Buying a Condo in Thailand

Under the right circumstances, buying a condo in Thailand can be a rewarding purchase and a good investment. If you are a foreigner interested in buying a condo in Thailand there are several issues you need to be aware of.

• Thai law only allows foreigners to buy condos in certain circumstances.
• The listed price of the condo may or may not include applicable taxes.
• The relative costs and benefits of buying a new condo from a developer.
• The tax implications of any rental, and the advantages of owning your condo.

When can foreigners buy condos in Thailand?

Thai law is very restrictive when it comes to foreign real property ownership. Buying a condo is generally the only way foreigners are allowed to purchase real property in Thailand outright. Other options include negotiating a long term lease (up to 30 years) or buying real property using a Thai dummy corporation, a practice which, although common, is technically illegal.

There are two principle restrictions on foreign condo ownership. First, foreigners may only own 49% of a single condo development. This is calculated based on the area of the condo units. The total area of the condo units owned by foreigners cannot exceed 49% of the total area of all saleable condo units. If you are buying secondhand from a Thai citizen, check in the development's condo association office to make sure the building has not reached the foreign ownership quota. It is hard to find a completed building in Pattaya or Phuket that has space available for foreigners, so you may have to buy a condo in a development that is still under construction.

The second restriction on foreign condo ownership is a requirement that the foreigner pay for the condo with foreign currency. The foreign currency must be transferred into Thailand and converted into Baht within Thailand. Notice that this requirement prohibits foreigners from financing their condo purchase with a mortgage. Make sure that the money transfer comes from a foreign account in the buyers name or is transferred to an account in the buyer's name. If you bring in cash, make sure to get a receipt showing this from customs. If you are married and purchasing joint property, make sure the transfer is in both of your names. Thai law requires that a Foreign Exchange Transaction Form (FETF) be filed for large foreign currency transactions; make sure you keep copies for your records.