Chiang Mai, a large city in Thailand's north, is renowned for its breathtaking landscapes, extensive cultural heritage, and inviting climate. It has consistently captivated both tourists and business investors. This city presents a lucrative opportunity for foreigners, whether they seek an ideal living destination or are scouting for promising real estate investments.
Nonetheless, non-residents face specific regulations and restrictions when purchasing real estate in Chiang Mai. These stipulations can differ based on the property type. Continue reading to discover if foreigners can acquire real estate in Chiang Mai and to understand the various nuances associated with property ownership.
Benefits of Buying Real Estate in Chiang Mai
- Affordability. Real estate in Chiang Mai is cheaper compared to other regions of Thailand, making the city attractive for investors and expats.
- Favourable location. Chiang Mai is located in the northern part of Thailand and features a unique combination of natural beauty and modern lifestyle. The region is known for its culture, nature, and plenty of recreational opportunities. Popular attractions include the Wat Chedi Luang Buddhist temple, where you can have a chat with monks, and the bustling night market with food and souvenirs.
- Potential for increased value. In recent years, property in Chiang Mai has experienced a notable increase in value, making it increasingly appealing to investors seeking capital appreciation.
- Safety and comfort. Numerous condos in the area offer a high level of comfort and amenities, including swimming pools, fitness centres, and advanced security systems.
- Quality of life. Chiang Mai provides more comfortable living conditions compared to other regions in Thailand, boasting greater safety, a pleasant climate, and minimal traffic congestion.
- Tax benefits. In Chiang Mai, as in the rest of Thailand, annual property taxes are not required. This is beneficial for investors, as it eliminates the need to account for additional expenses related to property ownership.
- Wide range of real estate. Chiang Mai boasts a sufficient number of existing houses as well as new developments, simplifying the process of searching for and selecting real estate.
Types of Real Estate Available for Foreigners
Chiang Mai presents a diverse array of housing options, appealing to both investors and expatriates. Yet, it's important to note that not all property types are available for foreign ownership. Below are two principal options that are definitely accessible to non-residents:
- Condominium apartments are the most affordable and sought-after real estate option for foreigners in Thailand. As per Thai law, foreigners are permitted to own apartments in condominiums only if Thai citizens hold ownership of 51% or more of the total area. Consequently, foreigners can occupy no more than 49% of the units in any given condominium complex.
- Townhouses and one-storey houses. A foreigner has the option to register houses under the name of a Thai legal entity, either as a shareholder or investor. However, it's imperative that Thai citizens hold at least 51% of the company's shares. Failing this, the property acquired by the company will not include the land on which it is situated. Additionally, it's worth noting that the Thai Ministry of Interior frequently scrutinises such transactions. Therefore, in the event of an audit, one must be prepared to verify the origins of their funds.
Foreigners also have the option of entering into long-term leases, lasting up to 30 years, with the potential for extension. This allows them to move into apartments, which are frequently situated in central city areas, conveniently close to shops and a variety of entertainment options. However, this option is ideal if your sole intent is accommodation.
Chiang Mai. Photo: billow926 (Unsplash)
Condos for Foreigners to Consider
For foreigners, purchasing a condo in Chiang Mai is the most straightforward method of acquiring property. Below are some of the completed complexes that are particularly popular among foreign buyers:
- Na Tara Exclusive Residences, situated in the scenic Lakeland area of Chiang Mai, boasts a contemporary architectural design. The complex provides comfortable living in a luxurious setting. Its name, 'Na Tara,' translates to 'by the water' in Thai, aptly referencing its idyllic lakeside location.
- Peaks Garden Condominium, completed in January 2008, is nestled in a tranquil area, close to the Chang Khlan sub-district. It is renowned for its high-quality service and amenities. The condominium features kitchens designed in a European style, fully equipped for those who favour a Western approach to interior design and ready-to-use amenities. Additional advantages include round-the-clock security, a fitness centre, and a swimming pool.
- Twin Peaks Condominium closely mirrors the design of Twin Peaks Residence in Bangkok. This Chiang Mai complex boasts a contemporary Japanese-inspired design. Despite being over a decade old, Twin Peaks is renowned for its exceptional maintenance, standing out as one of the city's best-kept properties.
