The rules concerning ownership of condominiums are similar, in most respects to the rules governing ownership of land in Thailand (i.e., restrictive or prohibitive with regard to foreign ownership), with one important exception. Under the Condominium Acts (1979-2008), and amendments thereto, foreign ownership of a percentage of a particular condominium development may be held, in freehold title by foreign persons or entities, provided the special rules of the Condominium Act are complied with. Condominium units have a form of freehold title deed and ownership is transferred at the Land Department. Since each condominium unit carries with it a proportionate ownership of the land, foreign ownership of condominiums is limited to 49% of the total Foreigners, meaning foreign natural persons, foreign companies or foreign majority owned Thai companies, may currently own up to 49% of the units in a condominium project (this 49% is often referred to as the “foreign quota”). For foreign natural persons without a residence permit, there must be proof that foreign currency was brought into Thailand to purchase the unit. Different rules apply to persons in BOI promoted companies and foreigners with residence permits. Notwithstanding the above, condominium units may be also be leased by foreigners, in the same manner that they may lease land.Buying a unit in a condominium is one of the easiest ways for foreigners to acquire an ownership interest in Thailand real estate.
Generally, foreign persons and entities, including Thai entities owned by more than 49% foreign persons or entities, are prohibited from acquiring a freehold interest in land in Thailand. Exceptions include ownership permitted by treaty (of which there are currently none) and ownership permitted by special permissions and approvals, such as the ownership of a limited amount of land by persons investing at least 40 million baht in specified Thai investments.
Process Of Owning a Property:
A booking agreement is made between the buyer and seller to secure booking of the unit and a down payment deposit by the buyer. Booking requires the presentation of the buyer’s passport along with a single copy. For foreign buyers who have previously purchased a property in Thailand, it is necessary to ensure that the spelling of the buyer’s name in Thai is exactly the same as the name used for previous purchases. The down payment amount will vary depending on the project and the terms of the contract.
There are two methods by which buyers can make payment for the purchase of a new property:
Transfer money to the bank account of Project, or prepare a bank draft, payable to concern Project. The project will then prepared all of the necessary documents for the property transfer
Open a Non-Resident Baht account with a bank in Thailand for the purpose of issuing a cashier cheque. It is essential that the buyer’s name is used to open the account and that all name spellings, in both Thai and English, are identical to those on the Purchase Contract. Foreign currency can then be transferred into the Non-Resident Baht account. Amounts transferred of 50,000. USD or more (amount subject to change) will immediately qualify for a Foreign Exchange Transaction Form, which should be requested after the transfer.
When making a money transfer, it is vital to specify that the money being transferred is for the purpose of purchasing the condominium unit, and must have details such as the condominium unit number, building, project, and full purchase price.
Transfers of funds should be in foreign currency and not Thai Baht.
Keep all Foreign Currency Transaction Forms to use later during the ownership transfer process.
The Amount of the money must be equal to or higher than the selling price to the Land department
In order to obtain a Foreign Exchange transaction form the Amount must be above US $ 50,000, less amount require the purchaser to obtain the credit note from bank
What do FET form is so important:
Because the bank of Thailand control the flow of foreign currency, every single baht must have a source and a reason and the land department must perform in accordance with this regulation every foreign buyer must transfer money from abroad .
Non- residents who sell the condominium and transfer the money out of country do not have to pay the remittance tax (normally the tax is around 30 %)
In case of transferring money out of the country the tax free amount is determined by the initial amount transferred
Transfer of title deed.
Documents need: for individual buyers
Passport (copy if applicable, marriage/ divorce certificate including a letter of consent from you spouse if married (Thai Language) .
Foreign Exchange Form of credit note
Power of attorney if anyone but yourself representing you, in Thai Script with a notarization by Notary public of if overseas by the Thai counsel
Documents need: for individual buyers
Certified copy of the certificate of incorporation
Certified copy of memorandum of association
Letter of advice regarding specific signature
Minutes of Directors meeting which have a resolution to sell/ purchase the property (specifying name and number and agenda with the finance of the purchase if the company registered capital is less than purchase price )
Power of attorney, if authorized directors do not make the transaction by them.
Free Debt letter
Foreigner co-owner letter
The certified copy of the ID card of the authorized directors
The certified copy of the house registration of the authorized directs
Title deed of the condominium unit