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Andi Refandi
Andi serves as a Senior Account Executive on Emerhub’s global team.
As a foreigner, you cannot buy land in Thailand outright but you can buy a condo. There are plenty of modern, high-rise developments in major urban centers in Bangkok or Pattaya as well as vacation homes in Phuket.
Whether you are looking for an idyllic retirement destination or a place to expand your business investments, this article will help you understand how to buy a condo in Thailand. We will help you understand the 49% ownership quota and the strict Foreign Exchange Transaction (FET) form requirement to ensure your investment is 100% legal and secure.
Can Foreigners Buy a Condo in Thailand: Legal Foundations of Condo Ownership
Under the Thai Land Code Act, foreigners cannot own land in Thailand. An exception to this restriction are condominiums. When you buy a condo unit, you own the structure and the unit itself (freehold), but you only hold joint ownership of the land the building sits on, alongside the Thai co-owners.
The Condominium Act B.E. 2522 (1979) limits foreign freehold ownership in any single condominium building to 49% of the total saleable floor area. The remaining 51% must be owned by Thai nationals or Thai juristic entities.
To verify the quota status of the condo development, you must obtain a Juristic Person Certificate from the building management. This confirms the unit you want to buy falls within the 49% foreign ownership quota. Without this certificate, the transfer cannot proceed.
Ways You can Own a Condo in Thailand as a Foreigner
Depending on your needs, there are different ways you can own a condo in Thailand as a foreigner. Freehold and leasehold ownership are two primary means to buy a condo in Thailand for long-term relocation. However, there are also other ways such as Usurfunct or Superficies, and establishing a Thai company (subject to strict compliance to prevent nominee arrangements).
Freehold Ownership (Preferred)
Freehold gives you permanent, outright ownership of your specific unit. It can be leased, sold, or inherited without any time restrictions, just like a Thai citizen would own it. To secure your ownership rights of the condo, you must have a Chanote (or Nor Sor 4). It is the highest and most secure form of title deed in Thailand, issued by the Land Department.
Pro Tip: A Chanote should be the only type of title deed you should accept for your condo unit. Lesser forms carry risks of disputed boundaries or have less secure rights.
Leasehold Ownership (The Alternative Option)
If the 49% foreign quota is full, you may enter a leasehold arrangement. This grants you the right to occupy and use the property for a fixed period. Under the Thai Civil and Commercial Code, the maximum initial term for a registered lease is 30 years. To be legally protected against third parties (e.g., if the freeholder sells the property), the lease must be registered at the Land Department.
Important: While developers often promise two subsequent 30-year renewals (totaling 90 years), be advised that renewals are not automatically enforceable under current Thai law. It often requires the full consent of the freehold owner at the time of renewal.
Other Ways to Buy a Condo in Thailand
These rights are sometimes used for villas (where land is involved) but may apply to securing condo use rights.
- Using Usufruct or Superficies for limited rights: A usufruct grants the right to use and benefit from property for a specified period or for the beneficiary’s lifetime (common between spouses). Superficies grant ownership of the building on someone else’s land, separating land and structure ownership.
- Juristic Entities (Thai/Foreign Company ownership compliance): While technically possible, using a Thai company to hold a condo must comply strictly with the Foreign Business Act. This arrangement, however, is subject to intense scrutiny to prevent nominee arrangements which are illegal in Thailand. Direct freehold ownership in your name is simpler and safer.
Step-by-Step Guide On How to Buy a Condo as a Foreigner
One thing you should know about buying a condo in Thailand as a foreigner is you need to have a Foreign Exchange Transaction (FET) Form to prove that the entire purchase price was remitted from abroad in foreign currency. Without this bank-issued proof, the Land Department will not register the condo title in your name, even if you pay in full.
With that in mind, here is how you buy a condo in Thailand as a foreigner:
Step 1: Selection, Reservation, and Deposit:
Once you select a unit, you sign a reservation agreement and pay a small deposit (typically THB 50,000 to THB 200,000) to take the unit off the market. This deposit is generally non-refundable if you fail to proceed.
Step 2: Reviewing the Sales and Purchase Agreement (SPA)
The SPA is the legally binding document detailing the property description, final price, payment milestones, and the official handover date (for off-plan). While some fees are statutory (like Withholding Tax, typically paid by the seller), the 2% Transfer Fee is almost always negotiable and often split 50/50. Review your SPA and ensure the negotiated split is explicitly written into the SPA.
Step 3: Payments and Foreign Currency Compliance
This is the most critical compliance step for foreign freehold ownership. To register a condo in your name under the foreign ownership quota, you must provide proof that the total purchase price originated from outside Thailand and was exchanged into Thai Baht by a Thai bank. The FET Form (formerly the Thor Tor 3) is the official certificate issued by the bank to verify this.
Here is how you comply with foreign currency rules when buying a condo in Thailand:
- Transfer in Foreign Currency Only: Funds must be transferred from your overseas account in a foreign currency (USD, EUR, GBP, etc.). Do not transfer pre-converted Thai Baht.
