How to make money on property in Thailand

Property in Thailand is a great place to live. Unique nature, sea, warmth and high level of tourist service make the purchase of apartments or villas in this exotic country and profitable investment of funds.

According to experts , the leasing of Thai property can bring 7-15% of its market value per year. Thus, to recoup your investment in ten years. And that's adjusted for inflation. In the cities of Russia, except St. Petersburg and Moscow, this takes much more time.

• What property to acquire, as quickly as possible to recoup the investment?

To earn more money, it is better to invest in apartments at the initial stage of construction in a promising area. After the object is commissioned, it is possible to achieve margins of 30-40% of the original cost per year. However, such a purchase should be made only with the help of professionals. Thailand-foreign country and the risk to trust money to an unscrupulous Builder there is even higher than in Russia.

• How to rent property to rent?

If You plan to permanently reside in Thailand, all the organizational issues associated with the delivery of real estate rentals You can decide on your own. Especially if housing is located in one of the so-called "Russian" areas.

You first need to decide which type of rent are you interested in short-term or long-term. If properly managed, short term rentals can bring in more money, but it requires constant effort. In the long termfell any term yield is slightly lower, however, costs time, effort and money for the owner of the property is minimal.

If You do not reside in Thailand all year round, then trust commercial leases is desirable, the special Agency. However, keep in mind that realtors charge a Commission for their services. As a rule, it is 10-15% of the amount of rent. Note that guarantees that the project will be completed, no Agency will. However, demand for property in Thailand is much higher than supply, so be sure that your money will anywhere.

• Do I have to pay tax on rental income?

The Thai taxation system is rather convoluted. The tax base is 70% of the revenue minus the 30 thousand baht. In this case, the tax rate is progressive:

• the taxable amount below 150 thousand baht is not subject to taxation.
• if the amount is 150-500 thousand baht the rate is 10%.
• if the amount from five hundred thousand to one million baht – 20%
• from one to four million – 30%
• four million – 37%

The trick is in what one sum taxes at different rates. We illustrate with an example.
Suppose You have a few apartments and rent them out, getting an income of one million baht per year. In this case, the taxable amount will be 70% minus 30 thousand. That is 670 thousand baht. The first 150 thousand are not taxed. For the next 350 thousand spread rate of 10%. And the remaining 170 thousand fall under 20% tax.

The Thai taxation system is quite confusing, but in practice it is easy to understand.

• What costs are borne by the owner of the property?

The housing in Thailand not more expensive, than in Russia. The size of payments varies greatly depending on the region and provided amenities.

• Insights>

If you expect periodically to have a rest in Thailand, the specific need in buying a home there. Relaxation is more than enough rent. But if the property interests you as a potential source of income offers something similar to Thai, the world is not enough. Without revenue you will not remain! Yet here you can buy an apartment at reasonable prices in a resort location. However, it is possible that in 5-10 years all properties in promising areas will be sold out. So if you are interested in buying property in Thailand act now!