THE SALES PROCESS
A beautiful and intriguing country set within the heart of South East Asia, the Kingdom of Thailand provides many great reasons to purchase property.
As Thailand’s leading real estate developer, Huahin Supsiri Property is proud to welcome investors and home owners from around the world to our world-class properties.
This buyer’s guide, created specifically for international purchasers interested to buy property in Thailand from Huahin Supsiri Property , aims to answer your questions, and guide you on how to purchase Thai real estate in HUA HIN..
We provide 3 key sections to assist your buying decisions:
• BUYING PROPERTY
• PAYMENT AND HOW TO TRANSFER MONEY
• OWNERSHIP & OTHER QUESTIONS
We hope you will find this guide useful. Please do not hesitate to contact us for more information or to answer any questions you may have.
Thailand allows foreigners to purchase freehold condominium property in Thailand, with 100% ownership of the unit under a foreign name.
For the overall building, the majority of units must remain owned by Thai buyers, not more than 49% of the sellable area can be owned by foreign nationals or a foreign entity such as a trust or company.
Most condominiums are sold freehold in Thailand. For leasehold condominiums, valuations may be lower than equivalent freehold developments. Usually leasehold property has a maximum registered lease term of 30 years. Huahin Supsiri Property specializes in selling freehold developments because we believe it provides the purchaser with more confidence.
The advantage of buying a freehold condominium in Thailand as a foreigner is that you can own the property yourself, in your own name, free of any kind of claims from any government entity.
As of 2018, foreigners are generally not able to buy landed property, such as houses; shophouses; commercial, retail or industrial land. There are some exceptions for very large corporate purchases with Thailand Board of Investment approval, but generally landed property is for Thai individuals and Thai companies only. Foreigners can purchase condominiums.
Huahin Supsiri Property offers a variety of condominium developments in prime locations around the Kingdom of Thailand. Typically, you have the option of buying first-hand off the developer directly or via an agent. Property may be sold before the building is completed, or shortly after completion. For second-hand property, you can also buy through the secondary market; Huahin Supsiri Property offers a resale service for buyers to purchase selected units in our developments. For this guide, we will focus on new developments.
If you have decided to purchase a condominium, at the time of making your reservation Huahin Supsiri Property will confirm you are purchasing within the 49% of foreign owners, then in order to proceed, all you need is a copy of your passport, to fill in the form provided by our staff and make the deposit as per the agreement. We will assist you to do the rest.
PAYMENT AND HOW TO TRANSFER MONEY
When purchasing from Huahin Supsiri Property , the purchase may be made prior to the building being completed.
We will ask you to sign a reservation agreement, with a booking fee. This reserves the condominium you are interested in, and ensures the unit is not offered to another purchaser. Huahin Supsiri Property will confirm at the time of reservation, that we are able to sell the unit to a foreign purchaser.
Around 2-4 weeks thereafter, the Sale and Purchase Contract will be signed by both buyer and seller, and the Contract Payment will be made. Some buyers at this time ask for legal assistance in understanding the Sale and Purchase Agreement, Huahin Supsiri Property is happy to provide names and details of 3rd party local legal firms who can provide this service – note that these firms have no relationship to Huahin Supsiri Property and Huahin Supsiri Property cannot verify the quality of their work.
Thereafter, for a building under construction, a series of payments will be made, as per the payment schedule agreed at time of reservation. Huahin Supsiri Property offers payment schedules including receiving 15%, 30% and larger installments less regularly, to support our international purchasers.
At time of transfer, the buyer will inspect the property, and the remaining amount will be either transferred or the buyer will work together with a source of finance. At this time, once payment is made in full, the ownership of the property transfers from Huahin Supsiri Property to the buyer at the Land Department, with all paperwork completed as required by Thai Law. Both the property inspection and the transfer process can be completed by a 3rd party; it is not required by law that the owner has to be there in person for these.
Some foreigners can get financing, a loan application will be subject to approval by the financial institution and Huahin Supsiri Property cannot comment on the likelihood of getting a loan application approved.
Housing loans are commonly with tenure of a minimum 3 years and maximum 20 years. The maximum loan value is often 70% of the appraisal value of the property. Note the appraised value is the value the bank assigns to the property, and may be more or less than the purchase price.
Some financial institutions have a minimum value of purchase below which they will not lend.
Generally, the most important requirement banks are interested in is source and stability of income, which does not have to be recognized in Thailand, but does need proof, which can include items such as pay slips, bank statements, etc. The income of the borrower should be stable and steady. This tends to favor salaried staff.
