Buying Property in Thailand as a Foreigner: Rights, Limits and Due Diligence

What a foreigner can own

The Land Code restricts land ownership by foreigners. As a rule, a foreigner cannot hold freehold title to land, except under statutory exemptions that carry strict conditions and apply in limited circumstances.

Three structures are used in practice: owning a condominium unit in one's own name, a long-term lease (leasehold), and holding through a Thai company in strict compliance with the law. Nominee arrangements using Thai shareholders to circumvent the law are illegal and high-risk, and should not be used.

Buying a condominium: the 49% quota and foreign currency rules

The Condominium Act allows foreigners to hold freehold title to units, provided total foreign ownership does not exceed 49% of the total floor area of all units in the building. Before committing, confirm with the condominium juristic person that the foreign quota is still available.

A key condition is that the purchase funds must be remitted from abroad in foreign currency, and the buyer needs bank evidence such as a Foreign Exchange Transaction Form (or equivalent bank document) to present at the Land Department on transfer day.

• Check the remaining foreign quota with the juristic person before paying any deposit
• Remit funds from abroad and keep every bank document
• Check outstanding common-area fees and sinking fund arrears on the unit
• Read the juristic person regulations, for example on short-term rentals

The 30-year leasehold

A lease of immovable property for residential or commercial purposes can run for up to 30 years at a time under the Civil and Commercial Code, and a lease longer than 3 years must be registered at the Land Office, otherwise it is enforceable for only 3 years.

A 'renewable for another 30 years' clause is only a personal promise by the lessor, not a right attached to the property. If the land changes hands, the new owner is not automatically bound by the renewal promise. Seek advice on a secure structure before signing.

Title due diligence before buying

1. 1. Verify the title at the Land Office

   Check the transfer history, the title type (Chanote, Nor Sor 3 Gor, Nor Sor 3) and registered mortgages or encumbrances from the official register, not from copies supplied by the seller.

2. 2. Check encumbrances and disputes

   Search for mortgages, usufructs, servitudes, court orders or attachments that may follow the property.

3. 3. Verify the seller

   Confirm the seller is the registered owner. For a company seller, check director authority and the corporate affidavit.

4. 4. Check land-use restrictions

   Review zoning, building restrictions and access rights affecting the plot.

5. 5. Draft and review the contract

   Prepare a sale and purchase agreement that clearly states payment terms, the transfer date and consequences of breach.

6. 6. Transfer at the Land Office

   Attend the transfer at the Land Office where the property is located, with complete documents, and pay the statutory fees and taxes.

Transfer-day fees and taxes

Transfer day involves statutory fees and taxes such as the transfer fee, stamp duty or specific business tax, and withholding tax on the seller's income. Rates and relief measures change under government announcements from time to time, so check current rates with the Land Department or the Revenue Department before the appointment.

Agreeing in advance which party bears which cost prevents disputes on transfer day. For our legal service fees, please request a quotation from our staff once the property details are known.

Inheritance and special transfer cases

A foreigner who inherits a condominium unit in Thailand must meet the same conditions as a buyer, including the 49 percent foreign quota and evidence of inbound funds. If the conditions are not met, the heir must sell the unit within the period set by law. Estate planning for mixed-nationality families should therefore be done in advance.

For land, a foreign heir generally cannot register ownership and must dispose of the land within the prescribed period, except under narrowly defined statutory exemptions. A will that accounts for these restrictions prevents problems for heirs later.

Steps for foreigners buying a condominium

1. 1. Check the building's foreign quota

   Ask the condominium juristic person whether foreign-owned units remain below 49 percent of total floor area.

2. 2. Check the title and encumbrances

   Verify the title deed at the Land Office, mortgages, lease rights and outstanding common-area fees.

3. 3. Sign the sale and purchase agreement

   Set out payment terms, the transfer process and consequences of breach clearly.

4. 4. Remit funds from abroad correctly

   Transfer foreign currency into Thailand stating the purpose of condominium purchase and obtain the bank's FET form for the Land Office.

5. 5. Register the transfer at the Land Office

   Buyer and seller — or their representatives holding powers of attorney — complete the transfer and pay the fees and taxes prescribed by law.

Transfer Fees and Taxes

A title transfer at the Land Office involves several charges: the transfer fee, withholding income tax, and stamp duty or specific business tax depending on the holding period and the seller's status. Rates follow Land Department and Revenue Department announcements, which are occasionally reduced by temporary measures.

Foreign buyers should agree in writing from the outset which party bears which charge, because the law does not fix the allocation. Misunderstandings here are a common cause of disputes on transfer day.

Due diligence foreign buyers should never skip

Before paying any deposit, verify the original title deed at the Land Office: confirm the registered owner matches the seller and check for encumbrances such as mortgages, usufructs or court attachments. For condominiums, ask the juristic person for the building's current foreign-ownership ratio — if the 49 percent quota is full, the Land Office will refuse the transfer to a foreigner.

When buying off-plan, check the project's construction or allocation permits, and make sure the sale and purchase agreement states clear consequences if the project is not completed on time. Have an independent lawyer review the contract before signing rather than relying solely on the seller's lawyer. These checks take only a few days but prevent losses that are very hard to undo.

Escrow and transferring funds from abroad

Thailand's Escrow Act B.E. 2551 (2008) regulates escrow arrangements; only financial institutions or licensed persons may act as escrow agents under it. The buyer's money is held until contractual conditions are met — for example the seller completing transfer at the Land Office — reducing risk when buying from private sellers or off-plan projects.

A lawyer is not a statutory escrow agent. Having a lawyer or agent hold funds is a private arrangement with weaker protection. Before agreeing, confirm who holds the money, whether they are licensed, and how the contract sets release and refund conditions.

Foreign buyers seeking freehold condominium title within the foreign quota must bring the purchase money in as foreign currency and obtain a Foreign Exchange Transaction (FET) form from the receiving bank for the Land Office. The remitter's name and stated purpose should reflect the condominium purchase; incorrect transfers commonly cause delays on transfer day.

Frequently asked questions