The 49% foreign quota
Every condominium building can sell up to 49% of its total saleable floor area to foreign owners. The remaining 51% must be owned by Thai nationals or Thai companies. When the foreign quota of a building is full, a foreigner can still buy a unit there, but not in their own freehold name.
What it means for agents: check the remaining foreign quota with the building's juristic person before you show a unit to an overseas buyer. Losing a deal at the transfer office because the quota is full is avoidable.
Bringing the money in from abroad
To register a unit in a foreign name, the purchase funds must come from outside Thailand in a foreign currency, and be converted to Thai baht by the receiving Thai bank. The bank then issues a document proving the foreign transfer (often called the FET form, or a credit advice for smaller amounts), which the Land Department asks for at transfer.
What it means for agents: tell buyers early, before they wire anything, to state the purpose ("purchase of a condominium unit") and to use their own name. Wrong paperwork here is a common cause of delays.
Freehold, leasehold and companies
- Freehold condo unit within the quota: the standard route for foreign buyers.
- Leasehold: a long lease, typically up to 30 years per registration, used when the foreign quota is full or for houses.
- Buying land through a Thai company with nominee shareholders: a route regulators look at closely. Buyers should get independent legal advice before considering anything like it.
Transfer costs to discuss up front
At transfer, the Land Department collects a transfer fee and, depending on how long the seller owned the unit, taxes such as specific business tax or stamp duty, plus withholding tax. Who pays what is negotiable and is usually written into the sale contract. Give overseas buyers a written estimate early: surprises at the transfer office are a classic way to lose trust.
How agents can make it simple for overseas buyers
- Confirm the remaining foreign quota for the building.
- Send a one-page checklist: quota, money transfer, documents, transfer costs, timeline.
- Recommend an independent lawyer.
- Let them explore the unit and the building remotely, so the trip to Thailand, if any, is for signing, not for searching.
FAQ
Can a foreigner own a house in Thailand?
Foreigners generally can't own land in their own name, so owning a house usually means owning the building on leased land, or other structures a lawyer should review. Condos are the common route.
What happens if the foreign quota is full?
The unit can't be registered freehold in a foreign name. Options include waiting for quota to free up, choosing another building, or a lease. A lawyer can explain the trade-offs.
Does the buyer need to be in Thailand to buy?
Not necessarily. Transfers can often be done through a power of attorney, which a lawyer can arrange. That's one more reason good remote viewings matter.
*This article is general information, not legal advice. Rules and procedures change: check with a Thai lawyer and the Land Department.*