The list of banks willing to lend to foreigners changes from time to time, we can provide a list of potential lenders upon request at: firstname.lastname@example.org
For foreigners buying condominium property in Thailand, the buyer needs to demonstrate that the funds for purchase equivalent to the purchase price mentioned in the Sale and Purchase Agreement under your name were transferred into Thailand from overseas.
The buyer will need to show a Foreign Exchange Transaction Form (FOREX/FET) at the time of transfer at the land department, to obtain the title deed.
A Foreign Exchange transaction form (referred to as a FOREX/FET, FOREX or FET form or Tor Tor 3 in Thai (TT3)), is an official bank document issued by the receiving bank upon receipt of foreign currency from overseas, equivalent to or greater than US$50,000 into bank accounts in Thailand.
If you are purchasing a condominium unit in Thailand under foreign ownership, you must have FOREX form equivalent to the purchase price mentioned in the Sale and Purchase Agreement under your name.
The original FOREX form must be submitted to the land department in order to register a condominium in a non-resident foreigner's name. The FOREX form is important under foreign ownership as you will need to show it and supporting documents should you wish to liquidate your property in the future and repatriate the funds back to your home country or out of Thailand.
In order to obtain the FOREX form, you will need to remit funds to our developer’s account under your name “the owner” and specify the details of the payment as “for the purpose of purchasing Condominium unit X, project name, Province, Thailand”. We can then obtain the FOREX form for you. In some countries, due to restrictions on length of message for specifying details, a code is supplied for this purpose.
Whenever money is transferred out of Thailand, the tax free amount of the transfer is determined by the initial amount transferred into Thailand as stated in the FOREX form or credit note. Note there are no taxes applied to transfers into or out of Thailand currently.
Yes, it is possible, but you will be responsible for obtaining the FOREX form or certifying letter from your local bank in Thailand. If you would like to remit the funds to your own local bank account and subsequently transfer the money to the developer's bank account in Thailand to purchase a condominium, then you are responsible for obtaining the FOREX form from your bank in Thailand.
We strongly advise not to bring cash to make payments as Huahin Supsiri Property will not accept cash payment in any currency.
Banks issue the FOREX form for a transfer amount equal or greater than US$ 50,000 only. If your payments are less than US$50,000 each time, we can obtain a certifying letter from the bank, which serves the same purpose as a FOREX form and the requirements for this letter are the same as the FOREX form.
Huahin Supsiri Property offers some flexibility for Chinese purchasers to customize the installment payments schedule so that there are fewer installments but each one is large enough to exceed the minimum transfer amount – this will depend on the total purchase price. Please ask us for further information.
Huahin Supsiri Property will not be able to obtain a FOREX form for you. However, you may be able to contact your sending bank immediately and inform them to send an official letter directly to our corresponding bank saying that the payment was “for the purpose of purchasing a Condominium unit X, the project name, Province, Thailand” and include authorizing signatures from the bank. We would need a copy of the letter to track with our bank later to obtain the FOREX form. Please note that solutions to such cases depend on the circumstances and financial institutions remitting the fund.
Yes, you will be responsible for obtaining the correct documents required to obtain foreign ownership at the land department.
You will need to open a non-resident bank account with a local bank which allows such accounts in Thailand by showing your Employment Contract, Salary Statement from your Employer and request the Bank to issue a letter showing that your money is from this non-resident account income after all taxes are paid. The bank will allow you to put 70% from your total earnings into a non-residential account.
Qualification and required documents for a non-resident bank account can vary from bank to bank.
Banks will not issue a FOREX form for this case, but will issue a letter acceptable at the land department proving that this payment came from income after all necessary taxes are paid, which serves the same purpose as a FOREX from.
Yes, if the detail of the payment specifies that the payment is for your name “the owner” and you specify the details of the payment as “for the purpose of purchasing Condominium unit X, project name, Province, Thailand”.
The transaction code for buying a condominium in Thailand to qualify for FET is “318069”. You can state “318069 for Mr/Ms Owner’s name” instead. But we recommend that the full version is always preferable to avoid any misunderstanding.
Yes, it is possible when you mention the company name in the details of payment when you remit the funds. For example your company is Hua hin Co Ltd: “for the purpose of purchasing Condominium unit X and the project name, Province, Thailand for Hua Hin Co Ltd”.
Huahin Supsiri Property accepts major credit cards including VISA and MasterCard. Typically, only the booking fee payment by credit card is free of credit card fees. Monthly installments, contract payment and all other payments will usually be subject to additional service charges ranging from 1.5% - 3.55% + 7% VAT depending on the institutions underwriting the credit card.
