a
Print
version

How to Buy Real Estate in Thailand with Cryptocurrency

  • 69
Thailand was one of the first countries in Asia to legalize cryptocurrencies. You can buy local real estate with bitcoins, ethers, and other digital money. Viсtor Kofanov, the founder of King Window View Co., Ltd investment agency, knows everything about such transactions.

Cryptocurrency in Thailand is Absolutely Legal

Viktor Kofanov
Viсtor Kofanov, the founder of the investment agency King Window View Co., Ltd

The Emergency decree on digital asset businesses came into force in May 2018 (read here). The law regulates activities related to cryptocurrencies and tokens, defines requirements for exchanges, brokers, and dealers who must work in the country based on licenses appointing a controlling state body – the Securities and Exchange Commission (SEC).

Crypto exchanges are licensed by the state, which guarantees the legality and transparency of transactions with digital assets.

Currently, the turnover of SEC-licensed crypto exchanges is about $3 billion (100 billion baht) per month. But this amount is going to increase significantly because SCB and Kasikornbank (the country’s largest banks) join the game and place big bets on cryptocurrency.

Here's an example. In November 2021, Siam Commercial Bank (Thailand's oldest bank - 114 years on the market) bought 51% of the largest Thai crypto exchange Bitkub shares. The transaction value was 17.8 billion Thai baht.

How did the market react to this event? The price of SCB shares increased by almost 10% in one week. The capitalization grew by more than $900 million (30 billion baht), and it is almost twice the Bitkub exchange transaction for the purchase.

Bitkub platform
Screenshot of the Bitkub crypto exchange platform, the shares of which were acquired by the oldest bank in Thailand

Most likely, SCB bank customers will soon have the opportunity of opening another account along with the existing one in Thai baht or US dollars, for example, in USDT/USDC*. We already have Phuket companies that have registered a corporate bank account on the cryptocurrency exchange platform and provided their crypto services.

* What is USDT/USDC?

USDT/USDC - cryptocurrencies that have received the status of stablecoins as their exchange rate is tied to the US dollar rate.

But the plot thickens. Asset tokenization** is fully approved by the SEC. The regulator issues licenses to companies using the Ethereum blockchain for digitization, listing, and trading of tangible assets, including real estate.

** What is real estate tokenization?

It is the development, distribution, and management of digital tokens secured by real estate. A token is a right to a share in the object or company ownership, a part of the income from the property, etc. Tokenization gives the real estate sector many advantages, such as increased liquidity of facilities, lower entry threshold for investors, shorter transaction time, and reduced associated costs.

"Crypto is the future, so we must make Thailand a crypto-positive society," - these are the words of the head of the Tourism Authority of Thailand (TAT). At the moment, TAT is cooperating with the SEC and the local crypto exchange, preparing the ground for the adoption of digital tokens as means of payment for tourists.

You can already use cryptocurrency in Phuket, for example, to buy or rent a yacht. Our partners have a corporate crypto account, accept payments in USDT and USDC. Of course, you can purchase real estate with bitcoins, ethers, and other currencies. We have already had successful deals. Now, more about one of them.

Villa for Crypto. Simply Faster

The client chose the Shambhala Grand Villa complex. A few words about the project to understand the motivation behind this purchase. Firstly, the walking accessibility of the beach in a premium location. The Laguna Area has a developed infrastructure: golf courses, spa centers, restaurants, five-star hotels, a wide sandy beach line with a length of more than seven kilometers. The Boat Avenue Park & Playground construction nearby will be finished soon. Perfect for walking and entertainment.

Boat Avenue Park & Playground
The project of a park with a recreational area near the Shambhala Grand Villa complex

These factors guarantee high capitalization and market demand (only 4 out of 43 villas are still on sale).

Secondly, a management company supports the rental business organization. The villas are fully-furnished, and the management company takes full responsibility for the equipment condition and repairs, organizes daily rent, helps with marketing, provides a high service level, a decent price tag, and stable occupancy.

The management company offers the investor several rental programs: either a fixed guaranteed annual income or dividing the actual profit with the management company in a percentage ratio of 60/40 in the investor’s favor. Owners pay in Thai baht, one of the most stable currencies in the world. This transaction has become a good diversification of our client's crypto assets.

