BUYING PROPERTY IN THAILAND

Thailand allows foreigners to purchase freehold condominium property in Thailand, with 100% ownership of the unit under a foreign name. 
For the overall building, the majority of units must remain owned by Thai buyers, not more than 49%
of the sellable area can be owned by foreign nationals or a foreign entity such as a trust or company.

Most condominiums are sold freehold in Thailand. For leasehold condominiums, valuations may be
lower than equivalent freehold developments. Usually leasehold property has a maximum registered
lease term of 30 years. 
The advantage of buying a freehold condominium in Thailand as a foreigner is that you can own the
property yourself, in your own name, free of any kind of claims from any government entity.

As of 2015, foreigners are generally not able to buy landed property, such as houses; shophouses;
commercial, retail or industrial land.  There are some exceptions for very large corporate purchases
with Thailand Board of Investment approval, but generally landed property is for Thai individuals and
Thai companies only.  Foreigners can purchase land or house with a registered Thai company with
Thais shareholder holding majority shares

Typically, you have the option of buying first-hand off the developer directly or via an agent.  Property
may be sold before the building is completed or shortly after completion (For second-hand property,
you can also buy through the secondary market;
If you have decided to purchase a condominium, at the time of making your reservation, it must
confirm that you are purchasing within the 49% of foreign owners, then in order to proceed, all you
need is a copy of your passport, to fill in the form provided and make the deposit as per the
agreement.

PAYMENT AND HOW TO TRANSFER MONEY

When purchasing a condo, the purchase may be made prior to the building being completed and
terms provided. 
We will ask you to sign a quotation or reservation agreement, with a booking fee.  This reserves the
condominium you are interested in, and ensures the unit is not offered to another purchaser. 
Around 2-4 weeks (Within 30 days) thereafter, the Sale and Purchase Contract will be signed by both
buyer and seller, and the Contract Payment will be made.
Thereafter, for a building under construction, a series of payments will be made, as per the payment
schedule agreed at time of reservation. 
At time of transfer, the buyer will inspect the property, and the remaining amount will be either
transferred or the buyer will work together with a source of finance.  At this time, once payment is
made in full, the ownership of the property transfers from developer to the buyer at the Land
Department, with all paperwork completed as required by Thai Law.  Both the property inspection and
the transfer process can be completed by a 3 rd  party; it is not required by law that the owner has to be
there in person for these.

Some foreigners can get financing, a loan application will be subject to approval by the financial
institution
Housing loans are commonly with tenure of a minimum 3 years and maximum 20 years. The
maximum loan values from 50% – 70% of the appraisal value of the property.  Note the appraised
value is the value the bank assigns to the property, and may be more or less than the purchase price.
 
Some financial institutions have a minimum value of purchase below which they will not lend.
Generally, the most important requirement banks are interested in is source and stability of income,
which does not have to be recognized in Thailand, but does need proof, which can include items such
as pay slips, bank statements, etc. The income of the borrower should be stable and steady. This
tends to favour salaried staff.

For foreigners buying condominium property in Thailand, the buyer needs to demonstrate that the
funds for purchase equivalent to the purchase price mentioned in the Sale and Purchase Agreement
under your name were transferred into Thailand from overseas.
The buyer will need to show a Foreign Exchange Transaction Form (FOREX/FET) at the time of
transfer at the land department, to obtain the title deed.

A Foreign Exchange transaction form (referred to as a FOREX/FET, FOREX or FET form or Tor Tor 3
in Thai (TT3)), is an official bank document issued by the receiving bank upon receipt of foreign
currency from overseas, equivalent to or greater than US$50,000 into bank accounts in Thailand.
If you are purchasing a condominium unit in Thailand under foreign ownership, you must have
FOREX form equivalent to the purchase price mentioned in the Sale and Purchase Agreement under
your name. 
The original FOREX form must be submitted to the land department in order to register a
condominium in a non-resident foreigner's name. The FOREX form is important under foreign

ownership as you will need to show it and supporting documents should you wish to liquidate your
property in the future and repatriate the funds back to your home country or out of Thailand. 
In order to obtain the FOREX form, you will need to remit funds to our developer’s account under your
name “the owner” and specify the details of the payment as “for the purpose of purchasing
Condominium unit #, project name, Province, Thailand”. We can then obtain the FOREX form for you.
In some countries, due to restrictions on length of message for specifying details, a code is supplied
for this purpose.
Whenever money is transferred out of Thailand, the tax free amount of the transfer is determined by
the initial amount transferred into Thailand as stated in the FOREX form or credit note.  Note there are
no taxes applied to transfers into or out of Thailand currently.

