Unlocking the Benefits of Property Ownership in Thailand: Rental Income and Residency Options

Many tourists who've tried out the many wonders of Thailand consider staying there. Their Thai holiday has opened their eyes to the beautiful people, astounding beaches, and culinary delights that the so-called Land of Smiles has to offer.

With that said, there are certainly a lot of benefits to be had from property ownership in Thailand, such as residency options and rental income.

You can have your pick of condominiums and villas in places like Bangkok or Phuket. However, there are several things you need to know about it first.

Are Foreigners Allowed to Own Land in Thailand?

Foreigners cannot directly purchase land in Thailand. To be more specific, while foreigners can own condos, they're not allowed to entirely own land (such as villa or townhouse property with the land included).

They're specifically forbidden by Thai law from owning land in their own name. There are also exceptions to this rule in theory, but it's yet to be seen in practice.

More importantly, there are ways to circumvent this. You as a foreign investor, expatriate, retiree, or spouse of a Thai national can do a successful land acquisition that's legally available to you as a foreign.

• Thai Limited Company: Set up your own Thai limited company first then have that company under your ownership own the land on your behalf. However, there are several caveats to this.

  The business must be a legitimate business that generates revenue and has proper Thai shareholders who are legitimate investors and not just nominee shareholders.

  You can't own more than 49 percent of the shares of the company either. So, the shareholders should own 51 percent or more of the company.

• Long-Term Leasehold: Entering into long-term leasehold with the landowner is another foreign investor option for owning or at least leasing Thai property. He can own the structure or house built on a land he's leasing even if the land isn't his.

  He simply has to apply for a construction permit to build the structure under his name for land he's leasing. He can lease the land for his residential home, vacation house, or rental condo for 30 years and can renew it twice.

  This is effectively known as the 30 + 30 + 30 leasehold, which effectively gives him a 90-year lease term when all is said and done.

• Branded Residences: A number of condo developments and villas that share their name with a luxury hotel chain allow foreigners to invest in branded residences that follow the 51 percent Thai and 49 percent foreign ownership dynamic.

  Foreigners can purchase such branded residences and own them as freehold properties. They're also assured of luxury properties designed by world-renowned architects while getting the highest quality of finishes and fixtures to boot.

• Condotels or Hotel-Licensed Condominiums: Condotels combine hotel and condominiums together. To be more specific, they combine the legal structure of a condo with the services of a hotel. Foreign investors can buy individual properties for rental as hotel accommodation.

  Each owner is given a certain number of day usage for their unit yearly, which usually equals 2 weeks to a month. The rest of the year, it's rented out by the hotel as a hotel room. The hotel will also run the rental and resort business.

• Spousal Co-Ownership: If you have a Thai national spouse, you two can co-own the property you're purchasing in Thailand as a married couple. Properties bought by the parties through work while living together shall be governed by the rules of co-ownership in accordance with Thai property laws.

  After figuring out your method of purchasing Thai real estate, it's time to familiarize yourself with the real estate buying process in Thailand. You should also know the different Thai title deeds as well to determine the extent of your owner's rights for the land you're purchasing.

  Furthermore, learn more about Thai property taxes and the cost of transfer and in advance. You can get further help from us here at Conrad Properties if it's your first time making such a major purchase.

Unlocking the Benefits of Rental Income from a Thailand Property

Are you having cold feet at the idea of owning Thailand property or renting out something you've leased or co-own? We can assure you it's a worthwhile investment, to say the least, particularly if you're getting rental property in your name.

It's because one of the biggest benefits to owning property for rent in Thailand is the potential passive income source, you'll get out of it. Aside from shouldering maintenance costs, it's still a monthly source of cash that makes it an investment that pays for itself.

• Owning an Empty Property: Some people need to make a temporary business-related move. Others inherit a family home they won't sell for its sentimental value. Still others might buy Thai property overseas that they won't live in until retirement age, so they might as well rent it out.

• Acquiring a Passive Income Source: Your rental property vacation villa or condotel should give you a recurring income that requires little effort on your part to maintain. You own the villa then rent it out to someone who could live in it for monthly rent as the property's owner or co-owner.