Shambhala Grand Villa
Shambhala Grand Villa

The cost of a fully furnished villa was 22.6 million baht ($675,000). The price is fixed in Thai baht. If you want to use other currencies, you have to consider the exchange rate at the purchase time. Our agreement with the developer is on payments in Ethereum, although it accepts other types of cryptocurrencies.

Shambhala Grand Villa
Shambhala Grand Villa

You need to make a reservation payment to book a villa, which is possible via a QR code. The maximum amount of payment, in this case, is 1 million Thai baht.

The process is simple: the developer enters the account on the Bitazza exchange platform, through which they work, click "deposit", and the application generates a QR code, and then the buyer receives it and makes a payment. The same works with the reservation of a villa.

Our investor transferred ethers via the QR code to the developer's wallet, where they appeared in a couple of minutes. The developer immediately (through the exchange platform) converted the crypto into Thai baht and credited them to a regular account, providing the buyer with a receipt for crediting the payment in baht.

That's it! The whole transaction took a couple of minutes. While the payment through the bank can take up to seven business days. Moreover, the developer managed all the transfer costs, since the company paid a currency conversion commission.

This transaction ended the same way as any other involving a foreigner would. We signed a purchase and sale agreement, and the client transferred the remaining amount in a single payment in Ethereum.

Real estate in Phuket from the King Window View agency
Flat for 380 858 euro on Phuket Island, Thailand
380 858 €
Flat on Phuket Island, Thailand
72 sq.m 2 1 1
It's situated in the heart of Phuket’s premier master planned community, MGallery Residences, MontAzure Lakeside is the island’s latest resort residential development. Complex consists of 39 low-rise buildings and 236 apartments. Ideally placed at the foothills of this expansive blend of forested mountains cascading down to...
King Window View
Flat for 135 200 euro on Phuket Island, Thailand
135 200 €
Flat on Phuket Island, Thailand
40 sq.m 1 1 1
Apartment 100 meters from Cafe Del Mare Location: The project is located just a few steps away from the picturesque Kamala Beach, which boasts a developed infrastructure and is perfect for strolling and swimming along the coastline. Along the beach, you'll find a variety of restaurants serving Thai and European cuisine of different levels,...
King Window View
Flat for 73 450 euro in Phuket, Thailand
73 450 €
Flat in Phuket, Thailand
24 sq.m 1 1 1
This is a condominium of 405 units of 24 – 53 sqm, with floor-to-ceiling windows revealing mountain and city views, two pools, a spa, gym, restaurant & bar and conference room. The area surrounding the Utopia Central development is rich in natural beauty, parks, country clubs and golf courses. Three of Phuket’s top golf courses...
King Window View
Villa for 624 260 euro in Phuket, Thailand
624 260 €
Villa in Phuket, Thailand
300 sq.m 5 3 3
This villa is a mere 2 km from the secluded Layan Beach and surrounded by pristine nature and the grand lake on your doorstep. There are also numerous family-oriented and leisure activities within easy reach, which residents can also enjoy. This elegant living experience echoes the core values of BOTANICA Luxury Villas; where design is...
King Window View
Flat for 572 000 euro in Phuket, Thailand
572 000 €
Flat in Phuket, Thailand
135 sq.m 4 3 3
King Window View
Apartment for 252 641 euro in Phuket, Thailand
252 641 €
Apartment in Phuket, Thailand
63 sq.m 3 2 1
This is designed as an exclusive resort of over 96,000 sq. m. There is a stunning 500-meter street, surrounded by greenery and flowers, 6 swimming pools, 23 commercial objects, a five-star hotel, more than 471 apartments and 15 private villas with pools. The apartments are made in a modern design with an open plan, ranging from 27 sq. m up to 80...
King Window View
Apartment for 271 471 euro in Phuket, Thailand
271 471 €
Apartment in Phuket, Thailand
57 sq.m 2 1 1
King Window View
Villa for 883 942 euro in Phuket, Thailand
883 942 €
Villa in Phuket, Thailand
529 sq.m 4 3 4
This is a secluded luxury collection of private pool villas tuckedaway in tropical surroundings near Bangtao and Layan eaches. Project is crafted with the most refined details of design elements that function in the spectacular way to let truly live life to the fullest. Location: Layan Layan Beach is located in the northwest of Phuket...
King Window View
Villa for 699 608 euro in Phuket, Thailand
699 608 €
Villa in Phuket, Thailand
288 sq.m 4 3 3
