Condominium in Thailand
Foreigners can own condo units in condominiums. Condominiums are registered multi-unit buildings licensed by the Land Department, governed by the Condominium Act B.E. 2522 (1979).
In Thailand, besides condominiums, there are multi-unit residential buildings where individual unit ownership, akin to apartment houses, is not permissible.
A ‘condominium’ is a building with individually owned condos, each a personal property and jointly owned common property (e.g., the land of the condominium).
Condo owners have rights and responsibilities for managing and using the common property.
A certificate of ownership for a condo in a condominium verifies ownership.
Who Can Buy a Condo in Thailand
The law allows these foreign buyers:
- Permanent residents of Thailand;
- People residing in Thailand under investment promotion laws;
- Legal entities with investment incentives under the law;
- Companies registered in Thailand with major foreign ownership or shareholders;
- People transferring currency to Thailand or from non-resident or foreign currency accounts.
Investment Visa
Buying a condo can sometimes lead to an investment visa.
Foreign Quota
Foreigners can own condos within a foreign quota: their ownership must not exceed 49% of the total area of all condos.
For ownership transfer registration at the land department for a foreigner, a letter from the condominium management confirming quota compliance is needed.
June 21, 2024 press reported that the Thai government is considering two major changes to property laws:
- Increasing foreign ownership limits in condominium developments from 49% to 75%.
- Extending the maximum land lease period for foreigners from 30/50 to 99 years.
These proposals aim to boost foreign investment in Thailand’s real estate sector. However, they are still under consideration and not yet enacted.
Payment to Purchase a Condo
Foreigners who are not permanent residents of Thailand or individuals entering Thailand under investment promotion legislation must prove that the money for the apartment purchase came from abroad. Supporting documents will be required when registering ownership rights at the Land Department.
The most common method is a bank transfer from abroad. The Thai bank issues a corresponding certificate. If the transfer amount exceeds 50,000 US dollars, the bank issues a Foreign Exchange Transaction (FET) form.
When transferring foreign currency to Thailand, the beneficiary’s name specified in the FET must match the name of the buyer as stated in the purchase agreement. The total amount of transferred funds must not be less than the apartment price stated in the purchase agreement.
Taxes and Fees When Buying a Condo
Usually, the buyer pays half of the 2% registration fee based on the cadastral value of the condo. The seller handles other taxes, including the 3.3% Specific Business Tax (applicable if sold within 5 years), 0.5% Stamp Duty, and a 1% withholding tax (or progressive rate). The purchase agreement may specify different cost distributions.
| Tax/Fee | Rate | Who Pays |
|---|---|---|
| Registration Fee | 2% | Seller/Buyer |
| Specific Business Tax (SBT) | 3.3% if applicable | Seller |
| Stamp Duty | 0.5% if applicable | Seller |
| Income Tax (Withholding Tax) | 1% or 5 – 35% | Seller |
To learn more about taxes on buying and selling property in Thailand, click here.
For questions about buying a condo in Thailand or other real estate matters, please email me
Photo by Jesse Schoff on Unsplash