On 30th November 2017 at Magna Carta Law Office, The Kleshas Defence College, class 17, was discussing and sharing experiences from being involved and travelling to the Buddhist dharma pilgrim in India, and to be guided in the use of principles to aid the Precept, Concentrate, Wisdom to... Read more
Non-Thai nationals can own a condominium under their names upon proving all the evidence presented is correct and provided that the ownership ratio held by the foreigner does not exceed the “foreigner quota”. The Foreign purchaser shall be able to present evidence of bringing foreign currency into the Kingdom to the amount not less than the price of the condominium unit in the form of a Foreign Exchange Transaction Certificate.
What does “foreigner quota” mean?
Although foreigners can buy condominium units in Thailand, there are still certain limitations. A condominium building can only sell 49% of the total space of all units within a condominium building to foreigners and register the condominium ownership under their names. This means that in any condominium project, Thai nationals must own at least 51% of the units by area. Therefore, a foreign buyer must first check the current ratio of foreign ownership in a condominium with the Juristic Person.
What is a Foreign Exchange Transaction Certificate? Why is it necessary?
A Foreign Exchange Transaction Certificate (Thor Thor Sam) is a legal document issued by banks upon receipt of foreign currency into your bank account in Thailand. You can ask for this certificate from your bank when you are remitting funds to Thailand for purchasing a condominium unit. It is Thailand government’s condition that the money used to pay for the purchase price must originate from an offshore source in the form of foreign currency. This certificate shall be presented to the officer at the land office where the ownership registration shall take place. Otherwise. foreigners cannot register the property under their name.
Is it possible to transfer the money directly to the account of the developer or my lawyer?
This shall be possible. Your name must appear as the sender and the money came from your own bank account. It is important that your name shows at one end of the transaction.
I am a foreign buyer with a Thai co-owner; do I still need to transfer the full amount in foreign currency?
No, you only need to remit half of the purchase price of the condominium in foreign currency if you purchase, transfer and register in co-ownership with a Thai person such as your wife. You can pay the other half of the condominium price in Thai currency as the Thai share of co-ownership.
Are there other ways to purchase a condominium unit if the 49% quota is already filled?
You can form and name the unit under a Thai company to purchase a condominium unit or go with a leasing option.
How can I be sure that the property I will buy is not a scam and the person selling it to me is the legal owner?
You can consult a legal advisor on how to check all the papers for validity. We recommend to perform a Due Diligence procedure to confirm all material facts of the property.
What should the sale and purchase agreement cover?
This agreement for a condominium shall specify in detail the responsibilities of the buyer and seller of the condominium. It covers. among others, the agreed price and payment schedule, transfer date, exact details of the condominium, responsibilities for transfer fees and taxes, warranties, and matters on due diligence.
Can I legally rent out my condominium unit?
Yes, you can legally rent out your unit unless restricted in the bylaws of the condominium. Just make sure that you are settling all the corresponding taxes and it is not intended as a business. Only when you engage this as a business, then you should comply with the requirements of the Foreign Business and Foreign Employment act.