Legal Services Pattaya | Visa Services Pattaya

When contemplating the acquisition of a condominium or any property in Thailand, it is advisable to undertake a comprehensive due diligence process to ensure clarity regarding the investment and its feasibility. This service typically involves the engagement of a legal professional who will perform the following assessments:

1. Title Deed Verification: An examination of the property’s title deed (Chanote) to ascertain the true owner of the land and/or property. It is crucial to confirm that the seller is the rightful owner.

2. Developer and Land Ownership: For properties still under construction, where a title deed may not yet be issued, it is imperative to validate the credentials of the developer or company involved in the project. This entails confirming their ownership of the land or having a valid option/contract to purchase it upon project completion.

3. Permit Verification: In cases of off-plan property purchases, particularly those under construction, it is essential to verify that the developer possesses all the necessary permits to initiate and complete the construction. These permits include a Building Permit and, if applicable, an Environmental Impact Assessment (EIA). The lawyer will ensure compliance with local regulations and the legal issuance of relevant permits.

4. Physical Inspection: Conducting a physical inspection of the property to determine its current construction status, quality of build, connection to public infrastructure, and access rights. This inspection may extend to assessing adjacent property title deeds, rights, easements, and any encumbrances that may affect the purchaser.

5. Environmental Examination: For significant off-plan condominium developments, the initial Environmental Examination (IEE) report filed with the provincial Office of Natural Resources and Environment must be reviewed to verify its proper filing and approval. Changes to construction plans after IEE approval can render permits invalid, and the lawyer ensures that the project aligns with the approved plans.

6. Parking Compliance: Confirming that the condominium development meets the legal requirements for parking spaces.

7. Financial Viability of Developer: Evaluating the financial stability of the developer, especially for lesser-known companies. This includes assessing their solvency and financial resources for project completion, aside from relying solely on pre-sales.

8. Legal Review of Sales and Purchase Agreement: If a Sales and Purchase Agreement is presented by the developer, the lawyer reviews it to ensure fairness and compliance with legal standards. Any clauses that might restrict your rights or deviate from legal requirements are identified and alternative suggestions are proposed to protect your interests.

After conducting a thorough examination and investigation, your lawyer will provide a comprehensive report outlining any issues discovered and offering recommendations for resolution. This report will serve as a valuable tool for making an informed decision about your investment, ensuring that your financial resources are invested wisely and securely.

When acquiring a condominium, often off-plan, the developer typically provides a sales and purchase agreement for prospective buyers. It is imperative for legal professionals to review this document, ensuring the terms are equitable and advantageous for the buyer, as part of a comprehensive due diligence process, detailed further on our website.

In cases involving pre-existing condos or other properties, it becomes the responsibility of the buyer to present a Sales and Purchase Agreement to the seller for verification and endorsement. Legal expertise is invaluable during this phase, particularly in drafting contracts tailored to the buyer’s needs. This process necessitates a thorough examination of involved parties and a verification of the property’s title deed, confirming the listed seller aligns with the property’s title deed holder.

When acquiring property in Thailand, legal representation during the transfer process at the designated land office is pivotal. Our attorneys ensure that appropriate payments are made to sellers, and they meticulously calculate the necessary land office transfer fees and taxes due on the transfer day. Should you be unavailable at the time of transfer, our team will coordinate the signing of a Power of Attorney (POA), authorizing our lawyers to oversee the property transfer on your behalf.

A breakdown of Taxes and Transfer Fees at the land office includes:

1. For off-plan condominium acquisitions, the buyer typically covers 50% of the land office transfer fees, which equate to 2% of the property’s land office appraised valuation. It’s noteworthy that this valuation, which often falls below the actual paid amount, is based on the property’s value during its last land office transfer. For new condominiums, the valuation corresponds with the developer’s disclosure.

2. The seller is responsible for other transfer taxes:

   • Withholding (income) tax stands at 1%.
   • The ‘specific business tax’ (SBT) is 3.3% of the land office appraised value and applies if the property is sold within 5 years of its last transfer. If the SBT doesn’t apply, a 0.5% stamp duty tax is levied.

