What a foreigner needs to know before buying property in Phuket

Buying property in a foreign country seems daunting, but it’s not as daunting as it first appears. Many potential buyers face a whole set of questions when they start to sort out how to buy a flat in Thailand: from unclear legal aspects to finding reliable partners. The main problem here is the lack of information and the frightening unpredictability of Asian legal nuances. Fortunately, it is possible to understand how everything works, and we will tell you in detail how to avoid mistakes and make the process as transparent as possible.

Legal peculiarities of buying a flat in Thailand: how does ownership work for foreigners?

Foreigners cannot directly own land in Thailand, but a flat is a different matter. The law allows you to own a flat in a complex if at least 51% is owned by Thai nationals. There are two ways:

1. Freehold is the most attractive option for foreigners, as it allows them to obtain full ownership of the flat. The person becomes the owner and registers the rights with the Land Department, which gives guarantees for a long period of time.
2. Leasehold – a long-term lease, usually for 30 years with an option to renew for a further 30+30 years. This option is suitable for those who plan to live in Thailand but do not want to invest in a long-term investment.

To purchase a property here, you will need to consider all legal restrictions and carefully analyse the terms of ownership.

Required documents for buying and stages of property registration in Thailand

In order to buy a flat in Thailand, you will need to go through several steps and prepare a certain package of documents. It is not a difficult process if you understand what awaits you. So, what documents do I need to prepare?

1. Passport – proves your identity and confirms your eligibility to purchase.
2. The sale and purchase agreement is the main document that fixes all the terms and conditions of the transaction.
3. Confirmation of Funds Transfer – required to confirm that money has been received in Thailand in the form of foreign currency.
4. The Certificate of Title (Chanote) is the most important document that certifies the rights to real estate.

The steps include signing a preliminary contract, paying a deposit, transferring funds to the seller’s account, signing a sales contract and registering rights with the Land Department. The process of acquiring an object can be organised quite quickly and transparently.

Flat prices in Thailand: how not to get caught out?

In popular resort areas such as Phuket or Pattaya, prices start from 2.5 to 5 million baht for a small apartment. In Bangkok, prices for flats in the central districts can reach 10-15 million baht and more. But how do you know if an apartment is worth the money?

It is important to remember: if the price seems too low, it may be a signal of problems with the documents or hidden defects. It is always advisable to check the legal status of the square metres and ask for a Chanote – a certificate of ownership. This is the only way to make sure that the property is really worth the declared money and that the transaction is safe.

How to choose a flat in Thailand to live or rent?

The choice depends on many factors: location, infrastructure, view from the window, proximity to the sea or major transport hubs. If the goal is to buy a flat in Thailand for your own residence, choose a neighbourhood with developed infrastructure, where there are shops, schools, parks. Good options – Sukhumvit or Sathon, where everything is in walking distance.

If you are buying a flat for rent, it is worth considering the tourist attractiveness of the area. Phuket and Pattaya are ideal for this due to the large flow of tourists all year round. Property management is also an important consideration – many owners prefer to hire a property management company to keep an eye on the condition of the property and ensure smooth delivery.

Property taxes and mortgages in Thailand: what do you need to know?

The tax system may seem complicated, but in fact everything is quite transparent. When you buy a property, you pay a registration fee, which is 2% of the value of the property. There is also a transfer tax (usually 1%) and stamp duty, which is 0.5%. If you decide to buy a flat in Thailand for commercial purposes, you pay a special business tax, which is 3.3%.

You can optimise your tax costs if you agree in advance with the seller to split the costs. In Thailand, it is common practice for the seller and the buyer to split taxes in half, which makes the deal favourable for both parties.

Property mortgages in Thailand: financing tips

Taking a mortgage for a foreigner here is not easy, but it is possible. Some banks, such as Bangkok Bank or UOB, offer mortgage programmes for non-residents. The main condition is the availability of income, which can be confirmed, as well as a down payment of 30% to 50% of the value of the flat. Interest rates vary from 5% to 7% per annum depending on the terms of the contract and the borrower’s credit history.

Tip: before going to the bank, it is better to get advice in advance from a specialist who will tell you what documents are needed and how to increase the chances of mortgage approval. This will help avoid unpleasant surprises and save time.

Bottom line and some practical tips

The decision to buy a flat in Thailand is a real opportunity for those who dream of having their own corner by the sea or want to make a profitable investment. It is important to study all the legal aspects, prepare documents, correctly assess the value of housing and take into account tax obligations. Following these recommendations, the purchase will be a pleasant and safe process.

Remember that competent study of all stages of the transaction and careful attention to details – the key to a successful purchase. Don’t be afraid to seek counselling and use every opportunity to make your dream a reality.

