Buying a condominium unit in Thailand has become easy and straightforward since the “1992 Condominium Act”, and is accessible to all foreigners (individual or company)
The 3 conditions to purchase a condo as a foreigner
All the conditions listed below must be checked by your property agent and your lawyer before the acquisition
1) The residence is registered as a condominium
2) The funds necessary to purchase the condo must have originated from outside Thailand, in foreign currency (EUR, USD, HKD, SGD, GBP, AUD, etc.).
The Thai bank that receives the funds issues a Foreign Exchange Transaction Form. The foreign buyer must present this form to the land department to become the legal owner of the condo. The purpose of the transaction must be indicated (ex: “purchase of a unit in the condominium X”).
If you don’t have a Thai account, you can send the funds to the account of your Thai lawyer assisting in the transaction.
3) The foreign quota of 49% of the total space of all units in the residence is not reached yet See section 19 of the Condominium Act on http://www.dol.go.th/low_ministry/commandment/condo_no3_2542.html
In case the quote is already reached (some condos are in this case already, contact us for more information), the solution is to purchase the condo through a Thai company
Although not often clearly explained by developers of new projects, it is critical for foreign investors to assimilate the difference between “freehold” and “leasehold”.
– Condominium: Residential building where each unit is owned individually. There are as many title deeds as units in the residence. The owners share rights and duties on the condominium with other co-owners.
– Apartment: Residential building that is owned by a single owner (Thai individual or company). There is only one title deed. A unit in an apartment building can’t be sold/purchased
A Serviced Apartment is a residence offering more services (included in the lease agreement) than regular apartments, e.g. housekeeping, cable TV, internet, full kitchenware, etc. Generally favored for short-term rental, when expats just relocate to Bangkok
The tax regime for condo investors in Thailand is very favorable compared with western countries. From low conveyance taxes (transfer taxes) to the absence of tax on capital gains.
Foreigners looking to purchase a condominium unit in Thailand can finance a part of their investment through a loan, under certain conditions.