Registration of real estate in Freehold property can be divided into 2 types: foreign quota and Thai quota. A foreigner has the opportunity to register real estate for both quotas. We’ve compared these types according to several criteria and highlight the pros and cons of each.
Set of rights
Real estate registered under both foreign and Thai quota includes the rights of ownership, use and disposal. According to this criterion, the quotas are identical.
Document confirming the right to the object
The document confirming the owner's rights to both foreign and Thai quota is Chanot. The key difference is that a Chanot issued for a foreign quota will contain the Name and Surname of the owner, a Chanot issued for a Thai quota - the name of a company whose owner and CEO is a foreigner. You need to understand that the company must be opened in Thailand. I will provide information on how to open your own company In Thailand below.
Sale, inheritance, donation of a property
Regardless of the quota, the owner has an unlimited right to dispose of the object, including the ability to mortgage his object.
Real estate value
Apartments by Thai quota are much cheaper. The difference in price between foreign and Thai quota can reach 20-30%.
Taxes and fees
The total tax when registering real estate as a property (Freehold) is 6.8%, however, if we are talking about buying on the primary market from the developer, then this is no more than 2% of the property value.
The difference: when buying and selling on the secondary market under the Thai quota, you do not need to pay a state duty of up to 6.8%, it is enough to change the founder in the company's documents, and the property is considered re-registered. It is much cheaper and easier.
Payment method
When registering real estate for a foreign quota, it is necessary to confirm the foreign origin of the funds for the purchase. Payment is made by international transfer. In turn, the bank in Thailand issues a certificate of receipt of Tor Tor 3 funds, which is a supporting document.
When registering for a Thai quota, you do not need to provide papers confirming the import of funds for the purchase of real estate from abroad. You can choose a convenient payment method.
Opening a Thai company for property owners
Lawyers are engaged in the opening and further maintenance of the company. You are the founder and CEO with the exclusive right to sign. According to Thai law, the distribution of shares in the company is based on the ratio of 49% - a foreigner and 51% - a Thai side. The Thai share is split between 2 Thais, usually legal employees. Companies that subsequently write rejection letters and the foreigner is the holder of a controlling share in the company and the only person who has the right to sign and has the right to dispose of the company. It is 100% safe, this mechanism has been working for decades and any purchase related to land, or any business that is opened on the territory of the Kingdom of Thailand, is registered only in this way.
It turns out that the buyer is the owner of the company, and the company, in turn, is the owner of the property. You will have a certificate of ownership in your hands. And you can dispose of your property as you wish - sell, rent, donate, leave as a legacy, etc.
‘A Bluebook’ is issued for the building itself, in our opinion it is a “house book”, where the owner, address of ownership and registration of water and electric meters are registered.
We summarize: The most reliable and simple option for a foreigner is a foreign quota. The Thai quota can be considered as an option for registration in the absence of a foreign quota in a particular project, or the purchase of an object in the private sector - a townhouse, house or villa.
