Haris & Associates Phuket Thailand Legal Blog

Land laws in Thailand prohibit ownership of land in Thailand by foreign nationals.

Foreigners who want to own a property in Thailand are allowed to purchase a condominium unit under specific conditions stipulated in the Thai Condominium Act. A condominium is defined as a building that can be separated into several units which can be sold for individual ownership, including common properties such as hallways, the land on which the building is constructed, elevators, etc. For a condominium building to qualify for individual ownership of the unit and joint ownership of common areas, it should be registered as “condominium” with the land department.

A duly registered and licensed condo may sell units to foreign nationals within the foreign ownership quota which, per Section 19 of The Condominium Act is limited to 49% of the total floor area of all units in the condominium building combined. In other words, more than half of the units are to be owned by Thai nationals.

Foreigners should be guided by the provisions under Section 19 of the The Condominium Act of Thailand, summarized below:

Who Can Own Condo Units

Juristic persons and aliens (foreigners) classified by law as aliens are entitled to condo unit ownership if they are:

● Foreigners allowed to have residence in Thailand under Immigration Law
● Foreigners entering Thailand by virtue of the Investment Promotion Law
● Juristic persons in accordance with the Land Code’s Sections 97 and 98 and under Thai Laws are registered as juristic persons
● Companies or juristic entities under Section 4 of the Foreign Business Act who have obtained promotion certificate under the Investment Promotion Law
● Foreigners or juristic persons who remitted foreign currency into the country or withdraw money from a foreign currency account. Foreigner must obtain proof of remittance and foreign currency exchange to Thai Baht from receiving bank in Thailand and submit the documents at the land department’s branch or provincial land office.

Financial Requirements

To qualify for foreign ownership of a condo unit, a foreign national must pay purchase price in full via foreign currency remitted to Thailand. A presentation of FET form (Foreign Exchange Transaction) is proof that the funds used to buy the condominium unit came from overseas, remitted to a receiving Thai bank. The FET form certifies that the funds are remitted to Thailand for the sole purpose of buying a specific condominium unit. This form will be presented and registered at the Land Office.

Sale and Purchase Agreement

This is the most important document in the buying process of a condominium unit. This document should cover the following:

● exact details of the unit
● exact details of the parties
● the agreed price and payment schedule and possible deposit
● transfer date of the condo at the land office
● responsibilities for transfer fees and taxes
● warranties of the seller and buyer and matters relating to due diligence.

Ownership of a condo unit is transferred at the local Land Department’s Office upon payment of the following fees and taxes:

● ownership transfer fee
● stamp duty
● income withholding tax (personal or corporate)
● specific business tax (if applicable)

These costs may be divided between buyer and seller depending on what was previously agreed by both parties. For more information about condominium unit ownership by foreigners in Thailand, you can read here. For professional Real Estate and Property Specialists in Phuket, click here.