Buying a real property in Thailand is a good investment for those who want to build or expand their businesses like Singapore-based investors. Ideally and as an investor, you must choose the best and the most profitable option like property investment. And if you are looking for a location where property investment is highly recommended, Thailand remains on the top of the list.
This country is a known hotspot when it comes to property investment. One main reason for this is the attractive property prices that invite investors worldwide to come and invest more. The concept of owning a venture property which serves as a vacation hub that also produces high return on investment is an irresistible offer for a lot of clients.
Ownership of Property
In Thailand, land ownership falls into two types of tenure, the Freehold and Leasehold. The former type has full ownership and has the ability to sell or rent the purchased property. As for the latter, foreign nationalities can own it for a certain period of time (30 years) with the option to renew or extend for another 30 years.
By the rule of law, foreigners are granted to have a land in Thailand for two purposes, one is for residential use and the other is for industrial or commercial use for 30 to extended years which is subject to various terms and conditions.
Requirements for Registration
If you’re a foreign investor interested on Thailand property investment, you must obtain an authorization or approval before you’ll be allowed to operate certain business activities and is required to have at least 25 percent contribution of the average estimated operating expenses for the initial years of doing business in the country.
As mandated by the Commercial Registration Act, other nationalities who want to operate their businesses in Thailand must register with the Ministry of Commerce in the span of 30 days from launching the business. As for the other types of business concerns, you need to get the assistance from the Intellectual Property rights and the Factory Act, whichever is applicable for your industry.
Further Information on Thailand’s Foreign Property Ownership
When you buy property in Thailand as a foreigner, you are not allowed to be the owner of the land property. However, you can acquire freehold interests subject to some conditions such as building of businesses in particular industrial domains, as oil industry provided that you abide with the rule of Petroleum Act, and that you will only handle 49% and below of the business.
In addition to the abovementioned details, when you buy property Thailand foreigner, the Ministry of Interior grants you the right to own at least 0.4 acre of land in the condition that they are only located in Tessaban, Pattaya, or Bangkok. With this, you must submit the remittance of at least THB 40-million into the country for five years.
When it comes to property laws, investment on property in Thailand is almost the same with some western countries; you could use it as reference if you want further details on this ruling.