1. Can foreigners own a Condo in Thailand?

Buying a condominium is  the simplest and easiest option that is available to foreigners here in Thailand.  Foreigners can own condominiums as “ free hold property” in their own name and  should not exceed 49% of units in each building.

If the condominium hits the quota of 49%, the Foreigners will not be able to purchase a unit under the Foreign quota.

Thai law does not allow Foreigners to own the land the building is build on.

While foreigners are unable to buy property under their own name, there are a few save ways to ‘own’ property in Thailand:

-Through a Thai Private Limited company

The company must have Thai and Foreign ownership. Foreign ownership of the company must be 49% or less. The foreigner can maintain control of the company via handing control to foreign directors, giving foreign partners greater voting rights or through legal power of attorney from the Thai shareholders. Mostly Foreigners can this route, by getting a lawyer to help with all the process.

Setting up a new company cost around 20.000 to 50.000 Baht. Thai companies produces balance sheet each year, and the accounting services charges 12,000 to 15,000 THB a year.

What is TT3 or FET Form?

FET form means:  Foreign Exchange Transaction form, previously known (and for some still) as Thor Tor 3 (Thor Tor Saam).  - official bank document issued by the bank upon the receipt of foreign currency into your bank account in Thailand. It is important for you to request a TT3 from your bank when you have remitted funds for the purpose of purchasing property. It must clearly be stated  that the money transferred is only for the purpose of purchasing the property.

What is Title Deed?

Title Deed (known as the ‘Chanote’) is the certificate of land ownership. It ensures an easy but effective property transfer with one original being kept in the District Land Office where the registration of property transfer takes place and the other original being given to the new owner of the property. 

  1. Procedure of Buying a condominium and transfer of the ownership?

Once a suitable property has been chosen, the title deed is checked at the land office, the contract is signed with the 10% of deposit payment, then we start the preparation of transferring the ownership at the land department.  The preparations of the paperwork for both, buyer and seller is usually part of the estate agencies service involved in the deal. Some buyers and sellers hire a law office for this process. The seller needs to provide a "clearance paper" from the condo administration . Purpose of this document is to confirm to the land department that the property is "Depth Free" meaning all maintenance fees, water and electric bills have been paid. The Buyer need to provide a document call “TT3” from his bank in Thailand. Purpose is the confirmation that the funds used by the foreign buyer to purchase the condo came from abroad. During the transfer proceedings at the land department is the presence of buyer and seller mostly not required. The Estate agent or lawyer can handle the process when properly authorized with "Power of Attorney" forms. A save and convenient way to do the final balance payment to the seller is to issue a "Bank Manager Cheque" called "Cashier Cheque" to the name of the seller. This cheque will be given to the seller immediately AFTER the transfer proceedings where completed and the title deed (Chanod) has been registered to the buyers name.

  1. Financing and mortgage for the condo?

Normal mortgage financing from a Thai bank for the purchase of a condo is generally not an option for foreigners in Thailand. Basically only foreigners with residency, income and an employment history in Thailand can, depending on the bank's policy, obtain a mortgage of the (part) financing of a freehold condo (and then only for a real condo as this is the only immovable property foreigners can obtain outright ownership of in Thailand). But even if the foreigner meets the criteria Thai banks are generally reluctant to lend money to foreigners. Banks will not give a mortgage for a condo to non-resident foreigners. Foreigners can also not register ownership without having complied with the Condominium Act section 19 which usually means having transferred foreign currency into Thailand for the purchase of the condo. If the foreigner is married to a Thai national the bank's requirement could be that the condo is registered as a personal property of the Thai spouse where the foreigner is merely the guarantor of the loan without ownership rights in the condo.

Property developers do accommodate foreign buyers with convenient payment plans. Payments are spread over several months or years until completion of the project. Prices are in general lower before completion of the project.

What Taxes and Costs are Applicable to Purchasing Property in Thailand?

Whenever a property in Thailand is bought and sold, there are four taxes that need to be taken into account.

When I rent / sell my condo, do I have to pay Tax?

Unless restricted in the bylaws of the condominium (the adopted rules and regulations of the condo) a foreigner is free to rent out his unit. Only if it is considered operating a business of renting out properties in Thailand by a foreign investor the foreign owner would be restricted by the Foreign Business Act (list 3) and possible the Foreign Employment Act. A (non-resident) individual (foreigner in Thailand) is subject to tax only on assess able income from Thai sources, regardless of payment location. 

When you sell your condo taxes must be and are paid at the Land Office at the time of transfer. This includes transfer fee, business tax or stamp duty and income withholding tax. With the land office tax-receipt, sale documents and documents confirming the previous transfer of foreign currency into Thailand, the bank is allowed to transfer the full amount received from the sale of a condominium by a foreigner out of Thailand without any deductions.

Do I have to pay ongoing Property Taxes in Thailand?

There are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the west, however, the most comparable taxes on properties in Thailand are the Land Tax and the Structures Usage Tax. The Land Tax levied on land is so minimal, that in practice the body charged to collect it, rarely bothers to do so, and if they do, they usually wait several years until the amount accumulates. The second tax, the Structures Usage Tax, relates to buildings, is collected by the municipal office or district office, and is only applied to properties used for commercial purpose.

  1. Land measurements in Thailand

Find a Property : Condominium/Apartment | Commercial Building | House/Town House/Villa | Hotel/Resort | Land

© 2023 Seashore-Properties  All Rights Reserved.  Nongprue, Banglamung, Chonburi 20150 Tel/Fax: +66-82-707-5445  E-mail: sales@seashore-properties.com