This investment assures a high, secure return. Our briefing is designed to guide you through this financially rewarding venture.
Phuket, a globally popular tourist spot, is recognized for its captivating landscapes, warm climate, and stunning beaches. Its strategic location, complete with harbors accessing nearby islands, makes it an ideal property investment location. Tourist attractions in Phuket include diverse restaurants, terraces, large shopping malls, and activities such as diving and snorkeling, offering something for everyone and enhancing its appeal as a premier destination. Since Thailand legalized cannabis, Phuket has drawn global attention with its numerous dispensaries and grow shops, attracting over 3 million visitors annually who come to enjoy its natural beauty and amenities.
Phuket's cultural richness, marked by numerous ancient Buddhist temples, welcoming nature of its majority Buddhist population, and peaceful, stable environment make it appealing to a broad audience. This attractiveness fosters a multicultural environment with English-speaking locals, advantageous for foreign business. A low cost of living and high purchasing power for foreigners, along with a family-friendly ambiance characterized by numerous activities for children, further enhance Phuket's allure.
Thai laws encourage foreign investment, and with Phuket's robust economy and high per capita income, it's a prime investment destination. The region's tourism surged by 80% between 2021 and 2022, with revenue reaching 119 billion baht, reflecting the renewed appeal of its real estate. Thailand's relaxing environment, exquisite landscapes, and easy access retirement visas make it an attractive choice for those seeking a retirement haven.
The Real Estate Information Center reported a substantial increase in Phuket villa sales from 34 units in 2021 to 149 in 2022. The share of units transferred to foreigners rose to 32.4% in 2022, with late 2022 condo sales surpassing pre-COVID levels by 30%. This upward trend, fueled by the tourism sector's recovery and heightened demand from high-value tourists and investors, is predicted to sustain over the next two years.
Thailand's property market, bolstered by a healthy, export-oriented economy and surging tourism, presents a promising investment avenue today. Consistent economic growth creates an advantageous environment for long-term returns on property investments. With favorable real estate laws for foreigners, profitable taxation, and high-quality construction, the Thai market offers attractive price-performance ratio. These factors, coupled with strong rental yields set by developers, solidify Thailand's position for successful rental investments.
Questions and fears preventing you from confidently embarking on a project to buy a condo in Phuket? Let us help you find the right solution to the problems you may face.
These investments often come with a developer buyback guarantee, ensuring the return of your initial capital. Moreover, if the rental income is transferred to a Thai bank account, it's taxed at a 0% rate.
New developments in Thailand offer attractive annual rental returns ranging from 4%-9% for 3 to 10 years, net of charges and based on the property's initial value. These investments often come with a developer buyback guarantee, ensuring the return of your initial capital. Moreover, if the rental income is transferred to a Thai bank account, it's taxed at a 0% rate.
Knight Frank Thailand, established in 1998 and headquartered in Bangkok and Phuket, is a leading property service in the country. Combining expertise with digital-led customer solutions and a personalized approach, Knight Frank offers market-leading advice, services, and transaction support to clients.
Juslaws and Consult Co., a law firm wholly owned by Mr. Yuthana Promsin, proposes the formation of a purchase company to ease the property acquisition process.
This company, required to be majority-owned by a Thai national, will be established jointly by you and Juslaws, with ownership distributed as 49% to the investor and 51% to Juslaws. The co-directors will be the investor and Mr. Promsin.
Mr. Yuthana Promsin, a Thai lawyer with 25 years of experience, is a respected member of the Bar Council of Thailand and the Thai Bar Association. As the owner and managing director of Juslaws and Consult Co, Ltd., he has assisted over 300 clients with property purchases in Thailand, earning an outstanding reputation in the Thai legal community.
Juslaws will hire a reliable contractor for unit renovation. Upon completion, Juslaws will leverage its real estate agent network to rent out or market the unit, based on the investor's preference. Any capital gain from the sale will be equally shared between the parties, and foreign investors are not subjected to capital gains tax in Thailand.
If an appealing offer emerges within the first five years, Juslaws reserves the right to sell the property and will compensate the investor up to THB 5,000 should a sale occur during this period.
To finalize the real estate project, we propose signing an investment contract with Juslaws, Mr. Yuthana Promsin, and the purchasing company. Juslaws will accept the client's investment, enabling the purchasing company to buy the condominium unit under the Thai quota. The sale and purchase agreement outlines all responsibilities for both parties, including payment schedule, property price, transfer date, property specifications, transfer fees and taxes, warranties, and due diligence requirements.
Juslaws offers a five-year rental guarantee with an annual return of 4-9%, ensuring an investment return proportionate to the property purchase price.
