How Foreign Buyers Can Own Property in Thailand

Thailand has long been a popular destination for foreigners, whether for tourism, business, retirement, or long-term living. With its unique charm, many foreigners are interested in buying houses, condominiums, or other types of real estate in Thailand. However, Thailand's laws limit the rights of foreigners in property ownership, so it's essential to understand the legal framework before proceeding. This guide covers all the key details foreigners need to know when buying property in Thailand.

1. Can Foreigners Buy Property in Thailand?

Yes, but with restrictions depending on the type of property.

• Condominiums : This is the only type of property foreigners can legally own outright (freehold). Foreigners can own up to 49% of the total unit area in any condominium project. Therefore, before buying should confidently confirm with the seller whether there is still quota available for foreign ownership.
• Houses and Land : Under Thai legal, foreigners are not directly allowed to own theirs land or houses. However, there are two commonly used methods that allow foreigners to legally reside in or utilize houses and land in Thailand as follow :
  1. Long-term Lease Agreement – Foreigners can lease land or a house for up to 30 years, with the legal right to renew the lease twice, each for 30 years, totaling up to 90 years (Leasehold).
  2. Establishing Company – A foreigner can establish a company with at least 51% Thai ownership to purchase land or a house under the company's name. However, if the Land Department finds that the Thai shareholders are only “nominees” and do not genuinely participate in the business, legal action will be taken, and the property may be confiscated as this violates Thai law.
• Marriage to a Thai National : Foreigners married with Thai citizen may purchase property under their spouse's name and act as a loan guarantor or co-borrower.

2. Conditions for Foreigners to Own Land in Thailand

While foreigners generally cannot own land directly but there are some exceptions as follow:

• Minimum Investment of 40 Million THB: Foreigners must invest at least 40 million THB in a government-approved business or project.
• Minimum Holding Period at least 5 Years: This investment must remain for at least five years.
• Designated Zones Only: Land ownership is allowed only in government-approved zones, such as special economic or investment promotion areas.
• Land Size Limit: Ownership is limited to 1 rai (approximately 1,600 square meters) and must be for residential purposes only.

3. Freehold vs Leasehold

Foreigners can hold property in Thailand under two main types: Freehold and Leasehold, which own distinct characteristics:

1. Freehold (Full Ownership)

Freehold means complete and permanent ownership of the property under Thai law. Foreigners who purchase property as freehold are legally recognized as full owners, with no time limit on their ownership. It is the most secure form of ownership available.

• The owner has full rights to sell, transfer, inherit, or lease the property.
• Ideal for those planning to reside long-term or hold property as a stable investment.
• Full freedom to renovate, alter, or improve the property within legal bounds.
• Offers strong legal protection under Thai law.
• Foreigners are only allowed to purchase condominiums under freehold ownership.

Key Conditions:

• Funds must be transferred into Thailand in foreign currency via a Thai commercial bank and converted into Thai Baht within the country.
• The bank will issue a Foreign Exchange Transaction Form (FETF) to confirm the source of funds.
• Ownership is indefinite unless the property is sold or transferred to someone else.

2. Leasehold (Long-Term Lease Rights)

Leasehold refers to leasing a property rather than owning it. Foreigners may enter into lease agreements with property owners (typically Thai individuals or Thai companies) for a maximum of 30 years under Thai law, with the option to renew twice for another 30 years each, totaling 90 years.

• Lease terms must be clearly stated in a written contract and registered with the Land Office.
• The lessee has the right to use the property for the full term stated in the lease.
• The lease cannot be sold or transferred without the lessor’s consent.
• Leasehold can be used for any type of property, including land and houses.
• It’s the only legal option for foreigners to control land or houses without owning them outright.
• Suitable for long-term residents who are not eligible for freehold.
• Buying under leasehold typically involves lower initial costs than freehold ownership.

Limitations and Cautions:

• Lessees do not hold ownership rights, and cannot mortgage or negotiate terms like an owner.
• Rent may increase depending on market conditions.
• Lease renewals depend on the lessor’s willingness.
• Resale is difficult and always to concern the lessor’s approval.
• If the lessor passes away or becomes involved in legal disputes, the lessee’s rights may be at risk.
• Ensure the lease contract is clear and legally binding, covering all agreed terms.
• Lease renewal clauses must be in writing to be legally enforceable in case of future disputes.

4. Guidelines for Choosing Property in Thailand (For Foreigners)

When purchasing real estate in Thailand as a foreigner, it's essential to consider long-term living. A good property investment should align with your lifestyle including personal preferences, ease of travel, access to amenities, and even future investment potential. Below are some key principles to help guide your property purchase in Thailand.

1. Know What You Need

• What is your purpose? for residential, rental income, or long-term investment?
• Do you prefer living in a big city, near the beach, or in a peaceful area like countryside.
• Determine the ideal property size, number of rooms, and necessary facilities.

2. Choose a Location by Follow Your Lifestyle

• If you seek convenience: Look for properties near BTS, MRT, shopping malls, or central Bangkok. If buying outside Bangkok, opt for properties within the town center.
• If you are nature lover : Consider locations like Chiang Mai, Phuket, or other provinces that may better match your preferences than Central Bangkok.

*** Don’t just look at the present—consider the future potential of the area (development plans, growth, rising property value). ***

3.  Define your Budget

• Define your total budget, including taxes, fees, maintenance costs, etc.
• Prepare for hidden costs such as interior decoration, furniture, and repairs.