3. The categorization of withholding or income tax depends on the seller’s status. For corporate sellers, the tax is 1% of the greater amount between the sales price and assessed value. Individual sellers see the income tax calculated using a progressive income tax scale.”

Please consult our experienced attorneys for a deeper understanding of these intricate financial responsibilities.

As explained in the section on setting up a Thai limited company, foreigners cannot generally own property in Thailand. Aside from setting up a Thai limited company, however, there are other options for foreign buyers of properties to consider.

These include registering a lease for 30 years on the property to be purchased, with the freehold remaining in the name of a Thai individual or Thai company. It is also possible to extend that lease for a further 30 years or even 60 years, but this is in no way automatic and a renewal must be sought during the final few years of the original lease. A clause in the original lease can be provided to indicate the parties’ intentions to seek a renewal when the time comes.

Your lawyer can draw up a lease agreement between the lessor (seller) and the lessee (buyer) comprising of the terms and conditions similar to when buying a ‘freehold’ condominium. This lease can then be registered at the land office with the lessee’ name being noted on the title deed (Chanute). Registration of the lease, as it is over 3 years, will also attract fees and taxes at the land office, which are assessed on the ‘rent’ of the land and property over the lease term, which is 1.1% of the rental value over the lease term.

A 30 year lease will provide protection for the foreigner in that the lessor or freeholder cannot sell the land from under them, as any sale will require the consent of the lessee. 

If you are buying or leasing land for the purpose of constructing or building a structure on it, it is essential to make sure that you are allowed to build such a structure or house on the land. This is sometimes called the “right to Superficies“. The foreigner can apply for a construction permit in their own name and they will own the structure in their own name. As such, at the end of the lease term, in theory, the foreigner can then demolish the house and return the land to its original condition or come to an agreement to sell the structure to the lessor or freeholder.

Leases are also valid even upon the demise of the lessor, or in the event that the land is sold. However, leases are only transferable to third parties in the event that the lessor of the lease permits it.

Another land and property right is a ‘Usufruct’ which provides for temporary ownership over the land to include use of, enjoyment and profits gained over the land, as long as the land is not damaged or altered and is returned to the freeholder at the end of the term. The term is similar to a lease, which can be up to 30 years, but may also be for the life of the ‘usufructuary’, (defined as the person who enters into an agreement with the freeholder of the land).  As with a lease, this right can be registered with the relevant land office and the usufructuary will be noted on the title deed as having a right to occupy and receive the benefit of that land for the agreed term or life of the usufructuary. However, this right is often at the discretion of the land office and may vary from time to time, due to no taxes being payable and only a nominal registration fee.

As with the lease, the foreigner gains a protected servitude which cannot be extinguished, nor the land sold, without the consent of the usufructuary. The usufruct is a personal right however and cannot be inherited, expiring on the death of the usufructuary. However, a usufruct can be transferred to a third party during the term or life of the usufructuary under the Thai Civil and Commercial Code, though any damages, if applicable, in law can still be claimed by the grantor of the usufruct against the original usufructuary. 

One feature of a usufruct is that the original usufructuary can enter into a 30-year lease with a third party (perhaps a family member) and if the usufructuary dies during the term of the lease, the lessee (tenant) can still retain the rights of the 30 year lease until its expiration, despite the usufruct having expired.

Other land rights, such as Habitation Agreements are also possible, allowing the ‘grantee’

In this example, 49 of the total units in this building (or 49% of the total salable area) can be owned outright by non-thai nationals in their name.  The ownership titles of these 49 units is referred to as Freehold or Foreign Quota. 

This leaves 51 units remaining in the building (or 51% of the total salable). The freehold rights to these units are reserved for Thai nationals in what is commonly referred to as the Thai quota.

It is strongly advisable for property owners in Thailand to proactively create a Last Will & Testament, which should be prepared both in their home country and in Thailand, explicitly incorporating their newly acquired Thai property. This precautionary step aims to facilitate a seamless transfer of assets to beneficiaries, preventing the complications associated with intestacy (dying without a Will). Dying without a Will can place undue stress on beneficiaries, requiring them to establish their entitlement in court, potentially leading to the distribution of assets according to Thai statutory laws, which may not align with the owner’s preferences.

