Buying Condominium in Thailand

Buying condominium in Thailand offers an exciting opportunity for property investors, especially in light of the country’s booming tourism industry. This guide focuses on what you need to know before making such an investment, particularly the legalities that foreigners face. Although Thai property laws have historically limited foreign ownership, the Condominium Act has opened up avenues for foreigners to legally purchase condominiums, making it an increasingly popular option.

Key to enabling foreign ownership, the Condominium Act in Thailand removes nationality restrictions, simplifying the process for non-Thai nationals to invest in the local real estate market. This shift has significantly boosted the attractiveness of condominiums as an investment option. With the ever-evolving Thai real estate landscape, it’s crucial for prospective buyers to understand the legal nuances of the Condominium Act to ensure a compliant and secure purchase.

This comprehensive guide will provide you with essential insights for buying condominium in Thailand, from understanding market structures to selecting the optimal location for your investment.

What is the Buying Condominium In Thailand Under Foreign Law?

There are two requirements for potential buyers, especially investors, who are entering Thailand with a valid immigration visa. According to foreign law, the following people are eligible to buying condominium in Thailand:

• Foreign nationals who are authorised by immigration laws to reside in the Kingdom.
• As per the investment promotion law, foreign nationals are allowed to enter the Kingdom.
• Individuals with legal status in Thailand.
• Holders of a promotion certificate issued by the investment promotion law to juristic persons.
• Those who have brought foreign currency into the Kingdom OR taken money out of a foreign currency account or from a Thai baht account belonging to someone who resides outside the Kingdom.

What is the Process of Buying Condominium in Thailand?

Buying condominium in Thailand is an easy process that does not require any consideration of nationality. A condo is usually a freehold property that can be purchased by any foreigner who is authorised to enter Thai territory. However, in order to purchase a condo in Thailand, you must fulfil a few important requirements:

1. Foreign Ownership Limitation: The property being purchased must fall within the 49% allocation for foreign ownership in the condominium project. This information can be easily verified by consulting the developer’s office and engaging with the juristic representative. Section 19 of the Condominium Act stipulates that foreign ownership is restricted to 49% of the total floor area of all units within a condo building. 
   
2. Registration of the Project: According to the Condominium Act, the project must be duly registered. This registration process is efficiently verified at the Land Office.
   
3. Funds Transfer from Overseas: When buying condominium in Thailand it must be executed using funds transferred from overseas to Thailand. This implies that the money used for the transaction should originate from a foreign country and be converted to Thai Baht. An official bank statement, commonly known as the ‘Foreign Exchange Transaction Form’ (FET form), is essential for the registration process. Without this documentation, the registration of your name with the condo will not be possible

The Final Steps in Thai Condo Ownership

Understanding the complexities involved in buying a condominium in Thailand is crucial beyond just the initial steps. One key component is the Thai script sale agreement, completed at the Land Department’s branch office during the ownership transfer and registration when buying a condominium in Thailand. This agreement does not override any confidential agreements made between the seller and buyer. Both agreements are vital to ensuring a complete understanding of the terms and conditions of the transaction.

Furthermore, when buying condominium in Thailand, purchasers must account for various costs associated with the property transfer. These may include revenue taxes, duties, or transfer fees. Typically, the buyer and seller may agree to share these costs. To prevent misunderstandings during the sale, it is advisable for both parties to clearly define and agree upon who pays these expenses. Regulations specify that the developer may request from the buyer only half of the two per cent ownership transfer registration fee. Ensuring these guidelines are followed is critical to protecting the buyer’s interests.

Frequently Asked Questions