Invest in South of Thailand's Property
10+ Years of Expertise in Thailand Real Estate
Decades of Experience in Thailand
More Than Just An Agency
MP Real Estate is a boutique real estate advisory dedicated to discerning buyers seeking exceptional properties and strategic investments in South of Thailand. The agency is led by its founder and principal advisor, MP Real Estate intentionally maintains a boutique structure, originally from France and residing in Thailand for more than 12 years.
With over a decade of experience in the Thai property market, Martin has developed an in-depth understanding of the country’s real estate landscape, from prime beachfront developments to high-value investment opportunities. Over the years, he has built strong relationships with some of the most reputable developers, private investors, and property owners across South of Thailand. These trusted connections allow MP Real Estate to provide clients with access to carefully selected properties and exclusive opportunities that are not always widely available on the open market.
Unlike large real estate companies operating with a high-volume approach, MP Real Estate intentionally maintains a boutique structure. This allows the agency to offer a level of personalized attention, discretion, and strategic guidance that is essential when acquiring property in an international market.
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Frequently Asked Questions About Buying Property in Thailand
Clear answers to common questions from foreign buyers and property investors.
Can foreigners buy real estate in Thailand?
Yes, foreigners can legally purchase real estate in Thailand, though with some important distinctions depending on the property type.
Condominiums are the most straightforward option. Under the Thai Condominium Act, foreigners can own a condo unit outright (freehold) as long as the total foreign ownership in the building does not exceed 49% of the total unit area. This is the most popular and secure route for international buyers.
Villas and houses are a different matter — foreigners cannot own land in Thailand in their personal name. However, there are well-established legal structures to access this market.
Land is where it gets more nuanced — and more interesting for investors. There are two distinct situations you’ll encounter:
Some Thai landowners are not looking to sell at all. Instead, they prefer to lease their land to a foreign investor for 30 years against an annual lease fee, which is generally quite affordable. In return, the investor gains the right to develop the land — building a villa, a rental business, a commercial operation, or any other project. The key advantage here is that the investor owns everything built on the land and is free to sell that business or development in the future, generating a strong return on a relatively modest initial outlay.
It is important to note that lease renewal is not automatic in Thailand. However, there are two legal solutions that can be put in place at the time of signing to give the investor solid protection: a pre-signed renewal agreement and/or a superficies right registered at the Land Department. When properly structured, these mechanisms can secure the investor’s rights for an additional 30-year extension — and in some cases up to 60 or even 90 years in total — ensuring long-term security and the ability to resell with confidence.
Other Thai landowners are genuine sellers. In this case, a foreigner can effectively own the land by setting up a Thai Limited Company with a Thai partner. The critical point is that the company must be structured correctly — with the right legal agreements in place to secure your decision-making power and your ability to exit and resell whenever you choose, without depending on your Thai partner’s cooperation. When done properly, this structure is fully legal and offers excellent protection. It also tends to deliver very strong capital gains, making it one of the most attractive entry points for new investors coming to the Thai market.
MP Real Estate works with trusted local lawyers to ensure every transaction is structured correctly and securely for our clients.
What is a Superficies Right and how does it protect foreign investors in Thailand?
A superficies right (สิทธิเหนือพื้นดิน in Thai) is a legal right established under the Thai Civil and Commercial Code that separates ownership of what is built on a piece of land from ownership of the land itself. In practical terms, it means a foreign investor can legally own any structures, buildings, or developments they construct on someone else’s land — independently and securely.
What makes it particularly powerful is that it is registered directly at the Land Department, making it an official public record rather than just a private agreement between two parties. This distinction is critical: a standard lease is a contractual right tied to the person who signed it. If the Thai landowner passes away or decides to sell the land, a new owner is not always legally bound by that private contract. A superficies right eliminates that risk entirely — because it is attached to the land title itself, it survives any change of ownership and remains fully enforceable regardless of what happens to the original landowner.
A superficies right can be granted for a fixed term of up to 30 years, or for the lifetime of the landowner or the investor. It can also be transferred or inherited, meaning the investor retains the freedom to sell their development or pass it on at any time.
