Acquiring Condominium (Apartment) Ownership Rights by Foreigners in Thailand
Ownership of real estate by foreigners in Thailand is subject to various legal restrictions. However, under the Condominium Act B.E. 2522 (1979) and related laws, foreigners are allowed to legally own units in condominium buildings, provided that they comply with conditions clearly set by the Department of Lands, Ministry of Interior. The following summarizes these conditions:
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1. Categories of Foreigners Eligible for Condominium Ownership
According to Thai law, foreigners or juristic persons deemed as foreigners can own condominium units if they fall under one of the following categories:
1.1 Foreigners who are permitted to reside permanently in Thailand under the Immigration Act
1.2 Foreigners who are allowed to enter the country under the Investment Promotion Act
1.3 Juristic persons registered under Thai law but classified as foreigners under Section 97 and 98 of the Land Code
1.4 Foreign juristic persons that have been granted investment promotion by relevant government agencies
1.5 Foreigners or foreign juristic persons who bring foreign currency into the Kingdom to pay for the condominium unit, with official documentation verifying the transfer
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2. Ownership Restrictions for Foreigners
Foreign ownership in a condominium building is limited to no more than 49% of the total floor area of all units in that building. The remaining 51% must be owned by Thai nationals or Thai juristic persons.
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3. Proof of Foreign Currency Remittance
Foreign buyers must present evidence of transferring foreign currency into Thailand specifically for the purpose of purchasing the unit. Required documents include:
Foreign Exchange Transaction Form (FET)
Documents showing the source of funds and the purpose of property purchase in Thailand
The funds must be remitted in the name of the person who will be the registered owner of the unit.
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4. Registration of Ownership at the Land Office
After signing the purchase agreement, the foreign buyer must submit all required documents to the Land Office where the property is located. Documents include:
The sale and purchase agreement
Proof of payment and foreign remittance
Copy of passport
Valid visa or residence permit
Documents from the condominium juristic person (such as certification of total area and foreign ownership ratio)
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5. Additional Notes
Foreigners cannot own land in Thailand but may legally own condominium units under the aforementioned conditions.
In the case of long-term lease or leasehold rights, it is advisable to have written contracts which can also be registered at the Land Office to provide legal protection.
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Conclusion
Foreigners can indeed own condominium units in Thailand legally, provided they meet all legal requirements as stipulated by the Department of Lands. These include qualification as an eligible buyer, adherence to the 49% ownership limitation, and proof of proper foreign currency remittance. These laws aim to maintain a balanced structure of real estate ownership between Thai nationals and foreign nationals.
If you are a foreigner interested in investing in a condominium or apartment in Thailand, understanding and preparing the necessary documentation will ensure that the transaction proceeds smoothly and lawfully.