Under the proposed three-tier visa system, foreign purchasers of condos worth three-to-five million baht ($100,000-165,000) would get a five-year visa. PIXABAY
Thai residency visas for foreigners who invest as little as three million baht ($100,000) in property is among five proposals being considered by the Ministry of Finance.
The proposals were put forward by Thai real estate associations in a bid to lift a property sector slumping under the impact of Covid-19.
The Housing Business Association, Thai Real Estate Association and Thai Condominium Association (TCA) sent the proposals to minister Arkhom Termpittayapaisith on December 9, TCA deputy chairman Chairat Thampeera revealed on December 17.
Under current rules, foreigners must spend at least 10 million baht on property to be eligible for a residency visa.
However, under the proposed three-tier visa system, foreign purchasers of condos worth three-to-five million baht would get a five-year visa.
Buyers of five-to-10 million baht condos would get 10-year visas, and those who bought condos for more than 10 million baht would be granted permanent residency.
The other four proposals are targeted at Thai property buyers. The first is to cut ownership-transfer and mortgage fees to the lowest rate until December 31, 2021 to reduce the cost of buying both new homes and second-hand houses.
The second is to relax government loan-to-value (LTV) mortgage enforcement to provide opportunities for people with purchasing power to invest in property. The real estate associations say home-loan providers already have strict LTV rules.
The third is to extend the land-and-buildings tax cut for another two years until the end of 2022 to help relieve ownership burdens.
The fourth is a cash-back campaign and credit increase from 50,000 baht to 100,000 baht per person until the end of next year to encourage first-time buyers to make their purchases.
Meanwhile, 30 real estate developers will offer foreign buyers five-year visas in exchange for investing at least 10 million baht in property, under the “Elite Flexible One” card scheme launched on January 1 next year.
Thailand Privilege Card (TPC), which operates the scheme, said Raimon Land has already signed up three luxury condo projects, expecting sales of about 200 Elite cards.
At least 30 more real estate developers have expressed interest in joining, said TPC president Somchai Sungsawang after launching the scheme on December 21.
The move is aimed at lifting a property sector slumping under the impact of Covid-19. “Most are large listed companies, with a lot of suggestions offered to increase customers and encourage more sales. The suggestions will be put to a [TPC] board meeting for further consideration,” said Somchai.
He said the purchasing power of foreigners is important to the tourism sector and related businesses in Thailand, which normally boasts the second-highest tourist volumes in Asia.
Relaxation of the travel ban is expected to see about 1,400 Elite Card members enter Thailand this year, he said. The TPC has set a target of 3,000 Elite Card entries next year.
About 70 per cent expressing interest in the scheme said they want to buy Thai property for residential use and long-term investment – with many choosing Thailand as a retirement destination.
Most have high enough purchasing power to buy Elite cards priced at 500,000 to two million baht. To be eligible for an Elite Flexible One membership card, applicants must spend at least 10 million baht on condo-style property under the scheme. Elite Flexible One cards will be issued for a period of two years, from January 1, 2021 to December 31, 2022.
THE NATION (THAILAND)/ASIA NEWS NETWORK
