Can a foreigner own property in Phuket?

Yes, and many already enjoy the benefits of owning property in Phuket. Thai law permits foreign nationals to own buildings (as distinct from land), a unit in a registered condominium, and a registered leasehold of up to 30 years on land. They may not own land on a freehold basis.
Typically many developments on Phuket will offer a 30 year lease accompanied by two options to renew the lease, giving a total of 90 year leasehold ownership. Often there is an option to allow the owner to purchase the land directly should Thai law change to permit direct foreign ownership of land.
Alternatively if a foreign owner is going to do business in Thailand then he can purchase land through his Thai Limited Company.
As with purchasing property in any part of the world, we strongly recommend you seek proper legal advice before signing contracts. There are a number of law firms on Phuket who  speak English (and other major languages), please feel free to contact us for some recommendations.

My wife is a Thai National, can she own land?

Answer: Yes, since 1999! Prior to 1998, any Thai woman who married a foreigner would lose her right to purchase land in Thailand. She could, however, still retain land that she owned prior to marrying the foreigner. However, the recent Ministerial regulation from 1999 now allows Thai national's married to foreigners the right to purchase land, but the Thai spouse must prove that the money used in the purchase of freehold land is legally solely theirs with no foreign claim to it. This is usually achieved by the foreign spouse signing a declaration stating that the funds used for the purchase of property belonged to the Thai spouse prior to the marriage and are beyond his claim.

What should I look for in a property?

Whether you are considering renting, leasing or purchasing property there are several infrastructure and other considerations, which must be taken into account:
Location - Roads, proximity and access to business, shops, hospital etc.
Telephones - Access to direct lines and IDD facilities
Water - Mains water and supplementary storage facilities.
Electricity - Mains connection, and backup generators for condominium blocks
Door and window locks
Cable or Satellite TV connection
Pest Control - localised spraying and fly screens on windows
Hot water facilities - nearly all in Thailand are instant and not storage
Air Conditioning - a necessity in Thailand
White Goods - Refrigerators and Washing Machines
 
Are there any property taxes in Thailand?

There are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the west, however, the most comparable taxes on properties in Thailand are the Land Tax and the Structures Usage Tax. The Land Tax levied on land is so minuscule, that in practice the body charged to collect it, rarely bothers to do so, and if they do, they usually wait several years until the amount accumulates. The second tax, the Structures Usage Tax, relates to buildings, is collected by the municipal office or district office, and is only applied to properties used for commercial purpose.

What taxes and costs are applicable to purchasing a property?

On all purchase/sale of property in Thailand there is a stamp Duty of 0.5%, a transfer fee of 0.01%, a business tax of 0.11% levied against an owner who has been in registered possession of the property less than 5 years, and Income Tax. There is no Capital Gains Tax in Thailand, unlike many countries, and Income Tax (usually between 1.0 - 3.0%) on property is the comparable replacement. There are no set rules on who pays the income tax, and it is just another part of the bargaining process, as with all the other costs of the transfer of ownership.

What is the difference between a freehold and a lease hold title?

A freehold title gives the owner absolute proprietorship over the land in perpetuity.

Leasehold property is held on a government lease for a period of 30 years. At the end of this period, the landowner applies for an extension of the lease, which is usually granted. The lease can be extended for a period of up to 90 years at which time the lease must be renewed.

Although a freehold title would be of distinct advantage, a leasehold title bears no specific disadvantage to the purchaser. Both forms of purchase are safe and effective means of property ownership by foreigners in Thailand.

Do they have title deeds in Thailand?

There are broadly four types of Land Title in Thailand that are used as common evidence of land ownership, possessory rights and other interests in land:
Chanote (Title Deed) A Chanote is a certificate for ownership of land. A person having their name shown on the deed has the legal right to the land, and can use it as evidence to confirm the right to government authorities. The title deed has been issued by using GPS to set the area and boundaries of the land, which is a very accurate method. It is the long term goal of the Land Department that all land in Thailand will be covered under the Chanote title system. This is the most secure type of land title and is highly recommended.

Nor Sor Sam Kor (Confirmed Cerificate of Use) This certifies that the person named on the certificate has the confirmed right to use the land, implying all requirements for the issuance of the title deed have been met and issuance of the deed is pending. They may be sold, leased, used as mortgage collateral etc. The holder of this certificate cannot leave the land unattended for more than 12 years.
  
The Chanote and Nor Sor Sam Kor are the only titles over which registerable right of ownership or lease can exist and are as such the only ones that a prudent foreigner should consider.

Nor Sor Sam (Cerificate of Use) Similar to the above Confirmed Certificate of Use except that not all of the formalities to certify the right to use have been performed. Before a transfer can be made, a notice of intent must be posted and then 30 days public notice is necessary before any change of status over the land can be registered.  Sor Kor Nung (Certificate of Possession) This recognises that a person is in possession of land but the Certificate does not imply that there are any rights associated with the possession. It is not transferable, but a person in possession may transfer physical possession and the new possessor may apply for a new Certificate of Possession.

Can I get a mortgage?

Foreigners generally cannot mortgage properties in Thailand, however, most of the financial institutions in Thailand provide loans for real estate purchasing to Thais and Thai companies. It is common for a real estate developer to arrange for his customers to have a financing package from a financial institution.

In most real estate development projects, a down payment can be made in installments. After the down payment has been paid, the sale contract will be made and the balance amount is paid through the loan, which is financed from a financial institution. The financial institution requires you to mortgage the property with it as collateral against the loan.

Frequently asked Questions

Phuket Land Register.com