Investing in Karon: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Karon.
Who can buy in Karon
Under Thailand's Condominium Act 1979, foreigners can own condo units freehold provided total foreign ownership in a building does not exceed 49% of floor area. Foreigners cannot own land. A Foreign Exchange Transaction (FET) form proving foreign currency inflow is required.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Thai Citizen | Yes | Freehold | UnrestrictedApproval: Land registry |
| Foreign National (condo within 49% quota) | Yes | Freehold | Condo units only; within 49% building foreign quotaApproval: FET form + Land Office registration |
| Foreign National (land or quota full) | Conditional | Leasehold | Leasehold up to 30 years renewable; no direct land ownershipApproval: Land Office registration |
Thailand rule, applies in Karon.
Stamp duty and registration in Phuket
Stamp duty is a tax levied on property transfers in Thailand. The rate is typically a percentage of the property's assessed value and is paid at the time of registration.
| Property value | Stamp duty | Registration |
|---|---|---|
| Property Value | 2% (typically split between buyer and seller) | 1% (transfer fee) |
Phuket rule, applies in Karon.
Capital gains on a sale
Capital gains tax in Thailand applies to profits from the sale of property. The tax rate and calculation method depend on various factors, including the holding period and the seller's status.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Less than 1 year | Taxed as ordinary income | Progressive income tax rates (0-35%) | Not applicable |
| More than 1 year | Capital Gains | Progressive income tax rates (0-35%) | Deductions allowed for certain expenses |
Thailand rule, applies in Karon.
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
Frequently asked questions about Karon
Yes. Condo units only; within 49% building foreign quota
Buying or selling in Karon?
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