Can foreigners own property in Thailand?

Foreigners can own freehold condominium units (up to 49% of a building’s total units) but cannot directly own land. Alternatives include long-term leases (up to 30 years, renewable) or owning land via a Thai limited company with Thai majority shareholders.

What are the restrictions on foreign land ownership in Thailand?

Thai law prohibits foreigners from owning land under the Land Code Act. Options include leasing land for up to 30 years or setting up a Thai limited company (51% Thai-owned) to hold the land title.

How can foreigners buy a condo in Thailand?

Foreigners can buy freehold condos if the foreign ownership in the building is below 49%. Funds must be transferred from abroad, documented with a Foreign Exchange Transaction Form (FET). A lawyer is recommended for due diligence and title transfer.

What are the costs and taxes when buying property in Thailand?

Costs include transfer fees (2% of appraised value), withholding tax (1% of appraised or sale value), specific business tax (3.3% if sold within 5 years), and stamp duty (0.5% if no SBT applies). Legal fees range from 20,000–30,000 THB. Condo buyers may also pay sinking fund fees.

Can foreigners get a mortgage to buy property in Thailand?

Thai banks offer limited mortgages to foreigners (40–70% of property value, up to 15 years, with high interest rates of 6–9%). Eligibility requires proof of income and residency. Some developers offer financing, or buyers use overseas loans.

What is the process for buying property in Thailand as a foreigner?

Steps include finding a property, hiring a lawyer and agent, conducting a title search, signing a purchase agreement, transferring funds with a FET, and finalizing ownership at the Land Office (30–60 days).

Is it safe to buy property in Thailand as a foreigner?

Buying is safe with proper due diligence—hire a reputable lawyer, verify the seller’s title, and use registered agents. Risks include unregistered agents or buying without legal checks.

Can foreigners rent out their property in Thailand?

Foreigners can legally rent out their property, subject to income tax on rental earnings (progressive rates based on income). Management companies can handle rentals, but owners must comply with TM.30 tenant reporting.

What are the visa implications of buying property in Thailand?

Buying property does not grant visa privileges. However, investing 10 million THB in real estate may qualify for the Thailand Elite Visa (5–20 years). Standard visas (e.g., retirement, business) require separate applications.

What are the risks of buying property in Thailand as a foreigner?

Risks include buying without due diligence, using unregistered agents, condo depreciation, neglected building maintenance, or legal issues with leaseholds or companies. A lawyer mitigates these risks.

Understanding rental yields in Thailand’s property market

How much income can you expect from Thai real estate in 2025?

Whether you’re planning to invest in a Bangkok condo or a beach villa in Phuket, understanding rental yields is key to making smart real estate decisions in Thailand.

🔍 What Is Rental Yield?

Rental yield is the return you earn on your property investment from rental income. It’s usually expressed as a percentage of the property’s purchase price.

📊 Formula:

vbnetCopyEditRental Yield (%) = (Annual Rental Income ÷ Property Price) x 100

📘 Example:

If you buy a condo for ฿4,000,000 and earn ฿240,000 per year in rent:
→ Yield = (240,000 ÷ 4,000,000) x 100 = 6%

🏙️ Average Rental Yields by City (2025)

City	Typical Property Type	Average Gross Yield
Bangkok	Condos (CBD areas)	4% – 6%
Phuket	Villas, holiday condos	6% – 10%
Pattaya	Pool villas, sea-view condos	5% – 8%
Chiang Mai	Mid-range condos	4% – 6%
Koh Samui	Luxury villas, Airbnb homes	6% – 9%
Hua Hin	Gated villas, golf properties	3% – 5%

Note: Gross yield does not account for expenses like taxes, maintenance, or management fees.

📉 Net Yield vs. Gross Yield

Type	Description
Gross	Yield before expenses (e.g., rental income ÷ property price)
Net	Yield after deducting costs like management fees, repairs, tax, etc.

Typical Costs That Reduce Net Yield:

Property management (10–20% of rent)
Common area/maintenance fees
Government rental tax (approx. 5% of income)
Repairs and furnishings

👉 In most cases, net yields are 1.5%–2% lower than gross yields.

💰 Factors That Influence Rental Yield

Factor	Impact
Location	Tourist areas or CBD zones = higher rent demand
Property type	Villas earn more with Airbnb; condos suit long-term
Occupancy rate	Higher = more income
Pricing strategy	Smart pricing on Airbnb can boost returns
Management quality	Poor management = more vacancies or low reviews

🧭 Long-Term vs. Short-Term Rental Yields

Rental Strategy	Pros	Cons
Long-Term	Stable income, less wear & tear	Lower returns (4–6%)
Short-Term	Higher income potential (6–10%+)	More effort, regulation risk, seasonality

📌 Investor Tips to Maximize Yield

✅ Buy in high-demand locations (near BTS, beach, attractions)
✅ Choose fully furnished, ready-to-rent units
✅ Use professional rental management for Airbnb
✅ Avoid over-supplied condo buildings
✅ Invest in properties with low common fees

📍Where to Look for High-Yield Properties?

Goal	Best Cities
Airbnb income	Phuket, Koh Samui, Pattaya
Stable long-term tenants	Bangkok, Chiang Mai
Expat family rentals	Hua Hin, East Pattaya
Capital growth + rental	Bangkok (CBD), Phuket West Coast

📎 Conclusion

Rental yields in Thailand are attractive compared to global averages, especially in resort zones with Airbnb-style demand. While short-term rentals can offer higher returns, they require hands-on management or professional services.

📘 Always calculate both gross and net yields, and factor in occupancy risks before investing.

Understanding rental yields in Thailand’s property market