Common Mistakes to Avoid When Buying Property in Thailand

Published on September 30, 2025 and written by Cyril Jarnias

Purchasing real estate in Thailand can be an excellent investment opportunity for foreigners. However, many inexperienced buyers make mistakes that can prove costly. In this article, we will examine the main pitfalls to avoid when acquiring property in this Southeast Asian country.

Not Researching Local Legislation Enough

One of the most common mistakes is failing to take the time to properly understand Thai real estate laws. Legislation in this area is complex and contains many restrictions for foreigners.

In Thailand, non-citizens cannot directly own land. However, they can purchase condominium units in condominium buildings, provided the total number of units owned by foreigners does not exceed 49% of the building’s total area. To acquire a house, one must use legal structures such as establishing a Thai company.

Not mastering these legal subtleties can lead to risky or illegal investments. Therefore, it is crucial to research thoroughly beforehand, ideally by consulting with a specialized lawyer.

Underestimating the Importance of Location

As everywhere in the world, location is an essential criterion in Thai real estate. Yet, many foreign buyers are tempted by cheap properties in unattractive areas.

Choosing a poor location can have disastrous consequences on the value and profitability of your investment. The most sought-after areas like Bangkok, Phuket, or Pattaya generally offer better prospects for appreciation and rental income.

It is important to thoroughly study the neighborhood, surrounding infrastructure, accessibility, and future development projects before making a decision. An on-site visit is essential to get an accurate sense of the environment.

Neglecting Due Diligence

Too many rushed buyers neglect essential preliminary checks before any real estate transaction. This negligence can lead to unpleasant surprises after the purchase.

• Verifying the property title and history of the property
• Examining building permits and other authorizations
• Technical inspection of the building
• Checking for any debts or disputes related to the property

These checks may seem tedious but they are essential to avoid bad surprises. Don’t hesitate to enlist professionals (lawyer, real estate expert) to assist you in this process.

Relying Solely on the Listed Price

Many foreign buyers are attracted by prices that seem appealing compared to those in their home countries. This is a mistake that can lead to poor investment decisions.

It is essential to have a comprehensive view of the local real estate market and compare prices per square meter in the target area. Don’t hesitate to visit several similar properties to get an accurate idea of the going rates.

Furthermore, keep in mind that the listed price is often just a starting point for negotiation in Thailand. It is common to get a discount, especially if you pay in cash.

Underestimating Additional Costs

Buying real estate in Thailand involves many additional costs that buyers tend to underestimate.

• Property transfer fees (approximately 6.3% of the purchase price)
• Lawyer and notary fees
• Condominium fees for apartments
• Annual property taxes
• Maintenance and renovation costs

It is crucial to include these expenses in your overall budget to avoid unpleasant surprises. Also, remember to set aside a margin for unexpected costs.

Neglecting Tax Aspects

The tax implications of buying and holding real estate in Thailand are often misunderstood by foreign investors. This neglect can have significant financial consequences.

• Capital gains tax upon resale
• Annual land and building tax
• Taxation of rental income

Additionally, you must also consider the tax implications in your home country. Some countries tax their citizens on worldwide income, including foreign real estate income.

Rushing into Off-Plan Purchases

Buying off-plan is common in Thailand, especially for new condominium complexes. Although this option can offer attractive prices, it also carries significant risks.

• Risk of developer bankruptcy before project completion
• Significant delays in delivery
• Differences between the promised property and the final result

If you opt for an off-plan purchase, make sure to thoroughly check the developer’s reputation and financial stability. Carefully examine the contract and the guarantees offered. Don’t hesitate to enlist a lawyer to assist you in this process.

Ignoring Cultural Specificities

Finally, a common mistake is failing to consider cultural differences when buying property in Thailand. The way of negotiating, doing business, and communicating can be very different from what you’re used to in your home country.

It is important to be patient, respectful, and diplomatic in your interactions. Thais place great importance on personal relationships and the concept of “saving face.” A too direct or aggressive approach can be counterproductive.

Don’t hesitate to use a trusted local intermediary to assist you in your dealings. This can greatly facilitate negotiations and help you avoid cultural misunderstandings.

In conclusion, buying real estate in Thailand can be an excellent investment opportunity, provided you are well-prepared and avoid common pitfalls. A good understanding of the local market, thorough due diligence, and professional assistance are essential to succeed in your real estate project in this fascinating country.