Azaya’s Project Team
Capstone Management Group Co., Ltd. is a legally registered Thai corporation with its registered offices in Bangkok and Chiang Mai. Its senior partners contribute more than twenty years of diversified business activities in Thailand, ranging from government contracts to international real estate development.
While many of Thailand's new developments are sold off-plan prior to any construction on site, Azaya's first phase of construction is already completed. Capstone offers a 5-phase payment plan to reassure buyers that payment only occurs after completed stages of construction.
In addition to each villa's open-aired verandas, large private swimming pools and Zen-themed gardens, Azaya also features a fully equipped gym with additional services including dining and spa services.
Construction at Azaya commences upon sale and averages 10-12 months per home. Azaya is entering its second and final phase of construction with the final 6 plots now being offered for sale.
Financing in Thailand
While Thai citizens and residents who have existing assets in Thailand can obtain financing from local Thai banks, foreigners who are not established in Thailand and wish to purchase property off-plan have a more difficult time in doing so.
The majority of our foreign buyers pay cash over a five staged payment structure during a 10-12 month build time. Once construction is at least 70% complete and a Thai bank can appraise the built up property, a refinance loan can be issued for a 10 year period with annual interest at approximately 8.5%.
Azaya's directors are currently discussing options with several financial institutions promising to assist Azaya’s buyers with advance construction loans. Please contact Azaya directly for more details and updates.
Chiang Mai's international airport has undergone recent expansion
and offers international flights to and from Singapore, Malaysia,
Taiwan, Korea, China and other international countries.
Direct flights to domestic destinations include dozens of daily
flights to Bangkok as well as Thailand's southern beach resorts
of Koh Samui and Phuket.
Foreign Owned Property in Thailand
Purchasers at Azaya will have the opportunity to take outright freehold ownership of their property. There are a number of ownership structures available to facilitate foreign ownership of real property in Thailand. Each structure can be tailored to the purchaser's individual requirements. Most ownership structures involve the formation of one or more private limited companies.
Relevant law in Thailand does restrict foreign ownership in these structures to 49%, but does not prevent the incorporation of mechanisms that place control and effective ownership in the hands of purchasers. In essence, a foreign purchaser will have complete control over the land holding structure. Thai company formations, including set up costs and legal fees, normally average approximately US$4000. Annual corporation running costs average approximately US$1000.
Azaya also offers leasehold ownership as an alternative to the freehold structure model. Leasehold ownership allows a foreign individual many of the same privileges as freehold ownership and does not require the formation of a Thai corporation. Under a leasehold structure, the villa itself is owned outright while the land it sits on is leased. Typical leasehold agreements in Thailand are 30 years but can be extended up to a 90 year term.
It is recommended that you consult an attorney for more information or we can assist you by referring a Bangkok based international law office.
Land Measurement in Thailand
Thailand has a unique way of measuring land area. Here is a chart to demonstrate the terms and measurement conversions:
1 Talang Mett = 1 Square Meter = 10.7 Square Feet
1 Talang Wah = 4 Square Meters = 42.7 Square Feet
1 Ngan = 100 Talang Wah = 400 Square Meters = 4,277 Square Feet
1 Rai = 4 Ngan = 400 Talang Wah = 1,600 Square Meters = 17,222 Square Feet
1 Acre = 2.5 Rai = 10 Ngan = 1,000 Talang Wah = 4,000 Square Meters = 43,560 Square Feet
*conversion figures are approximate and intended for reference only
Location and Surroundings
Set amidst the foothills of northern Thailand's scenic mountains, Azaya is surrounded by waterfalls, nature reserves and golf courses. Azaya is just 50 meters from The Four Seasons Resort. Less than 10 minutes away are markets, banks, a post office and Green Valley, one of Chiang Mai's top golf courses. The city center and the international airport can be reached within 20-25 minutes.
Directly surrounding Azaya is a small road and day school to the north, private houses to the east, a lower entrance road and townhouses to the south and vacant land to the west. Some of the vacant land is owned by Azaya which creates additional space for privacy and security.
