The white-sand beaches, the alluring breeze of the Andaman Sea, 1001 sunsets, fresh and affordable fruits, seafood, the smiles of locals, and the feeling of calm and stability have all played their part.
And so, you’re browsing properties on our website or going on a free private tour with our manager, hoping to find that very apartment or villa that will become your home for personal living or for generating income on the island of eternal summer.
Regardless of the purpose for which you are buying property in Phuket, Thailand, the main thing you need to know is: the transaction is conducted easily, clearly, and transparently, which is an undeniable advantage of the Phuket real estate market (more details in our article “Why You Should Buy Property in Thailand and Phuket”).
The entire transaction consists of just 3 stages: Deposit → Contract → Handover.
Stage One: Deposit
After selecting an apartment or villa and agreeing on the terms, a Reservation Agreement is signed between the buyer and the seller. To prepare it, you’ll need a copy of your passport, email, phone number, and mailing address of the buyer.
The agreement contains information about the parties involved, the chosen property, its price, the payment schedule, and bank details for transferring funds.
When signing the reservation agreement, you pay a deposit – approximately 1% of the total cost – to take the property off the market.
Payment can be made at the developer’s office or remotely via cash, bank card, or cryptocurrency; the only document required is your passport.
You pay directly to the developer; our company does not charge any commissions for services or assistance.
Stage Two: Sales and Purchase Agreement
Within one to two weeks after the deposit, you receive a draft Sales and Purchase Agreement from the seller for review and potential amendments, if the seller is a developer.
This contract specifies all information about the apartment or villa, the terms of purchase, the method of registration, details of all costs associated with the transfer and future property maintenance, and penalties for non-compliance.
The contract is accompanied by copies of identification documents for the seller and buyers, as well as property documents.
Typically, the first payment constitutes 25% of the property’s value, with the deposit already included. (For an example payment schedule, see our article “Installments and Mortgages in Thailand”). Developers often offer attractive bonuses for 100% upfront payment, such as a free furniture package or starting guaranteed income payments even before construction is complete.
When buying on the primary market, you transfer funds via bank transfer according to the contract to the developer’s account in Thailand. Money can come from an account opened in any country. Transfers from a legal entity registered in any country are allowed, provided you are a founder/owner of that entity.
For secondary market transactions, you typically open a Thai bank account and transfer funds from another country into it. A cashier’s check for the required amount is provided to the seller at the time of registration at the Land Department.
Unlike many countries worldwide, Thailand does not verify the origin of funds.
Stage Three: Handover and Registration of Ownership Rights
Finally, the most enjoyable part – the handover of the apartment or villa and receiving the documents.
All transactions are registered at the Land Department.
For primary market purchases, the transaction is usually registered by a representative of the developer at the Land Department, based on a power of attorney from the buyer. Purchases on the secondary market are typically assisted by a lawyer.
View the full property catalog →
For you – we can handle the apartment handover, receive the Chanote (title deed), and send them to you via courier service.
If you have the opportunity, you can fly in, and we will see this process through to the end together.
Taxes and Fees
Thailand is famous for its low taxes, and sometimes their absence. Let’s examine all taxes and government fees for property registration.
When choosing Leasehold, you pay only two fees:
- Registration Fee: 1% of the appraised value.
- Stamp Duty: 0.1% of the appraised value or contract price, whichever is higher.
When purchasing Freehold (full ownership without time limit), the total taxes can reach 6.3%:
- Registration Fee: 2% of the appraised value.
- Specific Business Tax (SBT): 3.3% of the appraised value or contract price (whichever is higher). This applies only if the property is being resold and the previous owner held it for less than 5 years.
- Stamp Duty: 0.5% (of the same sums). Levied if SBT is not applicable.
- Withholding Tax: 1% (of the same sums) if the seller is a legal entity. If the seller is an individual, it is calculated as personal income tax.
All fees are typically split 50/50 between buyer and seller.
For Freehold purchase via a company:
- Company Registration: from 50,000 THB
- Legal Company Maintenance: from 3,000–5,000 THB/month
- Accounting / Annual Financial Statements: from 15,000 THB/year
