Overseas buying is common among foreign investors. But unlike in other countries, investors can easily buy Thailand properties to serve as their overseas investment. However, these properties only include townhouses, apartments and condominiums—not the land where they stand.
Computation of property taxes
If you are a foreigner planning to buy Thailand property, you will have to take note of taxes and mortgages before buying a condo in Thailand.
Normally, you will be asked to pay 10% of the property price before you buy Thailand property. When you’re done signing the contract, your deposit will be paid back to you unless you’ve decided to purchase a different property.
Taxes to pay before buying a condo in Thailand
Property owners usually pay 3% to 8% property tax, depending on different factors. Some of these factors are the amount of time the property is owned and whether or not the owner is registered in tabien baan, Thailand’s official resident registration booklet.
There is no capital gains tax in Thailand. However, if a property owner decides to sell his property within five years from the date of purchase, he will have to pay for the income tax. The income tax usually ranges from 1% to 3% depending on the number of years the property was owned.
Insurance for properties in Thailand is not legally required although it is highly recommended.
Mortgages involved when purchasing overseas properties in Thailand
In previous practice, foreigners were not allowed to take out mortgages when they buy Thailand property. However, things have recently changed. Now, foreigners are allowed to take out mortgages when they buy overseas property in Thailand.
The interest rate is around 7% with mortgage loans available up to 30 years if the borrower doesn’t exceed 60 years old.
Some international banks such as HSBC only allow Thai residents or foreigners who are married to Thai women to lend mortgages where the interest rate can go up to 80%. What some foreigners do is raise their finance at home and transfer it to a Thai bank account.
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