Foreigners can legally own condominium units in Thailand under the Condominium Act B.E. 2522 (1979), which underwent significant amendments in 2008. This legislation positions condominiums as the most accessible and secure property investment option for non-Thai nationals.
According to a research report by the Real Estate Information Center (REIC), foreigners purchased 11,036 condominium units in Thailand, representing approximately 13.5% of all condo transactions during 2024. This underscores the robust interest and participation of foreign buyers in Thailand’s condominium market. This guide will explore the legal eligibility requirements, essential steps for purchasing a condominium, financial obligations, common pitfalls to avoid, and practical tips for foreign buyers
Legal Eligibility Under Section 19 of the Condominium Act
Under Section 19, foreigners and foreign juristic persons may legally own a condo for sale in Thailand if they meet one of the following criteria:
- Are permitted to reside in Thailand under immigration law.
- Are permitted entry into Thailand under the investment promotion law.
- Are juristic entities as defined under Sections 97 and 98 of the Land Code and registered under Thai law.
- Are foreign companies under Section 4 of the Foreign Business Act that hold a valid Alien Business License.
- Are foreigners or foreign juristic persons who have brought foreign currency into Thailand and converted it into Thai Baht via a licensed Thai financial institution.
The key requirement for individual foreign buyers is the remittance of the full purchase price into Thailand in foreign currency, which must then be converted into Thai Baht by a Thai financial institution. The buyer must obtain and submit a Foreign Exchange Transaction (FET) Form, showing proof of currency exchange, to the Land Department during ownership registration.
There are no restrictions based on nationality or visa category. Any legally entering foreigner can own a condo, as long as the transaction complies with the currency regulations and quota restrictions under the Condominium Act.
Steps for Foreigners to Buy a Condo in Thailand
- Property Search: Identify a condo for sale that aligns with your preferences and budget.
- Verify Foreign Quota: Confirm that the unit is within the 49% foreign ownership quota.
- Reservation Agreement: Sign a reservation agreement and pay a deposit to secure the property.
- Fund Transfer: Transfer the purchase funds from overseas in foreign currency.
- Obtain FET Form: Obtain the FET form from your Thai bank as proof of the foreign currency exchange.
- Sales and Purchase Agreement: Review and sign the Sales and Purchase Agreement (SPA). It’s advisable to have a legal professional review this document to ensure your interests are protected.
- Ownership Transfer: Complete the ownership transfer at the local Land Office. This process includes paying relevant taxes and fees, and you’ll receive the title deed (Chanote) in your name upon completion.
Land Office Sale and Transfer Procedure
At the Land Office, both the buyer and seller (or their representatives) must be present to:
- Submit the FET form, passport, sale agreement, and Chanote.
- Allow the Land Officer to review documents and ensure quota compliance.
- Pay the transfer fee, stamp duty, and other taxes.
- Register ownership, after which the updated Chanote is issued to the buyer.
Financial and Regulatory Requirements
Foreign Exchange Transaction Form (FET)
Funds remitted into Thailand must be accompanied by a Foreign Exchange Transaction Form (FET Form), previously known as “Thor. Thor. 3”. This form is issued by a Thai bank upon the conversion of foreign currency into Thai Baht, evidencing the legal inflow of funds for the property purchase. For transactions exceeding USD 50,000, the FET Form is mandatory and must be presented at the Land Department during the ownership registration process..
Title Deed (Chanote)
The Chanote is the official title deed issued by the Land Department, confirming ownership of the condominium unit. It details the unit’s dimensions, location, and the owner’s share in the common property areas. Ensuring the authenticity and clarity of the Chanote is vital before proceeding with the purchase.
Sale and Purchase Agreement
This legally binding contract outlines key transaction termsoutlines the terms and conditions agreed upon by the buyer and seller, including the purchase price, payment schedule, and responsibilities of each party. It’s advisable to have this agreement reviewed by a legal professional to ensure compliance with Thai laws and to safeguard your interests.
Letter from the Condominium Juristic Person
This letter certifies that the unit falls within the foreign ownership quota (not exceeding 49% of the total floor area) and that there are no outstanding maintenance fees or legal encumbrances associated with the unit. It’s a prerequisite for the transfer of ownership at the Land Department.
Key Taxes and Fees at Transfer
When transferring ownership, several fees and taxes apply:
As of April 2025, the Thai government has implemented temporary reductions in property transfer and mortgage registration fees to stimulate the real estate sector:
- Transfer Fee: Reduced from 2% to 0.01% for properties priced up to 7 million baht.
- Mortgage Registration Fee: Reduced from 1% to 0.01% for mortgages not exceeding 7 million baht.
These reduced rates are effective until June 30, 2026.
Other applicable taxes include:
- Stamp Duty: 0.5% of the registered value, applicable if Specific Business Tax is not applicable.
