Phuket island attracts with its mild climate, beautiful nature and pristine beaches not only tourists, but also citizens of many countries who want to change their place of residence. Investment in real estate in Phuket is a pretty attractive prospect, because the Thai economy is actively developing, local legislation is loyal to foreign investors and protects their rights. Some people buy housing on the island in order to have their own housing in a paradise and come here on vacation, while others consider the option of earning money from renting out real estate or from reselling it for a higher price. In our article we will tell how a foreigner can buy land, a house or commercial property in Thailand.
Thai law prohibits the sale of land or commercial property to foreigners in order to protect the rights of its citizens. However, there are options to officially purchase these types of real estate, observing all the requirements of the laws.
The first option is the conclusion of a long-term lease of land for a long period of time (leasehold). The contract is concluded for a period of 30 years and provides all the rights of possession and disposal of property located on the site during this period. The tenant may resell, rent or lease the property for the remaining period specified in the certificate. The tenant also has the right to extend the contract two more times, in total, the lease term is 90 years. The lease is concluded with the land owner and is registered at the Land Department of Thailand.
The second option is the registration of a legal entity and the purchase of real estate or land on its behalf. At the same time, the legislation of the Kingdom does not allow foreigners to own a controlling package, so a Thai partner is required. After registration of entity and real estate purchases, the partner must write a waiver of all property rights and you become the only owner of real estate in Phuket. The disadvantage of this option is the longer term of paperwork, as well as additional costs for registration and maintenance of the company.
After registering the transaction in the Land Department, the owner gets Chanot - a document confirming ownership for a limited or unlimited period (leasehold or freehold). Chanot contains all the information about the property, including its size, characteristics, layout, as well as the history of all its sales and legal operations. All owners and tenants are indicated on the back of the form.
In addition to Chanot, Thailand uses other documents confirming ownership or usage of real estate.
One of them is a Confirmed Certificate of Use, which confirms the right to receive the main Chanot document.
If all the necessary conditions to receive the Chanot are not fulfilled, the owner receives a Certificate of Use. After all the faults are fixed, the certificate can be reissued in Chanot.
Another document is the Certificate of Ownership, which confirms the right to own a land plot, but without the possibility of using it.
All documentation is in Thai, so you should be very careful when filling in and receiving documents, it is better to seek the support of professionals. The staff of the Real Estate Gallery will help you to find the perfect accommodation in Phuket and arrange all the necessary documents for its purchase. You can book a free transfer to the Real Estate Gallery and get all your questions answered by the experts. Take the first step towards your dream!
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