Types of ownership in Phuket, Thailand

The necessary concepts about the sale of apartments in Phuket and Thailand, as well as any other real estate. In Thailand, there are two forms of ownership for foreigners - Leasing and Freehold. We will talk about their meaning now.

Form of ownership of "Lyshold / Leashold"

This is the name of limited ownership of real estate. That is a long-term lease that can be issued by any foreigner. This applies to just a piece of land, and high-grade housing. A feature of this type of ownership is a long-term lease for example from 30 years and more, the limit is 90 years, as well as renting a property or a piece of land on a leasehold, you have the right to lease it to other individuals, as well as sell and donate.

Form of ownership "Freehold / Freehold"

In short, this form of ownership embodies the standard type of ownership of private property that exists in other states.

Differences in ownership forms:

1. The land in the whole of the Kingdom of Thailand, citizens of other countries have the opportunity to purchase only on long-term lease, that is, according to Leasehold.
2. The price of freehold most often exceeds the price of lithold by about 10%.
3. Payment of taxes for registration of these two types of property will also be different. For freehold, this is 2-4%, and for lyshold, up to 1%.
4. For each renewal of the leasehold, a tax of 1% is charged.
5. Since the leasehold is just a lease, and not a full-fledged property, the property under such a form does not need to be declared as private, and payment of additional taxes accordingly disappears.
6. To buy a Phuket condo like in any other freehold in Thailand, it is necessary to get a quota for foreigners under 49%, otherwise it is only possible to buy on a leasehold, for the remaining 51%.

Leasehold, what is it for?

This form of ownership was provided for by the state laws of Tilanda for foreigners with the aim of restricting the sale of land and certain properties to non-citizens, that is, foreigners. This practice is applied in one form or another in other countries of the world. Foreign quota for apartment buildings (condo) was previously much less, namely twice.

Real estate or land is taken in long-term lease, usually by large investors for profit with a subsequent lease by other foreigners, or simply by wealthy foreigners for their own use and recreation, since it is the leaseholder who frees them from paying taxes on foreign real estate in their countries.