While many Westerners choose Thailand as their holiday destination, a lot of foreigners choose to relocate to this tropical paradise, and in this short article, we offer a guide to building your dream home in the Land of Smiles.
Table of Contents
Land Ownership Laws in Thailand
Unlike many countries in the world, Thailand prohibits foreigners from owning land, with a few exceptions; if you are prepared to invest the sum of 40 million baht, you are allowed to own 1 rai of land for residential purposes, plus there is a treaty with the US that can enable qualifying citizens to acquire land. Aside from this, non-Thais are unable to own land.
Long-Term Leasing
This is the best way to secure a plot of land to build your dream home: a 30-year lease with an option for a further 30 years, which is known as the ‘30×30 lease’, and this can be transferred and even bequeathed in your will. Of course, you need a Thai lawyer to browse the lease prior to signing to ensure that there are no hidden restrictions.
Set Up a Limited Company
This is another way that you can legally acquire a plot of land to build a property; 51% of the shares must be held by Thais, and you can hold the remaining 49%, while the business entity must be active and paying annual taxes. If you set up a Thai company with the sole aim of acquiring real estate, you run the risk of all company assets being seized by the government. Of course, if your plan includes setting up a business, this is the best way to secure land and real estate.
Choosing an Architect
We don’t recommend that you let the builder design the house; some might be proficient, but a trained architect knows how to integrate with the client and get those little details right. There are some really good freelance architects that you can hire; you could post on expat Facebook groups, which would likely bring you a good response. He or she would be able to work within your budget and advise you on the most suitable building materials, with low-maintenance in mind.
Choosing a Custom Builder
Just any builder will not do for your project; you ideally want a builder that has extensive experience building to order and one that will work closely with the architect to ensure that everything is as it should be. Quality building materials such as ระแนงบังตาไวนิล (Vinyl Slat) should be used, and low-maintenance should be a priority with any new build in these modern times we live in. The builder should be able to furnish you with a few addresses of previous projects that enable you to inspect their workmanship.
Signing the Contract
Once you have chosen a builder, you must sign a build contract, and that typically involves staged payments, which would be as follows:
- First payment when the foundations are finished.
- Second payment when the roof is fitted.
- Third payment when the fixtures & fittings are finished.
- Final payment on completion.
The contract should also include snagging, which involves the builder coming in after 3 months and carrying out minor repairs, like small cracks in plaster and tight doors and windows, which often occur. There would also be penalties if the contractor does not finish the contract on time, which is perfectly normal. There are many variables when it comes to construction.
Consult with an English-speaking Thai Lawyer
It is always advisable to consult with a Thai lawyer before making any legal agreement, as you do need to be sure that you have the security you need when buying or building a property. Whether you lease the land or use your Thai company to acquire land or real estate, you need legal protection.
Where to Locate in Thailand
If you prefer to be around other foreigners, the following areas might be suitable:
- Bangkok
- Pattaya
- Hua Hin
- Koh Samui
- Phuket
- Chiang Mai
Aside from the above, English is rarely spoken; however, this should not be a reason to stop you from living anywhere in Thailand. Rural Thailand has a character all of its own, and many expats prefer to live in a quiet and remote area of the countryside.
Long-Term Visas
Of course, you will need to obtain a long-term visa in order to live in Thailand, and here are a few options:
- Retirement visa – For those over 50 who meet the financial requirements.
- DTV – This is designed for digital professionals and has a duration of 5 years. You must meet the financial requirements.
- Marriage visa – If you marry a Thai national, you can obtain a marriage visa that can be renewed within the country on an annual basis. You must meet the financial requirements (see the Thai Immigration website).
- Education visa – This can give you up to 14 months, after which you need to apply for one of the above visas.
We hope that this short blog helps you with your planning to build your dream home in Thailand.
