THAILAND. Phuket

 

Residence Permit / Citizenship through Real Estate Purchase

Purchasing real estate does not grant a residence permit or citizenship. However, the following visa programs exist:

Elite Visa (Thailand Privilege): starting from 25,000 USD for 5 years of residence.

Long-Term Resident (LTR) Visa for 10 years for investors and professionals (with investments from 500,000 USD, including real estate).

Language

The official language is Thai. In tourist and investment areas (Phuket, Pattaya, Bangkok), English is widely spoken. Russian is encountered on an everyday level in tourist areas.

Visa Regime

Thailand's visa regime depends on nationality, with many visitors eligible for visa-exempt entry for short-term tourism. For others, visas are required, such as a Single-Entry or Multiple-Entry Tourist Visa, which allows an initial 60-day stay that can be extended. Regardless of your visa status, all foreign nationals must complete a digital arrival card online within three days before arrival, effective May 1, 2025. 

Standard of Living (2025)

According to the Numbeo Quality of Life Index 2025, Thailand holds a medium position among developing countries.

Bangkok — a modern metropolis with developed hospitals, schools, and logistics, but with congestion and pollution.

Phuket and Pattaya — more comfortable for living, especially by the sea, but have limited infrastructure outside tourist zones.

Cost of living — lower than in Europe and the UAE (by approximately 30–50%).

Economy. Currency

Thai Baht (THB) — a stable currency of Southeast Asia. In 2024, it weakened by 5–6% against the dollar but remains within a predictable range. The Central Bank controls the exchange rate and inflation.

Inflation in 2024 — 2.3%, expected to be 2.5–3% in 2025 — one of the lowest rates among developing countries in the region.

Thailand's GDP Growth: 2.5% in 2023, 3.1% in 2024, forecast for 2025 — 3.5–3.8%. Growth drivers — tourism, exports, domestic consumption (data from IMF and Bank of Thailand).

Tourism: in 2024, the country was visited by 28+ million tourists, with 30–32 million expected in 2025. This ensures stable demand for rentals, especially in Phuket and Pattaya.

Real Estate: the market is valued at 110+ billion USD, its share in GDP is about 8%. Prices in Pattaya and Phuket have increased by 20–35% since 2021, especially in the villa and premium condo segments.

In 2024, transactions with foreigners increased by 42% compared to 2022. The main interest was in properties for rent and off-plan projects with guaranteed yield.

In 2025, the market will stabilize. Moderate price growth and sustained demand in resort locations are expected. Local overheating is observed in the segment of ocean-view villas and projects with "aggressive" marketing in Pattaya.

Purchase, Ownership, Rental, and Sale of Real Estate in Thailand: Taxes and Fees

Property Rights:

• Condominium Freehold — full ownership rights (up to 49% of a building's area can be owned by foreigners)
• Leasehold — 30-year lease with possible renewal up to 90 years (standard for villas and houses)
• Transfer Fee (Registration Fee): 2% of the cadastral value (usually split 50/50)
• Specific Business Tax (SBT) (Tax on Commercial Resale): 3.3% — if the sale occurs within 5 years of purchase

Annual Property Tax:

• Residential: 0.02–0.10% of the cadastral value
• Rental or Business Use: 0.3–0.7%

Rental Income Tax: Progressive scale: 5–35%. Expenses and depreciation can be deducted. Increased control over illegal rentals (especially in tourist areas)

Stamp Duty: 0.5% (if VAT is not applied)

Tax upon Sale: On average, a total of 3–7% (Withholding Tax, SBT and/or Stamp Duty)

Withholding Tax: 1% (if the seller is a legal entity). On a scale (if an individual, depends on the ownership period).

Thailand. Summary

Thailand remains one of the most profitable and accessible resort markets in Asia, especially for investors focused on short-term rentals. It combines high yield, a low entry threshold, and global tourist demand but requires legal precision and careful selection of a developer.

Despite all its attractiveness, the market remains structurally unstable: weak control over developers, leasehold restrictions, the absence of a unified property register, and legal intricacies of owning villas. This does not prevent one from earning but requires maturity and experience.

ROI (gross):

• 8–10% average yield in short-term rentals (Pattaya, Phuket)
• 10–12% and higher for a well-located villa with professional management and marketing

Risk:

Medium. The main risks are legal (leasehold, documentation), market-related (dependence on tourism), and reputational (developers).

For an experienced investor, it is a manageable risk, especially in partnership with a reliable management company.

Taxes:

• Upon Purchase: 3–6% (registration, fees, SBT)
• On Ownership: 0.02–0.10% for personal use, 0.3–0.7% — for rental or commercial use
• On Rental Income: up to 35% (via the progressive Personal Income Tax scale)
• Upon Sale: up to 3–7%, especially within the first 5 years.

 

GLOBAL PROPERTY INVEST