- Specific Business Tax (SBT): 3.3% of the appraised value, applicable if the property is sold within five years of acquisition.
- Withholding Tax: Calculated based on the seller’s income tax rate, usually around 1% of the appraised value.
Ongoing Financial Obligations
Maintenance Fees
Calculated per square meter, these cover common area services like cleaning, security, and landscaping.
Sinking Fund
A one-time reserve for major repairs or facility upgrades, typically paid upfront at the time of purchase.
Legal Restrictions and Considerations
1. Inheritance
Foreigners can inherit condominium units; however, the heir must qualify under Section 19 of the Condominium Act. If the heir doesn’t meet the criteria, the unit must be sold within one year.
2. Illegal Company Ownership
Using a Thai company to circumvent foreign ownership restrictions is illegal. The Land Department scrutinizes such arrangements, and violations can lead to legal consequences, including the forced sale of the property.
Alternative Ownership Structures
1. Leasehold Agreements
If the 49% foreign ownership quota in a condominium has been reached, foreigners can opt for a leasehold agreement. Under Thai law, lease agreements can be registered for up to 30 years, with the possibility of renewal. While this does not confer ownership, it provides long-term usage rights. It’s crucial to have the lease agreement registered with the Land Department to ensure legal enforceability.
Note: The Thai government is considering proposals to extend lease periods up to 99 years to attract foreign investment. However, as of June 2025, this change has not been enacted into law.
2. Thai Company Ownership
Some foreigners consider setting up a Thai majority-owned company to purchase property. However, this approach is fraught with legal complexities and risks. Thai law prohibits the use of nominee shareholders, and violations can lead to severe penalties, including the forced sale of the property. Therefore, this method is generally discouraged unless the company is genuinely operating a business in Thailand.
3. Marrying a Thai National
Foreigners married to Thai nationals can purchase a condo for sale in their spouse’s name. However, the foreign spouse must sign a declaration stating that the funds used for the purchase are the separate property of the Thai spouse. This arrangement does not grant the foreigner ownership rights, and in the event of a divorce, the property is considered the Thai spouse’s asset.
Common Mistakes When Buying a Condo in Thailand
Foreign buyers often face unforeseen complications due to inadequate preparation or misunderstanding of Thai property laws. Below are some of the most frequent and costly errors:
- Assuming All Projects Are Condominiums Under the Act
Many buyers mistakenly assume that every apartment unit in Thailand qualifies as a condominium under the Condominium Act. In reality, some properties are marketed as “condos” but are in fact unregistered buildings offering only leasehold rights or time-share models. Always confirm that the development is a registered condominium under the Condominium Act with a juristic person and separate unit title deeds. - Unclear Ownership Type in Off-Plan Purchases
When buying off-plan or under construction, buyers may not clearly confirm whether the purchase is for freehold ownership under the Condominium Act or a leasehold interest. Miscommunication here can result in purchasing a leasehold when a freehold was intended. Contracts should explicitly state the ownership structure. - Failure to Qualify Under Section 19
Some buyers neglect the legal requirement to remit foreign currency equal to the full purchase price into Thailand. Without proper documentation, particularly the Foreign Exchange Transaction (FET) form, they cannot register ownership, even if the property has been paid for. - Skipping Legal Review of the Sale Agreement
Entering into a sale and purchase agreement without legal guidance may expose buyers to unfair clauses or vague obligations. Important aspects such as payment schedules, penalties, handover conditions, and default remedies should be clearly defined and reviewed by a legal professional familiar with Thai property law. - Overpaying Transfer Fees and Taxes
Buyers often agree to cover all taxes and fees without realizing these costs can be negotiated or split between parties. Without legal advice, foreigners may end up shouldering the full tax burden unnecessarily. - Inadequate Due Diligence
Failing to verify the developer’s credentials, building permits, or the condo’s legal status can lead to disputes over ownership rights, delays in completion, or hidden liabilities. Proper due diligence should include a review of the title deed, developer’s license, and project registration. - No Escrow Agreement in Payment Terms
Many buyers make partial payments directly to developers without escrow protection. If the seller defaults or fails to deliver, the buyer may lose funds with little legal recourse. Secure transactions should involve escrow accounts, especially for off-plan purchases. - Ignoring Encumbrances and Prior Agreements
A thorough check of the unit’s title deed is essential to confirm it is free of mortgages, liens, or legal disputes. Buyers should also review prior sale and transfer agreements registered at the Land Office to detect inconsistencies or hidden encumbrances.
Conclusion
Buying a condo for sale in Thailand as a foreigner is both legally attainable and financially rewarding with the right guidance. At Pattaya Prestige Properties, we assist you in securing your property investment safely. For further assistance, contact us so we can provide tailored advice and support throughout the process. Otherwise, check out our guide on Freehold vs Leasehold: Which is Better for Buying a Condo in Pattaya.
