Buying real estate - Thailand

Buying real estate - Thailand

Buy land in two ways. 1. In the long-term lease (leasehold) for 30 years with a double extension. As a result of the lease term is 90 years. Some expensive residential buildings can be leased for 120 years, for business projects period of 150 years. 2. On the company. In this case the land is acquired full ownership (freehold). The owner is not a natural person and the company. Investments in real estate at all times considered the most reasonable and reliable investment tools, which ensures a good level of income. Today the company has direct investments in land and property in Thailand, and invites potential investors to participate in these business projects. All these programs have a high percentage of profitability, but often require significant investment in this case. The essence of investment programs is the acquisition of a large plot of land with no infrastructure, followed by redevelopment, and summing up the communication. The optimal size of investment of $ 3-4 million, although you can also consider other options. However, it should be noted that the amount of investment of less than $ 1.5 million is somewhat difficult choice of the original plot of land, narrowing the range of possible options. Investing is more than $ 5 million, in turn, require a longer period of implementation of the project itself (in the case was originally purchased more land, rather than the more expensive land in principle). As experience shows, the more expensive the land there is a steady demand, because the number of exclusive areas is always limited. Here's a more detailed circuit implementation of investment programs for investment in land management: 1.Snachala users browse a plot of land measuring 3.2 hectares (15-20 Rai). If this type of land beachfront, the price of such a site can range from $ 800,000 to $ 1,000,000 per 1 hectare (5,5-6,5 million baht for 1 Rai). Usually, when this communication are not available, but is located nearby the main road (public road). For land-type hillside price is within $ 230,000 - $ 380.000 per 1 hectare (1,5-2,5 million baht for 1 Rai). 2.Dalee be breaking ground on an area of ​​1,000 to 1,500 sq.m. with registration at the Land Department and obtain a separate certificate for each site. 3.Sleduyuschy step - leading communications: obetonnaya road (usually chosen land, located near the main road, which requires the laying of about 500 - 700 meters of concrete road (in rare cases, a little more) and on the network to each site); oelektrichestvo; oburenie well. These costs, on average, 10-15% of land value. 4.Prodazha received plots of land. The rate of profit on such deals is around 40-50%, while the process of buying land before selling it usually takes no more than a year. With long-term investments when purchased land is sold a few years later, it is possible 100% profit margins and higher. 5.Shemu can be developed further to its logical end with the construction of luxurious villas on plots and the sale is the final product. In itself, the construction of expensive housing typically involves 70%-ing the profitability and even higher, not to mention the increase in land prices, as stated above. Plots of land in Thailand is measured in the following terms: 1 Wah = 4 sq. m. 1 Ngan = 100 Wah = 400 square meters 1 Rai = 4 Ngan = 1,600 sq.m. = 1 / 6 acres. A foreigner can own land through a documented long-term lease or founded the company that he controls and which to buy land. Other ways, when a foreigner is fully owned land in Thailand does not exist. Both methods are completely secure, if they are properly documented with the help of professional lawyers. And this is a very important point that I want to draw your attention. Long-term lease - a simple and reliable method that allows the ownership of land (or land with a house) for a certain number of years. As a rule - 30 years with right of renewal of the lease. All this can easily be made in any local notary office. Many prefer this method because of its simplicity and especially because it does not require the creation of the company. However, many others prefer to still open his own company, which bought and land. In this case, the foreigner can own only 49% of the shares, but Thai Land Code does not prohibit him complete control over it. Here, again, is very important to execute all documents to ensure the right to effectively control the company, in which the majority of ordinary shares owned by Thais, and at the same time avoiding the potential problems in management (avoiding anti-agency and anti-nominee provisions? Can u please explain these events?). Ownership and management of the Thai company goes through certain procedures and imposes responsibilities and tax liabilities, so let all these difficulties to explain to you the professionals in the language that you understand. Land ownership in Thailand can be a wonderful and very profitable business, both in financial terms, and for the soul. But whatever you do, consult with experts and then you, like me, will find a wonderful home - as a safe and property intact Additional