In 2025, Thailand’s property market is becoming even more in demand among investors from all over the world. The favourable climate, developed infrastructure and stable economy contribute to the country’s growing popularity. Passive income from Thai property is very promising given the tourist attraction and demand for quality housing. For successful investments, investors should consider many factors: from choosing a region to analysing risks.

Thailand property investment in 2025: reasons for popularity

Thailand welcomes millions of tourists from all over the world every year. Over 40,000,000 foreign visitors visited the country in 2024 alone, which makes investing in Thai property an attractive and lucrative way to generate passive income. Investors profit from short and long term rentals. Increased tourist traffic ensures a constant demand for quality apartments and villas.

Government programmes to support foreign investors help to ensure the stability of investments. Thai authorities facilitate the purchase of condominiums for foreigners, allowing them to own up to 49% of the apartment building. This factor has a positive impact on the attractiveness of the market in the eyes of foreign investors.

Income from buying property in Thailand: choosing the best region to rent in

The choice of region affects the return on investment. Passive income from Thai property comes primarily from popular resorts. For example:

1. Phuket shows a high level of profitability due to tourists with high salaries. The average yield from renting out apartments here is between 6% and 9% per annum. The island is renowned for its quality infrastructure, a large number of prestigious complexes such as Laguna Phuket and MontAzure, which offer luxury condominiums and villas.
2. Pattaya offers the opportunity to earn rental income from 5% to 8% per annum and the affordability of prices makes this region attractive to the average investment. The large number of tourists, developed infrastructure and proximity to the international airport make Pattaya a promising investment area.
3. Samui is another traveller hotspot that attracts investors seeking a steady passive income from Thai property. Returns are as high as 7-9 per cent and coastal villas are in particular demand.
4. Bangkok is Thailand’s largest economic and tourist centre. In the capital, flat rental yields fluctuate around 5-7%, with steady demand guaranteeing stable income for investors.

Buy property in Thailand: tips for choosing properties

Thai property brings passive income if the right approach to the choice of object. The greatest interest among investors are condominiums and villas in tourist areas. Buyers choose complexes with modern infrastructure, swimming pools and gyms, as they bring a stable profit all year round. A condominium is a convenient and safe type of property available to foreigners. Experienced investors buy housing at the construction stage, as the price at the early stages is lower by 20-30%.

Risks of buying property in Thailand: how to protect your investment

Despite the high passive income rates, Thai property carries certain risks. Investors face currency fluctuations, changes in tax laws and the risk of low demand in certain locations. To minimise the risks, experienced investors seek the assistance of local lawyers and management companies that monitor the condition of properties, attract tenants and resolve legal issues. Investors also take into account that housing in popular tourist areas is less susceptible to fluctuations in demand and brings stable dividends.

Passive income from Thai property: prospects

The Thai property market continues to demonstrate strong momentum and remains a promising destination for investors in the coming years. The high level of interest from foreign nationals, growing tourist traffic and improving infrastructure throughout the country ensure stable investment returns. Regular development of new projects and quality facilities stimulates demand for rental housing and the purchase of new squares.

The state actively supports foreign investments, offering favourable conditions, simplified procedures and transparency of transactions. Such destinations as Phuket, Samui, Pattaya and Bangkok are especially in demand. In these regions, investors receive an annual return of 6-9%, and also observe a stable growth in the cost of objects at the level of 3-5% annually.

Factors providing stable passive income from Thai property:

1. Growing tourist flow. The annual increase in the number of tourists (projected to reach 50 million per year by 2030) supports the demand for condominium and villa rentals in tourist areas. Investors receive stable income even in the low season due to the popularity of the destinations.

2. Infrastructure Improvements. Regular investments in transport and public projects such as the new terminal at Phuket International Airport, motorways in Pattaya and urban transport development in Bangkok are making housing in these regions more desirable and attractive.

3. Flexibility in investment decisions. A choice of property types – from affordable condominiums in Pattaya to premium villas in Koh Samui and Phuket – allows investors with different budget levels to effectively allocate funds and diversify risks.

4. Rising values. Thai property has been steadily increasing in value over the long term. In popular tourist regions, the annual increase in value reaches 3-5%, providing investors with additional income when selling the property.

5. Government support and transparency of transactions. The government conducts programmes to attract foreign investment, offering preferential terms for property purchases and transparent legal procedures, which significantly reduces risks for investors.

Conclusion

Thai property brings passive income to those investors who take into account the peculiarities of the local market and correctly assess the risks. In 2025, the demand for quality housing in Thailand remains high, making investment in square metres a profitable and promising destination for foreigners. Market analysis, competent choice of region and object, as well as the use of professional advice help investors to receive a stable and reliable income for many years to come.