• Maximizing Your Thai Property Investment: This can serve as a lucrative option for foreign investors to maximize their investment by getting some money on the side. They can even use this rental income as an extra financial security during retirement.

• Figuring Out the Cash Flow: Naturally, you'll need to figure out the cash flow before making that rental property investment in Thailand. You're not strictly speaking a landlord in the most literal sense of the term since you can't directly own the land. However, there are ways to ensure the rental scheme's profitability.

• Make Sure You Get a Consistent Rental Income: After figuring out the cash flow, assess whether the numbers suggest you'll get a consistent rental income out of the Thai property prior to purchasing it. Rent out the villa or home you're not living in so they can help keep an eye on it for you.

• Safeguard the Property from Squatting and Vandalism: Your bought property in Thailand for rent will be safer from squatters and vandalism by having locals rent it out and live in it as your tenants. They'll keep an eye on your property and pay you rent to boot!

• Factor in All Your Expenses: Before making that Thai rental property investment to ensure it's profitable for you, you need to keep tabs of the expenses. Gradually, the property will pay for itself, but you can just as quickly lose the property if it proves too expensive to keep.

• If You're Not Ready to Move: If you've bought a Koh Samui or Phuket home to retire to but you're not ready to move yet, you can rent out the property you've recently bought until you can move there instead of potentially selling the property at a loss after you've just purchased it.

• Get ahead on Maintenance Issues: One of the biggest headaches of a landlord or condo-for-rent owner is the complaints about broken amenities and facilities. However, it is better to know what to fix now for a few hundred bucks than later, when those issues have worsened to the point of costing you thousands of dollars.

• Can You Rent Out Leasehold Property? Yes. As long as you have the 30 + 30 + 30 leasehold contract in place (which lasts for 90 years or longer than most human lifetimes), you can own the building on the land you're leasing and rent it out if you so wish.

Renting out your Thai property gives you more flexibility in selling once you’re in a better position to make a profit off of it.

This will give you the peace of mind you need as an investor that everything's on the up and up. It's the best-case scenario for you, actually—get a tenant to pay you rent and live in your condo or villa in exchange for keeping an eye out for your property.

The Benefits of Owning Thailand Residential Options

Once you've decided to live in Thailand as a working expatriate in the business sector of Bangkok or as a senior citizen of retirement age in Koh Samui, you have loads of options and benefits available to you as a Thai resident.

As lucrative as getting passive rental income from your condominium or villa for rent, having residential options in Thailand allows you to immerse yourself in Thai culture that you probably fell in love with as a tourist.

• The Benefits of Permanent Residence Status: Instead of going to increasingly expensive trips to Thailand seasonally or yearly, you can instead stay there permanently by applying for a Thai permanent resident status. Become a Permanent Resident (PR) and stay in your newly bought villa or condo.

  It's advantageous to be a PR in Thailand. This includes not needing to apply for an extension of stay. You can also have your name printed on a house registration document. It's also possible for you to purchase condominiums without making a bank transfer abroad. Your PR status also makes it easier to get a work permit.

• Enjoying the Privileges of the Local Thai Citizens: Residing permanently in Thailand allows you to enjoy the benefits that the Thai people enjoy, such as a better healthcare infrastructure, delicious fine dining options, and the most gorgeous white-sanded, clear-water beaches in the world.

  You can also become eligible to become a Thai public company director. It's also one of the steps needed for you to become a naturalized Thai citizen, which would then allow you to buy and own Thai properties as a citizen instead of as a foreigner.

• A Low Cost Yet Convenient Standard of Living: Another major reason why foreigners are lining up to buy a Phuket or Koh Samui villa so that they could retire in those islands is the low cost of living.

  The Thai baht exchange rate allows for middle-class westerners to live comfortably as relatively well-off expatriates in this Southeast Asian paradise filled with tropical beaches galore.

• Visa Types Needed to Stay in Thailand: Foreign nationals who wish to stay more than 90 days in Thailand need to avail of visas such as the Permanent Residence Visa, Retirement Visa, Marriage Visa, Business Visa, or One Year Non-Immigrant Visa. Using a Non-Immigrant or Tourist Visa for more than 90 days is illegal.

