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How to buy a condo in Thailand.
Today, Thailand is one of the most popular places for those who seek a quiet tropical lifestyle and a good investment. The beautiful landscapes and high demand for real estate encourage more and more people to purchase a condo in this country. At the same time, buying a condo in Thailand as a foreigner implies legality issues, market knowledge, and potential problems, meaning that individuals should undergo rigorous training processes to avoid risks.
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What are the regulations when buying a condo in Thailand as a foreigner ?
Buying a condo in Thailand as a foreigner comes with several regulations and legal requisites. The following are several key areas relating to such regulations:
- Foreign Ownership: according to the set laws of the land, foreigners can own a condo unit in Thailand although subject to certain levels or limits . The law restricts foreigners to own or occupy up to 49% of the entire sellable area of a condo project. On their part, Thai people or juristic person are allowed to own or purchase the remaining 51%.
- Foreign Ownership Eligibility: the law allows foreigners to purchase or own a condo unit. As a foreigner, you are eligible if:- You are either a natural person or juristic person registered under Thailand’s law The funds used for such a purchase should be sourced from overseas and then converted into foreign currency and remitted back into Thailand. Adhere to all the guidelines and limitations as stipulated under Thailand’s
- Condominium Act Condo Unit Size: the minimum area that you can register your ownership under foreign ownership must be majority over 25 square meters . However, this minimum area size depends on the unique regulations of the province or municipality where the property is located.
- Condominium Juristic Person: Thailand’s government requires every condominium project to establish a juristic person responsible for managing and maintaining some of the common areas and facilities. Therefore, as the condo owner, you automatically become a member or stakeholder in this juristic person with specific rights and responsibilities.
- Due Diligence and Title Checks: before considering a purchase, conduct thorough due diligence on the property and check its title. This is to ascertain that there is no apparent encumbrance, mortgage, or any other legal impediments to ownership.
- Contracts and Agreements: when buying a condo in Thailand as a foreigner, you must sign various documents and contracts, such as the purchase agreement. Engage a lawyer to help you read through and ascertain that these contracts and legal soundness.
- Transfer of Ownership and Taxes: only a full transfer of ownership can be done if the buyer and seller finish the required document. Payment will require the buyer to pay transfer fees, which are a percentage of the property’s appraised value. Other taxes may include specific business tax and stamp duty taxes.
Please note that these laws may be changed, it is therefore always essential to engage a qualified legal professional familiar with the prevailing guidelines and laws before buying a condo in Thailand as a foreigner.
What are the requirements when purchasing a condo in Thailand ?
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Can foreigners buy a condo in Thailand ?
A condo in Thailand can be purchased by a foreigner. According to the Condominium Act 2008 as amended in 2018, both individual foreign persons and foreign juristic persons sellable title to a condominium unit regardless of any restrictions described in the title deed. The following are the most important takeaways from the law which allows investors buying a condo in Thailand as a foreigner:
There is a 49% cap on foreign ownership in the overall sellable area of a condominium project. The remaining 51 % must be owned by Thai individuals or Thai juristic persons .
The following are qualifying owners: Individual or juristic persons who are subject to Thai law registering as individual or juristic persons who make use of money received from overseas that has been repatriated to Thailand in the form of foreign currency .
Possession of land, single-detached homes, or other forms of property in Thailand is limited to condo unit. In general, foreign persons are prohibited from owning land in Thailand, with several key exceptions .
Registration in the name of the foreign buyer can be registered as the title deed owner of the condominium unit, giving ownership rights and interests. The registration takes place at the local Land Department office.
A foreign buyer becomes a member of the condominium juristic person after the designation goes through the process. The juristic person is in charge of the development and management of the common property and entities of the project.
Therefore, the foreigner can own a condo unit in Thailand as long as the legal requirement of the using source of the funding and the registration of the owner is met. Thus, obtaining legal advice from a legal expert about Thai real estate should avoid excessive scrutiny.