When used in combination with a pre-signed lease renewal agreement, a registered superficies right is the strongest legal protection available to a foreign investor developing land in Thailand on a leasehold basis — providing a total security horizon of 60 to 90 years in the most well-structured deals.
MP Real Estate works with experienced local lawyers to ensure these rights are properly registered and that every investor’s position is fully secured from day one.
Can a foreigner rent out their property in Thailand and generate income — and what figures can they expect?
Yes, absolutely. Rental income is one of the main reasons foreign investors are drawn to the Thai property market, and there are several models to consider depending on the type of property you own.
Condotels — the one-stop investment solution
The most straightforward rental model for investors is the condotel — a condominium development operating under a hotel license. This is essentially a turnkey solution: the property is managed by a professional hospitality operator who handles everything from bookings and guest services to maintenance and revenue distribution. You own the unit, they run it as a hotel room.
Several major international hospitality brands are active in this space in Thailand, including Marriott, Wyndham, Hilton, InterContinental, Pullman, Novotel, Anantara, and Banyan Tree, among others. Their presence brings credibility, global booking reach, and occupancy levels that a private landlord simply cannot match on their own.
Gross rental yields on condotel units in prime locations such as Phuket, Koh Samui, and Koh Phangan typically range between 6% and 10% per year, with some developments offering guaranteed return programs for the first few years. This makes the condotel model the most recommended option for investors whose primary objective is rental income.
Residential condominiums — the mixed-use approach
Some condominium developments are designed primarily for residential living and do not operate under a hotel license. These can still be rented out, but Thai law requires a minimum rental period of one month. Short-term or nightly rentals are not permitted in this category.
This model tends to appeal to buyers who want the best of both worlds — a property they can enjoy personally during their own visits to Thailand, while generating rental income the rest of the year from longer-term tenants such as expats, digital nomads, or seasonal residents. Yields are generally more modest than condotels, but the lifestyle value and flexibility make it an attractive mixed-use investment.
Villas — understanding the hotel license rules
The rules for villas are slightly different and worth understanding clearly before you buy.
A villa with 5 bedrooms or more requires a hotel license to offer rentals of less than one month. Without it, short-term rentals are not legally compliant. However, if you rent the villa for one month or longer, no hotel license is required regardless of the number of bedrooms.
A villa of 4 bedrooms or fewer — even one with a gym, home theatre, office, or multipurpose rooms — does not require a hotel license at all, giving owners full flexibility to rent short or long term without additional licensing constraints.
Importantly, as a villa owner you do not need to handle the hotel license process yourself. When you appoint a professional rental management company to handle your property, they will already hold the necessary license and will simply add your villa to their managed portfolio. The administrative burden sits with them, not with you.
Rental yields on villas vary significantly based on location, size, and finishes, but well-positioned luxury villas in high-demand areas can generate between 8% and 15% gross per year during peak seasons, particularly in Phuket and Koh Samui where villa tourism demand remains strong.
MP Real Estate can connect you with trusted rental management partners and help you identify the right property type based on your income objectives.
Do I need to open a bank account in Thailand to purchase a property?
For a condominium purchase, a Thai bank account is not strictly mandatory. What is essential is the Foreign Exchange Transaction (FET) certificate — and here is why: when buying a condo as a foreigner, one of the legal conditions for foreign freehold ownership is that the purchase funds must originate from overseas and be transferred into Thailand in foreign currency. The FET certificate is the official document that proves this, and it is required by the Land Department at the time of title transfer to complete the ownership registration.
The good news is that you do not need your own Thai bank account to obtain this document. You can transfer the funds directly to the developer or seller, and they will request the FET certificate from their own bank upon receiving the international transfer. The certificate will reflect that the funds came from abroad, which is all that is required to satisfy the Land Department’s conditions for foreign freehold condo ownership.