  Doing so specifically breaks Thai immigration laws and can lead to your deportation from the country. For most foreigners, their best bet is a Permanent Residence Visa or Retirement Visa. Contact the nearest Thai embassy or consulate as well as the Thailand Ministry of Foreign Affairs website for more details.

• Pure Tranquility and Seclusion: Another benefit of getting permanent resident status in Thailand is the country's relative tranquility and seclusion. Sure, certain parts of it, like cosmopolitan Bangkok, can be as high paced as New York or London. However, even then, there's little strife to be had in Thailand.

  This goes double to the provincial life you can enjoy in many islands in the archipelago of Thailand. You're certainly in for a treat when it comes to relaxation at the multitude of beaches. Some places give you endless parties while others give you an idyllic and simple life.

• Driver's License and Transportation: You can get everywhere in Thailand through public utility vehicles like songthaew or regular buses and taxis. You can also own a private vehicle like a moped or economy car by getting a license.

  Depending on where in Thailand you'll live, some island properties can only be accessed by dirt roads so you might need a bike or ATV. When acquiring a Thailand driver's license as a foreigner, apply at the nearest Land Transportation Office of your locality.

• Schools and Supermarkets: There are multiple schools and colleges available for your children if you wish to start a family in a Thailand city, district, or island. The local schools cover a standard Thai curriculum, or you can opt to enroll your child to international schools ranging from Preschool to Upper Secondary.

  These schools are located in all of Thailand's prime locations, from the capital of Bangkok to even islands like Phuket and Koh Samui. It's the same deal when it comes to supermarkets and convenience stores. You can get your everyday needs from them, from office supplies to dried goods and groceries.

• Advanced Healthcare: Don't let Thailand's quiet provinces fool you. The advanced healthcare available at its capital of Bangkok is also accessible to every single island and beach in the country, with its wealth of private hospitals and affordable healthcare coverage. In fact, permanent Thailand residents and citizens can avail of the same healthcare that tourists pay tours for!

  There's a flourishing medical tourism industry in Thailand ranging from surgery tourism to rehab tourism exactly because its healthcare and baht exchange rate is so affordable. You can spend less going to Thailand for a root canal procedure compared to stateside prices even when you take into consideration the travel costs!

• A Country Renowned for Its Safety: In 2021, for every 100,000 inhabitants of Thailand, approximately 17 of them committed offenses related to life, sex, and body. Meanwhile, property-related offenses (squatting and vandalism) were 52 cases for every 100,000 individuals instead. Indeed, the Thai crime rate has decreased steadily since 2017 for both categories.

  In other words, Thailand across the board is a peaceful country. Its safeness isn't limited to secluded beach islands with friendly locals. It boasts a low crime rate and safety nationwide. You can find a safe place of residence there, especially if you avail yourself of one in a gated community with its own security guards.

• A Sought-After Destination: The Land of Smiles is a sought-after country because it seems like every inch of it is prime real estate that investors want to get their hands on ASAP. They have multiple cities and islands to choose from, such as Bangkok, Phuket, Chiang Mai, Pattaya, Surat Thani, Hua Hin, and Koh Samui.

  Thailand is considered among the best Southeast Asian countries to live in, if not the whole of Asia. There's a reason why it's a topnotch tourist destination for vacationers as well as people seeking healthcare tourism, rehab tourism, and dental tourism.

There's a multitude of reasons to become a permanent resident of Thailand, whether it's in Bangkok or Phuket as well as Chiang Mai. You mainly get rights and privileges you'd otherwise lack as a foreign realty investor.

It's also recommended that you hire a property acquisition lawyer from Thailand to protect your best interests and to secure the best deal for you possible in tropical paradise.

Find Your Dream Thailand Property Today!

We at Conrad Properties can help you get various condos and villas for sales all over Thailand. We offer multiple properties and developments in prime places in Thailand like Bangkok, Phuket, Chiang Mai, Pattaya, Surat Thani, Hua Hin, and Koh Samui.

We also cover various preferences ranging from those who wish for more Thai-inspired architecture or buyers who want a quality sea view along with an infinity-edge swimming pool. We cater to the needs of Thai nationals, spouses of Thai nationals, foreign investors, or retirees.

Just get in touch with us today or browse the Conrad Properties website to search for the specific Thailand property of your dreams.