Buying a house by the sea in Thailand

buying a house by the sea in Thailand

Buying a house in Thailand by the sea

Buying a house in Thailand by the sea is much more than just a property transaction; it’s an immersion in a luxurious and exotic lifestyle. However, to make the experience truly satisfying, it is essential to navigate the sometimes turbulent legal and regulatory backdrops with care. This comprehensive guide will accompany you every step of the way on your journey to beachfront property in Thailand, providing you with all the information you need to realise your dream while avoiding common pitfalls.

Table of Contents

In-depth due diligence

Before diving headlong into the purchase of a beach house in Thailand, it is imperative to conduct thorough real estate due diligence. This crucial step involves checking several essential aspects:

  • Owner verification: Check the title deed or chanote as well as the owner’s background.
  • Planning law: Planning regulations in Thailand are strict, particularly for beachfront properties. It is essential to ensure that the house you are considering complies with all local planning laws and regulations.
  • Building permits: Make sure that the house you want to buy has all the necessary building permits and that it has been built in accordance with local standards and requirements.

Buying through a company

As foreigners are not allowed to own land in Thailand, buying a beach house is often done through a Thai company. In this scenario, the foreigner acquires shares in the company, which then owns the house. This requires a sound corporate structure and a clear understanding of Thailand’s land ownership laws.

In-depth review of the Purchase or Sale Agreement

Before you sign anything, it is strongly recommended that you have the purchase or sale agreement reviewed by qualified professionals. A lawyer specialising in Thai property law will be able to help you understand all the terms and conditions of the contract and ensure that your interests are protected.

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Registering the new owner

Once the purchase has been completed, it is essential to register the new owner with the relevant Land Office. This process requires careful attention to detail and can be facilitated by the assistance of an experienced lawyer. It is also important to familiarise yourself with the various taxes and fees associated with the transfer of property in Thailand

  • Withholding Tax: 1% of the declared amount or the estimated value, whichever is higher.
  • Transfer Fee: 2% of the appraised value.
  • Stamp Duty: THB 1 per THB 200 of the declared amount, or 0.5% of the appraised value.
  • Professional Tax: 3% of the declared amount or estimated value, whichever is higher.

Once all the administrative formalities have been completed, you will receive the chanote, the official title deed in Thailand, establishing the new beneficiary.

Rental and Pool Licence Registration

If you are planning to rent out your property, it is essential to obtain the appropriate licences. For a house with up to 8 bedrooms, a rental licence is required, while for a larger number of bedrooms, a hotel licence is required. Don’t forget to declare your pool to the relevant authorities to avoid any future problems.

It’s clear that buying a beach house in Thailand is an adventure that can be enjoyed to the full, and one that requires following every step of this guide. With patience, careful planning, great due diligence, and the assistance of qualified professionals, soon you will be the owner of a beautiful beach house in Thailand, and you can begin to savour all that this wonderful country has to offer !