3 Key Things Foreign Buyers Should Know When Purchasing a Condo in Thailand

3 Key Things Foreign Buyers Should Know When Purchasing a Condo in Thailand

  1. Foreign Ownership Quota (49%) – Under Thai law, foreign buyers can own up to 49% of the total sellable area in a condominium project. If the foreign quota is already full, alternative options may include purchasing through a Thai company structure or other legal arrangements. It’s crucial to check the availability of foreign ownership quota before proceeding with a purchase.
  2. Source of Funds and Money Transfers – Thai regulations require that funds used for purchasing a condo must originate from a foreign bank account and be transferred into Thailand in a foreign currency before conversion into Thai Baht. Buyers must also obtain a Foreign Exchange Transaction Form (FET Form) from the receiving bank, which serves as an official document to prove the foreign currency transaction. This document is mandatory for the transfer of ownership at the Land Department. Failing to follow this process correctly could lead to complications in registering the property under a foreign name.
  3. Taxes, Fees, and Ongoing Costs – Beyond the purchase price, buyers should be aware of additional costs, such as the transfer fee (typically 2% of the appraised value), specific business tax (if applicable), stamp duty, and common area maintenance fees. These fees may be split between the buyer and seller depending on the agreement. Additionally, developers may require prepayment of maintenance fees for a specified period. Understanding these costs in advance ensures transparency and prevents unexpected financial burdens after purchasing the property.

By keeping these key factors in mind, foreign buyers can navigate the Thai property market more effectively and ensure a smooth and legally compliant purchase process.

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