- Specify Purpose: Your transfer instructions must clearly state the specific purpose of the remittance: “For the purchase of condominium unit [Unit No.] at [Condo Name] by [Your Full Legal Name].” Vague terms like “personal investment” are not acceptable to the Land Department.
- FET Thresholds: For a single transfer equivalent to $50,000 USD or more, the receiving Thai bank is required to issue the formal FET Form.
- Under the Threshold: For amounts less than $50,000 USD, the bank will issue a Bank Confirmation Letter/Credit Advice. This document serves the same purpose as the FET Form and is accepted by the Land Department, provided it includes all the necessary details (sender, receiver, foreign currency amount, THB converted amount, and explicit purpose).
Important: You must make sure you have the correct purpose stated on your remittance slip. Without the correct purpose clearly documented on the FET Form or Bank Confirmation Letter, the Land Department will reject your foreign ownership registration.
Step 4: Transfer of Ownership at the Land Department
The buyer and seller (or their authorized representatives/lawyers) meet at the Land Department. This is where all final payments are made, taxes and fees are calculated, and the title deed is officially transferred.
During this phase, you will submit the following:
- Passport
- Juristic Person’s certificate (confirming quota availability)
- The SPA
- FET Form(s)/Bank Confirmation Letter(s)
Where to Buy a Condo in Thailand?
Location is an important factor in determining where to buy a condo in Thailand. We recommend that you carefully consider your main objectives for relocating to Thailand, as different real estate hubs suit specific demographics better .Below you can find an overview of the most popular areas for buying a condo in Thailand:
- Bangkok: Thailand’s main economic hub is a popular location for foreign entrepreneurs and investors looking to buy a condo for business purposes (working in Thailand, home-based businesses).
- Phuket: An island setting that is popular amongst tourists and vacationers. Popular with foreign investors looking at condominium ownership for accommodation and luxury tourism businesses.
- Pattaya: Foreign investors commonly buy condos for accommodation and rental businesses targeting the tourism industry. Also a popular hub for digital nomads working remotely from Thailand.
- Hua Hin: This beach resort city is a popular retirement destination due to its leisurely pace and relaxed lifestyle.
- Chiang Mai: Another common location for relocation for retirement, as well as for working remotely due to the lower cost of living and warm climate.
While foreign condo owners most commonly seek these cities, Emerhub’s property team can also provide you with insights into some of Thailand’s newer developments. Our team is knowledgeable up-and-coming real estate hubs with growing investment potential, such as Koh Samui and the Chao Phraya River region.
Does Buying a Condo Grant Residency?
Property ownership is a separate legal matter from your immigration status. Buying a condo grants you a title deed (ownership), but it does not automatically grant you a non-immigrant visa or the right to permanent residency. These two legal spheres operate independently.
Although ownership doesn’t grant residency, owning a condo can help meet complex financial requirements for long-term visas:
- Thailand Elite Visa (Long-term residency solution): This is the most popular path, offering 5 to 20 years of renewable multi-entry visa access for a one-time fee.
- Long-Term Resident (LTR) Visa (Requirements for wealthy global citizens): This 10-year visa targets wealthy individuals, high-skilled professionals, and retirees, often requiring significant investment or income, which condo ownership can complement.
- Investment Visa (If investing a minimum amount): A one-year renewable visa may be granted for an investment of at least THB 10 million in Thai property (condos, subject to specific rules), bonds, or companies.
If you want to buy a condo in Thailand for business purposes, Emerhub can help you determine what type of accommodation you need based on the scale of your intended operations.
Do you want to buy a condo in Thailand? Contact us via the form below and one of our local advisors will be in touch to get the process started!
FAQs About How to Buy a Condo in Thailand
Yes, this is common. You can grant a formal Power of Attorney (PoA) to a trusted representative, typically your lawyer, who can handle all negotiations, contract signing, and the final transfer of ownership at the Land Department on your behalf. Emerhub can act as your legal representative to manage your purchase in Thailand.
Yes. A Thai Tax ID number (TIN) is generally required to complete the transfer of ownership at the Land Department. It is essential for paying any relevant taxes or fees when purchasing a condo. Emerhub can help you process a Thai Tax ID.
The biggest risk is that using a nominee (a Thai national holding property on your behalf to circumvent the law) is illegal under the Thai Land Code. If discovered, the nominee agreement may be voided, and the property could be subject to sale by the authorities. This practice is strongly advised against.
No, not for standard foreign freehold registration. The law requires that the funds used for the condo purchase must be remitted from overseas in foreign currency and converted to Thai Baht. The purpose of this rule is to verify that the funds are genuinely foreign-sourced. Using Thai Baht already sitting in a local savings account (even if you are the account holder) it will prevent the bank from issuing the necessary FET documentation. The Land Department will reject the transfer under the foreign quota.
