Purchasing a land or property in Thailand is regarded as a great option for investment as well as for residence and retirement purposes. Due to its infancy and strong potential for a profitable future, Thai land and property is becoming popular and attract all categories of property buyers.

Further, since the tourism sector in the country has grown from an established position into an even more productive economy, Thailand, acknowledged as ‘the Spain of the East’ provides superb opportunities for property investment. Above all, Thailand boasts of some excellent land or property development and that too for astonishingly cheap prices.

No wonder why many expats including Americans and Europeans invest in Thai property such as villas, condos, and other housing options. But, investing in a Thai property is based on your requirements, location ie whether near supermarket or beach, and lifestyle, ie, whether you prefer a Thai or a mixed neighborhood.

For retired foreigners seeking tranquility and solace, a best option would be to invest in property located in destinations like Koh Samui, Chiang Mai, and Phuket. If you want to have an easy accessibility to almost all facilities, then it would be better to invest in cities including Bangkok, al though prices would be exceptionally high compared to other parts of the country.

However, certain restrictions have been imposed on foreign investors in order to own a land or property in the country. In other words, the property law in Thailand does not allow foreigners or non Thais to have a freehold land in the country. But, there are certain exceptions in the law with regard to this issue. Al though a foreigner cannot purchase land or property in his own name, he has been given some alternatives to acquire a property in Thailand according to the Section 86 of the Thai Land Law, which are as follows:

Buying a property through Thai spouse – Thai property law allows a foreigner with a Thai spouse to invest in a property or land in the country. But, the land or property must be registered under the name of the Thai. It is also important for the foreigner to specify that the funds used for the purchase of a property are of a Thai spouse. However, this option may sometimes become a problem in a divorce case, since a foreigner may find difficult to prove that it was a marital property.

Buying a property in the name of a Thai company – As per the property law, a non Thai can own a property in Thailand through a Thai company, provided 51% of the company’s share is Thai and 49% is foreign.

Buying a property through Investment (BOI) – A foreigner can acquire a limited amount of land or property with considerable investment of fund. Under the Thai Property Law, a non Thai citizen investing 40 million baht for not less than five years can purchase up to 1500 square meters of land and that too for only residential property. But, a prior permission should be obtained from the Ministry of Interiors. Likewise, this option cannot be availed by foreigners who are looking to invest in his second house or retirement homes.

Structure Ownership – In this case, a foreigner may be granted a Right of Superficies by a Thai spouse or a Thai company. This in turn provides foreigners to have rights over all kinds of constructions on the land. The Right of Superficies usually last for a period of ten years with options to renew it again for 30 years, if required.

Leasing – This is perhaps the least complicated option for a foreigner to acquire a property or land in Thailand. Mostly, the land is leased to a non Thai for a period of 30 years, which can be again renewed for a period of 30 years. Leasing a land in Thailand is quite simple and does not require much maintenance.

Despite these options, it is important to make a thorough analysis of title deeds prior to investing in Thai property. Title deeds usually include three main types such as Chanot (Nor Sor 4), the Nor Sor 3 Gor, and the Nor Sor 3.

But, there is not any restriction for a foreigner to own or purchase a condominium in the country except for that he should bring in the whole money for buying a condominium in foreign currencies. Further, a foreigner could own only up to 49% of units of a condominium block.

With a myriad of real estate agents and property builders in the scenario, it is not at all a chaotic process to own a land or property in Thailand. Majority of them provide assistance to deal with complicated Thai law for acquiring a property in the country. Some of them even provide legal advice and conduct investigation and consultation in order to acquire a property. There are also firms providing management, project planning, and development in connection with a property.

Thailand going back to democracy after a 15 month military rule has already had a positive impact on the property market. There have been a notable number of deals completing during the high season in Phuket as well as more visitors to the sole agency projects.

The newly elected government has begun to take initiatives toward a more open and favorable policy for foreign property investors. The new government has already taken away the 30% capital control which is thought to support bringing back foreign investments.

Property financing for foreigners in Thailand is available. When we buy a property back home, one of the first things that come to our mind is financing. Even for those who have enough funding and liquidity for owning a property, financing is often perceived as a way of leveraging our investments. For buyers with less access to funding, financing is an unavoidable vehicle they utilize to own that dream home.

Considering this, Thailand is the same as any other country. Most of the financial institutions in Thailand offer loans for real estate purchases to local Thais and Thai companies centered on similar criteria we are familiar with in our home country. However, the similarities do not extend from there for most foreigners buying property in Thailand.

The issuing of the new tax incentive package is also an attractive move for the property market. This is anticipated to fuel market sentiments on both the demand and supply side. Property Transfer fee will be decreased from 2% to 0.01% and Specific Business Tax for property transactions will be decreased from 3% to 0.1%. Reliability in the market could be improved further by longer lease terms, stretching from the current 30 years to 90 years.

The beginning of business lending to foreign property investors should also be considered by the government. Policies like these would enable Thailand to keep pace with its emerging neighbors, Vietnam and Malaysia, relating to property purchase terms. It is expected that there will a more encouraging outlook for the Thai property market in 2008 than in 2007.

Since the December election, foreign investors have shown increased interest. Established developments have witnessed a particularly alive high season. Newly awarded projects have also met with a positive response. A similar trend is witnessed in Samui with a clear rise in visiting and purchases of resort properties. It is anticipated that there will be further demand in Samui with surge in flight schedules.

The Samui market for luxury villas is closing on Phuket, with the establishment of international hotel brands wooing quality tourism. Samui has traditionally been a less favored beach destination, but this not at all the case now as it is emerging rapidly as a beach destination. Lot of high net worth investors is now increasingly keen.

The Treasury Department – recent land value appraisal displayed that land values in Phuket have rose by an average 160 per cent over the past four years, with Samui prices following closely. The steady rise in land prices on Thailand – coast points to the confidence in the market and its long term prospects. If you are ready to forget the unfriendly past of Thailand and show renewed faith you are set to benefit.

Ongoing, an investor may require paying income tax on an income he attains from his investment property in Thailand but may be quite happy to realize that there is presently no capital gains tax in Thailand. There is also a Land Tax and Structures Usage tax that an overseas investor may have to pay on their property assets but both are very much affordable. Wise men always go for the right choice and this is definitely one among them.