Condominium in Thailand
Foreigners can own condo units in condominiums. Condominiums are registered multi-unit buildings licensed by the Land Department, governed by the Condominium Act B.E. 2522 (1979).
In Thailand, besides condominiums, there are multi-unit residential buildings where individual unit ownership, akin to apartment houses, is not permissible.
A ‘condominium’ is a building with individually owned condos, each a personal property and jointly owned common property (e.g., the land of the condominium).
Condo owners have rights and responsibilities for managing and using the common property.
A certificate of ownership for a condo in a condominium verifies ownership.
Who Can Buy a Condo in Thailand
The law allows the following categories of foreign individuals and entities to own a condominium unit in Thailand, provided they meet specific requirements:
- Permanent Residents of Thailand: Individuals who have obtained a residence permit under the Immigration Act.
- Individuals Residing in Thailand under Investment Promotion Laws: Those who have been granted permission to reside in the Kingdom according to the law on investment promotion.
- Juristic Persons with Investment Incentives: Juristic persons that have received investment promotion privileges under Thai law.
- Companies Registered in Thailand with Majority Foreign Ownership: Juristic persons registered under Thai law that are considered “alien juristic persons” under Section 97 and Section 98 of the Land Code.
- Foreigners Transferring Currency into Thailand: Foreign individuals or entities who bring foreign currency into the Kingdom, withdraw funds from a Thai Baht account held by a person residing outside of Thailand, or withdraw funds from a foreign currency deposit account.
Investment Visa
Buying a condo can sometimes lead to an investment visa.
Foreign Quota
Foreigners can own condos within a foreign quota: their ownership must not exceed 49% of the total area of all condos.
For ownership transfer registration at the land department for a foreigner, a letter from the condominium management confirming quota compliance is needed.
June 21, 2024 press reported that the Thai government is considering two major changes to property laws:
- Increasing foreign ownership limits in condominium developments from 49% to 75%.
- Extending the maximum land lease period for foreigners from 30/50 to 99 years.
These proposals aim to boost foreign investment in Thailand’s real estate sector. However, they are still under consideration and not yet enacted.
Payment to Purchase a Condo
Foreigners who are not permanent residents of Thailand or individuals entering Thailand under investment promotion laws must demonstrate that the funds used for the condominium purchase originated outside the Kingdom. This requirement can be fulfilled through one of the following methods:
- Remitting Foreign Currency into Thailand: The foreign buyer must provide proof that foreign currency was transferred into Thailand. Acceptable forms of evidence include a Foreign Exchange Transaction (FET) Form for transfers of at least 50,000 USD or a bank certificate for amounts below 50,000 USD. A Foreign Currency Declaration Form from the Customs Department can also be used if the currency was physically brought into the country.
- Withdrawing Thai Baht from a Non-Resident’s Account: This option applies when funds are withdrawn from a Thai Baht account held by a person residing outside of Thailand, even if the account is not in the buyer’s name. A bank certificate confirming the withdrawal from such an account must be presented.
- Withdrawing Money from a Foreign Currency Deposit Account: If funds are withdrawn from a foreign currency deposit account in Thailand, a Foreign Exchange Transaction (FET) Form or a bank certificate verifying the source and amount of funds is required.
Note: The name on the FET Form or bank certificate must match the name of the purchaser in the purchase agreement. The total amount of funds must be no less than the purchase price stated in the agreement, ensuring compliance when registering ownership at the Land Department.
Taxes and Fees When Buying a Condo
Usually, the buyer pays half of the 2% registration fee based on the cadastral value of the condo. The seller handles other taxes, including the 3.3% Specific Business Tax (applicable if sold within 5 years), 0.5% Stamp Duty, and a 1% withholding tax (or progressive rate). The purchase agreement may specify different cost distributions.
| Tax/Fee | Rate | Who Pays |
|---|---|---|
| Registration Fee | 2% | Seller/Buyer |
| Specific Business Tax (SBT) | 3.3% if applicable | Seller |
| Stamp Duty | 0.5% if applicable | Seller |
| Income Tax (Withholding Tax) | 1% or 5 – 35% | Seller |
To learn more about taxes on buying and selling property in Thailand, click here.
For questions about buying a condo in Thailand or other real estate matters, please email me
Photo by Jesse Schoff on Unsplash