he is obliged to buy back the building (to be defined in the clauses).