Located in South East Asia, Thailand has been a formidable player within this market for centuries. In the past, it was seen as a “buffer zone” for the colonial powers due to its location and proximity to the likes of China and Japan (and, as a result, the silk road) and because of this, it is a country which managed to escape colonization.
Today, Thailand is a popular holiday destination which attracts millions of people each year. Most of these people are young remote workers who want to escape to a cheaper destination and save money, whilst others move here to retire. Today, Thailand is still capable of reaping the rewards associated with its desirable location in the world. The Thai capital of Bangkok is only an hour’s flight and the country is very close to growing markets such as Cambodia, Laos and Myanmar.
Because of all this, investing in the Thai property market is a wise and possibly lucrative thing to do. If you are looking into this and want to decide where is best to invest, take a look at Oversea Property Investment.
#1: Can Foreigners Invest in Thailand’s Property Market?
In short, yes, however, Thailand is not as open to outside investment as some of the other South East Asian countries. For instance, those investing in companies within the country cannot own a share which exceeds 49% unless you are either a Thai national or a U.S. citizen. Even then, the process is very bureaucratic, and the government keeps a watchful eye over the commercial market.
When it comes to real estate, the rules are even stricter still. Foreign investors may only own a condominium above the ground floor in a building, and this condominium cannot make up 49% of the building.
#2: Thai Property Taxes
The good news for foreign investors is that these condominiums don’t have any property tax. Although there’s no tax to be paid on paper, there are still management fees to be paid to the building’s owner for overall upkeep, cleaning costs, costs of concierges and costs for utilities.
Although this isn’t strictly a tax, it still needs to be paid annually.
#3: Is Thai Property Safe?
When it comes to South East Asian countries, lots of people have reservations so far as safety is concerned. It is good to know, however, that Thailand has strong laws when it comes to property ownership.
These laws cover the maintenance and upkeep of a building for its physical safety, and there’s also a digitized property title system so you need not worry about the possibility of title deeds for your property getting lost and you losing rights to it. Thailand has well over 20 different property developers who have a good reputation, so there are no major issues when it comes to buying new units.
Thailand’s proximity to Bangkok and developing countries makes it a great market to break into, especially whilst it’s still relatively cheap. Although you are limited as a foreign investor, it’s still possible.