The first tax is the Local Development Tax imposed upon people who either own or possess land. This tax rate varies according to the estimated land value as appraised by the local authorities. Allowances may be granted if the owner utilizes the land for personal dwellings, animal husbandry and/or the cultivation of crops. The extent of these allowances depends upon the location of the land. It is said that the rates are so low that officials don’t usually bother to collect on a yearly basis. This tax is also levied on houses, buildings or any other improvements built on the land.

Then there is the House and Land Tax, which applies to the owner of a house, building, structure or land that is either rented or put to commercial use. Taxable property under the House and Land Tax includes houses not occupied by the owner, industrial and commercial buildings and land used in connection therewith. The tax rate is 12.5% of the estimated annual rental value of the property or the actual rental value, whichever is the highest. Owner occupied residences are exempt from this tax. Note, however, that this exemption applies only to individuals, not to juristic persons, because juristic persons are deemed to use their property commercially. In other words, a company that purchases an office has to pay the tax, even if the company uses the premises to serve its own offices. There is a project to replace the House and Land Tax with a real property tax within 2 years, wherein the rate would be from 0.01% up to 1% of the estimated value of the property, depending upon the property type. The rate would be 0.01% on agricultural land, 0.1% on personal residences; 0.5% on commercial buildings and 1% on undeveloped land.

Note that it is possible to mitigate the cost of the House and Land Tax. If, for example, you rent condominium in Pattaya fully furnished, you may choose to execute two agreements with your lessee. The first agreement will be for the rental of the condominium unit and the second agreement will be for the rental of the furniture and/or additional services (if any are provided). This will reduce the cost of the House and Land tax because the tax only applies to the yearly rent received from renting out the property, but not on the rental income received from renting out the furniture, etc.

If the rental agreements are executed between two individuals, there is no VAT applicable on the furniture or service agreements. If, however, the owner of the condominium is a company and if the company is registered for the VAT, then the VAT will apply at 7% on the furniture or service agreements executed between the lessor and the lessee.

For example, if you rent out condominium in Pattaya fully furnished for a rental fee of THE 60,000 per month and only make one agreement with your Lessee, then you’ll have to pay a yearly House and Land Tax as follows: 60,000 x 12 x 12.5% = THE 90,000. You can save on taxes legally by simply breaking the rental fee down into two agreements. For example, the rental fees may be THE 35,000 per month for renting out the condominium and THE 25,000 for renting out the furniture. If you break the rent down in this way, the Land and House Tax will be only THE 35,000 x 12 x 12.5%= THE 52,500. If, however, the owner of the condominium is a company registered for VAT, then it will have to apply the VAT to the furniture lease agreement. Even so, the company owning the property will save money on taxes, because the Lessee supports the cost of the VAT.

The matter of the withholding tax also applies when renting out. If an individual leases a property to another individual in Thailand, the payment of the rent is not subject to withholding taxes. However, when a company is renting a property, then the company will have to deduct a withholding tax from the amount of the rent paid to the owner (whether an individual or a company). The amount withheld must be paid to the tax administration on behalf of the owner who will use the withholding tax as a tax credit against the yearly income tax. The rate of the withholding tax is 5% in Thailand. Note that when a rental fee is paid outside Thailand, the amount of the tax to be withheld from the payment is 15%. Furthermore, if you are a non-resident offered a rental guarantee by a developer, never forget to take the withholding tax into account when calculating your potential income.

Like so many countries situated in the Asia area, Thailand is steeped in history and tradition, which has only recently been opened up to the western world. The country covers an area of some 500,000 square kilometres offering one of the most diverse of climates and landscapes. Thailand offers an array of high mountainous regions in the north, with hundreds of smaller islands in the south, and vast areas of beautiful beaches, active nightlife, and laid back atmosphere in between.

Thailand was known as Siam until 1939, and seemed to come to life as a major economy in the later part of the 20th century. While economic growth has continued, the country has managed to retain that mystical feel with beautiful architecture, and reminders of the great tradition at every turn. Steeped in history, yet showing an appreciation of western values, the country covers both ends of the spectrum, which is a major plus point for tourists. A can do rather than cannot do attitude has seen the respect for the Thai workforce increase throughout Europe, with many Western companies investing in the region.