- Chiang Mai Riverside Condominium, constructed in 1993, stands as one of the city's most venerable residential buildings. While it has weathered a lengthy history and faced challenges, the complex continues to attract a substantial international community. This popularity owes much to its dedicated staff, welcoming community atmosphere, and its prime location.
- Baan Suan Greenery Hill Condominium, the fifth residential endeavour by the local developer Karnkanok, was established in January 2009. The condominium complex is noted for its excellent maintenance and continues to be a favoured choice among expatriates.
- Siri Condominium is a seven-story building showcasing modern Lanna style, a design highly favoured in Northern Thailand. Situated in a tranquil neighbourhood, the condo enjoys proximity to the vibrant Nimman area, offering a perfect blend of peace and accessibility.
- Mountain Front Condominium is an esteemed residential complex situated near Chiang Mai National Park. Developed by Quality Condo Company, it epitomises luxury and effortless living, enveloped in an air of exclusivity. Nestled in a tranquil area, the complex stands apart from the urban bustle, offering serene living spaces.
- Peaks Avenue Condominium, acclaimed as the Best Residential Development in Chiang Mai at the Thailand Property Awards, represents the developer's vision of an ideal urban residence. Offering premium accommodations, it stands prominently in the city's heart, exemplifying top-tier urban living.
- Sky Breeze Condo, constructed in December 1994, is a prominent fixture in the Suthep area. This 11-floor building houses 130 apartments. Residents enjoy a range of amenities, including a chic lobby, swimming pool, garden, parking facilities, and round-the-clock CCTV security. Its convenient location offers easy access to nearby shops and restaurants, with the airport just a 10-minute drive away.
- Galare Thong Tower. This 15-storey condo is very popular among expats and foreign investors. It is located in the Chang Khlan area, just a 15-minute walk from the night market. Flats range from studios to two-bedroom flats.
- The Embassy House Condominium. This condominium boasts 36 spacious apartments, ensuring ample space and limited neighbours on each floor. Numerous apartments feature private balconies with scenic views of the city and the Ping River. Key benefits include round-the-clock security and video surveillance, both indoor and outdoor parking facilities, a meticulously maintained tropical garden, and an inviting swimming pool.
How to Buy Real Estate?
Buying property in Chiang Mai is a process that requires attention to detail and compliance with local laws. Here is a step-by-step guide for a foreigner buying property in Chiang Mai:
- Select the type of real estate and specific property that aligns with your requirements and budget. Explore various options, including condos and houses, especially if you're an investor or a shareholder in a related legal entity. When considering a condo, ensure that less than 49% of the units are occupied by foreigners. For accurate information, reach out to the management company or the property developer directly.
- Draft a preliminary agreement that meticulously documents all aspects of the transaction. This should include the price, terms, identities of the involved parties, penalty clauses, dispute resolution procedures, and any other critical provisions.
- Consider an optional legal review. Engage a lawyer who can verify the legal standing of the property and scrutinise all pertinent documents. While this step is not mandatory, it significantly reduces risks, ensuring a safer and more transparent transaction.
- Proceed with the transaction. After thorough checks and resolving all legal matters, move forward to drafting the final contract. This document should clearly outline the rights and responsibilities of both the seller and the buyer. At this stage, the complete payment for the property is also required.
- Pay the tax for the transfer of ownership, which amounts to 2% of the property's value. This tax is payable on the day the title is transferred at the Land Department.
- Acquire the property deed. After completing all required formalities and settling the necessary fees, the Land Department will issue a document affirming your ownership of the property. This deed details the property's location, floor area, and layout, including dimensions such as width, length, and height, along with the owner's name.
In a Nutshell
Chiang Mai is an attractive destination for investors and expatriates, largely thanks to its affordable housing and superior quality of life compared to other parts of Thailand. Nonetheless, purchasing real estate in this region presents more complexities than may initially appear.
You have the option to purchase an apartment in a condominium or register a house under a Thai legal entity. However, it's essential that at least 51% of the condo's occupants are Thai nationals. This rule also extends to legal entities, where 51% of the shareholders and investors must be Thai citizens. Adhering to this requirement is crucial for acquiring both a house and the land it occupies. Exercise due diligence in your purchase, adhere to all steps and procedures, and your transaction should proceed smoothly.
Cover photo: Chiang Mai, Alex Ware (Unsplash)