This is a complex of loft-style villas, and thanks to the competent decision of the architect, they ideally fit into the tropical nature of Thailand. Each villa has a swimming pool, sun lounger area and a garden where you can hide from the scorching sun or have a barbecue. Living areas and the master bedroom are usually centered around a...
King Window View
Villa for 226 200 euro on Phuket Island, Thailand
226 200 €
Villa on Phuket Island, Thailand
150 sq.m 4 3 3
This beautiful villa offers comfort, elegance, and all the amenities for an unforgettable vacation. With a total area of 150 square meters, the villa provides spacious living and features 3 bedrooms, ensuring comfort and privacy for you and your guests. You can enjoy your own private pool surrounded by a well-maintained garden, allowing you to...
King Window View
Villa for 467 740 euro on Phuket Island, Thailand
467 740 €
Villa on Phuket Island, Thailand
228 sq.m 4 2 2
King Window View
Apartment for 104 832 euro on Phuket Island, Thailand
104 832 €
Apartment on Phuket Island, Thailand
36 sq.m 2 1 1
Title Halo Residential Complex is located in Phuket, in a great location where you can enjoy the beautiful scenery and the unique atmosphere of a tropical resort. Title Halo is a contemporary residential development offering upscale housing and amenities for a comfortable life. The complex offers a variety of housing options, including...
King Window View
Villa for 809 900 euro on Phuket Island, Thailand
809 900 €
Villa on Phuket Island, Thailand
398 sq.m 4 3 4
ZENITHY LUXE comprises four villa types all with their own unique characteristics, and all seamlessly designed to blend into the overall architectural vision running throughout the estate. An exclusive collection of 9 luxurious homes, each Zenithy Luxe Villa features an expansive garden and exceptional indoor and outdoor living areas. These...
King Window View
Villa for 600 600 euro on Phuket Island, Thailand
600 600 €
Villa on Phuket Island, Thailand
369 sq.m 4 3 3
King Window View
Villa for 465 400 euro on Phuket Island, Thailand
465 400 €
Villa on Phuket Island, Thailand
297 sq.m 4 3 4
Introducing a cozy 3-bedroom villa with 3 bathrooms, perfect for comfortable living in the project Le Villa. The villa offers a spacious and fully equipped kitchen, where you can prepare exquisite dishes. The living room is designed to create a cozy atmosphere for spending time with family and friends. The villa's stylish decor is done in...
King Window View
Loft for 127 400 euro on Phuket Island, Thailand
127 400 €
Loft on Phuket Island, Thailand
37 sq.m 1 1 1
"Zen Loft" is a unique residential project offering modern and stylish lofts in perfect harmony and tranquility. This project is designed for those who appreciate minimalism, functionality, and aesthetics. The lofts feature contemporary design inspired by the simplicity and refinement of Japanese architecture. Spacious interiors with...
King Window View
Villa for 803 400 euro on Phuket Island, Thailand
803 400 €
Villa on Phuket Island, Thailand
473 sq.m 4 3 3
"Anchan Breeze" is an extraordinary residential project, offering a unique community of luxurious villas nestled amidst stunning natural surroundings and breathtaking landscapes. The project perfectly blends elegant design, modern amenities, and a serene ambiance. Each villa in "Anchan Breeze" is meticulously designed with...
King Window View
Apartment for 204 100 euro on Phuket Island, Thailand
204 100 €
Apartment on Phuket Island, Thailand
72 sq.m 3 2 2
This is a brand-new project with incredibly spacious layouts, unlike typical condominiums in Phuket. The condominium will be built in the most prestigious area of the island - "Laguna," where your neighbors will be owners of the most luxurious and expensive villas and guests of 5-star luxury hotels. The infrastructure of both the...
King Window View
Apartment for 190 892 euro on Phuket Island, Thailand
190 892 €
Apartment on Phuket Island, Thailand
56 sq.m 2 1 1
A truly modern residential project, featuring spacious, fully equipped, and furnished apartments. The project offers layouts starting from one-bedroom duplex apartments of 49 sqm to two-bedroom apartments of 76 sqm. This shift from studio apartments is a new trend in Phuket's construction, offering larger living spaces that are suitable for...
King Window View
Villa for 642 200 euro on Phuket Island, Thailand
642 200 €
Villa on Phuket Island, Thailand
305 sq.m 4 3 3
This is a luxury villa complex located in a quiet yet conveniently accessible area near Bangtao Beach, creating a unique atmosphere of tranquility. The complex offers a modern minimalist style for each villa, providing ample storage to maintain a clutter-free environment and allowing natural light through numerous panoramic windows, almost...
King Window View

There is one legal nuance. The real estate we have sold to date was in leasehold.

