Buying Property in Thailand as a Foreigner: Complete 2025 Guide

Can Foreigners Buy Property in Thailand?

The short answer: Yes and No. Foreigners can legally own condominium units with freehold status in Thailand. However, foreign ownership of land is prohibited by Thai law. This guide will explain exactly what you can and cannot buy, plus the legal ways to achieve property ownership in Thailand.

What Foreigners CAN Buy

Condominium Units (Freehold)

Foreigners can purchase and own condominium units outright with full freehold ownership. This is the simplest and most secure method of property ownership for foreigners in Thailand.

Key Requirements:

• 49% Foreign Quota: Foreigners may only own up to 49% of the total saleable area in a condo development; 51% must be Thai-owned
• Foreign Currency Transfer: Purchase funds MUST be transferred into Thailand from abroad in foreign currency
• Foreign Exchange Transaction Form (FET): Your bank must issue this document proving foreign funds were used
• Valid Passport: With proper visa/entry stamp

What Foreigners CANNOT Buy

Land Ownership

Thai law explicitly prohibits foreigners from owning land. According to the Land Code, only Thai nationals or Thai-majority companies (51%+ Thai owned) can own land in Thailand.

Warning: Using "nominee" arrangements (Thai people holding land on your behalf) is illegal and carries severe penalties:

• Up to 3 years imprisonment
• Heavy fines
• Forced sale or confiscation of property without compensation

Legal Alternatives for Land/House Ownership

30-Year Leasehold

The most common legal method for foreigners to control land and houses is through a long-term lease.

Key Points:

• Maximum Initial Term: 30 years (protected by law)
• Renewal Options: Can include options for additional 30-year terms, but these are NOT guaranteed by law
• Registration Required: Must be registered at Land Office to be enforceable
• Cost: Typically pay upfront for entire 30 years

⚠️ Beware "90-Year Lease" Claims: Only the first 30 years are legally protected. Additional terms depend on the landowner's goodwill and are not enforceable in court. Never pay a premium for "90-year leases."

Thai Company Ownership

Some foreigners establish a Thai limited company to purchase land, but this is complex and carries risks.

Legal Requirements:

• Company must be at least 51% Thai-owned
• Thai shareholders must be genuine investors (not nominees)
• All shareholders must contribute actual capital
• Regular audits and filing requirements

Risks and Cautions:

• Nominee shareholder arrangements are illegal
• You could lose control if Thai shareholders decide to sell
• Annual compliance costs (accounting, audits)
• Authorities increasingly scrutinize foreign-owned companies holding land

⚠️ Legal Warning: Many law firms advertise Thai company structures for property ownership. While not strictly illegal if done properly, using Thai nationals as nominee shareholders IS illegal. Ensure any company structure uses legitimate Thai investors with real financial stake.

2024-2025 Changes and Proposals

Recent Changes

In 2025, Thai authorities tightened control over real estate transactions:

• Additional Transfer Tax: 2-5% tax now applies to properties valued above ฿10 million (~€250,000 / $270,000 USD)
• Stricter Foreign Currency Requirements: Enhanced documentation for FET forms
• Increased Scrutiny: More thorough checks on company ownership structures

Proposed Changes (Not Yet Law)

There are ongoing discussions to modernize foreign ownership rules, but as of October 2025, NONE have been passed into law:

• Raising condo foreign ownership quota from 49% to 75%
• Extending maximum lease terms to 50-99 years
• Special property ownership rights for Elite visa holders

Note: Don't make purchase decisions based on proposed changes that haven't been enacted.

Step-by-Step: Buying a Condo as a Foreigner

Step 1: Find a Property

• Use property websites (DDProperty, Hipflat, PropertyGuru)
• Work with reputable real estate agents
• Visit developments in person
• Verify the foreign ownership quota hasn't been filled

Step 2: Check Foreign Quota

• Ask developer for proof that foreign quota is available
• Get written confirmation before paying any deposits
• Check if specific units are reserved for Thai or foreign buyers

Step 3: Reserve the Unit

• Pay reservation deposit (typically ฿50,000-200,000)
• Sign reservation agreement
• Reservation period: 7-30 days usually

Step 4: Transfer Funds from Abroad

This is CRITICAL for legal foreign ownership:

• Transfer purchase amount in foreign currency (USD, EUR, GBP, etc.)
• Include clear reference: "For property purchase at [address]"
• Use reputable international bank transfer (SWIFT)
• Request Foreign Exchange Transaction Form (FET) from receiving Thai bank
• For amounts over $50,000, you'll need to provide documentation to the bank

Pro Tip: The FET form is your proof that you used foreign funds. Without it, you cannot register the condo in your name. Keep multiple copies in a safe place!

Step 5: Hire a Lawyer

Highly Recommended:

• Cost: ฿15,000-40,000 depending on property value
• Services: Title deed verification, contract review, Land Office registration assistance
• Worth it for: Peace of mind, avoiding scams, ensuring legal compliance

Step 6: Due Diligence

Your lawyer should verify:

• Title deed is genuine and clear of encumbrances
• Seller is legitimate owner
• No outstanding debts on the property
• Building has proper permits and common property ownership
• Foreign quota calculation is correct

Step 7: Sign Sales Agreement

• Review thoroughly (get English translation)
• Check all terms: price, payment schedule, handover date, penalties
• Pay initial deposit (typically 10-30% of purchase price)

Step 8: Property Transfer at Land Office

Both buyer and seller must attend the Land Department office together to complete the transfer.

