Property in Thailand: Villas and Apartments in the Heart of Phuket

Yes. A foreigner can own a condominium unit in their own name (Freehold) or use a property under a long-term lease (Leasehold). In practice, a foreigner cannot buy land.

Freehold – full ownership with no time limit: the property can be freely resold, gifted and inherited. The conditions are that the building has free quota for foreigners (up to 49% of the floor area) and that the purchase money comes from abroad, documented with a Foreign Exchange Transaction form (FET).
Key features:

• no dependence on the previous owner on resale;

• freehold properties usually cost more than leasehold;

• registration fees are higher.

Leasehold – the right to use the property for up to 30 years, registered at the Land Office, which can be resold, gifted or bequeathed. Renewal after the 30 years is not guaranteed by law and depends on the contract with the owner.
Key features:

• leasehold properties are about 10% cheaper;

• registration fees are lower;

• no co-ownership of the common areas of the building;

• a simpler payment procedure;

• rental income is taxed in Thailand just as with freehold.

When registering Freehold property, the following taxes and fees are payable:

• Transfer Fee: 2% of the property value;

• Specific Business Tax: 3.3% of the appraised value of the property. However, it is only payable if the property is sold within the first five years of ownership by the same person. If not, stamp duty will be charged;

• Stamp Duty: 0.5% of the highest property value (either contract price or appraised value). When a specific business tax is applied, stamp duty is not required, so it is either one or the other;

• Withholding Tax: This tax is calculated using a complex formula that takes into account the appraised value of the property, the period the seller owned the property, and the individual income tax rate for that person. The Land Department will provide the actual calculation, which can be requested in advance

The amount of taxes and fees paid depends on many factors, with the exact amount calculated by the Land Department. On average, taxes and fees for Freehold purchases are around 5−7% of the transaction value. 5–7% of the transaction value.

In a typical transaction, the buyer and seller split the 2% Transfer Fee equally (50/50). The seller pays the other taxes. However, both parties can negotiate and decide individually which taxes each party will pay.

When registering a Leasehold, the following taxes and fees are payable:

• Registration Fee: 1% of the property value in the contract;

• Stamp Duty: 0.1% of the property value in the contract.

In total, it is 1.1% of the property value and is usually paid by the buyer.

In condominiums there are monthly maintenance fees for the upkeep of common areas, which include:

• 24-hour security;

• cleaning and maintenance of common areas;

• gardening;

• maintenance of the fitness center;

• pool cleaning;

• lighting of common areas, etc.

Depending on the level of the condominium, monthly fees can range from 50 to 80 THB per square meter of the apartment area. Upon purchase, a one-time sinking fund fee is also applied, averaging 600−800 THB per square meter..

For villas either a fixed fee for the maintenance of common areas within the complex is established, or it is based on the total land area of the villa. Additionally, separate fees are payable for garden and pool maintenance.

Yes, you can purchase property remotely, and the process is completely safe. The transaction follows the same steps as if the buyer were present on the island.

1. Contact our manager
   We will select options remotely and send you all the necessary information (floor plans, photos, layouts, payment terms, and a sample contract).
   We offer our services for free to the buyer, with a comprehensive catalog of properties and all necessary information. We will check all the documents and ensure your interests are protected;

2. Property Selection
   Online consultation with an expert to determine your purchase goals, objectives, and budget. Then we will select options that best match your criteria. For the properties you like, we will conduct an online tour of the showrooms and a consultation with the developer’s manager;

3. Reservation of the selected property
   After the final selection, the reservation agreement will be signed online, and a deposit of 100 000–200 000 THB THB will be paid by bank transfer to the developer’s account. The reservation agreement includes details of the parties, property information, and payment schedule. Payment of the deposit removes the property from the market;

4. Contract signing
   After the deposit is paid, the purchase agreement has to be signed, outlining the terms of purchase, costs of the transaction and maintenance, and penalties for contract violations. The original purchase agreement and the invoice we will send to you via express mail;

5. Payment
   Payment will be made by bank transfer to the developer’s account from abroad. You will provide the bank with the original purchase agreement that you already have received;

6. Property handover and registration of ownership
   After full payment and completion of construction, you can either come for property handover personally or our real estate agent can do it for you. Registration can be done in your presence or remotely with a power of attorney to the developer’s lawyer and with our real estate expert present.

There are no significant restrictions on selling property in Phuket, and we can assist you with the resale process. Our agency can help you determine the current market value of your property to set a competitive selling price.

. We will advertise your property through our extensive network, including online listings, social media, and direct contacts with potential buyers. We provide full support with the legal and administrative aspects of the resale process, ensuring all necessary documents are prepared and submitted correctly.

We offer complete property management services, from rental management to maintenance and repairs. Our team uses effective marketing strategies to achieve the highest possible occupancy.

Every quarter you will receive detailed financial reports with income and expenses that help you track your investment. With our property management services, you can rest assured that your property is well managed and maintained, even when you are not in Phuket.

If you are not a tax resident of Thailand (under 180 days a year), the payer of the rent withholds 15% of the full rent amount at the time of payment. This is not a final tax: with annual rent above THB 60,000 you file an annual tax return, apply the 30% standard deduction for expenses and the THB 60,000 personal allowance, and get the overpaid amount back. It is best to work with a Thai accountant on the return.

If you are a tax resident (180 days a year or more), rental income is taxed at progressive rates from 0% to 35%, again after the 30% standard deduction for expenses and the THB 60,000 personal allowance.

The rates (net annual income):

• up to THB 150,000 – 0%;

• THB 150,001 to 300,000 – 5%;

• THB 300,001 to 500,000 – 10%;

• THB 500,001 to 750,000 – 15%;

• THB 750,001 to 1,000,000 – 20%;

• THB 1,000,001 to 2,000,000 – 25%;

• THB 2,000,001 to 5,000,000 – 30%;

• over THB 5,000,000 – 35%.

Example: with rent of THB 1,000,000 a year, taxable income is 1,000,000 – 300,000 (30% expenses) – 60,000 = THB 640,000. Tax: 150,000 × 0% + 150,000 × 5% (7,500) + 200,000 × 10% (20,000) + 140,000 × 15% (21,000) = THB 48,500. If you are a non-resident and THB 150,000 was withheld at source, the difference is refunded with the annual tax return.

Each case is unique and should be considered based on your purchase goals, budget, and property preferences. Here are the pros and cons:

Pros of buying a new build:

• best prices before and during construction;

• price increase of 25−35% by the time the property is completed;

• choice of the best options (layout, floor, view);

• possibility to modify the layout and design;

• convenient interest-free installment plans;

• developer’s responsibility for construction deadlines is outlined in the contract.

Cons of buying a new build:

• income from investment or living is delayed until construction is completed;

• there is a risk of construction delays.

Pros of buying a resale property:

• you can immediately see the property and evaluate the residential complex;

• rental income can be earned immediately after purchase, or the property can be used for living;

• the buyer typically receives a full set of furniture and appliances.

Cons of buying a resale property:

• no installment plans, the entire amount must be paid immediately;

• repairs may be required.