That said, having a Thai bank account remains highly practical for the long term — covering ongoing expenses such as maintenance fees, utility bills, property management fees, and any costs associated with a Thai company structure if applicable. Opening one is straightforward for foreign nationals at most major Thai banks, typically requiring your passport, a valid visa, and proof of address.
MP Real Estate will guide you through the fund transfer process and documentation requirements as part of our full accompaniment service, ensuring everything is in order before your transfer of ownership.
Can I resell my property in Thailand in the future?
Yes, absolutely — and this is one of the most important aspects to understand and plan for before you buy. Reselling a property in Thailand as a foreign investor is entirely possible, and when the purchase has been structured correctly from the start, the exit process is straightforward.
For condominium owners (freehold), the resale process is the most direct. You sell your unit, the transfer is processed at the Land Department, and you can repatriate your funds overseas. The key document you must keep preciously from the day of your original purchase is your FET certificate (Foreign Exchange Transaction certificate). This is the official proof that your original funds came from overseas. When you resell, it allows you to repatriate up to the amount of your original investment out of Thailand without it being treated as Thai-sourced income. Any profit generated above your original investment can also be transferred, subject to the applicable taxes at the time of transfer.
For leasehold investors, the resale works by transferring the remaining lease rights and the ownership of everything built on the land to a new buyer. Provided the lease and superficies right were properly registered at the Land Department at the time of purchase, this transfer is legally clean and straightforward. The longer the remaining lease term, the stronger your resale position — which is precisely why securing 60 to 90 years of total coverage through proper legal structuring at the point of purchase is so important.
For investors holding property through a Thai company, the exit can be executed either by selling the property itself or by selling the shares of the company — the latter being a common and often tax-efficient approach that experienced investors and their lawyers frequently use to optimize the transaction.
In all cases, working with a qualified local lawyer from the moment of purchase — not just at the point of resale — is what makes the difference between a clean, profitable exit and an unnecessarily complicated one.
MP Real Estate accompanies its clients throughout the full investment lifecycle, from acquisition to exit strategy, ensuring your investment is structured for success from day one.
What taxes and fees apply when reselling a property in Thailand?
Thailand does not have a straightforward flat capital gains tax the way many Western countries do. Instead, several taxes and fees are applied at the Land Department at the time of the ownership transfer. Understanding these in advance allows you to factor them into your investment projections accurately.
- Withholding Tax For individual sellers, withholding tax is calculated on the Land Department’s appraised value of the property — not necessarily the actual sale price — taking into account the number of years the property has been held and the seller’s income tax bracket. It is a progressive calculation: the longer you have held the property, the lower the effective rate. In practice, for most individual sellers this typically works out to between 1% and 3% of the appraised value. For sellers operating through a Thai company, withholding tax is a flat 1% of whichever is higher between the appraised value and the actual sale price.
- Transfer Fee A flat 2% of the appraised value. This is typically split equally between buyer and seller — 1% each — though the exact split is negotiable and can be agreed upon in the sale contract.
- Specific Business Tax (SBT) Applied at 3.3% of the appraised value if the property has been held for less than 5 years. If you have owned the property for more than 5 years, SBT is waived entirely — making the holding period an important factor in your net return calculation.
- Stamp Duty Applied at 0.5% of the appraised value, but only when SBT does not apply. In other words, if you have held the property for more than 5 years and are exempt from SBT, stamp duty of 0.5% replaces it.
The key takeaways for investors:
Holding a property for more than 5 years eliminates the 3.3% Specific Business Tax, significantly improving your net return on exit. The fact that taxes are calculated on the Land Department’s appraised value — which is frequently lower than the actual market price — also means the effective tax burden is often more favourable than it initially appears on paper. Selling through a Thai company structure can offer additional predictability and, in some cases, further optimize the tax position on exit.
It is important to note that tax rates and their application can evolve, and individual circumstances — particularly regarding company structures and the split of fees between parties — can vary. We always recommend verifying the current applicable rates with a qualified Thai lawyer or tax advisor before finalizing your exit projections.
MP Real Estate works with trusted legal and tax professionals and will connect you with the right advisors to ensure your resale is structured as efficiently as possible.