Thailand
Questions and Answers

Q: Can you own freehold property in Thailand?

A: Yes, you can own freehold property and although the process seems complicated, it really is quite simple. The property will be owned by a Thai limited company of which a foreign national can only own 39% with the other 61% being held by six Thai shareholders. On the day of registration of the Company, the six Thai shareholders sign their share transfer forms, which are all blank and undated, and all proxy voting forms signed and given over.

The people we use for this process are very credible accountants and solicitors in Pattaya. So far, over 600,000 foreign companies are registered in this way in Pattaya. The cost of setting up a Company is approximately 25,000 Baht (£360). The only other fee that the Company has to pay is 15,000 Baht (£215) a year. Land transfer tax is 3.3% of the value of the land. This is approximately 60% - 70% of the total cost of the unit you buy, but the developer pays half of this cost so in real terms it only costs you 1.65% of 60% - 70% of the purchase price.

Q: How much are yearly rates?

A: There is no such thing as rateable value in Pattaya. The only tax you have to pay per year is for the estimated rental value of the income. This varies between 1,000 Baht (£14) for a small house to 10,000 Baht £140) for a large unit.

Q: What if I want to sell my property?

A: When you sell your property, you sell your Company so the only cost involved is share transfer. There is no tax applicable.

Q: How long can I stay in Thailand without a visa?

A: You can stay in Thailand for three months at a time. If you wish to stay longer, all you have to do is give up a day of your time and approximately 2,000 Baht and get a bus from Pattaya to Cambodia and back, which is approximately a 6 hour round trip. For more information visit the Birmingham Consulate or www.thaivisa.com.

Q: Can I stay permanently?

A: Only if you marry a Thai national can you get a permanent visa to reside.

Q: What capital growth can I expect?

A: Capital growth is growing at approximately 15% per annum and in Pattaya there are no signs of this slowing down. Land prices have doubled in Pattaya in the last two years.

Q: How stable is the banking system?

A: Financial services in Thailand are extremely good and efficient and rival any-thing that is available in the western world.

Q: What guarantees do I get with my property?

A: You get a one year maintenance guarantee and a two year building guarantee.

Q: What are the medical facilities like?

A: Medical facilities are of a five star standard. The service and cleanliness are probably something we in the UK could learn from!

Q: How much will it cost to run my property?

A: Everyday living costs are approximately 1/3 of what you would pay in the UK.