thai law isn’t simple

Thailand property tax in a rental

There are no general property taxes (capital tax on property imposed by the government) in Thailand, but real properties put to commercial use and not used for residential purposes by the owner are under the Building and Land Tax Act B.E. 2475 required to pay a property tax at a rate of 12,5 % of the annual rental value or the annual assessed rental value (if no rent is paid or the declared rent is considered too low). The annual assessed rental value is based on a calculation method over the appraised value of the property (land, house, apartment). If anyone leases a property at a rent lower than a reasonable rent, the amount could be adjusted and lessor could be taxed on what the rent should have been.

Read more: Property tax, building and land tax

Taxes and fees, transferring real property ownership from one party to another

The taxes and fees imposed and collected by the land office (land department) upon transfer of ownership of a real property (condominium apartment, land, house, land and house) in Thailand are: transfer fee, specific business tax (if applicable), stamp duty (if applicable), income withholding tax.

Read more: Real Estate conveyance taxes and fees

Sublet and lease assignment

A sublease or sublet agreement in Thailand is the rental agreement in which the lessee rents all or part of his leased property to another person. In the sublet the lessee becomes the sub-lessor and the new tenant the sub-lessee or sub-tenant. The assignment of a lease is when all rights the lessee/ tenant (asignor) possesses are transferred to another party (assignee), subject to permission and consent of the lessor who enters into a new contract with the assignee.

Read more: Right to Sublet a Property one Holds by Lease

Acquisition of real estate in Thailand

sample checklist

The first and most important part of a real estate investment and buying a house in Thailand is the land title deed (and for a condo the unit title deed). Secondly you should look at the building permit or possible building permission. A sale and purchase agreement (SPA) for land or SPA for land and house or sale and purchase agreement (SPA) for a condominium apartment unit contains most important aspects and details of the property, the seller and buyer, the terms and conditions of the sale and in general finalizes the interests of both the seller and buyer before closing the deal. The downloadable land sale agreement contains a list of subjects that needs to be verified with the seller of the property. What follows is a list of general subjects that could be part of the due diligence process or general considerations prior to buying or leasing of real estate (due diligence is not limited to the subjects below).

Read more: Sample checklist; buying Thai real estate

Condo in Thailand and inheritance

Foreign ownership of a condo in Thailand is under condominium laws an individual right of the foreigner who qualified under condominium laws for ownership. Once foreign ownership is obtained it is not freely transferable between foreigners (not even by inheritance) and the land registry only allows registration of ownership to another foreigner if he is eligible for ownership pursuant to section 19 of the Condominium Act.

Read more: Succession of foreign ownership of a condominium unit

Limited Company

nominee shareholders in a Thai company

A limited company in Thailand must have a minimum of 3 shareholder at all times. Thai nationals operating a business under a company often use nominee shareholders to complete the number of 3 shareholders in the limited company. There is no general restriction for Thais that prohibited the use of nominee shareholders in a business. This is different for foreigners. Foreign investors are prohibited from using nominee shareholders in a Thai company under the foreign business act. Also bearer shares are prohibited

Read more: Thai limited company and Thai shareholders

What is a right of usufruct in Thailand

The essence of a right of usufruct (section 1417) is that it transfers the rights of possession, use, enjoyment and management of an immovable property from the owner to the usufructuary (the person granted the right of usufruct). It gives certain strong rights but also obligations that are normally associated with ownership of the property (right of management and obtaining benefits from the property). Usufruct is governed by sections 1417 to 1428 civil and commercial code.

Read more: Usufruct in Thai property law

Real estate law

Thailand registered land contracts

The right of Superficies (sections 1410 to 1416 of the civil and commercial code) is a transferable and inheritable interest in land giving the superficiary (the person(s) to whom a right of superficies is granted) for a specified term the right to own or acquire buildings construction in, on or above the land owned by another. Foreign and Thai nationals can obtain a right of superficies by agreement with the owner of the land.

Read more: What is a Right of Superficies

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