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The legal framework tied to buying an apartment in Bangkok
The possibility to buy an apartment in Bangkok by foreign nationals in Thailand is governed by the Land Code Act B.E. 2497 and the Condominium Act B.E. 2522. Under the Land Code, foreigners are expressly prohibited from owning land. However, the Condominium Act allows foreigners to buy an apartment in Bangkok by acquiring freehold ownership of a condominium unit, provided that the cumulative foreign ownership does not exceed 49% of the total usable area of all units within the condominium project, as recorded at the Land Department. In parallel, long-term lease agreements of up to thirty years are permitted under strict conditions and may serve as an alternative when ownership is not legally possible.
This article provides a detailed legal guide on how to buy an apartment in Bangkok as a foreigner. It outlines the different legal structures available, the regulatory requirements imposed by Thai authorities, and each procedural step required to ensure lawful registration and ownership under Thai law.
Table of Contents
The options available to buy an apartment in Bangkok
Acquiring a condominium unit
One of the most straightforward and legally secure options for foreigners to buy an apartment in Bangkok is the purchase of a condominium unit under the Condominium Act B.E. 2522. Section 19 bis of this Act allows non-Thai nationals to own condominium units in buildings where the foreign ownership ratio does not exceed 49% of the total floor area of all units combined. Ownership is registered directly in the name of the foreign buyer at the local Land Office, and the buyer receives a separate Chanote title deed for the unit, granting full proprietary rights.
To comply with the law when buying an apartment in Bangkok, the funds used for the purchase must be transferred from overseas in foreign currency. A Thai commercial bank will then issue a Foreign Exchange Transaction Form (FETF) for each transfer exceeding the equivalent of 50,000 USD. This document is required by the Land Office to register the ownership and is also necessary to repatriate funds after resale. Furthermore, the buyer must ensure that the building is properly registered as a condominium under the Condominium Act and not a commercial or apartment structure, which would fall under different legal provisions.
Leasing land
Another option to buy an apartment in Bangkok is the long-term lease of land, as provided by the Civil and Commercial Code of Thailand, specifically Sections 538 to 571. These provisions allow a foreign individual to lease land for up to 30 years for residential purposes. Although the lease contract may include renewal clauses, it is important to note that under Thai law, such clauses are not enforceable against third parties unless the renewed lease is separately registered at the Land Office.
Once the land lease is registered, the foreign lessee may construct a residential building on the land and retain full ownership of the structure. This is permitted under Section 146 of the Land Code, which recognizes the separation of land ownership from building ownership, provided that the construction is declared as the lessee’s property and was financed by them independently.
The lease must be registered with the Land Office if its duration exceeds three years, in accordance with Section 538 of the Civil and Commercial Code, and the registration fee is calculated at 1.1% of the total lease value. This structure is commonly used by foreigners seeking to build a villa in Thailand while maintaining a legally secure right of use over the land.
Step 1 – Conducting due diligence on the property before buying an apartment in Bangkok
Before buying an apartment in Bangkok and signing any contractual document or transferring any funds, a full legal due diligence must be conducted. This step is essential to ensure that the property is free from legal defects and that the transaction complies with Thai regulations.
The first point of verification is the condominium license. The building must be formally registered as a condominium project under the Condominium Act. This registration must be evidenced by documents obtained from the Land Department. Additionally, the current allocation of the foreign ownership quota must be checked. If the forty-nine percent threshold has already been reached, a foreigner will not be permitted to register the unit in his or her own name.
The second point concerns the title deed of the unit. The Chanote (Nor Sor 4 Jor) title must be examined at the Land Office to confirm that the seller is the legal and sole owner of the property. The deed must be free of any encumbrance, mortgage, usufruct, servitude, or legal dispute.
Thirdly, the financial and legal status of the condominium juristic person should be assessed when buying an apartment in Bangkok. This includes verifying its compliance with annual reporting obligations, the presence of pending lawsuits, financial reserves for building maintenance, and any history of disputes among co-owners. These elements can affect the long-term value and enjoyment of the property.
Finally, the lawyer must ensure that the seller is up to date with property-related taxes. If the property is currently rented, the lease agreement should be examined to determine whether it continues after the transfer of ownership or whether it will be terminated.
Step 2 – Signing the reservation agreement to buy an apartment in Bangkok
After due diligence confirms the property’s compliance for the apartment you want to buy in Bangkok, the parties may proceed with the signing of a reservation agreement. This document typically removes the unit from the market for a defined period—usually thirty to sixty days—in exchange for the payment of a deposit by the buyer.