In Thailand, the customary priorities in a testament are as follows: if a spouse exists, they are entitled to half of the testator’s estate (known as Sin Somros), with the remaining assets distributed in the order of priority, starting with children and proceeding to parents in the absence of the first category. The hierarchy then extends to siblings, grandparents, and aunts or uncles. In the event that there are no living relatives upon the owner’s passing, the assets will devolve to the Thai State.

A comprehensive Last Will and Testament should explicitly outline all assets in Thailand, including properties, shares in Thai companies, bank accounts, vehicles, and personal belongings. Typically, upon the demise of a foreigner in Thailand, government officials or court judges will request a copy of the Will from the deceased’s family or seek out the deceased’s lawyer or designated executor to access this critical document.

Creating a Will in one’s home country to encompass assets in Thailand may pose challenges and additional burdens to one’s family. It necessitates the translation, notarization, and approval of documentation by governmental authorities. To alleviate these complexities and ensure a smoother transition of assets, it is advisable to prepare a Last Will & Testament in both your home country and Thailand. This proactive measure helps safeguard the interests of your loved ones and ensures that your wishes are honored with minimal legal hurdles.

• – Agreement of terms and conditions
• – Reservation Agreement
• – Reservation Deposit
• – Sales and Purchase Agreement
• – Settlement & Transfer

Purchasing a property in Thailand is a relatively smooth and straight forward process, however, there are a few simple things that you must first bear in mind before buying a property here in the land of smiles.

In order to prevent money laundering, the Thai authorities require you to get a “Foreign Currency Transaction Letter” from a Thai banking institution by following these simple and easy steps:

1. You must send the funds in your own foreign currency, i.e. US Dollars, Euro’s, etc., from overseas. Please avoid the common mistake of first converting your foreign home currency into Thai Baht, and then sending the money to Thailand from your overseas bank as you will not be eligible for a “Foreign Currency Transaction Letter”. The funds must arrive in Thailand in a foreign currency and the receiving Thai bank will then convert the money into Thai Baht on arrival.
2. There must be a clear path from Bank A in your own home country to Bank B in Thailand so the authorities can track your money. Also, the origin of the funds must be tracked back to Bank A, which must be in your name. Please avoid the use of third party intermediaries in a bid to get a better exchange rate as this complicates the smooth tracking of the funds from Bank A to Bank B, which will result in delays, and in some cases, prevent you from being eligible for a “Foreign Currency Transaction Letter” from a Thai banking institution.
3. When transferring the funds from Bank A in your own home country, please specify that the reason/purpose for the overseas transfer is to “Purchase a Condominium/Property in Thailand”.
4. Now for your Bank B options, normally you will be sending the funds to either a Developers or Real Estate Agents bank account in Thailand, and in this case, the Developer or the Real Estate Agent will request a copy of the “Foreign Currency Transaction Letter” from their Thai bank for you. Yet another option if you already have a Thai savings account is to send the money from Bank A overseas to your Thai savings account in Bank B. In this case, you must be to present in Thailand at the time as your Thai bank will require you to lodge the request for a copy of the “Foreign Currency Transaction Letter” in person.

Do not bring large amounts of foreign currency on your person or in your baggage when flying into or out of Thailand for the following reasons:

5. Safety reasons, money can easily be lost or stolen.
6. Customs reasons, the Thai customs allows you to bring in a maximum of USD $10,000 (or equivalent) when flying into Thailand without the need to make a formal declaration. If the Thai customs authorities catch you bringing in more than USD $10,000 (or equivalent), and you’ve failed to declare this on your arrivals card beforehand, you will be suspected of money laundering and the Thai authorities can confiscate the money on the spot, and worse still criminally prosecute you or ban you from entry into Thailand. So please avoid doing this at all costs.

So how does having a “Foreign Currency Transaction Letter” help me?

7. For starters, if you purchase a condominium under “Foreign Quota” you can register title under your own name on the title deed over at the land office.
8. If you work in Thailand and have a valid work permit, you will only be taxed on locally-sourced income as you have ample proof that the funds used to purchase a Thai property were sourced from overseas.
9. Should you ever resell the Thai property, you can easily repatriate the funds back overseas.

