{"id":5732,"date":"2023-05-17T12:55:46","date_gmt":"2023-05-17T12:55:46","guid":{"rendered":"https:\/\/sinothaicompany.com\/?p=5732"},"modified":"2024-01-22T06:04:19","modified_gmt":"2024-01-22T06:04:19","slug":"ownership-or-lease-our-advice","status":"publish","type":"post","link":"https:\/\/sinothaicompany.com\/en\/category-blog\/utility\/ownership-or-lease-our-advice\/","title":{"rendered":"Freehold or leasehold? Forms of ownership in Thailand"},"content":{"rendered":"<blockquote><p>The richest selection of real estate in Phuket in Thailand makes this place one of the most promising for investment in the world. This is a favorite place for many who want to buy a property or rent it. Beautiful areas and beaches of the island &#8211; Laguna, Bang Tao, Kamala, Karon, Rawai &#8211; offer a choice of apartments and villas for every taste and budget.<\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">In Thailand, there are two options for owning real estate &#8211; the right to lease (<\/span><b>Leasehold<\/b><span style=\"font-weight: 400;\">) and freehold (<\/span><b>Freehold<\/b><span style=\"font-weight: 400;\">). Which form of ownership to choose depends on many factors.<\/span><\/p>\n<p><b>In this article, we will look at all the disadvantages and advantages of each of these forms of ownership.<\/b><\/p>\n<p><b>Freehold (full ownership)<\/b><\/p>\n<p><span style=\"font-weight: 400;\">In Thailand, a foreigner can buy an apartment in full ownership only in a <\/span><b>condominium<\/b><span style=\"font-weight: 400;\">. At the same time, the ownership quota says that foreigners can own more than 49% of the total living space of an apartment building, only freehold ownership is taken into account. The remaining 51% of living space can be issued to foreigners in Leasehold (long-term lease) for an average of 90 years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the status of the building is <\/span><b>apartments<\/b><span style=\"font-weight: 400;\">, then all apartments in it can be issued for foreigners only in Leasehold (long-term lease).<\/span><\/p>\n<p><b>Freehold advantages:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">you buy an object in the property forever, you can sell, inherit and rent.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">independence from the previous owner upon resale<\/span><\/li>\n<\/ul>\n<p><b>Disadvantages of freehold:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the price of such property is higher<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">you need to pay a registration tax &#8211; 2-3% of the value of the object<\/span><\/li>\n<\/ul>\n<p><img class=\"alignnone wp-image-5725 size-large\" src=\"https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/2-4-1024x512.jpg\" alt=\"\" width=\"750\" height=\"375\" srcset=\"https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/2-4-1024x512.jpg 1024w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/2-4-300x150.jpg 300w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/2-4-768x384.jpg 768w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/2-4-1536x768.jpg 1536w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/2-4-2048x1024.jpg 2048w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/2-4-1568x784.jpg 1568w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><b>Leasehold (long-term lease)<\/b><\/p>\n<p><span style=\"font-weight: 400;\">As in many countries, in Thailand in general, and in Phuket in particular, the lease provides for the right of the tenant to occupy a certain object for a fixed time in return for payment of a specified amount. You can lease for 30 years and renew it twice for a total of 90 years. But some developers prescribe a three-time (up to 120 years), or even an unlimited extension. This agreement is recognized by the Land Department and gives the tenant all rights to the property for the period of the lease.<\/span><\/p>\n<p><b>Leasehold advantages:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0the right to use and dispose for a limited time (on average 90 years) with the ability to resell, donate or bequeath the object<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0the price is about 10% lower<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0pays off quickly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0registration tax 1.1%<\/span><\/li>\n<\/ul>\n<p><b>Leasehold Disadvantages:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">renewal of the contract every 30 years by the Land Department<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">when reselling, it is necessary to sign documents with the owner (landlord)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">no fractional ownership in the common areas of the condominium<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">no voting rights at general meetings of condominium co-owners<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">after the expiration of the lease period, the rights of use and disposal are returned<\/span><\/li>\n<\/ul>\n<p><img class=\"alignnone wp-image-5727 size-large\" src=\"https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/3-3-1024x683.jpg\" alt=\"\" width=\"750\" height=\"500\" srcset=\"https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/3-3-1024x683.jpg 1024w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/3-3-300x200.jpg 300w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/3-3-768x512.jpg 768w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/3-3-1536x1024.jpg 1536w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/3-3-2048x1365.jpg 2048w, https:\/\/sinothaicompany.com\/wp-content\/uploads\/2023\/05\/3-3-1568x1045.jpg 1568w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Based on all the facts, we can conclude that when buying small apartments for investment with possible further resale, it makes sense to buy property in Leasehold.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And when choosing an expensive object for life, it may make sense to overpay for Freehold.<\/span><\/p>\n<blockquote><p>We strongly advise, in addition to studying all the nuances and pitfalls described in this article, to consult with competent lawyers and realtors in order to clarify the situation regarding the transfer of ownership of a particular object.\u00a0 Our agency can provide you with such specialists and provide a full range of services.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The richest selection of real estate in Phuket in Thailand makes this place one of the most promising for investment in the world. This is a favorite place for many who want to buy a property or rent it. Beautiful areas and beaches of the island &#8211; Laguna, Bang Tao, Kamala, Karon, Rawai &#8211; offer&hellip; <a class=\"more-link\" href=\"https:\/\/sinothaicompany.com\/en\/category-blog\/utility\/ownership-or-lease-our-advice\/\">Continue reading <span class=\"screen-reader-text\">Freehold or leasehold? Forms of ownership in Thailand<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":5730,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[28],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Freehold or leasehold? 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