Rules for Foreigners Buying Condominiums in Thailand

Buying a condominium is the most straightforward path for foreign nationals who want to own real estate in Thailand in their own name. Unlike land and houses, condominiums can be legally owned by foreigners under the Condominium Act B.E. 2522 (1979) and its subsequent amendments. However, there are important rules, restrictions, and practical steps to follow to ensure your purchase is fully legal and protected.

The 49% Foreign Ownership Quota

The single most important rule for foreign condo buyers is the foreign ownership quota. Under the Condominium Act, no more than 49% of the total floor area of any condominium building can be held by foreigners. The remaining 51% must be owned by Thai nationals or Thai juristic persons.

In practice, this means:

• Before purchasing, always verify the current foreign ownership percentage in the building
• Request a certificate from the condominium’s juristic person (นิติบุคคลอาคารชุด) confirming the available foreign quota
• If the foreign quota is full, you can still purchase but only under Thai name (e.g., through a Thai company or in a Thai person’s name) — which introduces significant risk

The Foreign Exchange Transaction (FET) Form

To register a condo in a foreigner’s name at the Land Department, you must present a Foreign Exchange Transaction (FET) form (formerly called a Thor Thor 3 form). This form confirms that the purchase funds were transferred from abroad in foreign currency and converted to Thai Baht in Thailand.

Key requirements for the FET form:

• The remittance must be from a foreign bank account in foreign currency (not Thai Baht)
• The amount must be at least equal to the purchase price
• The form is issued by the Thai bank receiving the transfer
• One FET form per transaction; if funds are remitted in multiple transfers, you need multiple forms

Important: Do not transfer purchase funds in Thai Baht, even from a Thai bank account held abroad. The Land Department requires evidence of foreign currency transfer.

Due Diligence Before Buying

Never purchase a condo in Thailand without thorough due diligence. Key checks include:

Title Deed (โฉนด)

Request a copy of the title deed (Chanote) for the unit. Verify the unit number, floor, building, and total floor area match the sale agreement. Ensure there are no registered encumbrances, mortgages, or liens on the title.

Condominium Juristic Person Documents

• Ratio of foreign ownership: Confirm the building is within the 49% foreign quota
• Financial health of the juristic person: Check sinking fund balance and maintenance fund status. Unpaid common area fees can become the buyer’s liability
• Pending litigation: Ask whether the building has any ongoing legal disputes

Developer Background (Pre-Sale Projects)

If purchasing off-plan (before construction), check the developer’s track record, verify they hold a valid Construction Permit (ใบอนุญาตก่อสร้าง), and ensure funds are held in an escrow account. Pre-sale contracts in Thailand offer limited statutory protection — legal review is essential.

Transaction Process and Costs

Step-by-Step Purchase Process

1. Sign a Reservation Agreement and pay deposit (typically 1–3% of purchase price)
2. Negotiate and sign the Sale and Purchase Agreement (SPA)
3. Remit funds from abroad and obtain the FET form(s)
4. Attend the Land Department transfer (both buyer and seller, or authorised representatives with POA)
5. Receive the updated title deed in your name

Transfer Costs

Fee	Rate	Paid By
Transfer Fee	2% of appraised value	Usually split 50/50
Specific Business Tax (SBT)	3.3% of sale price or appraised value (whichever is higher) — if seller owned <5 years	Seller (sometimes negotiated)
Stamp Duty	0.5% (applies instead of SBT if owned >5 years)	Seller
Withholding Tax	Progressive rate on seller’s gain	Seller

Common Mistakes to Avoid

• Purchasing over the foreign quota: Units bought when the quota is full cannot be legally registered in a foreigner’s name
• Using a Thai nominee: Registering in a Thai person’s name to circumvent the quota is illegal and leaves you with no legal ownership
• Not checking the sinking fund: Large unpaid common fees can be transferred to the new owner
• Signing contracts without legal review: Standard developer contracts heavily favour the seller. Always have a lawyer review before signing
• Transferring funds incorrectly: Sending Thai Baht from overseas will not satisfy the FET requirement

Related Articles

• Usufruct Agreement in Thailand
• Sap Ing Sith (Superficies) in Thailand
• Personal Income Tax Thailand
• Estate Planning in Thailand

External resources: Thai Land Department | Board of Investment Thailand | ThaiLawOnline.com

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