What is a villa?
A villa can normally be described as a detached or semi-detached house within a residential estate or built as a private standalone house, typically most villas will be either 1 or 2 story and come with a private pool and garden area.
Are villa estates managed?
Most villa estates will have some level of management. Services can include the upkeep of common areas (roads, paths, landscaping), security, rubbish removal, pest control, a dedicated villa estate manager. Villa owners will be required to pay a monthly maintenance fee similar to that of a condominium.
Are there any requirements for a foreign individual to purchase a villa in Thailand?
There are very little requirements to buying a villa in Thailand as a foreigner. However a foreigner should remit foreign currency into Thailand when making a purchase.
Can foreigners legally own a villa in Thailand?
Yes, Foreigners can take freehold ownership of a structure in Thailand, however foreigners are not permitted to own land in Thailand. Foreigners may enter into a long lease agreement, commonly known as “Leasehold” to secure the land.
What is the maximum lease term available for leasehold ownership?
The maximum lease period is 30 years with additional 30 year renewals. In most cases developers of villas will offer a total of 90 years ownership (30yrs + 30yrs + 30yrs).
Can a Foreigner own land in Thailand?
Thai law currently prohibits foreigners from owning land freehold. However, there are other ways to acquire legal rights to land.
Leasehold Ownership – The most straightforward way to take ownership of Land is through a long-term lease. Land leases can currently be registered for a maximum period of 30 years with an option for additional renewals. The most common lease terms are 30 years + 30 years + 30 years, giving the foreigner 90 years of ownership.
Thai Company – Registered Thai companies with a majority Thai ownership are able to own land freehold. This form of ownership should be in consultation with a Thai attorney.
Are there any additional running costs to owning a villa?
Yes. Normally this will be in the form of a monthly maintenance fee if the villa is part of a residential estate. All co-owners will have to contribute to the general upkeep and running of the estate. Your fee can either be a set fee or calculated on the total sqm of villa land plot. However the maintenance fees in Phuket are generally collected yearly.
Villa estates may also have a special reserve fund for major repairs and upgrades of the common areas, this is known as a “Sinking Fund Fee”.
Should I appoint a lawyer when purchasing a villa?
Yes. Here at buyphuketcondos.com we would always recommend you to consult with a professional legal adviser even if the purchase seems straightforward. We are happy to recommend reputable law firms to ensure your purchase goes smoothly.
Can I get financing and mortgage for the villa?
As a general rule foreigners would not be able to secure mortgages to purchase villas in Thailand from a Thai bank.
If you have any questions which we haven’t answered above please just let us know…