Thailand real estate terms I
Letter I covers inheritance and the tax difference between individual and corporate sellers. Expats who own condos in Bangkok or Phuket need Thai estate planning. Buyers acquiring from developers or resale owners encounter seller-type tax rules at Land Office transfer.
For broader context see our property hub and the full real estate glossary.
Foreign wills are not automatically recognised for Thai assets without probate.
Civil and Commercial Code governs succession without valid will.
Companies pay flat withholding on registered value at transfer.
Withholding tax uses assessment value brackets, not flat 1%.
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Terms starting with I
Inheritance
When a property owner dies without a valid Thai will, intestate succession rules in the Civil and Commercial Code determine who inherits and in what shares. Spouse, descendants, and ascendants may all have statutory entitlements. Foreign heirs face additional steps including probate court orders and embassy document legalisation.
Condominium units can pass to foreign heirs if the building foreign quota permits. Land inheritance by foreigners is heavily restricted under the Land Code. Expats who own Thai property should execute a Thai will and keep title deeds accessible. Registration occurs at the Department of Lands after probate.
Individual vs corporate seller
Tax treatment at transfer differs based on whether the seller is a natural person or a juristic person. Individual sellers pay progressive withholding tax calculated from government assessment value and holding period. Corporate sellers pay 1% withholding on registered value, with separate corporate income tax implications.
Buyers negotiating with developer subsidiaries or corporate landlords should request entity documents early. Your lawyer confirms who has authority to sign and how withholding is calculated. See letter P glossary page for progressive rate detail.
Seller type and withholding tax
Transfer day tax worksheets list seller withholding obligations. Understanding seller type helps you negotiate who bears which costs in the sale and purchase agreement.
| Seller type | Typical withholding |
|---|---|
| Individual Thai national | Progressive withholding based on government assessment value and holding period |
| Thai company | 1% withholding on registered value plus corporate income tax considerations |
| Foreign individual seller | Same progressive framework; confirm FET and remittance documentation |
Inheritance planning checklist for expats
If you own or plan to buy Thai property, address succession before transfer day, not after a health emergency. These steps reduce probate delays for your heirs.
- Execute a Thai will covering condominium units, leasehold rights, and personal property in Thailand
- Name an executor familiar with Thai probate court procedure
- Keep title deeds, FET forms, and purchase contracts accessible to heirs
- Understand statutory heir classes under Civil and Commercial Code Book VI
- Plan for foreign heirs who may need embassy legalisation and court orders to transfer title
Legal context for foreign buyers
Inheritance law and transfer tax law intersect when estates sell property or heirs take title. Foreign buyers purchasing from executors need court orders proving authority. Corporate sales from developer SPVs require entity due diligence separate from individual resale checks.
Property ownership does not replace visa planning. Heirs who inherit a condo still need valid immigration status to reside long term. Coordinate estate, property, and visa counsel through our property hub.
Common mistakes foreigners make
- Relying on a home-country will without Thai probate for condo units registered in Thailand.
- Assuming spouse automatically inherits full ownership. Statutory shares may apply to children and parents.
- Buying from a corporate seller without verifying company good standing and authorised signatory.
- Ignoring higher withholding when seller is a company compared to long-held individual resale.
- Delaying estate planning until health crisis. Probate without will takes years in Thai courts.
Frequently asked questions
General answers for expats reading letter I terms in probate and transfer contexts. This is orientation, not legal advice for your specific estate or transaction.
Q:Can foreign heirs inherit Thai property?
Foreign heirs may inherit condominium units within foreign quota limits under the Condominium Act. Land inheritance faces restrictions. Probate court orders and Land Department registration are required. Plan with a licensed Thai estate lawyer early.
Q:What happens without a Thai will?
Intestate succession rules in the Civil and Commercial Code determine heirs and shares. Spouse, children, and parents may all have statutory entitlements. The process is slower and more contentious than probate with a valid will.
Q:How does individual seller tax differ from corporate?
Individual sellers pay progressive withholding tax based on government assessment value and how long they held the property. Corporate sellers pay 1% withholding on registered value. Total tax burden depends on entity structure and holding period.
Q:Should I verify corporate seller documents?
Yes. Request company affidavit, authorised director list, shareholder structure, and board resolution approving the sale. Your lawyer confirms signatory authority before deposit payment.
Q:Does inheritance affect foreign condo quota?
If a foreign heir inherits a condo, the unit must remain within the 49% foreign quota of the building. Land Department and juristic person confirm eligibility before transfer to non-Thai heirs.
Q:Can I buy property from an estate before probate completes?
Executors may sell with court approval in some cases. Buyers need clear chain of title and court order or probate certificate. Never pay full price without lawyer verification of seller authority.
Q:Do I need separate wills for Thailand and home country?
Many expats maintain a Thai will for local assets and a home-country will for overseas assets. Coordinate both with estate counsel to avoid conflicting dispositions.
Q:Where can I read more Thailand property terms?
Browse our full A to Z glossary index and property hub for related guides on title deeds, transfer taxes, and due diligence. Start at glossary hub and property hub.