Real estate investment in Thailand

Real estate investment in Thailand

Thailand is a country in Southeast Asia, bordered to the north by Burma and Laos, to the east by Cambodia and to the south by Malaysia. It is one of the founding members of ASEAN and the second-largest economy in the same political and economic organization. The country also boasts an unemployment rate of 0.7%, a much-appreciated quality of life, and an attractive tax and real estate environment, making it one of the most sought-after countries for expatriation and real estate investment.

Are you looking for new business opportunities to maximize your income? Would you like to invest in real estate to diversify your assets and prepare for retirement? Would you like a pied-à-terre for your retirement? This post will outline the reasons why investing in real estate in Thailand is a godsend for your project!

A pleasant living environment

In Thailand, life is more than 30% less expensive than in France, while offering the most sought-after amenities.

Modern infrastructures and facilities have also been developed, including top-class hospitals, international golf courses, a variety of restaurants, brand-name boutiques, art galleries and luxury services.

The capital, Bangkok, for example, is home to luxury housing complexes, business centers, magnificent shopping malls and varied communication networks: overground and underground metro, international and regional airport, freeway, ferry.

An attractive business climate

The 2016 edition of the World Bank’s Doing Business report recognizes Thailand as a “business-friendly” country.

This ranking is illustrated by non-existent property taxes and rental income tax rates of no more than 15%. Resale taxes and transfer fees vary between 1% and 3% of capital.

In addition, direct heirs, i.e. ascendants and descendants of the deceased, are exempt from inheritance-related charges.

And that’s not all, since foreigners (and therefore investors) can gain access to real estate through the purchase of a freehold condominium or leasehold.

Finally, thanks to a bilateral agreement between Thailand and France, French investors in Thailand (and vice versa) are protected against double taxation.

A dynamic real estate market

In 2017, Thailand was France’s favorite summer destination, welcoming a total of 35 million tourists. The weekly magazine l’Express named it the second best country in which to live and retire.

It goes without saying that the boom in tourism is helping to boost the real estate market, since demand for rental accommodation is constantly on the rise. To meet this challenge, there’s a wide range of real estate on offer to suit all tastes: luxury apartments, luxury villas, second homes, solutions to suit all budgets, and more.

At the same time, domestic demand (around 85% of total demand) has not been left behind, as the high purchasing power of the middle class and the ever-increasing number of expatriates and investors make real estate investment more than profitable. Yields on “serviced residences” are estimated at between 5% and 10% p.a., with a valuation of 5% and a tax rate of between 8% and 15%.