There are amendments in the rules to allow foreigners to buy a house in Thailand on a freehold basis. This is the Royal Thai Government initiative. The raking price is will be in the range of 10-15 million Thai Baht.
Aside from that, the new rule will raise the foreign ownership ratio for condominiums from 49 to 80 percent. This law is about the New Royal Act, which allows foreigners to own housing estates on a freehold basis.
Reason Behind the New Royal Act
According to Mr. Suphatpong Puntamechao, Vice Prime Minister, due to Covid-19, many foreigners are looking for a second home with proper food and public health facilities. Additionally, Thailand is a popular destination for foreigners looking for a long stay and holiday. As a result, the Thai government is attempting to get international funds to invest in Thailand.
Furthermore, the government intends to persuade foreigners to retire in Thailand. Moreover, this group has a secure fund, pension, savings, provident fund, and adequate insurance from their native country.
Drafting of New Royal Act
The government declares that they are working on changing the rules to encourage foreigners to invest in Thailand. It can be by purchasing condominiums and houses. There will be amendments in the Land Code, Condominium Act, Civil and Commercial Code. However, the intent is to increase the quota for condominium purchases and to allow them to purchase houses as well.
Currently, the foreigner purchase quota is set at 49 percent of the total area of the condominium complex. Therefore, due to this change, they will be able to purchase 80 percent of the overall area of the project through the quota. Moreover, the fraction of the vote exceeding 49%, cannot vote on the Juristic Person of the Condominium Meeting.
Land Code for Foreigner To Buy House in Thailand
This time, the Land Code changes will allow foreigners to buy a single house. However, it is only as part of a housing estate project with a price of more than 10 million Thai Baht. This will aid in the absorption of the Thai market’s glut of units. Expect the government to enable foreign buyers to purchase 49% of the project’s overall area under a quota system.
Furthermore, the government intends to amend the Leasing Property for Commercial and Industrial Act to allow foreigners to lease for 50 years Plus 40 years, giving international investors more confidence.
Temporary Campaign for 3-4 Years
The foregoing change to the new Royal Act will only be temporary. After Covid-19 has been spaded, it is expected to take roughly 3-5 years to convince capital flow from overseas.
It may also aid in the absorption of the market’s current oversupply of condominiums.
Aside from that, the government is working to alter the Visa and Work Permit laws to make it easier for foreign investors to stay in Thailand for an extended period of time.
The Bottomline
Implementation of the Royal Act will help foreigners to buy houses, land, and condominiums easily in Thailand. This is going to be more beneficial for those who wish to retire in Thailand. The attraction of foreigners towards Thailand is the greatest factor that compelled the Royal Thai Government to think of such an amendment.
If you are planning to purchase property in Thailand, let us know your intent and budget at [email protected]. We are a panel of experienced and expert law professionals with special connections with local authorities to make your dream of owning a home in Thailand come true.
Apart from this, you may contact us for Business Registration in Thailand along with any and all types of assistance you need in the issuance of a Work Permit or Visa. We provide assistance in obtaining Retirement Visa as well.
