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.

Understanding Withholding Tax on Property Sales in Thailand

Understanding Withholding Tax on Property Sales in Thailand

When selling property in Thailand, understanding the withholding tax obligations is crucial for both Thai and foreign sellers. This tax serves as a prepayment of the seller’s income tax and varies based on the seller’s status—individual or corporate—and the duration of property ownership.

🧾 Withholding Tax for Individual Sellers

For individual sellers, the withholding tax is calculated using a progressive income tax scale, influenced by the property’s appraised value and the length of ownership. The calculation involves two steps:

Determine the Net Taxable Income: This is calculated by applying a deduction factor to the appraised value of the property, which varies depending on the number of years the seller has owned the property.
Apply the Progressive Tax Rates: The net taxable income is then subject to Thailand’s personal income tax rates, which range from 5% to 35%, depending on the amount.

Deduction Factors Based on Ownership Duration:

Years Owned	Deduction Factor
Under 2	0.08
2	0.16
3	0.23
4	0.29
5	0.35
6	0.40
7	0.45
8+	0.50

Example: If an individual owned a property for 5 years, and the appraised value is THB 12,500,000, the calculation would be:

12,500,000 × 0.35 = THB 4,375,000 (net taxable income)

This amount would then be taxed according to the applicable personal income tax rates.

🏢 Withholding Tax for Corporate Seller

For companies selling property, the withholding tax is a flat rate of 1% of the higher value between the appraised value or the actual sale price. This tax is withheld at the time of the property transfer and serves as a prepayment of the company’s income tax for that fiscal year.

📌 Key Points to Remember

Payment Responsibility: The buyer is responsible for withholding and remitting the tax to the Land Department on behalf of the seller at the time of property transfer.
Tax Credit: The amount withheld can be credited against the seller’s final income tax liability for the year.
Foreign Sellers: Foreign sellers must ensure that the sale proceeds are transferred via a foreign currency transaction to comply with Thai regulations.

📞 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.