• – Passport
• – Work permit (or certificate of residency)
• – Proof of address such as a property rental agreement or yellow house book
• – Valid identification such as a driving license
• – Cash deposit in Thai Baht

Please note, that there is a common misconception out there amongst foreigners that owning a “Thai” property automatically guarantees you a Visa – I can assure you with 100% certainty that this is not the case. Instead, one has to apply for a Visa based on your own individual merits i.e. age, financial or marital status, and/or employment status, etc.

Fortunately for us, eligible foreigners can avail themselves to a number of Visa options depending on their desired length of stay. And as such, we at My Pattaya Condo welcome the opportunity to refer you onto a qualified and fully independent Visa specialist, for an “initial free consultation” and thereafter commercial rates shall apply.

I cannot over stress the importance of having both a valid Thai Visa, and perhaps more importantly being cognizant of the expiry date of your existing Visa to avoid any overstay as the Thai authorities take these matters very seriously. In a nutshell………if you contravene the Law, you will be subject to either a fine (depending on the length of overstay i.e. the number of days that you’ve overstayed) at best or at worst face both a fine and arrest, whereupon you’ll find yourself being forcibly deported from Thailand, and even worse still find yourself being banned from re-entering Thailand for many years to come…….so please take this matter very seriously.

Short-term Visa Options (30 to 90 Days) 

Starting with the basic “Tourist Visa on Arrival” a foreigner can stay in Thailand for a maximum of 30-Days, whereas this should not be confused with that of a “Double Entry Tourist Visa”, which allows a tourist to stay in Thailand for up to 90 Days. However, unlike the “Tourist Visa on Arrival” which is granted to most tourists from recognized “friendly nations” with similar reciprocal arrangements in place, a “Double Entry Tourist Visa” is not granted on “arrival”. Instead one needs to first apply for this visa (logically at the nearest) Thai Embassy or Consulate in your own home country before coming to Thailand. And assuming that your application is successful, you’ll be allowed to stay in Thailand for up to 60 Days for “tourism” purposes only as opposed to just 30 Days with the before-mentioned “Tourist Visa on Arrival”, hence the reason why it’s often referred to as a “Double Entry” (i.e. twice the time) Visa, which can be extended for a further 30 Days, by virtue of applying for an “extension of stay” over at the nearest Thai Immigration Department.

Medium-term Visa Options (365 Days)

If you wish to stay in Thailand for 91 Days or more, it’s recommended that you apply for one of the following Thai “Non-Immigrant” Visas:

1. Retirement Visa: You must be 50 Years old or more, and prove that you have sufficient “financial means” i.e. have 800,000THB or more, in savings in a Thai bank account, or income such as a pension, dividends, or rental income from overseas properties, etc. to be eligible for this Visa.
2. Educational Visa: You must study a subject such as the “Thai” language for instance, which is on the pre-approved list of course material and attend a recognized school, college, and/or university. Furthermore, you must actively attend a large majority of your lessons, and consistently pass all of your course material to remain eligible for this Visa. This Visa, is heavily scrutinized by the Thai Immigration Authorities as it was open to widespread abuse in the past with people attending bogus schools, and doing bogus courses with very little to show in terms of attendance and academic results.
3. Business Visa: You must either own your own Thai Business, or be employed by a Thai Business in a pre-approved occupation, and be in possession of a valid “Thai Work Permit” to be eligible for this Visa.
4. Family/Spousal Visa: You must either be legally married to a Thai national and/or have “Thai” dependents i.e. children, and can prove that you have sufficient “financial means” i.e. have 400,000THB or more, in savings in a Thai bank account, or income such as a salary or pension, etc. to be eligible for this Visa.

Apart from the notable exception of an Educational Visa, there is no official limit as to the number of times that a “Non-Immigrant” Visa can be renewed over the subsequent years, and this process is by no means automatic and is instead very much dependent on individual merits of the applicant at the time of reapplying, and there is “no time gap” between the expiry date of the “old” Visa and the issuance date of the “new” Visa.

Also, if you’re planning to travel abroad please make sure that you get a “single or multiple entry” permit from the Thai Immigration Department before you travel overseas or you will automatically lose your “Non-Immigrant” Visa on your return and be issued with a “Tourist Visa on Arrival” instead…..so please bare this in mind.