Contrary to popular belief Thailand is one of the safest countries in the world, although the image of the Asia region tends to be dominated by some of the more volatile countries. The people are renowned for their friendly nature and good mannered approach to visitors from a far. As the popularity of the country grows, everyone seems to have realised the massive potential of the growing tourist market, which can be central to many of the more rural economies.

Property Market

While many countries would have faltered after facing one of the worst Tsunamis of modern times, the Thai authorities have used this as a positive, rebuilding the devastated areas in double quick time, and using the “fresh start” to restructure the landscape and facilities. This has resulted in a massive influx of overseas investment which has seen the price of Thailand property recover, with particular interest from Europe and powerful neighbour, China. The recovery is still ongoing, however the country now has one of the fastest growing economies in the world.

The price of property in Thailand is benefiting from this new found interest from foreign investors, which is opening vast areas of the country which until recently were relatively undiscovered by western visitors. The major increase in the economy of recent years has been fuelled predominately by the massive increase in tourist activity, with Thailand now on the radar of all major travel companies. This untapped region is commonly known as the “Spain of Asia” by observers of the international tourist market.

The increase in tourist numbers has opened up a new buy to let market which in turn has opened many eyes to the potential for long term property price appreciation in this ever expanding, ever popular area of Asia. Current property value appreciation of between 10% and 15% per annum is less than some of the more volatile “tiger” economies, however the Thai economy is no where near as volatile, and offers a greater degree of transparency in property transactions than most countries in the area. Even the Tsunami did not dent the property market, and deals were still being closed the day after the disaster, although obviously areas effected by the Tsunami had to start again.

Areas of specific interest in the Thai property market take in cities such as Phuket, Bangkok, Koh Samui, Chiang Mai, Pattaya, Krabbi and Pang Nang. Overseas employers have been showing particular interest in Thailand properties, as they look to house there growing workforces.

While there are restrictions on foreign land ownership (although not over onerous) the creation of a simple Thailand Trading Company will simplify the situation, and open up the possibility of local partnerships for a closer “feel” of the local property market characteristics.

Why Invest in Thailand

Thailand has always been seen by many in the west as one of the hubs of the Asian economic scene, showing a great ability to adapt and reinvest in order to attract quality overseas investment. The liberal tax laws and lack of capital gains tax payments are a great incentive for overseas investment. Indeed the recent event of the tragic Tsunami demonstrated amply, the ability of the authorities to act in a swift, well thought out manner, which was the main reason for the country remaining so economically strong.

Thailand is also awash with areas of great natural beauty, with the mountainous areas contrasting against the western style beach resorts which are proving ever more popular. An ability and willingness to continually invest in the nations infrastructure has again paid great dividends, and opened up many of the more rural areas to potential economic improvement. Against this western attitude to business and investment, the authorities still hold a great appreciation of the origins of the country, the culture and the people.

For the older generation looking for an overseas retirement opportunity, visas are available to people over 50 year of age with very few questions asked. As the quality properties for sale in Thailand are quickly snapped up, this band of investors could be a major influence in the future.

Outlook

Thailand has surprised many around the world with the speed at which it has recovered, and rebuilt after the Tsunami. The country continues to distance itself form the more volatile and radical countries in the region, embracing a liberal yet controlled attitude to economic development and overseas investment. This bodes well for both the flourishing tourism industry, and the potential to attract further overseas investment. Quality properties in Thailand are much sought after as the market continues to struggle to balance supply against demand.

The economy has proved resilient in some of the most testing of situations, with the ever flexible work force adapting and constantly improving their output. While the cost base of the area remains low in comparison to western countries, this will always be a natural attraction to foreign investors. The country is also well placed for international trade from all areas of the world, receiving significant employment and investment from the neighbouring powerhouse of China.

Thailand’s markets have experienced a slowdown in recent months. However, these are few and far between and the authorities have shown themselves to be more than capable of adapting and reacting to most situations. This beautiful land that is Thailand is proving to be one of the more controlled of the so-called “Tiger” economies, and striving to narrow the gap between the stronger economies of the west. While there is still some way to go, there is no doubt that the country is on the right path.

