Buying a condo in Thailand as a foreigner
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A condominium unit is the one kind of real property a foreigner can usually own outright, in their own name, in Thailand. The rules come from the Condominium Act and are specific about how much of a building foreigners can own and how the money must arrive.
The foreign quota
Foreigners together may own up to 49 percent of the total floor area of all units in a registered condominium building. The remaining 51 percent must be owned by Thai nationals or Thai entities. When a building's foreign quota is used up, further units can only be sold to Thais, or to foreigners on a leasehold basis.
Ask the developer or the juristic person (the building's management body) for a letter confirming that foreign quota is available for the specific unit before you pay a deposit.
Bringing the money in
To register a unit in foreign freehold, you must show that the purchase money was brought into Thailand in foreign currency. In practice:
- Transfer the money from abroad in a foreign currency to a Thai bank account in your name, or to the seller's account.
- Ask the receiving bank for a Foreign Exchange Transaction form (often called an FET form or Tor Tor 3) for larger transfers, or a bank letter confirming the inward remittance for smaller ones.
- State the purpose of the transfer as the purchase of a specific condominium unit.
The Land Office will ask for this evidence at transfer. Money already in Thailand in baht, or converted before transfer, can create problems.
Due diligence
Before signing a reservation or sale agreement, check:
- The title deed (chanote for condominium units) or, for off-plan purchases, the developer's licences, the land title and the building's environmental impact approvals
- That the condominium is registered under the Condominium Act, or will be before transfer
- Outstanding common area fees and the sinking fund contribution
- The sale agreement's terms on delays, specifications, deposits and refunds
A lawyer acting for you, not for the developer or agent, can do these checks.
Costs at transfer
| Cost | Typical rate | Who usually pays |
|---|---|---|
| Transfer fee | 2% of the appraised value | Often split between buyer and seller |
| Specific business tax | 3.3% of the higher of sale price or appraised value, if the seller has held the unit for less than five years | Seller, unless agreed otherwise |
| Stamp duty | 0.5%, payable only when specific business tax is not | Seller, unless agreed otherwise |
| Withholding tax | Varies with the seller's status | Seller |
Who pays what is negotiable and should be written in the sale agreement. Government measures sometimes reduce the transfer and mortgage fees for lower-priced residential property, so check what applies at the time of transfer.
Transfer at the Land Office
The transfer is registered at the Land Office for the area. Buyer and seller, or their representatives with a power of attorney, attend with identity documents, the foreign exchange evidence and the juristic person's letter confirming that common fees are paid and that the foreign quota is available.
Finding a unit
Most foreign buyers find units through developers or agents. Some agents specialise in high-end resale and new units in central districts. Whichever route you take, have the contract checked independently before you pay more than a reservation fee.
Owning land
Foreigners cannot generally own land in their own names. Common alternatives include a registered lease of up to 30 years. See renting a home and registering leases.