Management Fees and Services
Azaya offers full service management comparable to five star resorts. Supervised by internationally experienced expatriates, Azaya's management includes the following services to its owners:
-Property maintenance services, including preventative maintenance programs
-24hr/day security with closed circuit monitoring
- Gym on premises with dining and spa services
-Concierge and administrative services
Additional service offered to Azaya's rental pool properties include:
-Housekeeping services and dining services
-Guest services such as personal butler and private chef
-Marketing Azaya's rental villas through advertising, marketing and public relations
-Accounting procedures and financial remittance services
Management fees are broken down into two categories: maintenance and villa rental management. Maintenance fees are calculated based on home and land size of a particular plot. Average maintenance fees based on 12 participating villas are approximately US$8000 per year. Rental pool management is not an upfront expense, but is instead a share of the rental income.
Azaya's prices current prices for its phase 2 villas start at THB 29M. There are currently five 2-bedroom villas for sale and one 3-bedroom villa for sale.
While these prices do represent the upper end of the property market in Thailand, Azaya is an
exceptional value for money, averaging approximately US $200/f2 (US$2152 per m2) based on built-up area. These prices include generous land sizes, large swimming pools and fully fitted interiors with Smart Home networks. Our prices are further justified with exceptional returns on investment, as detailed in our Investment Scenario.
For an exact price on a specific villa, please browse the details on our Villa Master Plan page.
Azaya's payment schedule is a 5-phased payment plan tied in to construction stages:
• THB 200,000 reservation deposit (day 1)
• 30% down payment (week 2)
• 20% substructure payment (month 2)
• 20% roof structure payment (month 5)
• 20% practical completion payment (month 10)
• 10% final acceptance payment (month 11)
Note: Above dates are approximate and subject to construction progress.
While Chiang Mai is a very safe area, Azaya will still have several dedicated security personnel on its premises 24-hours per day.
Taxes with the Purchase of Land:
Transfer Fee - 2% based on Land Department's estimated value of the land. The estimated land values are in the process of being updated throughout Thailand, but as a general rule these estimates are lower that the actual purchase price for land.
Specific Business Tax - 3.3% of the actual purchase price as registered at the Land Department.
Withholding Tax- 1% of the actual purchase price as registered at the Land Department. Withholding Tax is exclusively the responsibility of the Seller and cannot be reallocated amongst the parties by agreement.
Value Added Tax:
Value Added Tax (VAT) was implemented in Thailand in 1992 replacing Business Tax. VAT is an indirect tax imposed on the value added of each stage of production and distribution. Any person or entity that regularly supplies goods or provides services in Thailand and has an annual turnover exceeding One Million Two Hundred Thousand Thai Baht is subject to VAT in Thailand.
The purchase of the property with Azaya is divided into two parts. The first being the purchase of land, which is subject to taxes set forth above and the second being the purchase of construction services which is subject to 7% VAT. Azaya's construction services, including materials constitutes approximately 60% of the total purchase price for the Land and Villa and would be paid incrementally according to staged construction payments as set forth in the Construction Agreement
Corporate Income Tax:
The corporate income tax rate is 30% in the Kingdom of Thailand. However, there is a special exception for small to medium sized enterprises ("SMEs") with registered share capital below Five Million Thai Baht and the end of the account period. SMEs are taxed 20% on net profits up to One Million Thai Baht and are taxed at the rate of 25% on net profits of One Million Thai Baht to Three Million Thai Baht on net profits. Net profits are calculated by deducting from gross income the expenses that are allowed under the Revenue Code and supplemental regulations.
Tax Implications on Future Sale of Property
There are a number of different sale scenarios and method to minimize tax implications associated with the future sale of the property. One such scenario involves the formation of a land holding structure that is beneficially owned by an offshore company that can be transferred to a future purchaser thereby avoiding the need to pay corporate income taxes or the transfer fees as discussed above. This option requires that the financial books and records of all companies forming a part of the land holding structure be well maintained in order to give a future purchaser comfort that there are no unforeseen liabilities that may be acquired when purchase the land holding structure. When establishing the land holding structure, we would recommend that you disclose to your legal representative your short, mid
and long term goals for the property so that your legal representative can recommend the appropriate ownership structure.
Azaya's striking mountain views are complemented by Zen-themed gardens, luxuriant foliage, smooth stone pathways and private swimming pools.