ABOUT PHUKETSurrounded by the turquoise waters of the Andaman Sea, Phuket is blessed with white sand beaches, spectacular bays and world class water sports. It also boasts some of the best golf in the region and an international mix of jet setters and friendly locals. It is no wonder that Phuket is one of the top destinations in Thailand and boasts some of the finest real estate investment opportunities.
Phuket is served by an international airport that connects it with Bangkok and many foreign capitals. Charter traffic is increasing each year as more visitors discover all that Phuket has to offer. An increasingly large expat community is well served by excellent international hospitals and two international schools for their children.
Phuket villas, apartments, condominiums, bungalows, and land sell quickly, as both the wealthy and the regular investor eagerly seek the best Thailand properties. The Thailand real estate market, and Phuket real estate in particular, has matured over the last dozen years as the steadily improving infrastructure in Thailand lends itself to a better and better quality of life.
LEGALS
Can Foreigners Own Land in Thailand?
Foreigners are not allowed to own land.
Long-Term Leaseholds for Phuket Property
Thailand property investors often use a pre-registered, 30 year lease to secure property. The longest a single lease can be registered in Thailand is 30 years, but you can pre-register 3 consecutive 30 year leases at once, which essentially provides a 90 year lease. Normally there is a provision written into the leasehold agreement that allows you to register another 30 year lease once the previous lease has expired. In effect, this provides a lease in perpetuity.
Some developers pass the freehold to the individual lessees once the entire development is sold out. Lessees then own an equal share in the freeholds so that they, in effect, become their own landlords.
Special Rules for Condominiums
Thailand has a “Freehold Condominium” law that makes it easier for foreigners to own a condominium. Under this law, 49% of the condominium development may be sold outright to foreigners and Thai owners hold the remaining 51%.
TAXES AND COST OF BUYINGWhen a property is purchased, there are some taxes and transfer fees that must be paid by the buyer or seller.
Transferring Fee: For a period of 1 year beginning April 2008, property transfer fees have been reduced from 2% to 0.01% of the registered value of the property. This is paid at the Land Office on the day of transfer of ownership. The buyer is usually responsible for this fee.
Stamp duty: .5% of the appraised value of the property or the purchasing price, whichever is higher. The seller is usually responsible for this fee.
Specific Business Tax (SBT): From April 2008 for 1 year the SBT has been reduced from 3.3% to 0.1% of the appraised or actual price of the property, whichever is higher. This tax is imposed only if the property is transferred less than five years after it is purchased (if the SBT is levied, stamp duty will not have to be paid).
LAND AREASLand is measured in Rai, Ngan and Wah. Metric measures are usually used in construction and measurement of buildings, and land prices are usually shown in Baht per Rai.
1 Rai = 4 Ngan (1600 square metres)
1 Ngan = 10 Wah (400 square metres)
1 Wah = 4 square metres
1 Hectare = about 6.25 Rai
1 Acre = about 2.5 Rai
VISASVisitors to Thailand must obtain a visa to enter the country. Below is a general list of the types of visas, but for more information, go to the www.thaivisa.com.
• Tourist Visa Exemption (up to 30 days):This type of visa is issued to applicants who wish to enter the Kingdom of Thailand for tourism purposes.
• Tourist Visa (not exceeding 60 days):This type of visa is issued to applicants who wish to enter the Kingdom of Thailand for tourism purposes for greater than 30 days but less than 60 days.
• Non Immigrant Visa:This type of visa is designed for applicants who wish to enter the Kingdom of Thailand for a variety of purposes such as performing official duties, conducting business, or studying. A list of qualifying activities can be found elsewhere.
• Category O with multiple entries (1 year visa): Pension earners or Applicants over 50 years of age with supporting documents.
• 3 Year Non Immigrant Visa (Type B with multiple entries):Foreign citizen who wishes to visit Thailand for business purpose may apply for a three-year non-immigrant visa, type ‘B’ with multiple entries.
• Retirement Visa:Foreigners aged 50 or above wishing to stay in Thailand for the period of one (1) year.
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