Real Estate Law

Introduction to the Thai Real Estate Market

Thailand is experiencing a surge in business and tourism, not just in its busy capital but especially in the peaceful and increasingly popular real estate hotspot of Phuket. Thanks to its lower taxes and fees compared to other places, Thailand is becoming a top choice for real estate investors, making it stand out as a preferred location over other countries in South East Asia.

Closer Law Co., Ltd. offers specialized Real Estate Law services in Thailand, tailored to navigate the unique landscape of Thai property laws. Whether you’re looking to invest, reside, or conduct business, our team of experienced legal professionals is here to ensure your real estate transactions are compliant, secure, and advantageous.

Short Summary of Thai Real Estate Laws

Foreign Ownership Restrictions: Thai law generally restricts direct ownership of real estate properties by foreigners. However, there are certain exceptions, such as the ability of foreigners to own condominium units, provided that their ownership does not exceed 49% of the total area of all units in the condominium.

Land Ownership: Under Thai law, direct land ownership by foreigners is generally restricted. However, there are some options available for foreign buyers, such as leasehold agreements, which allow leasing land from Thai owners for up to 30 years with renewable terms, and company ownership, where a Thai company with majority Thai shareholders can purchase land.

Note: An exception to the foreign ownership restriction is the provision that allows foreigners to own land for residential purposes, provided they invest a significant amount (not less than 40 million baht) in Thailand. Please get in contact to discuss the conditions attached to this ruling.

Housing Development Act: This act regulates housing projects, ensuring fair dealings and transparency in the real estate sector by mandating that developers obtain licenses, provide clear information, and adhere to specific construction standards.

Taxes and Fees: Various taxes and fees are applicable during property transactions in Thailand, including transfer fees, stamp duties, specific business tax, withholding tax, and a new tax system based on the appraised value of land and buildings introduced by the Land and Building Tax Act.

Legal and Tax Advice: It’s advisable for foreign investors to seek legal and tax advice for effective structuring and to ensure compliance with Thai laws. Real estate transactions involve due diligence, property title verification, registration with the Thai Department of Lands, and adherence to tax obligations.

Lease Agreements: For those unable to own land directly, lease agreements are a common alternative. In Thailand, lease agreements must be in writing and require registration at the Land Department if the duration is more than three years.

Marriage to a Thai National: Marrying a Thai national does not confer the right to co-own real estate. Thai nationals married to foreigners must declare that the property to be acquired will be their separate personal property.

Cultural and Market Understanding: Understanding Thai business etiquette and the local real estate market is crucial. This includes knowledge about market trends, property values, and investment opportunities.

So what can Closer Law do for you?

Due Diligence: We do a deep dive to check if the property’s paperwork is in order, look for any hidden problems, and make sure everything about the property is legally okay. This way, you can be excited about your property choice without any worries.

Property Buying: Whether it’s condos or houses you’re interested in, we’re here to help you at every stage of buying your property. This includes making sense of the rules around buying property as a foreigner.

Lease and Rental Agreements: Our team writes up and checks over rental agreements to make sure they follow Thai law and keep our clients’ best interests safe.

Legal Guidance and Support: We offer advice to make sure you’re following all the necessary laws and rules, including those about taxes, helping your property deals go smoothly. We’re here to guide you through the legal maze and ensure every transaction is compliant and hassle-free.

Solving Disagreements: If any problems come up, our skilled lawyers are ready to stand up for you and make sure your side is heard and protected.

Key benefits of working with Closer Law

At Closer Law Co., Ltd., we make dealing with real estate in Thailand easy and safe for you. Our legal experts come with a lot of know-how and offer all the services you need to make sure your property dealings are not only successful but also follow the law and match your goals perfectly.

Choosing Closer Law for your property purchases or leases in Thailand comes with many important perks, guaranteeing transactions that are safe and adhere to legal standards.

Below are the top benefits:

Our focus is on defending your interests, guaranteeing that each element of any real estate transaction benefits you. Working with us gives you access to a dedicated team of legal negotiators, all striving to obtain the most beneficial outcomes for your real estate undertakings.

We provide comprehensive advice to both Expats, tourists and Thai clients on all facets of real estate transactions in Thailand, covering areas such as:

Our approach is business-oriented, extending beyond mere legal advice. As specialists in Thai real estate law, our team aids in deal structuring and the search for strategic partnerships. Additionally, we leverage our extensive network of third-party auditors, accountants, financial advisors, property valuation specialists, HR consultants, and government agencies to support transaction execution.