Can foreigners own property in Thailand?

Foreigners can own freehold condominium units (up to 49% of a building’s total units) but cannot directly own land. Alternatives include long-term leases (up to 30 years, renewable) or owning land via a Thai limited company with Thai majority shareholders.

What are the restrictions on foreign land ownership in Thailand?

Thai law prohibits foreigners from owning land under the Land Code Act. Options include leasing land for up to 30 years or setting up a Thai limited company (51% Thai-owned) to hold the land title.

How can foreigners buy a condo in Thailand?

Foreigners can buy freehold condos if the foreign ownership in the building is below 49%. Funds must be transferred from abroad, documented with a Foreign Exchange Transaction Form (FET). A lawyer is recommended for due diligence and title transfer.

What are the costs and taxes when buying property in Thailand?

Costs include transfer fees (2% of appraised value), withholding tax (1% of appraised or sale value), specific business tax (3.3% if sold within 5 years), and stamp duty (0.5% if no SBT applies). Legal fees range from 20,000–30,000 THB. Condo buyers may also pay sinking fund fees.

Can foreigners get a mortgage to buy property in Thailand?

Thai banks offer limited mortgages to foreigners (40–70% of property value, up to 15 years, with high interest rates of 6–9%). Eligibility requires proof of income and residency. Some developers offer financing, or buyers use overseas loans.

What is the process for buying property in Thailand as a foreigner?

Steps include finding a property, hiring a lawyer and agent, conducting a title search, signing a purchase agreement, transferring funds with a FET, and finalizing ownership at the Land Office (30–60 days).

Is it safe to buy property in Thailand as a foreigner?

Buying is safe with proper due diligence—hire a reputable lawyer, verify the seller’s title, and use registered agents. Risks include unregistered agents or buying without legal checks.

Can foreigners rent out their property in Thailand?

Foreigners can legally rent out their property, subject to income tax on rental earnings (progressive rates based on income). Management companies can handle rentals, but owners must comply with TM.30 tenant reporting.

What are the visa implications of buying property in Thailand?

Buying property does not grant visa privileges. However, investing 10 million THB in real estate may qualify for the Thailand Elite Visa (5–20 years). Standard visas (e.g., retirement, business) require separate applications.

What are the risks of buying property in Thailand as a foreigner?

Risks include buying without due diligence, using unregistered agents, condo depreciation, neglected building maintenance, or legal issues with leaseholds or companies. A lawyer mitigates these risks.

Breakdown of legal and administrative fees for property buyers

Purchasing property in Thailand involves various legal and administrative fees that buyers should anticipate to ensure a smooth transaction. These costs can vary based on the type of property, ownership structure, and specific circumstances. Here’s a detailed breakdown of the key fees and expenses:

🏠 1. Transfer Fee

Amount: 2% of the official appraised value of the property, as determined by the Land Department.
Typical Responsibility: Traditionally, this fee is shared equally between the buyer and the seller. However, the allocation can be negotiated and should be clearly stated in the sales agreement.
Recent Changes: For properties valued up to THB 7 million, the transfer fee has been reduced to 0.01% for Thai nationals. This reduction is effective from April 22, 2025, to June 30, 2026

🧾 2. Specific Business Tax (SBT) or Stamp Duty

Specific Business Tax (SBT):
- Rate: 3.3% (3% tax + 0.3% municipal tax).
- Applicability: Charged to the seller if the property has been owned for less than five years.
- Exemption: If the seller has owned the property for more than five years, this tax is not applicable.
Stamp Duty:
- Rate: 0.5% of the official appraised value or sale price, whichever is higher.
- Applicability: Applies if the SBT does not apply.
- Responsibility: Typically borne by the seller, unless otherwise agreed upon.

💰 3. Withholding Tax

For Individual Sellers:
- Calculation: Progressive rates based on the appraised value and the length of ownership.
- Responsibility: Paid by the seller, but the buyer is responsible for withholding and remitting the tax to the Land Department.
For Corporate Sellers:
- Rate: 1% of the sale price or appraised value, whichever is higher.
- Responsibility: Paid by the seller, with the buyer withholding and remitting the tax.

🏛️ 4. Legal and Administrative Fees

Legal Fees:
- Services: Title deed verification, contract drafting or review, and representation at the Land Department.
- Cost Range: Approximately THB 25,000 to THB 60,000, depending on the complexity of the transaction and the law firm.
- Note: While not mandatory, engaging a lawyer is advisable to ensure legal compliance and protect your interests .i
Administrative Fees:
- Services: Handling documentation, liaising with the seller or agent, and coordinating with the Land Department.
- Cost Range: Typically between THB 10,000 and THB 15,000, depending on the service provider .

🏢 5. Agency Fees

Responsibility: In Thailand, real estate agent commissions are generally paid by the seller. Buyers typically do not incur agency fees, but it’s essential to confirm this arrangement in the sales agreement .

🏢 6. Condominium-Related Fees (If Applicable)

Sinking Fund:
- Purpose: A one-time payment to cover future major repairs and maintenance of the condominium.
- Amount: Typically between THB 400 and THB 800 per square meter of the property.
Common Area Maintenance Fees:
- Purpose: Ongoing fees for the upkeep of shared facilities such as pools, gyms, and landscaping.
- Amount: Varies depending on the condominium, usually between THB 30 and THB 60 per square meter per month .

💱 7. Currency Exchange and Transfer Fees

Foreign Currency Transfer:
- Requirement: For foreign buyers, the purchase must be made via a foreign currency transfer from abroad.
- Documentation: A Foreign Exchange Transaction Form (FET) is required if the amount exceeds USD 50,000.
- Bank Fees: International bank transfer fees typically range between €15 and €50, depending on the bank .

✅ Final Tips for Buyers

Budgeting: Ensure you account for all potential fees and taxes in your budget to avoid unexpected expenses.
Negotiation: Clarify the allocation of fees between buyer and seller in the sales agreement.
Professional Assistance: Engage a qualified lawyer to guide you through the legal aspects of the transaction.
Due Diligence: Conduct thorough research and verify all property documents before proceeding with the purchase.

📞 Need Help Finding the Right Condo?

We sell and rent properties across Thailand and assist foreign buyers with expert guidance. While we don’t provide legal advice, we work closely with reliable, English-speaking lawyers and can refer you to trusted professionals.

📩 Email us: contact@centralcityproperty.com
📱 WhatsApp: +66 95 992 0345
🌐 Website: www.centralcityproperty.com

Let us help you secure your dream home in Thailand—safely and legally.