costs When you purchase should consider the following associated costs: • tax on transfer of property - 2% of the appraised value of the property or land; • Stamp Duty - 0.5% of the appraised value of the property; • Business Tax (if the object is resold within the last five years) - 3,3% of the appraised value; • registration of legal entity (if required) - 30 thousand baht (€ 680); • VAT (for legal entities) - 1% .0 Taxes are usually the seller and the buyer shall pay in equal shares, and sometimes - by agreement of the parties. Commission agent (3-5% of transaction amount) paid by the seller, a lawyer (20-30 thousand baht, or € 455-680) - the buyer. Cost of maintaining the estate tax on real estate in Thailand. Property tax is levied only in case of commercial use, such as rent. Then levied a land tax, local development tax and tax on the use of buildings. Land tax is fairly conventional and is only a few baht (1 baht = 2 cents) per paradise (1,600 square meters. M) of land per year. Due to the small size of the tax is allowed to be paid once every few years. Local tax levied on the development of land, with the exception of lots for private residential facilities. However, not all housing subject to this condition, so this issue must be separately specify the Land Department. The rate of this tax is also low and is a few baht. About the tax on the use of buildings - lower in the "demise". The size of utility bills depends on the services provided by the owner, as well as on the location and grade of the house. The average utilities, including clean-up pool cleaning, security and parking, up from € 0,4 to € 1,4 per square. m per month.The amount of payments for electricity and water depends on consumption. The cost of maintaining a two-bedroom apartments of 50 square meters. m is about 1,2-1,4 thousand baht (€ 27-32) per month. Payment for services management company incorporated in the cost of utility bills. COST OF LIVING Food. The average bill for one person in the restaurant of European cuisine is 500-700 baht (€ 11-16). Prices for meals in restaurants cuisine from just 10 baht (€ 0,23). In restaurants to tip at a rate of 10% if the service is not included in the bill. Transportation. To get around the city can take a taxi or a so-called "fat-the fat" - three-wheeled covered scooters. The average taxi ride in Bangkok costs about 50-200 baht (€ 1,2-4,6). A trip to the tuk-tuk in Pattaya, worth about 20 baht (€ 0,5) per 1 km of track. Mobile communications and the Internet. You can always make a call from the hotel or payphone on the street. Card to pay for the call from last sold in supermarkets. To use a mobile phone can use the services of local mobile operators, for example, DTAC, or One-2-Calls. SIM-card can also be purchased in supermarkets or shops of mobile communications. Call from mobile, for example, to Moscow will cost 5.5 baht (€ 1,3). You can go online from your hotel or the many Internet cafes. Cost per minute in an Internet cafe is 0,5-3 (1-7 cents), the baht, the cost per hour when buying a package (to access the network from the hotel) - 5-15 baht (€ 0,1-0,3). Banks. Credits. Capital transfer to Thailand Currency regulation in Thailand is in conformity with the law and supervised by the Bank of Thailand. If you intend to buy property in Thailand and want to pay for it in Thai Baht, ensure that your capital properly have been translated into foreign currency and has subsequently Burn source in the Thai baht in the country. It is necessary to obtain from a Thai bank, which maintains your account is called the "certificate" Thor Tor 3 ", produced by confirming the transaction. The importance of this certificate is that it is one of the documents necessary for the legitimate export of your money back overseas if you intend to sell your property. Banks issue notwithstanding that the certificates when the payment exceeds the equivalent of $ 10,000 or 400.000 Baht. In the appointment of remittances in Thailand, coupled with investment opportunities, you should immediately write "for investment in Thailand" or "for the purchase of real estate (property) in Thailand." Removal of investment capital and the return of international payments related to payment of a debt or loan repayment in foreign currency shall be made by Thai banks without any complications in the presence of relevant evidence. One of these supporting documents is the certificate of "Thor Tor 3 mentioned above, and in addition, the loan agreement, if any, had occurred. Removal of investment capital without having to confirm that the documents will be considered as earned income, and can only be achieved with the payment of relevant taxes. Payment of property in foreign currency Most real estate agencies and building companies in Thailand, it prefers to simplify the procedure for payment, avoiding the payment of real estate in foreign currency. In such cases, payment for the purchased your property will be made directly to their offshore accounts, and freehold comes immediately after the receipt of funds. If you intend to sell their property in the future, this deal can make a similar manner.