Can Foreigners Buy Property in Thailand? The Condo Freehold Quota

Australians can own a condominium unit in Thailand freehold, in their own name, as long as the building's foreign ownership stays within the 49% quota and the purchase money is brought into Thailand from overseas in foreign currency. Land is a different story. Foreigners generally can't own land, except in narrow cases. Most retirees who want a house use a lease instead, or rent.

This is general information, not legal advice. Property in Thailand involves real legal risk. Use an independent Thai lawyer (not the seller's or agent's) before you pay a deposit.

Condos: what the law allows

The 49% quota

The Condominium Act says foreigners together may own condominium units of no more than 49% of the total space of all units in a building, measured when the condominium was registered. THAILAND.GO.TH confirms the 49% limit.

What this means for you: before you agree to buy, check with the building's juristic person (management office) and your lawyer that foreign quota is available for the unit. If the quota is full, you can't register the unit in your name as a foreigner.

Who qualifies to own

Under Section 19 of the Act, a foreigner can own a unit if they fall into one of several categories, including:

• foreigners with permanent residence under immigration law,
• foreigners admitted under investment promotion law, or, most relevant to retirees,
• foreigners who bring foreign currency into Thailand, or withdraw from a non-resident baht or foreign-currency account, to pay for the unit.

The foreign-currency rule

Under Section 19 ter, you must present evidence of bringing foreign currency into Thailand (or withdrawing from a non-resident baht or foreign-currency account) in an amount not less than the price of the unit. THAILAND.GO.TH says the money "must be transferred from a foreign bank to a bank in Thailand", with receipts and bank certificates.

In practice, Thai law practitioners say:

• Transfer the money from overseas, in your own name, stating the purpose as condominium purchase.
• Your Thai bank issues a Foreign Exchange Transaction (FET) form for transfers of US$50,000 or more (or equivalent). For smaller amounts, you get credit advices and a bank confirmation letter.
• The Land Office won't register the transfer without this evidence.

See our money transfer guide.

Land and houses

THAILAND.GO.TH states that foreigners are not permitted to own land unless they invest at least 40 million baht, buy land for residential use not exceeding 1 rai, and obtain permission from the Minister of Interior. Very few retirees use this route.

Common alternatives:

• Leasehold: a registered lease of land or a house. Under Thailand's Civil and Commercial Code, leases of immovable property are generally limited to 30 years per term. Promises of automatic "30+30+30" renewals may not be enforceable. Get legal advice.
• Owning the building, leasing the land: a foreigner can own a building separately from the land in some structures. This needs careful legal work.
• Usufruct or right of habitation over a Thai spouse's land.
• Thai companies or nominees: using a Thai company with nominee shareholders to hold land for a foreigner is illegal, and authorities have increased scrutiny. Avoid it.

A guide to usufructs, leases and land ownership is planned.

Fees and taxes on transfer

THAILAND.GO.TH lists fees connected with foreign property transactions, including Land Office fees and transfer-related charges. On a condo sale, the main costs commonly include a transfer fee, specific business tax or stamp duty, and withholding tax. Who pays what is negotiated between buyer and seller and written into the sale contract. We haven't quoted percentages for each item. Check them with your lawyer and the Land Office at the time of purchase.

Buying safely: a checklist

1. Rent first in the building or area for a few months. See our renting guide.
2. Hire an independent lawyer to check the title (Chanote for condos), the developer, and any debts or encumbrances.
3. Confirm the foreign quota in writing with the juristic person.
4. Check the building's finances: common-area fees, the sinking fund, arrears and maintenance.
5. Off-plan purchases carry extra risk (delays, the developer failing). Check the developer's track record and how payments are protected.
6. Transfer funds correctly from overseas and keep the FET or bank letters.
7. Register at the Land Office in your name, and keep the title deed safe.
8. Plan for inheritance. Make a Thai will. Note that a foreign heir must also qualify to own, or the unit may need to be sold. Get advice.

Does owning help your visa?

Owning a condo doesn't in itself give you a visa or a right to stay. You still need a retirement, marriage or LTR visa. However:

• An LTR Wealthy Pensioner applicant can count Thai property in their own name towards the US$250,000 investment option. See our visa comparison.
• Ownership helps with address proof for banks and immigration.

Summary

• Condos: foreigners can own freehold, within the building's 49% foreign quota, paid with money brought in from overseas (keep the FET).
• Land: generally not allowed (with a narrow 40-million-baht exception). Use a lease, usufruct or rent instead.
• Never use nominee structures.
• Use an independent lawyer and rent first.

What we couldn't verify

• Transfer fee and tax percentages at the Land Office: we didn't quote them. Check at the time of purchase.
• The US$50,000 FET threshold: from practitioners, not a Bank of Thailand page.
• The 30-year lease limit: stated from the Civil and Commercial Code as commonly cited. We didn't check the primary text in English.