Buying a Condo in Thailand as a Foreigner:
- Kanokpich Ukritdutsadee
- 2 days ago
- 5 min read
Buying a Condo in Thailand as a Foreigner: The Clear, Practical Guide (2025)
Thinking about owning a place in Thailand without getting tangled in land-ownership rules? Condominiums are the straightforward path for non-Thais—freehold title in your own name—as long as you follow a few key rules. Here’s a simple, no-nonsense guide covering eligibility, the 49% foreign quota, money-transfer (FET) requirements, fees/taxes, documents, due diligence, and common pitfalls.
1) WHAT FOREIGNERS CAN OWN (AND THE 49% RULE)
• Foreigners may own a registered condominium unit freehold in their personal name, provided the building’s foreign quota is not full.
• By law, the foreign quota is capped at 49% of the total sellable area of all units in the building; the remaining 51% must be owned by Thai nationals/entities. Always check the current quota with the condo juristic office before paying a booking fee or signing anything.
If the foreign quota is full: your alternatives are typically a 30-year leasehold, buying in a different project, or waiting for quota to free up via resales. (Company or spouse/nominee “workarounds” carry legal/compliance risk—speak with a qualified lawyer first).
2) THE MONEY PATH: FET FORMS AND PROOF OF FOREIGN FUNDS
To register foreign freehold ownership, Thailand requires proof that the purchase funds came from overseas in foreign currency and were converted to THB in Thailand for the purpose of buying a condo. The bank issues a Foreign Exchange Transaction (FET) form (or bank credit advice when under thresholds). You’ll show this at the Land Office during transfer.
Key points:
• Send the funds from your overseas account, in foreign currency, with the purpose stated as property purchase and your name matching the sale contract.
• Keep the original FET/credit advice—no FET, no freehold registration.
3) TAXES, FEES, AND WHO USUALLY PAYS WHAT
These are due at transfer (parties can negotiate, but custom is noted below):
• Transfer fee: 2% of the Land Department’s assessed value (often split 50/50 or paid by buyer—negotiable).
• Specific Business Tax (SBT): 3.3% (3% + 10% municipal levy) if the seller has owned less than 5 years or is deemed trading for profit—usually the seller pays.
• Stamp duty: 0.5% (generally charged when SBT is not applicable)—usually the seller pays.
• Withholding tax: varies by seller type (company vs. individual; for individuals it’s based on a formula using assessed value and years owned)—usually the seller pays. (Law firm summaries linked above discuss this at a high level.)
Tip: Always ask your lawyer for a “closing cost sheet” showing each line item and who pays what for this deal.
4) ESSENTIAL DOCUMENTS YOU’LL USE
• Sales & Purchase Agreement (SPA) and reservation/booking receipts.
• FET form / credit advice showing foreign funds and purpose.
• Condominium unit title deed (issued at transfer).
• Juristic office letters: to confirm foreign quota availability and no outstanding common-area fees.
• Seller’s ID/company docs and building compliance documents (for off-plan, see Section 6).
Note on the Yellow House Book (Tabien Baan): some foreigners obtain a yellow house book for administrative convenience, but it is not proof of ownership and isn’t required to own or transfer a condo. Your title deed is what matters.
5) HOW THE PROCESS TYPICALLY FLOWS
1. Shortlist & quota check with the juristic office (is there space under the 49% cap?).
2. Reservation & SPA (add a lawyer review clause).
3. Send funds from overseas in foreign currency → obtain FET/bank letter.
4. Transfer at Land Office: present FET, pay taxes/fees, receive title deed in your name.
5. Post-transfer: register with the juristic office, pay sinking fund (if applicable) and annual/common-area fees.
6) RESALE VS. OFF-PLAN (NEW BUILD)
• Resale: Faster transfer, you can inspect the actual unit, see real maintenance and juristic performance, check special assessments, and verify there are no arrears.
• Off-plan: Developer will guide payment schedules, but you still must remit foreign currency and keep FET records for final transfer. Confirm the EIA/building permits, escrow/payment protections, developer track record, and what’s included (furniture, appliances, guarantees). (Developers and law firms reiterate the FET requirement even for staged payments.)
7) FINANCING OPTIONS FOR FOREIGNERS
Cash is most common. A few banks/developers offer limited financing to non-residents (strict criteria; higher deposits and rates). If you plan to finance, speak early with lenders and ensure any mortgage structure still results in you obtaining the FET evidence for freehold registration.
8) INHERITANCE & SUCCESSION
Foreigners can inherit condo units, but the heir must also qualify for foreign ownership (quota space + foreign-funds proof). If they don’t qualify—or the building’s foreign quota is already full—the law generally requires disposal within one year. Plan beneficiaries and documents accordingly.
9) DUE-DILIGENCE CHECKLIST (USE THIS TO AVOID HEADACHES)
• Foreign quota letter from the juristic office (in writing).
• Developer/Building health: permits, completion status, litigation, reserve/sinking fund level, and historical special assessments.
• Common-area fees: current rate, payment cycle, arrears policy, and upcoming projects.
• Unit checks: structural issues, water pressure, AC age, balcony waterproofing, and appliance serial numbers.
• Neighboring projects: any planned construction affecting views/noise.
• Contract terms: delivery dates, penalties, specs list, snagging rights, and handover process.
• Closing statement: line-item taxes/fees split and exact cashier’s-cheque amounts.
10) FREQUENTLY ASKED QUESTIONS
Q: Can I buy via my Thai spouse or a Thai company to “get around” the 49%?
A: Risky. Authorities scrutinize nominee arrangements; you can jeopardize the title. Safer: buy a foreign-freehold unit within quota or use a properly drafted lease. (Get independent legal advice.)
Q: Do I really need the FET form? I already have THB in a Thai account.
A: Yes—foreign currency must be brought in and documented for foreign freehold registration. Without FET/credit advice, the Land Office can reject your registration. Thavorn Asia Property+1
Q: Who sets the taxes and fees at transfer?
A: They’re set by law and calculated on the assessed value or transaction value (depending on the tax). Parties can negotiate who bears each item, but the rates aren’t negotiable.
Q: Does a Yellow House Book prove I own my condo?
A: No. It’s a residence record only; title deed proves ownership.
11) QUICK RECAP: THE “PROGRAM” IN ONE PAGE
• Eligibility: Any foreigner can own a registered condo unit freehold if the project’s foreign quota (49%) isn’t full.
• Money path: Move purchase funds from overseas in foreign currency; keep the FET (or bank credit advice) for Land Office transfer.
• Costs at transfer: Expect 2% transfer fee (assessed value) + seller-side SBT 3.3% or stamp 0.5%; split varies by negotiation.
• Docs: SPA, FET, quota confirmation, and clean dues letter from juristic office.
• Pitfalls to avoid: Paying a deposit before confirming quota, failing to bring in funds correctly (no FET), ignoring building finances, or relying on risky nominee structures.
• Contact Lawyers for Expats Thailand to be legal, and safe.
Call 0956583038 WhatsApp or Line.
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