Driving Thailand's Real Estate into the Future: Insights from the FIABCI-Thai Seminar
INTERNATIONAL AGENT PRO is committed to advancing the Thai real estate market to international standards. As part of this commitment, our founder was honored to attend the recent seminar held by FIABCI-Thai, the International Real Estate Federation, on August 22, 2025. The event, chaired by Mr. Wisarn Techathirawat, Assistant Minister of the Interior, brought together 120 government agencies and private sector leaders to discuss crucial measures for preparing Thailand for foreign property investment.
The seminar served as a vital platform for Thai real estate professionals, including our founder, to collaborate and present a unified voice on the necessary infrastructure to attract and secure foreign investment. The recommendations, formalized in a letter to the Prime Minister, are designed to create a transparent, reliable, and globally-aligned real estate ecosystem.
Here are the ten key recommendations for improving the real estate landscape for foreign investors, which our team fully supports:
1. Establish Universal Taxation: Just as Thais buying property abroad pay taxes, foreign investors in Thailand should contribute to national development through a clear tax framework. Key proposals include a 10% real estate purchase tax, an annual land and building tax (0.5%-1.0%), a 20% capital gains tax on resale profits, and a progressive inheritance tax (10-30%).
2. Mandate the Escrow Account Act: To build confidence and protect all buyers, the existing voluntary Escrow Account system should be made compulsory for all real estate transactions. This will directly safeguard funds and increase transaction volume.
3. Extend Leasehold Terms: To attract large-scale, long-term investors, we propose extending the property leasehold term to 50 years. This adjustment would provide a more viable investment horizon, encouraging significant capital projects
4. Introduce Foreigner-Specific Loans: To stimulate the market, we suggest allowing foreigners to obtain loans for up to 50% of a property’s market value. This would be conditional on a clear and prompt process for property seizure and auction in case of contract breach, mitigating risk for lenders.
5. Professional Licensing for Real Estate Professionals: To protect consumers and ensure high standards, we recommend mandatory licensing for all real estate professionals—including brokers, appraisers, and lawyers—who must be Thai nationals. This would be paired with a requirement for professional liability insurance, offering financial protection against negligence.
6. Prevent Speculation: To protect the interests of local homebuyers, foreigners should be restricted to purchasing one residential unit for personal use, with a minimum price of Baht 12 million (USD 363,636). This measure would also prohibit short-term rentals like Airbnb.
7. Create Standardized Rental Contracts: A government-certified, standardized rental contract, available in multiple languages, would bring clarity and security to the rental market, reducing disputes and building trust.
8. Offer Long-Term Investor Visas: To reward substantial investment, a long-term visa (2 to 10 years, like a Golden Visa) should be considered for investors who bring in at least Baht 30 million (USD 1 million).
9. Enhance Police Enforcement: A centralized database and dedicated agencies are crucial to monitor foreign residents and prevent fraudulent activities such as identity card fraud and the use of nominees. This would ensure a safe and secure environment for legitimate investors.
10. Grant Amnesty for Past Violations: To bring more transactions into the formal system, a temporary amnesty could be granted to those with past violations. This would encourage legal leasing, generate tax revenue, and reduce corruption.
In conclusion, these ten points form the essential infrastructure needed to transform Thailand’s real estate market into a world-class destination for foreign investment. They are a crucial step towards aligning our practices with international standards, ensuring a proud and profitable future for all involved.