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May 10, 2024

Thailand Offers Incentives for New Low-Income Housing Projects

Thailand’s Board of Investment (BOI) has issued a notification granting investment privileges to qualified new residential projects for low-income individuals. Notification No. Sor. 1/2567 Re: Promotion of Residential Activities for Low-Income People was published in the Government Gazette on May 3, 2024, and came into effect the following day.

To be eligible for BOI promotion, at least 80% of the total residences in a project must meet the requirements for usable area and price. The minimum usable area is 24 square meters for condominium units and 70 square meters for town houses and detached houses. The residences can only be sold to individuals, and the sale price for each of these condominium units or houses (including the price of any land) must not exceed THB 1.5 million.

Projects must also meet the following criteria:

  • Projects must include a car park, closed circuit television (CCTV) throughout the project, a 24-hour security guard, cleaning staff, a common area, and other facilities in an appropriate proportion.
  • The building plan and layout must be approved by the BOI.
  • A permit for the construction of a building under building control laws and other relevant laws must be obtained.
  • Approval must also be obtained from the Government Housing Bank prior to submission of the application to the BOI.

However, ISO 9000, ISO 14000, or other similar international standard certification is not required.

Under the notification, applications for such promotion must be submitted to the BOI by the end of 2025. New low-income residential projects promoted by the BOI will be granted a corporate income tax exemption for a period granted for A4-promoted activities (typically three years).

For corporate income tax exemptions, the investment will only be calculated based on the construction costs for roads, other facilities, or public utilities that are commonly used within the project. The construction costs for the residences, houses, buildings, or commercial buildings are excluded, regardless of whether they are for lease or sale.

For more information on this notification, or on any aspect of property law in Thailand, please contact Chaiwat Keratisuthisathorn at [email protected] or Supranee Arjjit at [email protected].

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