Frequently Asked Questions (FAQs)

The following are the most common questions asked by our customers both online and in the office. Please feel free to contact us directly if your question is not answered here or if you need further clarification on any issue.

Q: What does 'Foreign ownership' mean exactly?

A: A foreign ownership means that the condo can be bought in your own name (and it remains in your name forever) - it is the equivalent of freehold property elsewhere in the world.
A condo or apartment can be bought either in your own name or not depending upon the circumstances of the condo. A house, land or commercial property can never be bought in your own name.
All these processes are actually very straight-forward in practice and our lawyers can handle everything for you. For those of you interested in the reasons behind this situation, the Thai government wishes to preserve its land for its people and this means in practice that anything built on the land is affected in this way. However, it welcomes tourists and those wishing to make a new life here and has recognized the need to allow them to stay somewhere permanently. For that reason, the Condominium Act facilitates this by allowing 49% of the units in all larger condo blocks to be available for purchase by foreigners ie. Non-Thai citizens).
This means in practice that condos are either available to be purchased in a foreign name because they are already in a foreign name or because the building in question is below the 49% quota. If they are not available to be purchased in a foreign name, it is because they are already in a Thai name or Thai Company name and the building has no more space in its 49% quota and can allow more foreign ownership.

Q: Can a foreigner get a mortgage in Thailand?

A: It is possible for foreigners to obtain up to 70% mortgages in Thailand but it is very difficult. In essence you need a steady income here or abroad, some good collateral and supporting paperwork and evidence.

Q: What government taxes are charged when buying in Thailand?

A: There is a small one-off tax of approximately 3.3% when the title is transferred in the case of a foreign-owned condo. This is based on a much lower Land Office estimate of the price of the condo rather than the actual sales price. There is also a further tax of 3% payable if the property has been sold in the previous five years. With company-owned units, there is no tax to pay.

Q: What taxes are payable on investment properties or capital gains?

A: There is no capital gains tax on the sale a condominium or apartment. The profit on the sale of a house or land is 30% on the declared profit which is always a conservative government figure. When it comes to houses, usually the Thai company is sold with the property. In this case all that is required is for a change in the name of the director and therefore there are no taxes due.

Q: What is the cost of legal fees when buying and selling?

A: We have access to a selection of excellent and reasonably priced lawyers. Many clients do not see the need for extensive legal help or even legal help at all but should they wish for assistance prices will vary according to the type of sale from only 5,000 THB to around 45,000 THB.

Q: Are there any council taxes and rates?

A: There are no annual council taxes or water rates in Thailand to pay.

Q: What would a typical water bill be for an average size villa or condo?

A: The average water bill for a villa or condo ranges between 250 & 450 THB a month.

Q: What would a typical electricity bill be for a villa or condo?

A: The average electricity bill ranges between 1000 & 1500 Baht per month. However, if you love 24 hour air conditioning, it can rise to as much as 5,000 THB a month.

Q: How do foreigners pay for properties purchased in Thailand?

A: Buyers should always transfer foreign currency into Thailand and this is a very easy process. The buyer�s local bank will provide a receipt of the transfer and this should be faxed immediately to the recipient so the transfer can be traced and confirmed. Typically 10 � 15 % is paid when signing and then the balance at an agreed date but any reasonable amount from the ATM can secure property in the short term before you arrange funds transfers.

Q: Is Thailand a safe place to live?

A: Security is an issue anywhere in the world these days and Thailand does have crime. However, overall, Thailand is a far safer place to live statistically than most other countries and sensible precautions are the only real requirement to ensure a happy life here.

Q: Is Thailand an expensive place to live?

A: Thailand is a very cheap place to live compared to most western countries - budget on life here costing you a quarter to a fifth of that back home. Of course, you can go mad but generally it is easy to have a higher standard of living for far less than you are used to. This has made Thailand the no.1 tourist destination in the world yet again for another year running.

Q: What makes Thailand so special?

A: Thailand is not perfect � where is? However, most people settle here because the combination of amazing climate, good food, lovely people and amazing scenery is unbeatable.

Q: Why Hua Hin is so special?

Hua Hin is a royal city. The King and his family reside here much of the year. Because of this the city is very safe surrounded by military, the elite parachute regiment and the Royal Thai Police. Crime rate is therefore very low.
Hua Hin has one of the lowest rain falls in Thailand, and the lowest of any beach area.
Proximity to Bangkok � 200 km � or about a 3 hrs drive. Furthermore a new highway is being constructed which should cut the driving time down by about one hour.
7 championship golf courses, and 2 more being build all within a 40 min drive away from the city.
For outdoor fun and adventure you can enjoy watersports, trekking in Kaeng Krachaeng � the biggest national park in Thailand, all terrain vehicle rides, fishing and boat trips are some the activities you can do.
The Hua Hin Market Village is currently open for business and this huge complex includes a Tesco Lotus Superstore, Homepro, a bowling center and the 3rd Major Cineplex in Thailand.
The prices here are cheap.
The popularity of Hua Hin is still steadily increasing as well as prices for land and property. Therefore, buying a house in Hua Hin is a very good investment for the future.

