Buying property in Thailand — first, know what you can own
The question foreign buyers ask first is usually the same: what can I actually own legally? Thai law places clear limits on foreign ownership of real estate, but it also leaves a few lawful paths open. Getting clear on "what you can hold, through which structure, and what taxes apply" before you buy is what prevents problems that are hard to fix later.
This article is general information, not legal advice for your specific case. The rules vary by property type and personal circumstances — consult a lawyer before acting.
Condominium freehold — the most direct lawful route
Buying a condominium unit is the most common and direct way for a foreigner to hold property in freehold. The law allows foreign ownership of condo units, with one key limit:
- The 49% foreign quota — across any one condominium building, foreigners may collectively own no more than 49% of the saleable floor area. Confirm the building still has quota available before you buy.
- Funds remitted from abroad — the purchase price is usually remitted into Thailand in foreign currency, and the bank issues a Foreign Exchange Transaction (FET) form, used to register under the foreign quota and to repatriate funds on a future sale.
Land and villas — lease or a lawful structure
Foreigners generally cannot own Thai land directly, so a landed villa cannot be registered in a foreigner's name the way a condo can. The usual lawful options:
- Long-term lease — a 30-year land/house lease (with renewal terms), registered at the Land Office.
- Company structure — holding through a Thai company where there is genuine operation and the conditions are met, but never using nominees to evade the law (illegal).
- Routes such as BOI — land holding may be possible under specific conditions; assess case by case.
Using a Thai nominee or a "paper company" to bypass the restriction is illegal and can lead to forfeiture or a void contract — have a lawyer design a lawful structure first.
The property purchase process
- Viewing and initial negotiation — confirm the property type (condo / landed) and the foreign-quota position.
- Title due diligence — check the title deed (Chanote), mortgage and seizure records, the condo's debts and management, and building permits for landed property.
- Sale-and-purchase agreement — set out price, payment milestones, transfer date, who bears which taxes, and default remedies; for off-plan, review delivery and refund terms.
- Overseas remittance and FET — remit in foreign currency and obtain the FET form (for condo freehold).
- Transfer at the Land Office — both parties register the transfer, pay taxes and fees, and receive the ownership documents.
Taxes and holding costs
Transfer typically involves a transfer fee (about 2% of the official appraised value), withholding tax, and stamp duty or specific business tax (depending on the holding period and the seller). There are also ongoing costs such as the condo's common-area fees and sinking fund. Have a lawyer calculate the total and write it into the contract, so a dispute over who pays what doesn't surface at transfer.
Inheritance and selling
A foreigner's condominium freehold can be inherited, but if the heir is also a foreigner the foreign-quota rules still apply — factor this into your planning. When you sell, the original FET form lets you lawfully repatriate the corresponding funds out of Thailand, so keep your remittance records safe from the outset.
Common pitfalls
- Using a Thai nominee or paper company to hold land/villas (illegal, very high risk);
- Paying a deposit before checking the title deed and mortgage/seizure records;
- Buying off-plan without vetting the developer and the pre-sale contract;
- Paying without obtaining the FET, blocking registration or later repatriation;
- Overlooking common-area fees, sinking fund, and other long-term holding costs.
How we help
We assist foreign buyers through the whole process — title due diligence, contract review, tax calculation, Land Office transfer, lease registration, and company-holding structures — and can work with you in English or Chinese. Where a villa or company-holding is involved, we assess the lawful structure and tax impact together. See our Phuket services for foreign property or business and investment services.
Summary
The key to buying property in Thailand is to confirm what you can lawfully own, use the right structure, and price in the taxes: condos via the foreign-quota freehold, land and villas via a long-term lease or a lawful company structure — and always keep your overseas remittance record (FET). Having a lawyer who knows foreign real estate involved from the start helps you avoid nominee, stalled-project, and title-dispute risks that are hard to undo.
If you are planning to buy in Thailand, talk to our real estate team or tell us what you need.