Thailand Condominiums

Thailand Condominiums. Condominiums are the simplest and most common route for foreigners to hold real estate rights in Thailand. On paper the law is clear — foreigners may own condominium units freehold — but whether your ownership is secure, financeable and usable depends entirely on process, timing, and documentary discipline. This guide walks you through the legal framework, the buying and registration mechanics, taxes and recurring costs, financing reality, alternatives when freehold isn’t available, common traps, and a practical due-diligence checklist you can use on day one.

Legal framework — what a condo actually gives you

A registered condominium title (a conveyance of a unit under the Condominium Act) creates two separate proprietary interests:

• A freehold unit title that covers the individual unit (floor area inside the walls), and

• An undivided share in the common areas (parking, stairwells, roofs, grounds) managed by the juristic person (the condominium association).

For foreigners this unit title is effectively the same proprietary interest Thais hold — subject to two important statutory and practical limits described below.

The foreign ownership quota — the single most important constraint

By law no more than 49% of the total usable floor area of a condominium project may be owned by non-Thai persons at the time of registration. This is determined and recorded for each project by the Land Department at condominium establishment. If the foreign quota is already fully allocated, developers cannot transfer freehold units in that project to additional foreigners (although leases remain possible).

Practical implications

• Always verify the current quota before paying any deposit. Developers or agents can claim available quota that does not actually exist; insist on a Land Office confirmation or a developer’s certified quota statement.

• In full-quota projects you will need to consider alternatives (see “Leasehold and structures” below).

Funds and the remittance rule — show the money properly

To register a condominium in a foreigner’s name the Land Office expects proof that the purchase price was paid from foreign currency remitted into Thailand. Typical evidence includes:

• Original SWIFT (FET) confirmations showing foreign currency transfer into a Thai bank, and

• The Thai receiving bank’s confirmation (bank letter or stamped deposit book).

If you pay in cash in Thailand or through local baht without a clear remittance trail, the Land Office will usually refuse to record the unit in a foreigner’s name.

Tip: instruct your bank to provide the receiving Thai bank with a clear SWIFT record and request both the sending and receiving confirmations; keep originals.

Buying process — a practical sequence

1. Check quota and title — request a fresh Land Department extract and confirm the project’s foreign quota and that the unit is free of mortgages or attachments.

2. Reservation & SPA — negotiate price, deposit, payment schedule, defect remedies, and a clear condition precedent: registration at the Land Office in buyer’s name.

3. Due diligence — obtain the developer’s condo declaration, juristic person rules, current maintenance fees, sinking-fund balance, and any unpaid assessments.

4. Remit funds from abroad and preserve original SWIFTs.

5. Complete transfer at the Land Office — present original title or developer transfer documents, passport, remittance proof, pay transfer tax/stamp/seller’s tax as agreed, and obtain the registered condo title.

Make Land Office registration the closing event: conditional release of funds (escrow) until title is recorded is the safest route.

Taxes, fees and on-purchase costs

Typical transaction costs (who pays is negotiable but the Land Office collects where required) include:

• Specific Business Tax (SBT) 3.3% (if seller is a dealer/business within statutory periods), otherwise stamp duty 0.5%;

• Withholding tax on sale (calculated differently for companies and individuals);

• Transfer registration fee (commonly 2% of the appraised value but subject to temporary statutory adjustments at times);

• Developer transfer charges and juristic person administration fees (if applicable).

Always model both buyer and seller tax outcomes when negotiating price.

Juristic person, maintenance fees & sinking fund

The juristic person (condo association) manages common areas, collects monthly maintenance fees and holds a sinking fund for long-term repairs. Before you buy:

• Request the current maintenance ledger, the sinking-fund balance, and recent meeting minutes showing planned special assessments.

• Confirm the fee rate (usually quoted per square meter) and any upcoming projects that could drive extraordinary levies.

Unexpected special assessments are a recurring surprise for buyers who skip this step.

Financing — what banks will accept

Thai banks will lend to foreigners on condominiums, but lenders are conservative:

• They prefer a registered unit title (chanote/condo certificate) in the borrower’s name.

• Banks require clean remittance evidence for foreign buyers and will underwrite loans with limited loan-to-value (often 50–70% depending on residency and income).

• If the quota is full or registration is problematic, lenders commonly refuse finance.

If you plan to borrow, get pre-approval in principle conditioned on successful Land Office registration — do not assume financing is automatic.

Leasehold and structural alternatives

If the foreign quota is full or you prefer different risk allocation consider:

• Long lease (typically up to 30 years) documented and registered at the Land Office if the term exceeds three years; renewals are separate contracts and not guaranteed.

• Thai company ownership (Thai majority) — use this only with comprehensive tax, corporate and family-law advice; it carries control and creditor risks.

• Condo unit management agreements or usufruct in limited cases — specialist structures require careful legal and tax analysis.

Each alternative has tradeoffs: leases avoid quota issues but reduce marketability and lender appetite.

Common pitfalls & how to avoid them

• Paying deposit before quota/title verification. Fix: conditional escrow release on successful Land Office registration.

• No remittance trail. Fix: remit foreign currency, keep SWIFT originals, and get a Thai bank confirmation.

• Failing to inspect juristic-person accounts. Fix: ask for the minutes and financials; budget for special assessments.

• Relying on verbal promises from developers/agents. Fix: insist all commitments are in the SPA and conditional on registration.

Due-diligence checklist (give this to your lawyer/agent)

• Fresh Land Department extract and developer’s condo declaration.

• Statement confirming foreign quota availability (developer certificate or Land Office printout).

• Original title or developer transfer documents.

• Maintenance fee schedule, sinking-fund statement, and minutes of AGM/board.

• Clear SPA clause making Land Office registration a closing condition.

• Bank remittance instructions and escrow instructions; confirm SWIFT/FET process.

• Tax allocation clause (who pays SBT/stamp/withholding tax).

• Financing pre-approval if you need a mortgage.

Final practical note

Condominium ownership in Thailand gives foreigners the most secure and marketable property interest available — provided you respect the foreign-quota rule, bring funds via an auditable foreign remittance, verify the juristic person’s finances, and make Land Office registration your closing event.