Q: What are the costs for the external and internal maintenance of a villa or condominium?

A: The cost of maintenance for a villa depends on the size of the land. At a typical villa the charge is 7 + 10 baht per square metre per month and paid annually in advance. The maintenance charge for a typical condo is between 30 � 45 baht per square metre per month and paid annually in advance

Q: Is it expensive to import furniture or even my car?

A: The import duties can be very expensive especially for items like a motor vehicle and furniture. We strongly recommend you purchase these items in Thailand especially as the quality is surprisingly high.

Q: How easy would it be to rent out my property?

A: The property marked in Hua Hin is booming, and there is no shortage of demand for accommodation here especially in the peak season from November throughout April. Investors can expect a conservative return of about 10% to 12% on their investment providing they buy in the right areas. . We also offer a specialised rental management package.

Q: How can I be sure I�m buying a safe investment?

A: Nothing in life is 100% certain but property prices here have climbed steadily to a point now where they increase 20%+ every year and sometimes more in good locations. All the new investments locally should ensure this trend continues.

Q: How is land measured in Thailand?

A:
Thailand is metric so things start in square metres.
4 square metres (2m x 2m) is 1 square Wah (or Talang Wah, as they say)
100 Talang Wah is 1 Ngan (400 square metres)
1 Rai is 4 Ngan (or 400 Talang Wah or 1,600 square metres
If you are used to Acres, then 1 Acre is 2.5 Rai. If you are used to hectares, then 1 Ngan is exactly 1 hectare!

Q: What are the different land titles named in Thailand?

A:
A Land Title Deed is a legal certificate of land ownership. Whoever has their name shown on the deed has the legal right to the land. This certificate can be used as evidence when dealing with governmental bodies. Global positioning satellites are used to set the boundaries of the land, which is the most accurate method to date. The possessor may do any legal acts immediately. Land partition of more than 9 plots must be carried out according to Section 286 of the Land Allotment Law. Concerning documents and deeds, it is important to understand that in most cases, all land in Thailand is not titled, or even surveyed accurately. This is especially true in the hilly, forested, rural areas of the country and much of the land bordering the coast. Exacting titles cannot be completed without complete surveys of the land, and unlike many of the world's countries, surveys of national land are still not complete. Staking claims was possible up until a couple of decades ago. One could simply register the claim and develop the land in some way such as farming. This is no longer possible. The government stopped this and claimed that all the remaining hills and forested lands were considered National Parks, and controlled by the Forestry Department. Encroachments on these lands, and disputes over ownership have occurred since these lands have not been surveyed in any detail. To define once and for all the boundaries of the disputed lands, and prevent further turmoil, a policy of granting land, which has been accurately surveyed, to landless people has been in operation, although many of these disputes have not been resolved.

Sor Kor 1 This is a document stating the possession of land. It certifies the right to a certain land. The basis of this certificate goes back to December 1st of 1954 when the Thai government issued a statement notifying all land proprietors that they should state, in writing, that they had possession of their lands. The Nor. Sor 3, or Nor Sor 3 Gor would be issued after it was proven that the proprietor had used and possessed the land in question legally. According to principle law, Nor. Sor 3 and Nor. Sor. 3 Gor are legal certificates, which provide that the given name shown on the title is a person who has the right to the land stated within. This right is recognized by the law and can be used as evidence in any disputes with individuals, or the government.

Por. Bor. Tor 6 Por. Bor. Tor 6 is a document for the issuance of a tax number. This is for the purpose of paying tax for any benefits made from the land. The ownership of this land has usually not been assessed at this point. In the event that there is no title for the land, then it may be land in a conserved forest, public land or land which existed under Sor Kor 1, Nor. Sor 3, Nor. Sor. 3 Gor or a title deed. Any of these titles must have a Por. Bor. Tor 6 for tax purposes. The right to land under Por. Bor. Tor 6 cannot be used as evidence in any dispute with government agencies.

Sor. Por. Gor 4-01 Sor Por Gor 4-01 is an allotment of land from the land reformative committee. This land cannot, under any circumstances be bought or sold. It may only be transferred to heirs of the property this title land for agriculture only.

Nor Sor 3 Nor Sor 3 is an document certifying the use of land issued by the government to the proprietor of land. It is not a possessor's title. In other words, the person holding the Nor Sor 3 has a legal right to possess the land by law. The Nor Sor 3 has no parcel points, so it's rather like a floating map. This can cause problems with verification because of the lack of connection to other land plots. With this type of document, legal acts, of any kind, must be publicized for 30 days or more.

Nor. Sor. 3 Gor Nor Sor 3 Gor is a legal land title legally set up the same as Nor. Sor. 3. The major difference between the two is that Nor. Sor. 3 Gor has parcel points on the map. These points are placed using an aerial survey to set the points and the land are, making it possible to verify a nearby land area. Nor Sor 3 Gor always uses the same scale of 1 : 5000.Publicizing legal acts are not necessary, and the partitioning of the land into smaller sections is also possible.