Note that when paying by credit card, as a developer, we won’t be able to obtain the FOREX from for any credit card payments.
A regulation issued by the Bank of China states that each Chinese citizen can only convert up to USD 50,000 per year into foreign currency for transfer. The RMB remittance will be returned if the amount exceeds this limit.
We cannot help with such remittance exceeding the limit. If the funds are coming from third party account, please make sure to quote in the details of the payment purpose is stated as “318069 for Mr/Ms Owner’s name” in order to receive correct FET.
Foreign owners of condominium units in Thailand are eligible to extend their stay in the country for a period of one year, renewable each year, through means of a one-year visa, when investing at least THB 10 million (Royal Thai Police Bureau Order No.327/2557, effective Aug 29, 2014).
In order to be granted a renewable one-year stay under a one-year visa, you need to provide:
A non-immigrant visa, granted to them by a Thai embassy or consulate
evidence of remitting at least THB 10 million in funds from abroad into Thailand, issued by a commercial bank in Thailand
evidence of investing in the purchase of a condominium unit at a purchase price of not less than THB 10 million by showing a copy of the official sale agreement and condominium unit title deed, registered with the relevant land office
If you wish to apply for an investment visa, we suggest engaging a professional immigration lawyer to ensure the process is followed correctly.
There are 3 major fees that you will need to pay when buying a condominium in Thailand.
Common Area Fee is the fee to cover the cost of managing the common property of the condominium building, such as cleaning and maintenance, staff salaries, supplies, external suppliers, etc. This amount is paid every month, and is usually calculated at a set amount of sq.m. then multiplied by the size of your condominium; it is a way to ensure that each owner pays a fair amount shared between all the units in the building. In the event you rent your condominium, the Common Area Fee is still paid by the owner.
Sinking Fund is a fund set aside to use for future capital expense, such as major repairs of the building, elevators or the building would like to invest in any other capital and etc. Usually it is charged once at time of purchase, and only when and if this fund amount is used up, then all owners will be contacted to top it up again.
Transfer Fee is the land transfer fee approximately 1% of the property value paid to the government.
When you sell the property, there may be taxes payable as well as transfer fees, which will vary depending on how long you have owned the property, and what is agreed between the buyer and seller in terms of how the fees will be split.
As per Thai Regulations, the management of the building is run by the Condominium Juristic Person (CJP) controlled by a management committee elected by the owners of the building. The CJP decides on how to run the building, including selecting external suppliers such as the property management company, additional rules and regulations and controlling the budget. As the developer, Huahin Supsiri Property plays an active role in ensuring the CJP is fully supported within the bounds of the law.
The monthly Common Area Fee is compulsory for all owners to pay, and use of this money is controlled by the CJP. Each year the owners will be able to elect the Committee who oversees the CJP.
After the handover, Huahin Supsiri Property will continue to look after you.
Our concierge services at each of the building will have packages available for you to choose direct from the service provider of the internet, cable TV, telephone etc including many more suited to deliver convenience especially for foreign nationals. In the event of renting the property out, the renter typically will arrange internet and cable themselves.
Yes, because Huahin Supsiri Property develops in prime locations, we believe that there is good demand for our properties from the rental market.
Typically in Thailand, rental is for a period of 1 or 2 years, and the renter signs an agreement with the owner, paying a security deposit, a monthly rental fee, and takes care of water, power and internet/cable expenses unless otherwise agreed. Properties can be rented either with or without furniture, sometimes fully furnished may be easier to rent out – in the Thai market fully furnished generally means including fitted wardrobes etc, loose furniture, curtains/blinds, electronics and air-conditioning.
Owners can rent out using an agency, or can rent themselves, when using an agency, the exact terms will depend on the agency, often the fee is set at 1 month for an annual contract, and no further payments if the tenant chooses to renew. In some Huahin Supsiri Property developments such as THE 88 CONDO HUA HIN, a resale & leasing office is provided as part of the building, and staff are there to assist with requests relating to rentals. We provide assistance for rental Huahin Supsiri Property email@example.com
Yes, Huahin Supsiri Property provides resale services, and there are also a number of capable 3rd party agents who can assist to market your property if you wish to use. In some Huahin Supsiri Property developments such as THE 88 CONDO HUA HIN, a resale & leasing office is provided as part of the building, and staff are there to assist with requests relating to rentals. To speak to us contact firstname.lastname@example.org
On date July 27, 2009 Business Registration No. 0905552001364 Registered capital of 35,000,000 baht (Fifteen million baht only). Office Address: 149 Soi Boonraj, Samchai Rd., Hatyai, Songkhla 90110