Foreign Ownership of Condominium Property
According to Thai Law, Foreigners may own 49 percent of the aggregate saleable unit space of a condominium building while the remaining 51 percent must be owned by either Thai nationals or majority owned Thai.
Guidance for foreign Buyers
For foreigners to be eligible to purchase a condominium unit in Thailand they must present payment proof, a foreign purchaser of a condo unit is required to remit the full purchase price for the condo in foreign currency into Thailand. Without such proof the department of Lands will not register the transfer of ownership to the foreign buyer.
- 1. Remittances must be sent in exactly (to the letter) the same name appear in passport.
- 2. Transfers of funds must be made in Foreign Currency only and not in Thai Baht i.e. if you are working in US dollars then remit US dollars. Do not remit in Thai Baht.
- 3. The purpose of the remittance must be stated on the remittance advice. This should be "For the Purchaser of buying a condominium, Unit number……………at……………Project". The Bank of Thailand’s transaction purpose code for this is……………
There are 2 options to transfer money to the developer as follows:
- 1. Transfer the funds into a local bank account of the buyer in Thailand in the prescribed format as outlined above, and execute a domestic transfer of this amount onwards, to the Developer. In this case, the buyer must request the local bank of the buyer to issue the Foreign Exchange Transaction Form (FET) as a payment proof. Amounts transferred should be at greater than $20,000, in order to automatically qualify for a Foreign Exchange Transaction Form. (The buyer has to request by telephone or by written notice, according to the procedure of the relevant local bank) for obtaining the Foreign Exchange Transaction Form from the local bank as soon as the funds has been transferred.
If the amount remitted is less than USD 20,000 the buyer is required to send a letter to the bank that will in turn send you a confirmation letter of remittance of foreign currency (credit note) for purchasing a condominium unit. Presently, either the Foreign Exchange Transaction Form or the letter from the bank can be used as evidence when providing proof of fund remittance at the Department of Lands
- 2. Transfer the funds directly to the Developer's bank account in the prescribed format, and the Developer will arrange for the Foreign Exchange Transaction Form to be issued by the Developer's Bank.
*Please keep all Foreign Currency Transaction Forms to use in the process of ownership transfer. The Total amount of money transferred must govern the net price of the condominium unit bought.
*For the buyer convenience, we strongly recommend that you should transfer the funds directly to the Developer's bank account.
Mortgages or financing packages for foreigner purchaser
Normal mortgage financing from a Thai bank for the purchase of a condo is generally not an option for foreigners in Thailand, but if they have any businesses in Thailand or they have a Thai partner who will sign any loan contracts with them. They can purchase their properties in the name of Thai registered companies or the name of Thais.
Ownership transfer consists of
- 1. Passport starting the customer's nationality and a Domicile Document (Tor Mor. 11 Form, Tor Mor. 15 Form or Tor Mor.17 Form) issued by the Immigration Office, National Police Bureau, or an Alien Identification Document.
- 2. Evidence showing the importation of foreign currency into the kingdom or the evidence showing the deposit of money into the foreign currency bank account (Foreign Exchange Transaction Form). The total amount of money as shown in all evidences must govern the net price of the condominium unit bought.
Foreign Exchange Transaction Form is available at any Thai commercial banks, with the signature and the bank seal on such form.
The details as stated above are the preliminary steps that you should know when you desire to buy a condominium in Thailand. Anyway buying and selling property in Thailand can be complex matter, and you should ask a lawyer to complete advice.