Legal library

The core statute permitting foreigners to own condominium units in full freehold. Section 19 sets the «foreign quota»: foreigners may own up to 49% of the aggregate unit floor area in any one condominium. Covers registration, the FET form and owners' rights.

Before buying, obtain written confirmation from the developer or a lawyer that the chosen unit falls within the available foreign freehold quota. If the quota is exhausted, ownership is structured via long-term leasehold or a Thai company. Availability is confirmed by a letter from the condominium juristic person.

To register a condominium in a foreigner's name, funds must be remitted into Thailand in foreign currency and converted to baht by a local bank. The bank issues an FET certificate (formerly Tor Tor 3) for transfers of USD 50,000 or more, required at the Land Department for registration.

Governs land ownership. Section 86 prohibits foreigners from owning land in Thailand, save for narrow exceptions (BOI-promoted investment, etc.). Foreigners therefore acquire villas via long-term land lease or a Thai company while owning the building itself.

The Civil and Commercial Code caps property leases at 30 years. A lease over 3 years must be registered with the Land Department. «30+30+30» renewals are common in marketing, but the renewal right is not guaranteed by statute — only by contract.

Thailand's Supreme Court confirmed that promises of automatic lease renewals beyond 30 years («30+30+30») are unenforceable — the 30-year limit is absolute. A key precedent: buyers of leasehold villas should not rely on a guaranteed renewal.

Land may be held by a Thai company (a foreigner owning up to 49% of shares). Using Thai nationals as «nominee» shareholders to circumvent the rules is illegal and prosecuted. Authorities have intensified the crackdown on nominee structures; the route requires genuine commercial substance and legal advice.

On registration, the Land Department charges a transfer fee of 2% of the appraised or sale value (whichever is higher). In practice it is usually split 50/50 between seller and buyer, but this is a matter for the contract.

If the seller has owned the property for less than 5 years, a Specific Business Tax of 3.3% applies. If 5 years or more, a 0.5% stamp duty applies instead. Calculated on the higher of appraised/sale value.

A withholding tax applies on sale: for companies, a flat 1% of value; for individuals, a progressive scale based on years of ownership. Total transaction costs typically run 2.5–6.3% of the property value.

An annual tax on property ownership. Rates depend on use (residential, commercial, agricultural, vacant land) and appraised value. Residential rates are low, but owners should budget for the annual liability.

Governs foreign-owned businesses, including real-estate brokerage. Many services are restricted for foreigners and require a Foreign Business License (registered capital ~THB 3 million). Breach is punishable by fines up to THB 1 million and/or up to 3 years' imprisonment.

Thailand has no mandatory national broker licence, but credibility is shown by REBA (Real Estate Broker Association of Thailand), TAF (Thai Appraisal Foundation) certifications and FIABCI membership. Work with agents who provide legal support and a transparent agency agreement.

A deal usually starts with a reservation agreement and deposit, then a Sale & Purchase Agreement (SPA). Before signing, a lawyer runs due diligence: title check (Chanote), encumbrances, building permits, developer status and foreign quota.

The highest and most secure title is the Chanote (Nor Sor 4 Jor) with precise GPS boundaries. Lesser titles exist (Nor Sor 3 Gor, Nor Sor 3). When buying a villa/land, verifying the title type and authenticity at the Land Department is essential.

Buying property does not by itself grant residency. Long stays use visas (Thailand Privilege/Elite, LTR — Long-Term Resident, retirement, investment). The Board of Investment (BOI) may in specific cases permit land ownership with substantial investment.

The government body that registers ownership, leases and encumbrances, issues title deeds and sets appraised values. All property transactions are registered at the local Land Department office.

Responsible for transaction and income taxation: Specific Business Tax, stamp duty, withholding tax, rental income tax. The official source for tax rates and forms.