Buying a condo in Thailand as a foreigner
Foreigners cannot generally own land in Thailand, but they can own a condominium unit outright. The rules for doing so are short, and most problems come from not following one of them.
The 49 percent quota
Under the Condominium Act, foreign owners together may hold no more than 49 percent of the total saleable floor area in a registered condominium building. The other 51 percent must be owned by Thai nationals or Thai entities. In popular buildings in central Bangkok the foreign quota can fill up, which leaves later foreign buyers unable to register a purchase in their own name.
Before you pay a deposit, ask the developer or the juristic person that manages the building for written confirmation that foreign quota is available for your unit. The Land Office checks the quota at transfer, so a problem found on transfer day is expensive.
Bringing the money in
The purchase money must come into Thailand from abroad in foreign currency and be converted to baht by a Thai bank. The bank issues a Foreign Exchange Transaction form, usually called an FET form, as evidence. The name on the form should match the buyer, and the amount should cover the registered price. Baht already sitting in a Thai account will usually not satisfy the Land Office, even if you earned it here, so plan the transfer early.
Costs at transfer
Expect a transfer fee of 2 percent of the Land Department's appraised value, plus withholding tax and either specific business tax or stamp duty, depending on the seller and how long they have owned the unit. Buyer and seller split these costs by agreement, and the split is negotiable, so put it in the contract. New developments often include a sinking fund contribution and advance common-area fees at transfer.
Leasehold
For houses and land, foreigners usually take a registered lease. Thai law caps a registered lease at 30 years. Promises of renewal written into the contract may not bind a later owner, so treat anything beyond 30 years as uncertain.
Get independent advice
A lawyer acting only for you can check the title deed, the condominium registration, the quota and the contract. An agent can help with the search, but the legal check is a separate job from finding the right unit.