How a foreigner can legally buy a condo in Thailand

In the last 15 years or so, buying a condo in Bangkok has become all the rage among foreign property investors and those who simply want to settle in the Thai capital. A non-Thai citizen can legally have freehold ownership of one or more condominiums in the Kingdom. However, there are certain conditions that must be met for a foreigner to own a condo in Thailand.

Foreign Ownership Explained

In general, buying a condo unit is a fairly simple and straightforward process once you know the correct procedures to follow. Additionally, there are no ownership restrictions at the time of writing based on nationality or specific visa categories. In fact, all foreigners who can legally enter Thailand can buy and own a condo outright, and the purpose of this article is to break down these procedures in an easy-to-understand format.

Thailand Condominium Act 2008, ActB.E. 2522 (1979)

If this is your first time buying and you’re not yet familiar with local property laws, this breakdown will help you familiarize yourself with Thailand’s Condominium Act 2008 (as amended), which sets out the rules and regulations that must be followed.

Here is a “brief” summary of these requirements, although other restrictions apply:

• The foreigner has legally entered Thailand
• Freehold of the condominium unit when built on a lot less than five rai
• Laws relevant to certain projects in municipal jurisdictions of the Kingdom
• Condominium units owned by a foreigner cannot exceed 49% of the total project

The contract of sale

A typical sales contract between the parties will include the following six items:

1. The precise details of the condominium unit being purchased
2. The exact details of the parties involved.
3. The agreed cost, payment schedule and deposit, if applicable.
4. The transfer date of the condominium at the Land Office in Bangkok
5. Responsibilities for all transfer fees and any taxes.
6. The guarantees of both the seller and the buyer, and any issues related to due diligence

financial transaction

Under the 2008 Condominium Act, with respect to non-residents of Thailand, those purchasing condominium units in the Kingdom must remit all money to pay for the units from abroad up to the full value of the property. The buyer will then need to obtain a foreign exchange transaction certificate (TT3 or Thor.Tor.3) for each payment from the receiving bank. In order for the foreigner to register the condominium, these certificates must be shown to the Thai Land Department in Bangkok.

The payment “must” be transferred to the country as “foreign currency” and not in Thai baht.

For transfers, Thai banks will only provide a ‘Foreign Exchange Transaction’ certificate for amounts over US$20,000. For smaller amounts, the bank will issue a credit note. This credit memo can also be presented at the Bangkok Land Office to register the condo, but it must come with a confirmation letter from your Thai bank.

What if you don’t have a Thai bank account?

If you don’t have a bank account in Thailand, you can send the funds directly to the owner of the condo you’re buying or to a third-party account, such as a Thai lawyer or other legally registered representative in the country.

However, we strongly recommend that you transfer the funds directly to your own bank account here in Thailand where possible, and then obtain the Foreign Exchange Transaction Certificate at the bank’s head office in the capital. All certificates and/or credit notes and receipts related to the condo must be kept securely, along with any letters/documentation from the Thai bank, until ownership of the condo unit has been successfully transferred.

The payment procedure

In order to obtain a certificate of foreign exchange transaction in Thailand from a Thai bank, you will need to ensure that you comply with the following four instructions:

1. The sender’s name must be the same as the Bangkok condo buyer’s name (as stated in the S&P contract). Indicate the full name and address of the sender and the beneficiary.
2. Money is transferred as foreign currency. Do not convert into Thai baht before making a transfer. The conversion will be done by the beneficiary bank in Thailand.
3. Please indicate in the transfer instructions that the purpose of the transfer is to ‘Buy a condominium in Bangkok, unit No X, at: (name of condominium building)
4. Indicate the charges abroad and the beneficiaries of each payment.

Reference to point 3 above: It is important that you use the exact wording to avoid any misinterpretation by the Land Department of Thailand. For example, the word “apartment” (a term often used in other countries), has a completely different meaning than “condominium” in Thailand.
transfer of ownership

Prior to the transfer of ownership, you will be advised of the total amount due, including any minor services or utility deposits. The following two instructions must be followed:

1. If the final payment is NOT financed by a bank, then this amount must be sent to Thailand exactly like the previous payments.
2. If the final payment IS financed by a bank, then this amount must be paid by cashier’s check which will then be exchanged with the Thai condo deed on the date of ownership transfer.

The conclusion

As with most bureaucratic procedures and large financial transactions, there is more to it than what is described in our short article. However, with the help and guidance of a good legal representative, purchasing a condo unit in Bangkok is a fairly straightforward procedure. This is something that is reflected in the large number of foreign condo owners in the Thai capital and other municipal jurisdictions across the country.