Can foreigners own property in Thailand?
Yes — but with a key restriction. Under the Condominium Act, foreigners can own condo units in freehold (full ownership), provided that foreign ownership in any single building does not exceed 49% of the total registered area. Land and houses cannot be directly owned by foreigners (structures like leasehold or company ownership are used instead).
The Foreign Quota
Before purchasing, always verify the building's current foreign quota status with the juristic person (นิติบุคคล) or the developer. A popular building in a prime area may already be at or near the 49% limit. Your lawyer or agent can check the Land Department records.
Step-by-step buying process
- Find and agree on a unit — Negotiate price, furniture, and handover date directly with the seller.
- Hire a property lawyer — Cost: approx. ฿15,000–30,000. They review the title deed (Chanote/NS4J), check for encumbrances, and draft contracts.
- Sign a Reservation Agreement — Typically 1–5% deposit to hold the unit.
- Transfer funds from abroad — You must bring funds from overseas in foreign currency, then convert to THB. Your bank will issue a Foreign Exchange Transaction (FET) form — keep this. It proves the money came from outside Thailand.
- Sign Sale & Purchase Agreement — Full terms, 10–30% deposit.
- Transfer at Land Department — Final payment, title transfer, and tax/fee settlement on the same day.
Taxes and fees at transfer
| Fee | Rate | Paid by |
|---|---|---|
| Transfer fee | 2% of appraised value | Negotiable (often split) |
| Specific Business Tax | 3.3% (if sold within 5 yrs) | Seller |
| Stamp duty | 0.5% (if held 5+ yrs) | Seller |
| Withholding tax | 1–5% (individual) | Seller |
Annual costs of ownership
- Common Area Maintenance (CAM) fee: ฿30–80/sqm/month depending on building facilities
- Sinking fund: one-time payment at purchase, typically ฿400–600/sqm
- Property tax: minimal for residential use (0.02% of appraised value if personal residence)
Important tips
- Always use a licensed Thai lawyer — not just a developer's in-house legal team
- Verify the FET form is issued before transferring — no FET = no title transfer for foreigners
- Check building age and condition: older buildings (15+ years) may have higher sinking fund obligations
- For off-plan: understand the escrow/refund terms before signing
