Buying Property In Thailand
Freehold condominiums are the best purchasing option in Thailand for foreign buyers. With a special status, outlined by the Condominium Act B.E. 2522 (1979), freehold condominiums allow foreigners direct freehold ownership of the condominium unit, as well as common property co-ownership. In other words, freehold ownership grants absolute ownership of the property, and it is the best form of tenure that foreigners can be granted in Thailand.
Sansiri offers foreign buyers a range of purchasing options, with freehold condominiums situated in Bangkok and a number of key resort locations throughout Thailand.
Completed property requires 100% payment of the property cost.
- Property still under construction requires only 30% of the cost to be paid initially. The remaining 70% is paid upon completion.
Foreigners can purchase up to 49% of the total floor area of a condominium on a freehold basis. It is therefore important to be aware of a condominium’s foreign ownership quota before buying.
Alternatively, foreigners may register leasehold rights of a property with the District Land Office. This includes the lease of condominiums and freehold land. Through this process, foreigners can effectively use land with a leasehold tenure and are permitted to own buildings or structures erected on that land. Thai law limits the duration of leases to a maximum of 30 years, after which the lease term can be renewed. With a registered company in Thailand, foreigners may also buy land or a house.
Steps for purchasing thailand property
Reservation & purchasing
A reservation fee and down payment deposit is required from the buyer to secure the booking of a unit. Once the project has been completed, the remaining amount should be paid in full. Sansiri also requires a copy of the buyer’s national passport. For foreign buyers who have previously purchased property in Thailand, it is necessary to ensure that the spelling of the buyer’s name in Thai is identical to that used for previous purchases. Buyers can purchase property in Thailand via:
- Booking by cash or credit card
- Overseas foreign funds transfer
The requisite information a buyer needs in order to transfer payment to either a Sansiri bank account or an account designated by Sansiri is as follows:
- Bank account name
- Bank account number
- SWIFT code
- Bank name
- Bank address
- Purpose of transfer (i.e. Purchase of property)
source of funds declaration
Non-resident foreigners who buy a condominium in Thailand must present a Source of Funds Declaration to the District Land Office when registering ownership. All funds must be remitted into Thailand as foreign currency, after which the receiving bank will exchange the amount into Thai Baht.
foreign exchange transaction
The receiving bank will issue a Foreign Exchange Transaction Form (FET) for amounts greater than USD 50,000 and a Credit Note for lesser amounts.
Buyers with bank account opened in Thailand may transfer money from the account directly to the seller’s account. However, buyers shall request the bank to issue a Foreign Exchange Translation (FET) form to use as an evidence for registration of ownership at the Land Department.
Buyers can also transfer money to the seller’s bank or issue bank draft payable to the seller and the seller then applies for issuance of Foreign Exchange Transaction (FET) form to use as evidence for registration of ownership at the Land Department.
Note: The amount transferred must be equivalent to or slightly higher than the selling price to show at the Land Department.
An overseas transfer must be issued with evidences to get approval from the Land Department. The money transfer must be made under the same name as appeared in the purchasing contract and must be foreign currency only. Buyers must specify the objective of the money transfer in the payment order.
Customs declaration form
It is necessary to declare the amount and currency to customs, who will issue a receipt for incoming funds. The receipt can then be presented to the bank in order to acquire a Confirmation Letter.
It is recommended that foreign buyers consult a lawyer to assist with their purchase.