This agreement must clearly state the reservation period and the amount of the deposit. More importantly, it must contain clauses that protect the buyer. These include a condition precedent whereby the deposit is refundable in the event the terms of the Sales and Purchase Agreement (SPA) are not satisfactory or if new legal issues are discovered. Without such protective clauses, the deposit may be considered non-refundable under Thai law.
Step 3 – Drafting and executing the Sales and Purchase Agreement (SPA)
The Sales and Purchase Agreement (SPA) is the definitive contractual document that governs the transaction of buying an apartment in Bangkok. It must be drafted with care, under the supervision of a qualified legal advisor. The SPA should clearly indicate the agreed purchase price, the payment schedule, and the date of transfer of ownership at the Land Department.
The seller’s obligations must be exhaustively described. The contract must state that the property is sold free of debts, liens, or legal claims. If the unit is occupied by a tenant, the SPA must detail whether the lease will remain in effect after the transfer or whether vacant possession will be granted.
The allocation of taxes and transfer fees must also be addressed, specifying whether such costs are borne by the buyer, the seller, or shared equally. The SPA must further reaffirm that the buyer is acquiring the unit in accordance with the applicable foreign ownership quota and that the transaction is compliant with the Condominium Act.
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Step 4 – Foreign exchange compliance and fund transfer
To buy an apartment in Bangkok, in line with the Exchange Control Act B.E. 2485 and regulations issued by the Bank of Thailand, any funds used by a foreigner to purchase a condominium unit must originate from outside the Kingdom and be transferred in foreign currency.
Upon conversion into Thai baht by a Thai bank, the financial institution will issue a Foreign Exchange Transaction Form (FETF). This document is mandatory for registering the ownership in the name of a foreigner. It must state the sender’s name, the amount in foreign currency, and the purpose of the remittance. Without this document, the Land Department will refuse to register the transfer of ownership.
Step 5 – Registering ownership at the Land Department
Once all conditions under the SPA have been satisfied and the payment is completed, the parties have to proceed with the registration of the transfer at the Land Office. Both buyer and seller, or their duly appointed legal representatives, must be physically present or represented by a valid power of attorney to finalize the process of buying an apartment in Bangkok.
The buyer must present the SPA, the FETF, a copy of the passport and visa, and proof of address, and other documents depending on the buyer’s profile. The seller must bring the original title deed, a tax clearance certificate, and identification documents. The Land Officer will verify the documentation, confirm that the title is clear, and then issue a new Chanote deed in the buyer’s name.
Several taxes and fees must be paid at the time of registration. The transfer fee is calculated at two percent of the official property valuation. Stamp duty of 0.5 percent is applicable if the seller has held the property for more than five years. Specific Business Tax (SBT), amounting to 3.3 percent, is imposed if the seller has held the property for less than five years or has used it for commercial purposes. Finally, withholding tax is computed based on the appraised value and the seller’s income tax profile.
Additional steps: Yellow House Book and Pink Card
After buying an apartment in Bangkok, the foreigner can go to the local district office to apply for a Yellow House Book (Tabien Baan). This paper serves as proof of thai residency. It is not mandatory, but it may be very helpful for many administrative acts.
Yellow Book holders can also apply for a Pink Thai ID Card even though they are foreign nationals. The Pink ID Card is a government-issued identity card designed for long-term foreign residents in Thailand that can provide certain advantages such as access to Thai pricing at national parks.
Conclusion
Buying an apartment in Bangkok as a foreigner is legally possible but requires strict adherence to a series of legal, regulatory, and financial steps. The acquisition must take place within the framework of the Condominium Act and remain within the foreign quota limitation of forty-nine percent. Where this is not possible, a long-term lease may be a lawful alternative.
A comprehensive due diligence must be performed to verify the condominium license, ownership, legal encumbrances, quota status, and tax compliance. Contractual documents such as the reservation agreement and the SPA must include buyer protections. Funds must be transferred from abroad in accordance with exchange control regulations and properly documented through the FETF.
The transfer of ownership must be registered at the Land Department and is only effective upon such registration. Taxes must be paid, and post-acquisition formalities such as the Yellow Book and Pink Card can be completed to enhance the process of buying an apartment in Bangkok.
FAQ
A foreigner can own a condominium unit provided the building is registered as such and the foreign quota has not exceeded 49% of the total floor area.
Although a proposal to raise the quota to 75% was submitted in 2023, it was rejected by the Thai Cabinet.
In such cases, the foreigner may enter into a leasehold agreement.
It depends on the terms of the agreement. To protect the buyer, the reservation agreement must include a clause making the deposit refundable under specific conditions.
Without the FETF, the Land Department will not allow registration of ownership in the name of a foreigner.