Documents Needed:

• Passport and copies
• FET form (proof of foreign funds)
• Sales agreement
• Title deed
• House registration documents

Fees Paid at Transfer (typically split 50/50):

• Transfer Fee: 2% of registered value
• Withholding Tax: 1% (seller's responsibility, but often negotiated)
• Specific Business Tax: 3.3% if seller owned less than 5 years (OR)
• Stamp Duty: 0.5% if seller owned 5+ years

Step 9: Receive Title Deed

• Your name will be on the title deed (Chanote)
• Keep the original in a safe place
• Get certified copies for banking/visa purposes

Costs of Buying Property in Thailand

Purchase Price Ranges (Bangkok 2025)

Studio/1-Bedroom Condos:

• Outer areas: ฿1.5-3 million
• Mid-range areas (On Nut, Ari): ฿3-5 million
• Prime areas (Thonglor, Phrom Phong): ฿5-10 million
• Luxury (riverside, penthouses): ฿10-30+ million

2-Bedroom Condos:

• Outer areas: ฿3-5 million
• Mid-range areas: ฿5-8 million
• Prime areas: ฿8-15 million
• Luxury: ฿15-50+ million

Additional Costs (Budget 5-7% of Purchase Price)

• Transfer Fees: ~2% (often split with seller)
• Lawyer Fees: ฿15,000-40,000
• Property Inspection: ฿5,000-15,000 (optional but recommended)
• Withholding Tax/Stamp Duty: 0.5-3.3% (seller pays, sometimes negotiated)
• Sinking Fund: ฿200-500 per sqm (one-time fee to building fund)
• Advance Common Fees: 1-3 months prepaid

Ongoing Costs

• Common Area Fees: ฿30-80 per sqm per month
• Property Tax: 0.02-0.1% of assessed value annually (new tax as of 2020)
• Utilities: ฿2,000-4,000/month (if renting out)
• Insurance: ฿3,000-10,000/year (optional but recommended)

Financing Options for Foreigners

Thai Bank Mortgages

Some Thai banks offer mortgages to foreigners, but conditions are strict:

• Maximum Loan: Typically 50-70% of property value (vs 80-90% for Thais)
• Interest Rates: 4-6% annually (slightly higher than for Thais)
• Requirements: Work permit, proof of income in Thailand, minimum salary ฿100,000/month
• Banks Offering: Bangkok Bank, Kasikorn, SCB (policies vary)

International Mortgages

• Home equity loan from your home country
• International mortgage brokers specializing in Thailand
• Often more flexible but with currency exchange risk

Developer Financing

• Some developers offer payment plans
• Typically: 20-30% down, installments during construction, balance on completion
• No interest but built into the price

Buying Off-Plan vs Resale

Off-Plan (Pre-Construction)

Advantages:

• Lower prices (10-30% discount vs completed)
• Choice of units and floors
• Payment plan options
• Brand new, modern facilities

Risks:

• Construction delays
• Developer financial problems
• Final product differs from showroom
• Area may not develop as expected

Resale/Completed Properties

Advantages:

• See exactly what you're buying
• Move in immediately
• Established neighborhood
• Can inspect building maintenance quality
• Sometimes furnished

Disadvantages:

• Higher prices
• May need renovation
• Less choice of units

Investment Potential

Rental Yields (Bangkok 2025)

• City Center: 4-6% gross yield
• Mid-Range Areas: 5-7% gross yield
• University Areas: 6-8% gross yield

Capital Appreciation

• Bangkok: 3-5% annually (varies by area)
• Prime areas: Can exceed 8-10% in hot markets
• Outer areas: More modest 2-4%

Best Investment Areas (2025)

1. Near New BTS/MRT Lines: Properties near upcoming stations (check Bangkok transit expansion plans)
2. University Districts: Strong rental demand from students
3. Business Districts: Sathorn, Silom, Asoke - corporate rentals
4. Thonglor/Ekkamai: Popular with upper-income Thais and expats
5. Riverside: Luxury segment with strong demand

Common Scams and How to Avoid Them

• Fake Title Deeds: Always verify at Land Office or hire lawyer to check
• Nominee Structures: Avoid "100% ownership" schemes using Thai nominees
• Unregistered Leases: Ensure 30-year lease is registered at Land Office
• Verbal Promises: Get everything in writing, preferably in English and Thai
• Unlicensed Agents: Work only with licensed agents or reputable firms
• Pressure Tactics: Never rush into purchases, especially off-plan

Tax Implications

When You Buy

• Transfer fee, stamp duty, and withholding tax (as covered above)

While You Own

• Property Tax: 0.02-0.1% annually (Land and Building Tax, introduced 2020)
• Rental Income Tax: If renting out, must declare income and pay tax

When You Sell

• Capital Gains Tax: No separate capital gains tax in Thailand
• Income Tax on Sale: Progressive tax based on profit (0-35%)
• Withholding Tax: 1% of registered sale price
• Specific Business Tax: 3.3% if owned less than 5 years

Is Buying Property in Thailand a Good Idea?

Buy If You:

• Plan to live in Thailand long-term (5+ years)
• Want stability and not deal with landlords
• Can afford to buy with cash or substantial down payment
• Understand the legal restrictions and risks
• See it as a lifestyle choice, not purely investment

Rent If You:

• Unsure about long-term stay in Thailand
• Want flexibility to move neighborhoods/cities
• Prefer to invest capital elsewhere
• Don't want to deal with property maintenance
• May need to leave Thailand on short notice

Ready to Buy Property in Thailand?
Buying property in Thailand as a foreigner involves complex legal requirements and significant financial commitment. Our team includes experienced property lawyers, real estate agents, and relocation experts who can guide you through every step--from finding the right property to completing the legal transfer. We ensure you understand all risks and get the best deal possible. Contact us for a free property buying consultation.