Yes, it is possible, but you will be responsible for obtaining the FOREX form or certifying letter from
your local bank in Thailand. If you would like to remit the funds to your own local bank account and
subsequently transfer the money to the developer's bank account in Thailand to purchase a
condominium, then you are responsible for obtaining the FOREX form from your bank in Thailand.

Yes, you will be responsible for obtaining the correct documents required to obtain foreign ownership
at the land department. 
You will need to open a non-resident bank account with a local bank which allows such accounts in
Thailand by showing your Employment Contract, Salary Statement from your Employer and request
the Bank to issue a letter showing that your money is from this non-resident account income after all
taxes are paid. The bank will allow you to put 70% from your total earnings into a non-residential
account. 
Qualification and required documents for a non-resident bank account can vary from bank to bank.
Banks will not issue a FOREX form for this case, but will issue a letter acceptable at the land
department proving that this payment came from income after all necessary taxes are paid, which
serves the same purpose as a FOREX from.

Yes, if the detail of the payment specifies that the payment is for your name “the owner” and you
specify the details of the payment as “for the purpose of purchasing Condominium unit #, project
name, Province, Thailand”.

Yes, it is possible when you mention the company name in the details of payment when you remit the
funds. For example your company is Wise Real Estate Consultancy: “for the purpose of purchasing
Condominium unit # and the project name, Province, Thailand for Wise Real Estate Consultancy”.

Developers accepts major credit cards including VISA and MasterCard. Typically, only the booking
fee payment by credit card is free of credit card fees. Monthly instalments, contract payment and all

other payments will usually be subject to additional service charges ranging from 1.5% – 3.55% + 7%
VAT depending on the institutions underwriting the credit card.
Note that when paying by credit card, as a developer won’t be able to obtain the FOREX from for any
credit card payments.

A regulation issued by the Bank of China states that each Chinese citizen can only convert up to USD
50,000 per year into foreign currency for transfer. The RMB remittance will be returned if the amount
exceeds this limit. 
We cannot help with such remittance exceeding the limit. If the funds are coming from third party
account, please make sure to quote in the details of the payment purpose is stated as “318069 for
Mr/Ms Owner’s name” in order to receive correct FET.

Foreign owners of condominium units in Thailand are eligible to extend their stay in the country for a
period of one year, renewable each year, through means of a one-year visa, when investing at least
THB 10 million (Royal Thai Police Bureau Order No.327/2557, effective Aug 29, 2014). 
In order to be granted a renewable one-year stay under a one-year visa, you need to provide:
A non-immigrant visa, granted to them by a Thai embassy or consulate 
evidence of remitting at least THB 10 million in funds from abroad into Thailand, issued by a
commercial bank in Thailand 
evidence of investing in the purchase of a condominium unit at a purchase price of not less than THB
10 million by showing a copy of the official sale agreement and condominium unit title deed,
registered with the relevant land office
If you wish to apply for an investment visa, we suggest engaging a professional immigration lawyer to
ensure the process is followed correctly.

OWNERSHIP

There are 3 major fees that you will need to pay when buying a condominium in Thailand.  
Common Area Fee is the fee to cover the cost of managing the common property of the condominium
building, such as cleaning and maintenance, staff salaries, supplies, external suppliers, etc.  This
amount is paid every month, and is usually calculated at a set amount of sqm then multiplied by the
size of your condominium; it is a way to ensure that each owner pays a fair amount shared between
all the units in the building.  In the event you rent your condominium, the Common Area Fee is still
paid by the owner.
Sinking Fund is a fund set aside to use for future capital expense, such as major repairs of the
building, elevators or the building would like to invest in any other capital and etc. Usually it is charged
once at time of purchase, and only when and if this fund amount is used up, then all owners will be
contacted to top it up again. 
Transfer Fee is the land transfer fee approximately 1% of the property value paid to the government. 
When you sell the property, there may be taxes payable as well as transfer fees, which will vary
depending on how long you have owned the property, and what is agreed between the buyer and
seller in terms of how the fees will be split.

As per Thai Regulations, the management of the building is run by the Condominium Juristic Person
(CJP) controlled by a management committee elected by the owners of the building.  The CJP
decides on how to run the building, including selecting external suppliers such as the property
management company, additional rules and regulations and controlling the budget. 
The monthly Common Area Fee is compulsory for all owners to pay, and use of this money is
controlled by the CJP.  Each year the owners will be able to elect the Committee who oversees the
CJP.