Buying Property in Pattaya: Complete Guide for Foreigners 2025

Legislation:

• Condominium Act B.E. 2522 (1979), Articles 19 and 19 bis — foreigners can own apartments within 49% of total building area.
• Land Code Section 86 — foreigners cannot own land directly.
• Land Department Notification Re: Foreign Ownership of Condominium Units — confirms quota verification procedure before registration.

How the 49% Quota Works:

• In each registered condominium, Land Department records the foreign ownership share.
• For example, if a building has 100 apartments, foreigners can own apartments totaling no more than 49 by area. The remaining 51% goes to Thai citizens or companies with Thai capital.
• If quota is exhausted, buyer can only register property as Leasehold.

Requirements for Freehold Registration:

• Foreign passport.
• Foreign Exchange Transaction (FET) document from Thai bank confirming transfer of funds from abroad in foreign currency and conversion to baht.
• Sales and purchase agreement and transfer deed.
• Payment of government fees at Land Department (usually about 2% of assessed value, split between parties).

Freehold Advantages:

• Full right to dispose, sell, gift and inherit.
• Ability to rent property without restrictions.
• Ability to use apartment as collateral in transactions.
• Owner's rights protection under Condominium Act.

Legislation:

• Foreign Business Act B.E. 2542 (1999).
• Land Code Sections 97–98.

How It Works:

• 51% shares — Thai citizens, 49% — foreigner.
• Company acquires land and property as Freehold.
• Control is ensured through corporate documents and powers of attorney.

Company Maintenance Costs:

• Accounting and audit — $900–1,200 per year.
• License renewal — $300–400.
• Legal support — $200–300.

Advantages:

• Land ownership with Freehold rights.
• Perpetual ownership.
• Ability to purchase multiple properties.

What to Consider When Buying Resale

• Cosmetic or major renovation required.
• Often need to buy a new kitchen, air conditioners, and refrigerator.
• Checking utility payment arrears is mandatory.
• Registration takes place directly at the Land Department, but fees and taxes are split between seller and buyer.

Financial Details

• Transfer fee 2% of assessed value by Land Department, split equally.
• Stamp duty 0.5% if Specific Business Tax is not charged.
• Specific Business Tax 3.3% paid by seller when selling within five years.
• Agency commission about 3%, sometimes included in price.
• Legal support about $600.

Secondary Market Risks

• Wear and tear of utilities and furniture.
• Outdated data in Land Department.
• Possible owner debts for utilities or taxes.
• No installment plan and clear division of expenses between parties.

Typical Scheme

• Down payment of 20 to 30% of the apartment price.
• Balance paid in equal installments over 24 or 36 months.
• No interest.
• After final payment, the apartment is registered in the buyer's name at Land Department.

Documents

• Foreign passport.
• Reservation and purchase agreement.
• Bank Foreign Exchange Transaction (FET) document for each transfer from abroad.

Bank mortgages in Thailand are limited in availability for foreigners without residency status.

Such loans are only available to residents with work visa and official income in Thailand, as confirmed by Thai commercial bank requirements.

For other clients, some microfinance companies offer 'mortgages' disguised as installment plans with high fees and interest rates of 6 to 10% per year. These organizations are not licensed by Bank of Thailand and have no right to register ownership until full payment.

Main Payments

• Transfer fee 2% of assessed value by Land Department. Usually buyer pays 1%.
• Stamp duty 0.5% if Specific Business Tax is not charged.
• Specific Business Tax 3.3%, paid by seller when selling within 5 years of ownership.
• Withholding tax withheld from seller but may be split by agreement.