How to Buy Thai Property & Property Ownership

How to Buy Thai Property

Foreigners can legally purchase condominium units in Thailand under specific conditions. The most common form of ownership is through freehold condominium units, as foreign individuals are not allowed to own land directly. The property must fall within the 49% foreign ownership quota of the total sellable area of the condominium building. Understanding the steps involved—from transferring funds legally to registering the property under your name—is essential for a smooth and compliant buying process.

Property Transfer Requirements

To qualify for foreign ownership of a condominium, the buyer must ensure that the full purchase amount is remitted from overseas in a foreign currency. The receiving Thai bank will convert the funds into Thai Baht. This transaction must clearly state the sender’s name, which must match the buyer’s name in the Sales and Purchase Agreement (SPA). It is also mandatory to declare the purpose of the transfer—typically as "purchase of condominium"—in the bank’s application form. This enables the bank to issue a Foreign Exchange Transaction (FET) form, a critical document required at the Land Office for registration.

Steps to Receive Foreign Exchange Transaction (FET)

To obtain the FET form (Foreign Exchange Transaction form), which is required to register a property under a foreign buyer’s name, three steps must be followed. First, the entire amount for the condo must be transferred as foreign currency and converted into Thai Baht by a Thai bank. Second, the name of the buyer, sender, and receiver must all be included in the transaction and match the name in the SPA. Third, the purpose of the transaction must be clearly indicated in the bank’s remittance documentation to ensure proper issuance of the FET form.

Freehold vs Leasehold ownership

Foreigners can own a condominium in Thailand on a freehold basis, meaning full legal ownership of the unit and a share of common property. This is only allowed if the unit is within the 49% foreign quota of the total condominium project. For other types of properties, such as landed houses or villas, foreigners typically acquire rights through a leasehold, usually for a 30-year term with potential renewal twice. Leasehold grants the right to occupy and use the property but does not include ownership of the land.