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15-05-2017

Investing in Thailand for Foreigners

It’s no use keeping your savings in a piggy bank or under the pillow. Instead, money should bring you new experiences, satisfaction, value and, well, more profit. Investment is one of the ways to reach all that, and investing in Thailand is a perfect option for foreigners. Learn how you can make your money work for your advantage by investing in Thailand. Find out latest investment trends and overview of real estate investment in Thailand.

Foreign Investment in Thailand: Key Figures

According to the World Bank data, Thailand is an ideal example of social and economic development success. Though the economic growth boom is already over, the results of what’s been achieved by the country during the second half of the 20th century are very impressive. Currently, Thailand is aimed at long-term progress, and the GDP growth has slowed down to 3.4% annually. And one of the main reasons why after becoming an upper-middle income country the Thai economy continues to develop successfully is steady inflow of foreign investment over the last decade, making it one of the top investment destinations in South-East Asia.

Foreign Direct Investment Inflow in Thailand, 2010–2016

Year

2010

2011

2012

2013

2014

2015

2016

FDI Inflow, bn USD

14.6

3.2

16.5

16.7

3.5

10.8

10.3

Source: UNCTAD

According to the Board of Investment of Thailand, in 2016 the number of foreign investment projects in Thailand totalled 790 accounting for $6.27 billion.

The countries that invested the most were the following:

  • Japan;
  • China;
  • South Korea.
  • the Netherlands;
  • USA;
  • Singapore;
  • Cayman Islands;
  • Hong Kong;
  • Malaysia;
  • Taiwan;
  • Switzerland;
  • United Kingdom.

The main targeted sectors were the following:

  • digital;
  • electrical and electronics;
  • petrochemicals;
  • automotive;
  • agroprocessing;
  • medical;
  • automation and robotics;
  • aerospace;
  • tourism;
  • textile and garment.

Reasons to consider investing in Thailand for foreigners

In order to attract foreign investors, the government has introduced the Investment Promotion Act. According to this legislative document, the investor will be granted a number of incentives. Particularly, investors will be able to take advantage of numerous tax reductions, and besides that, a permit to own land in the country, bring in business professionals and skilled workers. To check out the full list and learn the requirements applicants should meet, please visit the official website of the Board of Investment.

Real Estate Investment in Thailand

Real estate was and remains one of the most promising areas for foreign investors. And you don’t have to search long for reasons – the climate, nature, exotic culture, and the tolerant and kind locals make the country an extremely appealing destination for tourists from around the world. In 2016, Thailand has made it to the top 10 most visited countries in the world, and Bangkok is the most visited city in the world with over 21 mln tourists last year, according to Global Destination Cities Index by Mastercard. It is most likely that the situation will develop in the same way for a long time, with more and more locations becoming discovered by visitors.

This has caused a boom in construction and housing sectors, and a lot of property is currently bought by foreigners. Some buy a villa, house or condo for retirement, others as a vacation house, and some for rental income. The most popular areas where foreigners prefer to buy real estate include Bangkok, Chiang Mai, Hua Hin, Pattaya and Phuket. In one of our previous articles, we compared residential real estate prices in some of Thailand regions, and so you know that property prices are very affordable here. And out of all property options, condominiums are very popular .

Reasons to invest in condominiums in Thailand

  • Foreigners can purchase a condo in their own name.
  • The condominium is owned under the strata title, meaning that ownership of all common areas is split between all buyers while living units ownership is individual. As a buyer, you’ll be able to use the title deed as collateral.
  • Maintenance fees are comparatively low.
  • Condos are a lot more cheaper than houses. Consequently, they are easier to rent out and resale.
  • Owners of Phuket-based condominiums can expect 5 to 8 % rental income, making residential real estate investment in Thailand very appealing for foreigners.

Hey, easy, there are enough condos for everybody! But one should very careful when buying real estate, as there are a lot of pitfalls you’d better take care to learn about beforehand. Keep an eye on our blog for more articles on buying residential property in Phuket.

Property investment options in Thailand: Seventh Sky

Psst, here is a tip for those who are thinking of investing in real estate in Thailand – Seventh Sky Condos are already available for sale.

Let us remind you about the main features:

  • Three types of apartments offered, ranging from 33.67 to 88.73 sq.m. And there is a 10% discount available for investors who wish to buy two adjoining apartments and merge them into a duplex or just a really large flat.
  • Lots of amenities, from swimming pools and a gym to restaurant and 24/7 concierge desk.
  • Construction works will be over in March 2019, which means that you have a chance to buy a condo at a very affordable price now and choose a residential unit to your taste.
  • If you’re not going to stay in Phuket all year round, you can rent your condo out for the rest months. The guaranteed rental income for your condo is 8% annually.

Got interested? Browse the website to get more details about Seventh Sky condos.

Investing in thailand for foreigners