How Foreigners Can Buy Property in Thailand in 2026

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 the total area of units in a building is 10,000 m², foreigners together can own units of no more than 4,900 m². 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.
• Confirmation from a Thai bank that an amount not less than the unit price arrived from abroad in foreign currency (an FET form or a credit advice stating the purpose "purchase of a condominium unit"). Check the exact document with the bank and the Land Office.
• Sales and purchase agreement and transfer deed.
• Payment of fees at the Land Department: a 2% transfer fee on the assessed value (split equally by law, in practice as the parties agree). The seller pays SBT of 3.3% or 0.5% stamp duty and income tax.

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:

• At least 51% of the capital belongs to Thai shareholders who invest their own money and can prove where it came from.
• Company acquires land and property as Freehold.
• If Thai shareholders hold shares on behalf of a foreigner and control is arranged through powers of attorney, this is nominee ownership: up to 3 years in prison and a fine of THB 100,000 - 1,000,000 (Foreign Business Act, s.36), up to 2 years under the Land Code (s.113).

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 instalment plan and clear division of expenses between parties.

Typical Scheme

• Down payment of 20 to 30% of the apartment price.
• Balance paid in equal instalments 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 instalment plans with high fees and interest rates of 6 to 10% per year. These organisations 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.