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Buying a house in Thailand by the sea
Acquiring a house by the sea in Thailand is more than a simple real estate transaction. It requires navigating a complex legal framework while embracing an exclusive, luxurious lifestyle. However, to make the experience truly satisfying, it is essential to manage the sometimes turbulent legal and regulatory backdrops with care. This comprehensive guide will accompany you every step of the way on your journey to owning a house by the sea, providing you with all the information you need to realise your dream while avoiding common pitfalls.
Table of Contents
Conducting due diligence before purchasing a seaside home
Before diving headlong into the purchase of a house by the sea 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. For detailed information on land title deeds and verification procedures, consult the Thai Land Department’s official website.
- Planning law: Planning regulations in Thailand are strict, particularly for beachfront properties. Therefore it is essential to ensure compliance to avoid legal issues.
- 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.
Purchasing through a Thai company as a foreigner
As foreigners are not allowed to own land in Thailand, buying a house by the sea in Thailand 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 of a house by the sea in Thailand
Once the purchase of a house by the sea in Thailand 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 for a house by the sea in Thailand
If you are planning to rent out your property, it is essential to obtain the appropriate licences. For a house by the sea in Thailand 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 proper legal guidance, thorough due diligence, and strategic planning, acquiring a seaside property in Thailand can be achieved securely and in full compliance with Thai property law. Our legal team remains at your disposal to assist you throughout every stage of the transaction.