Buying a condo in Thailand as a foreigner: the 49% rule

Thailand is close, living costs are moderate and plenty of condos are marketed to foreigners, so buying a condo in Thailand is a popular question among Vietnamese buyers. The first thing to grasp is that foreigners in Thailand can own a condo unit but not land, and the way you move your money decides whether the unit can be registered in your name at all. This guide summarises the published rules and the steps to follow. It is general information, not a substitute for advice from a lawyer in Thailand.

Buying a condo in Thailand as a foreigner: the 49% quota

Under Thailand's Condominium Act, foreigners may own condo units freehold, but foreign-owned units in a building may not exceed 49% of that building's saleable floor area. Once a building's foreign quota is used up, you cannot register a new unit in your name, even if the seller is still happy to take your money. Before paying any deposit, ask the building's juristic person office to confirm in writing how much foreign quota remains.

The money must come from abroad

This is where most problems start. A foreigner's purchase money must arrive in Thailand from abroad in foreign currency, be converted to baht in Thailand, be sent in the buyer's own name, and state that the purpose is buying a condo. Sending baht from an overseas account may not pass the test.

• For transfers of US$50,000 or more, the receiving Thai bank issues a Foreign Exchange Transaction (FET) form.
• For smaller transfers, ask the bank for a confirmation letter.
• The Land Office accepts either document when it registers the unit.
• Keep it safe: you will need it when you sell and send the proceeds out of Thailand.

On the Vietnamese side, sending foreign currency abroad must go through a bank and follow foreign-exchange rules. Talk to your bank before you sign anything.

What about a house with land?

Foreigners cannot own land in Thailand. If you want a house, the legal route is a registered right over land owned by someone else:

Using a Thai nominee or a company set up to hold land on your behalf is a way around the law and can cost you both the money and the home.

The steps to follow

1. Ask your bank in Vietnam what it needs to send the money.
2. Appoint a Thai lawyer who is independent of the seller.
3. Get written confirmation of the building's remaining foreign quota.
4. Check the unit's title, any unpaid common fees and the building's rules on short-term letting.
5. Send the money the right way and obtain the FET form or bank letter.
6. Register the transfer at the Land Office and collect the condo title deed.

Allow time for each stage. Getting the quota letter, opening the right bank paperwork and booking the Land Office appointment rarely happen in a single week, and a seller pushing you to pay before the paperwork is ready is a warning sign. Ask the developer or seller which fees and transfer taxes each side pays, get it in the contract, and have your lawyer check the figures against the Land Office assessment on the day of transfer.

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