4. Explore from website and Arrange On-Site Visits

Today, you don’t have to physically travel to search for property like in the past. You can browse real estate listings online via websites like Propertyhub, which gathers a wide range of sale/rent listings across Thailand. It’s offer easily to explore with include many options properties:  condos, houses, land, and others. Once you find a property you’re interested in, appointment a visit with the owner or agent before making your final decision.

5. Investigate Project and Developer Quality

• Choose properties from trustworthy sellers, such as major developers or licensed real estate agents.
• Ensure the project is completed and assess the quality of materials used.
• For resale properties, examine the overall condition—are repairs needed? What amenities are included in the common areas?

6. Experience your life in the Area

• Evaluate the transportation options and the safety of the neighborhood.
• Consider staying overnight near the property you intend to buy.
• Observe the area during nighttime and weekends—is it noisy or crowded?
• Are restaurants and key facilities nearby?

All these considerations will help you find a property that truly matches your needs and lifestyle in Thailand.

5. Steps for Foreigners to Buy a Condominium in Thailand

1. Reservation Deposit

Once you’ve found a condominium you prefer, the first step is to make a reservation deposit. Typically, foreigners are required to pay between THB 50,000 to 200,000, depending on the price of the condo. This deposit serves as a confirmation of your intent to purchase the unit.

2. Making Sales and Purchase Agreement

Next, you will sign a Sales and Purchase Agreement, which outlines all the details of the property, including the full purchase price. If the payment involves installments or a down payment plan, the terms will be clearly stated in this contract.

3. Preparing for Ownership Transfer

When it’s time to transfer ownership, you should ensure that all payments are ready. Thus, coordinate with a financial institution. In cases where you cannot complete the transaction in person, you may appoint an agent or the developer to act on your behalf at the Land Department through a Power of Attorney. It is recommended that all required documents be prepared in Thailand beforehand.

4. For Individuals Unable to Travel to Thailand

For foreigners who are unable to travel to Thailand, you can authenticate your documents by having them notarized by a Notary Public at a Thai embassy or consulate in your country. Once notarized, send the documents back to your agent or developer in Thailand to proceed with the transfer of ownership.

5. Receiving Ownership Documents

The final step, after the process is complete, the buyer will receive the official Condominium Unit Title Deed and Sales and Purchase Agreement from the Land Department. These documents serve as legal proof of full ownership of the condominium.

6. Payment Process for Foreigners Buying a Condominium in Thailand

When a foreigner purchases a condominium in Thailand, all payments must be transferred from abroad and in foreign currency only. The details are as follows:

1. Deposit

The deposit can be paid via credit card or by international wire transfer from abroad.

2. Down Payments

Typically, the down payment amounts to around 20–30% of the total price. Each installment must be transferred from overseas and in a foreign currency.

3. Ownership Transfer Payment

Even though, a foreign buyer has sufficient funds in a Thai bank account, those funds cannot be used for the final payment. The payment for transferring ownership must come exclusively from an international transfer.
If the buyer already has sufficient funds abroad, the transfer can be done immediately. Alternatively, financing may be arranged through a bank or financial institution that offers loans to foreigners.

7. Taxes and Fees When Buying a Condominium in Thailand

In purchasing a condominium in Thailand, beside sale price both the buyer and the seller are responsible for certain taxes and fees related to the ownership transfer. These expenses are typically divided between the two parties, though buyer’s responsible and expenses to be handled by the seller depending on the agreement. Below as a details:

Buyer’s Expenses

1. Transfer Fee

This is a government fee applied when the ownership of a property is transferred. It is required regardless of whether the buyer is Thai or a foreigner.
The fee is calculated at 2% of either the official appraised value or the contract sale price (depending on the case). This cost is typically split between the buyer and the seller, but in many situations, the buyer bears most of the responsibility.

2. Stamp Duty Tax
Stamp duty is charged at 0.5% of either the appraised value or the sale price—whichever is higher. It is applicable only when Specific Business Tax (SBT) is not charged. In most cases where SBT applies, stamp duty is usually exempt.

Seller’s Expenses

1. Specific Business Tax (SBT)
This tax is imposed if the seller transfers the property within 5 years of acquiring it. The rate is 3.3% of either the appraised value or the registered sale price, whichever is higher.

2. Withholding Tax
This tax is calculated based on the seller’s income:

• If the seller is an individual, the tax is determined using a progressive income tax rate. Depreciation is applied based on the number of years the property was held, and the tax is calculated using a step-rate method.
• If the seller is a juristic person (company), the tax is a flat 1% of either the selling price or the official appraised value (whichever is higher).

Before purchasing a condo in Thailand, make sure to obviously discuss and agree on who will be responsible for each fee and tax, as in some cases, one party may agree to cover all the associated costs. This avoids any misunderstandings later.

Buying a condominium in Thailand as a foreigner is not difficult — if you understand the rules and follow the correct procedures. From making a reservation deposit, signing the purchase agreement, and completing the ownership transfer, to understanding the related taxes and fees, each step is straightforward with the right knowledge. The key is to prepare all necessary documents, transfer funds through legally approved channels, and seek guidance from professionals, whether it be a lawyer, real estate agent, or property developer.

You can also easily for condominiums, houses, land, or any type of real estate to buy or rent in Thailand at Propertyhub – the best Thailand property marketplace for condos, homes, and land. Create your free listing now!