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.

Who Pays the Transfer Fee in a Thai Property Sale?

When buying or selling property in Thailand, understanding who is responsible for the various taxes and fees is crucial. One of the primary costs in any property transaction is the transfer fee, but determining who bears this cost can vary depending on the circumstances. Here’s a comprehensive guide to help you navigate this aspect of Thai real estate transactions.

🏷️ Transfer Fee: Who Pays?

The transfer fee is a government-imposed charge for transferring property ownership. It is calculated as 2% of the appraised value of the property, as determined by the Land Department, or the registered sale price—whichever is higher.

Standard Practice: Typically, the transfer fee is shared equally between the buyer and the seller. However, this is not a legal requirement and can be negotiated between the parties involved.
Developer Sales: In transactions involving property developers, it’s common for the developer to cover the transfer fee entirely or share it with the buyer. This should be clearly outlined in the sales and purchase agreement.
Private Sales: In private sales, the responsibility for the transfer fee is often negotiated. While the seller may agree to cover the full amount, buyers should be prepared to pay their share if stipulated in the agreement.

📜 Other Associated Taxes and Fees

In addition to the transfer fee, several other taxes and fees may apply during a property transaction:

Specific Business Tax (SBT):
- Rate: 3.3% (3% business tax + 0.3% municipal tax)
- Who Pays: Typically the seller, especially if the property is sold within five years of purchase. If the seller has owned the property for more than five years and used it as their primary residence, they may be exempt from this tax.
Stamp Duty:
- Rate: 0.5%
- Who Pays: Generally the seller, but this is negotiable. Stamp duty is applicable only if the Specific Business Tax does not apply.
Withholding Tax:
- Rate:
  - Companies: 1% of the appraised value or registered sale price, whichever is higher.
  - Individuals: Progressive rates based on the appraised value and the length of ownership.
- Who Pays: The seller is responsible for this tax, which is withheld by the Land Department at the time of transfer.

📝 Negotiation and Agreement

While there are standard practices regarding who pays each fee, negotiation plays a significant role in Thai property transactions. It’s essential to:

Clarify Responsibilities: Ensure that the sales and purchase agreement explicitly states who is responsible for each fee and tax.
Consult Professionals: Engage with a qualified real estate agent or legal advisor to guide you through the process and ensure all terms are fair and transparent.

📞 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.