Investing in Patong: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Patong.
Who can buy in Patong
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 Patong.
Stamp duty and registration in Phuket
Stamp duty in Thailand is typically 0.5% of the property's value, applied when Specific Business Tax (SBT) is not applicable (i.e., property held for over five years).
| Property value | Stamp duty | Registration |
|---|---|---|
| All properties | 0.5% of appraised or sale price (whichever is higher) | 2% Transfer Fee (typically split 50/50) |
Phuket rule, applies in Patong.
Capital gains on a sale
Thailand does not have a standalone capital gains tax. Instead, profits from property sales are subject to Personal Income Tax (PIT) for individuals, calculated on a progressive scale after deductions based on ownership duration.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Less than 5 years | Specific Business Tax (SBT) | 3.3% of appraised or sale price (whichever is higher) | N/A |
| 5 years or more | Stamp Duty | 0.5% of appraised or sale price (whichever is higher) | N/A |
| Individual Seller | Withholding Tax (PIT) | Progressive (0-35%) after deductions based on years of ownership | Deductions apply |
| Company Seller | Withholding Tax (Corporate Income Tax) | 1% of higher of appraised or sale price | N/A |
Thailand rule, applies in Patong.
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 Patong
Yes. Condo units only; within 49% building foreign quota
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