Foreign ownership information
Currently, foreigners are permitted to buy condominiums in Thailand. However, foreigners may own up to 49 % of the total number of units in the condominium while the remaining 51% must be owned by Thai nationals or majority owned Thai companies.
Payment Instruction for foreign purchasers of condominium in Thailand
Under the Condominium Act 1991, non-resident foreigners who purchase condominium units must bring in the funds to pay for the unit from overseas. That means that the entire payment must be transferred into the country as “foreign currency”. The beneficiary bank will issue a “Foreign Exchange Transaction”certificate which should be presented to the Land Department when registering the ownership of the condominium.
For each transfer, banks will only provide a “Foreign Exchange Transaction” certificate for amounts of over US$ 20,000. For amounts of less than this, the bank will issue a credit note, which may be presented, with the confirmation letter from the bank, to the Land Office in order to register the condominium.
In such case, the developer, as the beneficiary, will obtain the Foreign Exchange Transaction certificate from the us on behalf of the purchaser. The developer will keep all the certificates and/or credit notes with the letter from the bank until the date on which the ownership of the condominium units is transferred. In the event that the purchaser wishes to keep those documents, a request can be submitted to the developer.
If you have a bank account in Thailand the procedures will be the same but you will be the beneficiary and you will have to obtain the Foreign Exchange Transaction certificate from the bank by yourself.
1. To obtain a “Foreign Exchange Transaction” certificate, please ensure that you follow the instructions below.
- The name of the remitter must be the same as the purchaser (as indicated in the S&P agreement. Please fill in full name and address of the remitter and the beneficiary.
- The money is transferred as foreign currency. Do not convert in Thai Baht before making a transfer. The conversion into Thai baht will be done by the beneficiary bank.
- Please indicate in the transfer instructions that the purpose of transfer is To purchase a condominium unit No…………….at Mövenpick Residences at Movenpick Hotel & Residences please use the exact wording above in order to avoid any misinterpretation by the Land Department. For example, the word “apartment”, a term which is frequently used in other countries, has different meaning from “condominium”.
- Please include both overseas and beneficiary bank charges for each payment.
2. Debit advice
We shall then be able to assist you in tracing the payment and ensure that the receipt of payment will be sent to you promptly.
3. Payment adjustment
The conversion into Thai Baht may result in the difference either a surplus or a shortfall amount regarding each payment. As such, the balance of all the payments will be adjusted in the final payment due upon registration of the ownership of condominium.
4. Transfer of ownership
Prior to the transfer of ownership, the developer shall inform the buyer about the amount due, including the final payment (after adjustment), transfer fee, common area management fee, electricity meter deposit, and sinking fund as well as the means of payment and the recipient names.
The final payment needs to be paid by a cashier cheque which will be exchanged with the condominium’s title deed on the date of transfer of ownership.
We recommend setting up a non-resident Baht account at a local bank in Thailand for the purpose of issuing a cashier cheque.
We hope the above information is useful and if you have any other queries, please feel free to ask our sales representative.
1. Condo/Apartment: Property Definition
Thailand has specific definitions that describe the difference between an apartment and condo, and whilst different parts of the world use either apartment or condominium to describe what essentially the same type of property is, Thailand does not.
In Thailand, an apartment is a residential building held in single ownership on an individual title.
2. Apartment/Villa Leasehold Title Definition
A foreigner may register ownership of a 30-year lease with the Land Office. This may be a lease of a condominium, an apartment, a house/villa or land. The land owner or building owner must hold the property on freehold “Chanote” title or “Nor Sor 3 Gor”.
There are no restrictions on foreigners owning a building outright. Therefore, a foreigner may own a building erected on the land over which they have a 30-year lease.
The lessor can grant the lessee a series of options to renew the lease for further terms of 30 years, but these options cannot be registered against the land title and are only enforceable on the contracting parties.
This structure is transparent and is fully in accordance with the Thai law.
As the leasehold structure can be complex we recommend that the purchasers of a leasehold property seek qualified legal advice before entering into lease contracts.
3. Condo, Apartment, Villa or Land Ownership Using a Company
An indirect means of foreign ownership of property in Thailand is possible through the ownership of a Thai company, however there are strict rules as to what is deemed to be a Thai company when foreigners are involved.
The establishment of a Thai company and the law relating to foreign ownership of landed property is a specialist area and it is recommended that purchasers consult legal professionals who are well experienced in this area.
4. Leasehold Definition
This means that the building or land is held on a lease from the land or building owner.
The maximum fixed term of lease in Thailand is 30 years. It is possible to contractually agree options to renew but these options are not registered at the Land Department.