In search of high real estate yields beyond borders
With ever-increasing tax pressure and unfavorable legislation for property owners, investing in real estate in France is becoming less and less profitable.
In search of a lucrative investment, many investors are attracted to Thailand.
The keys to this attractiveness lie in high yields combined with competitive taxation.
Thailand, a dynamic real estate market
The Thai real estate market has been experiencing rising demand since 2012, especially for rental investments in tourist residences.
The number of tourists to Thailand has more than doubled since 2011 , with almost 40 million expected in 2019.
This surge in tourist numbers means a need for accommodation to accommodate visitors, making the country a prime location for real estate investment.
With high occupancy rates for tourist accommodation, the real estate market is booming in line with a positive overall trend.
According to the Bank of Thailand (BoT), nationwide transactions were up sharply in 2018 compared with the previous year.
The promise of high returns
Investing in a furnished apartment managed by an international hotel group will enable you to benefit from an annual return of up to 10%.
– According to a study conducted by the Banque de France in 2017, the average pre-tax gross profitability of housing in France is 3.90%.
– The difference between net yields is even more advantageous for Thailand, as the country benefits from low taxation on property income.
– French investors benefit from the advantages of the double taxation treaty signed between France and Thailand, and their property income from a real estate investment in Thailand is taxable in Thailand at a maximum rate of 15%.
– The main reasons for such high returns are low construction costs and condominium fees, high occupancy rates thanks to year-round mild weather, and low taxes.
Attractive value for money
Prices for investing in real estate in Thailand remain very affordable.
– In Phuket, you can find new, furnished and equipped accommodation close to the beaches, in a luxury 4-star residence, from €75,000.
– In Hua Hin, an affluent seaside resort, prices are just as affordable: a new villa with swimming pool starts at €130,000, with services such as 7/7 reception, swimming pools, fitness rooms, restaurants…
– You won’t find this kind of value for money in France any more.
– Prices for equivalent services are at least twice as high.
– Thailand currently offers exceptional investment opportunities!
Buying freehold
It is, of course, possible to buy a freehold property in Thailand, as we’ll explain in another article.
Tailor-made support in France and Thailand
With a presence in France and Thailand, we offer you personalized support throughout your project, providing you with the best services and advice from our legal and tax partners to ensure a smooth transaction.
The country’s tax advantages, its attractiveness and low acquisition costs make real estate investment in Thailand an investment of choice.
Would you like a free personal consultation? We’d be happy to call you back to discuss your project in more detail.
