Thailand has announced a reduction of the government fees for registering sale and mortgage of certain types of immovable property or condominium units in 2023. The reductions were detailed in two notifications issued by the Ministry of Interior dated December 26, 2022, and published in the Government Gazette on January 3, 2023. These two notifications, which will remain in effect through December 31, 2023, are part of the government’s efforts to strengthen the real estate business sector and encourage property ownership. They set government fees for registration of sale and mortgage of immovable property or condominium units as follows: Sale of immovable property or condominium unit: 1% of the officially assessed value (reduced from 2%) Mortgage of immovable property or condominium unit: 0.01% of the mortgage amount (reduced from 1%) The above reduced rates apply only to the sale and mortgage to Thai individuals of detached houses, semidetached houses, row houses, commercial buildings, and the land surrounding these buildings, as well as of condominium units. The property sale price, officially assessed value, and mortgage amount each must not exceed THB 3 million (approximately USD 90,000). To qualify for the reduced mortgage registration rate, the sale and mortgage must be registered at the same time. For more details on the reduced fees, or on any aspect of property law in Thailand, please contact Chaiwat Keratisuthisathorn at [email protected].

On December 20, 2022, Thailand’s cabinet approved draft legislation providing further Land and Building Tax reductions of 15% in 2023, on top of current reductions in tax rates, on some types of taxable property. When enacted, the legislation will provide further tax reductions only for the property types in the table below. Moreover, in early December, Thailand’s Ministry of Interior promulgated an announcement extending the deadline for tax assessment notification and tax payment (including by scheduled installments) by another two months from the previous statutory deadline of December 20, 2022. The key deadline extensions are shown in the table below. The Land and Building Tax is a property tax collected annually, with rates varying based on the purpose of use—agricultural, commercial, industrial, or residential. Owners or possessors of land or buildings are liable for Land and Building Tax, which is computed based on the officially appraised value of the property. For more information on Thailand’s Land and Building Tax, please contact Auaychai Sukawong at [email protected] or Chaiwat Keratisuthisathorn at [email protected].

Experts on Vietnamese real estate law from Tilleke & Gibbins provided the chapter on Vietnam for Practical Law’s Commercial Real Estate Global Guide 2022, a high-level comparative overview of commercial real estate laws and regulations in 31 jurisdictions worldwide. The main topics include the following, among others: Real estate investment structures, including REITs Sale of real estate Liability Due diligence Warranties Real estate tax, including VAT and stamp duty/transfer tax; Climate change targets Restrictions on foreign ownership Real estate finance Commercial leases Planning law The chapter also highlights recent trends in the condominium, office, and retail sectors of the Vietnam real estate market. To read the Vietnam chapter, please visit the Practical Law website or click on the link below.

The draft regulations referred to below were withdrawn from the legislative process on November 8, 2022.   On October 25, 2022, the Thai cabinet approved in principle a draft version of new ministerial regulations that permit certain types of foreign nationals to acquire land for residential use. These draft ministerial regulations represent an additional scheme that complements the existing ministerial regulations from 2002 prescribing rules, methods, and conditions for foreign nationals’ acquisition of land for residential purposes. These draft ministerial regulations aim to attract to Thailand foreign nationals who invest at least THB 40 million. The targeted foreign nationals consist of four groups: Wealthy individuals; Retirees; Foreign nationals who wish to work from Thailand; and Highly skilled expatriates. These four groups are eligible to acquire up to 1 rai (1,600 square meters) of land for use as their own residence in Bangkok, Pattaya City, a municipal area (khet thetsaban), or a designated residential area under the law governing city planning. The area must be situated outside any designated military safety zone. The THB 40 million minimum investment mentioned above may be any type of investment permitted under the ministerial regulations. Some examples include Thai government bonds, real estate or infrastructure mutual funds, real estate investment trusts (REITs), and share capital of Board of Investment (BOI) promoted entities (or a business eligible for BOI promotion). The investment must have been made before submission of the application for land ownership, and it must be maintained for at least three years. If the qualifications are met, the application for land ownership and the related supporting documents (including a certificate of investment issued by the relevant authorities) must be submitted to the director general of the Land Department for consideration and further submission to the Minister of Interior for approval. If approved, the applicant