Freehold is a little more complicated. Investments must be received from a foreign individual in foreign currency from abroad with a specific purpose of payment. The Land Department requires a special foreign exchange transaction form (FET Form) for each transaction. Only a bank can provide a FET Form, the crypto exchange platform does not provide such an opportunity yet.

However, that is not a big deal. You need to convert cash into local currency in a Thai bank. The bank will also issue a FET Form for this operation, which will also be the basis in the Land Department for registering real estate in freehold.

It is possible to transfer crypto-assets into dollars or euros, exchange them to Thai currency in a bank, get a FET Form and register the real estate in freehold. Yes, there will be losses on double conversion, but this will fulfill the legal requirement. If one of the investors insists on freehold ownership, then that is the way.

Cryptocurrency Transactions. Get Ready to Negotiate

I am a crypto enthusiast. I believe that this sphere will develop rapidly. For example, the developer of the Shambhala complex developer is going to IPO. Other developers will probably start tokenizing real estate and accept crypto payments without any conversions very soon.

Another example. There is a fascinating investment project in Phuket called Patong Bay Ocean View.

Patong Bay Ocean View
Patong Bay Ocean View

The developer offers cottages with one bedroom and a kitchen-living room with a total area of 60-70 sq. m, with a Jacuzzi bath or a mini-pool. Guaranteed income is fixed at 7% per annum for 15 years. After 100% payment, the first 7% is transferred to the investor after 30 days, the payment takes place a year in advance.

In addition, it also offers the option of reverse guaranteed repurchase: the developer is ready to buy the purchased cottage from you back for 100% of the investment amount in 10-15 years. Also, you get an opportunity to relax in this cottage for 2-4 weeks a year. So, this developer is already accepting absolutely all types of cryptocurrencies without any commission.

The field is new, not many developers in Phuket have faced it yet. So far, the general mass of real estate agents does not understand anything about crypto. But if you don't see advertising banners "We sell for crypto" here and there, that does not mean it is impossible to do.

I was the initiator in those transactions we conducted. I had a request from a client and searched the ways to solve it. It didn't take long to persuade developers: the companies are on-trend. But if you suddenly come across some timid developer who does not know how it works, you need to explain everything ad nauseam. Taking into account all the advantages, I am sure such a developer will not refuse the deal. Thus, theoretically, any object in Phuket can be bought for cryptocurrency, whether it is an elite villa or a small apartment.

No one knows what is going to next with the world of cryptocurrencies. But since many countries have already accepted them as means of payment, the prospects are bright. The probability that blockchain technology will go into oblivion is almost zero. Nevertheless, there is a lot of easy money in this area, which would be hurtful to invest in a tangible sector. For example, to invest in liquid real estate, the value of which is reliable.

King Window View. Your guarantor of secure investments

Quoting conditions of Prian.info materials

Share the link:
Tags: Thailand, Investment, Real Estate, Buying procedure

Read also

Property prices in France are declining almost everywhere, except for tourist locations
High inflation and slump in sales are to blame.
Dutch landlords are allowed to raise rents in 2024
The landlords will be able to increase rental rates by up to 5,5% from January 1, 2024.
Knight Frank: Property prices in Dubai’s prime markets are predicted to grow
Price increases in major residential areas are expected to rise by 5% next year.
Housing prices in the EU have increased by almost 50% in 12 years
Purchase prices are rising faster than rental rates.
The supply of residential real estate in Spain is declining
In the third quarter of 2023, the number of residential units available for purchase has...
Montenegro began to regulate Real Estate Brokerage
The law should protect all participants of the real estate market.

Interesting to read

News and articles on the topic «Thailand»

Thai Opposition Party is Against the Right of Foreigners to Purchase Land

The Pheu Thai party opposes the government's new plan to allow foreigners to own land for...

  • 01.11.2022
  • 24

Where It Is Better to Buy Real Estate in Thailand

The Ambassador recommends not only such popular locations as Phuket or Pattaya.

  • 18.08.2022
  • 58