If you are looking for a little bit more room for you and your family, then perhaps you would like to look into either buying a preexisting home or building your own. Many tourists who come to Pattaya want to come back, and want to have a place of their own to come back to. When it comes to building your own home in Pattaya, the land that you need is always available. There is plenty of room to build in Pattaya, and most people are taking advantage of this single aspect. Once you build your home you can do the same thing you could do with a condo, rent it out to either locals or use it as a vacation rental to other tourists. Again, this would be an incredible investment if you have the right money to spend. It is relatively inexpensive to buy or build a home in Pattaya.

Take a look around at what Pattaya has to offer you and take full advantage of it!

Most property is purchased directly from a developer or via an agent. A solicitor will represent you in the property purchase and complete all the legal requirements of the sale. Solicitors carry out the usual range of checks: that the vendors have the correct title and are able to transfer it to you; search for any charges and liabilities that are attached to the property; advise you on all of your obligations; assist with the transfer of your funds.

Thailand’s major Unique Selling Point is tourism and the government promotes Thailand on a global scale. The Tourism Authority of Thailand predicts continued growth for 2008, with an estimated total of 14.8 million tourists, generating Baht 547 billion in the process.

Thailand offers visitors many benefits including beautiful beaches, tasty food, friendly people and excellent health care. Phuket is the main tourist destination which lies at the bottom of mainland Thailand. Thailand is also a divers’ paradise with the marine national park of Koh Similan renowned as a world class diving site. Due to its popularity as a tourist destination, Thailand is one of the cheapest places to fly to in Asia, with direct flights readily available to Bangkok from many international airports. There is an excellent rail service covering the majority of the country, the trains are comfortable and cheap, and timetables are in English.

Thailand is predominantly a Buddhist kingdom and is located in Southeast Asia surrounded by Myanmar to the north and west, Laos to the northeast, Cambodia and the Gulf of Thailand to the southeast and Malaysia and Myanmar to the south. The largest city in Thailand is Bangkok, with about 6 million people. As well as being the largest city and the main seaport, Bangkok is the Capital of Thailand. The climate is sub-tropical with long hours of sunshine and high humidity. The temperature is hot from March to June, rainy from July to October, and cool from November to February. Thailand has recently seen economic growth and investors now view Thailand as a very promising destination. There are different types of property for sale Thailand has to offer the investor, with price ranges to suit all pockets.

If you are looking for brokerage in Thailand, you must investigate enough before settling on a broker. Having good work ethics within the real estate broker group will ultimately be an advantage. All brokers in Bangkok handle the whole of Bangkok, not a particular area, so these brokers are all treading on each other’s feet. However, with such a vast area to cover, there are undoubtedly, thousands of properties for sale or rent. The brokers here have co-brokered successfully with a small number of their competing estate agents, so they can confidently ask for their help if they do not have the particular property that their customer is looking for. Buying a property in Thailand is, unlike most other things, very easy. The actual transfer of title deed consumes just a few hours. The title deed itself will reveal if there is any mortgage or other loan on the property, as details of these must be written into the deed. Hence, it is not tedious to check the owner’s right to sell. Most people do not even access the services of a solicitor, even though it does not cost much in Thailand, and so you might as well so that your mind will not disturb you. In fact, you could visit a condo that you like on Monday morning, and own it once the business is completed, the same day. So, Thailand could be an ideal choice if you are looking to own real estate property in Asia.

If you have to ask why you want to rent or buy a villa in Phuket specifically, then it is fairly clear that you have never been to the city itself. You’ll find that you can find diving, golfing, rainforest hikes, cruises and an extremely exciting nightlife, all in one, easy to access location. You’ll find that there is a very good reason that this city is known for its hospitality and for its excellent properties, and many people who come here once will come again and again; some of them even decide that they want to retire here or move there permanently.

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’s 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’s coast points to the confidence in the market and its long term prospects. There is no doubt that Thailand’s property market is continuously flourishing. Foreign investors will have a good time investing in Thailand from now onwards. If you are ready to forget the unfriendly past of Thailand and show renewed faith you are set to benefit.

In addition to numerous modern buildings, in Bangkok there are about four hundred Thai temples that one cannot miss during there staying in Thailand. In Thailand, traditions always mix with modernism and nowhere in the world will you find tradition and development as close to each other as you will find them here. The modern infrastructure, the wealth of natural resources, and the convenient prices make Thailand the ideal destination for people all over the world. With adequate recommendations from a specialized Bangkok real estate agent, you will find out information about the properties that are worth investing in and about the best manners of increasing your profit.

Like so many countries situated in the Asia area, Thailand is steeped in history and tradition, which has only recently been opened up to the western world. The country covers an area of some 500,000 square kilometres offering one of the most diverse of climates and landscapes. Thailand offers an array of high mountainous regions in the north, with hundreds of smaller islands in the south, and vast areas of beautiful beaches, active nightlife, and laid back atmosphere in between.

Thailand was known as Siam until 1939, and seemed to come to life as a major economy in the later part of the 20th century. While economic growth has continued, the country has managed to retain that mystical feel with beautiful architecture, and reminders of the great tradition at every turn. Steeped in history, yet showing an appreciation of western values, the country covers both ends of the spectrum, which is a major plus point for tourists. A can do rather than cannot do attitude has seen the respect for the Thai workforce increase throughout Europe, with many Western companies investing in the region.

Contrary to popular belief Thailand is one of the safest countries in the world, although the image of the Asia region tends to be dominated by some of the more volatile countries. The people are renowned for their friendly nature and good mannered approach to visitors from a far. As the popularity of the country grows, everyone seems to have realised the massive potential of the growing tourist market, which can be central to many of the more rural economies.

Property Market

While many countries would have faltered after facing one of the worst Tsunamis of modern times, the Thai authorities have used this as a positive, rebuilding the devastated areas in double quick time, and using the “fresh start” to restructure the landscape and facilities. This has resulted in a massive influx of overseas investment which has seen the price of Thailand property recover, with particular interest from Europe and powerful neighbour, China. The recovery is still ongoing, however the country now has one of the fastest growing economies in the world.

The price of property in Thailand is benefiting from this new found interest from foreign investors, which is opening vast areas of the country which until recently were relatively undiscovered by western visitors. The major increase in the economy of recent years has been fuelled predominately by the massive increase in tourist activity, with Thailand now on the radar of all major travel companies. This untapped region is commonly known as the “Spain of Asia” by observers of the international tourist market.

The increase in tourist numbers has opened up a new buy to let market which in turn has opened many eyes to the potential for long term property price appreciation in this ever expanding, ever popular area of Asia. Current property value appreciation of between 10% and 15% per annum is less than some of the more volatile “tiger” economies, however the Thai economy is no where near as volatile, and offers a greater degree of transparency in property transactions than most countries in the area. Even the Tsunami did not dent the property market, and deals were still being closed the day after the disaster, although obviously areas effected by the Tsunami had to start again.

Areas of specific interest in the Thai property market take in cities such as Phuket, Bangkok, Koh Samui, Chiang Mai, Pattaya, Krabbi and Pang Nang. Overseas employers have been showing particular interest in Thailand properties, as they look to house there growing workforces.

While there are restrictions on foreign land ownership (although not over onerous) the creation of a simple Thailand Trading Company will simplify the situation, and open up the possibility of local partnerships for a closer “feel” of the local property market characteristics.

Why Invest in Thailand

Thailand has always been seen by many in the west as one of the hubs of the Asian economic scene, showing a great ability to adapt and reinvest in order to attract quality overseas investment. The liberal tax laws and lack of capital gains tax payments are a great incentive for overseas investment. Indeed the recent event of the tragic Tsunami demonstrated amply, the ability of the authorities to act in a swift, well thought out manner, which was the main reason for the country remaining so economically strong.

Thailand is also awash with areas of great natural beauty, with the mountainous areas contrasting against the western style beach resorts which are proving ever more popular. An ability and willingness to continually invest in the nations infrastructure has again paid great dividends, and opened up many of the more rural areas to potential economic improvement. Against this western attitude to business and investment, the authorities still hold a great appreciation of the origins of the country, the culture and the people.

For the older generation looking for an overseas retirement opportunity, visas are available to people over 50 year of age with very few questions asked. As the quality properties for sale in Thailand are quickly snapped up, this band of investors could be a major influence in the future.