Buying a condo in Thailand |

Buying a condo as a foreigner in Thailand

In Thailand, a foreigner can own a condominium in his/her own name. A Condo can be purchased by foreigners as long as at least 51% of the building is owned by Thais.

Documents needed for the transfer of property ownership

1. The Title Deed of the property (Chanote)

2. Letter of Debt Free (Issued by the juristic person of a condo)

3. The foreign ownership quota of the condominium

(Section 19 bis of the condo Act B.E. 2522

4. Copies of the passport(s) or other identification documents of both the buyer and the seller

5. Copies of the entry stamp(s) in the passport(s) of the foreign buyer and/or the seller

6. Foreign Exchange Transaction Certificate or Thor Thor3

(For purchasing in the name of a foreigner only)

7. Company Documents updated for the last 3 months

Land and House

What is a Foreign Exchange Transaction Certificate?

Foreign Exchange Transaction Certificate or Thor Thor 3 is a legal document issued by banks upon receipt of foreign currency into your bank account in Thailand.

You can ask this from your bank when you are remitting funds to Thailand for purchasing a condominium.

It is Thailand government’s condition that the money used by foreigners to pay for the purchase price must originate from an offshore source in the form of foreign currency. This certificate shall be presented to the officer at the land office where you need to register the ownership of the condominium unit.

To appoint a proxy to present at the Land Office

A buyer or seller of real property can authorize another person to handle the transaction on their behalf by filling in and signing the power/letter of attorney form specially provided by the Land Office.

The government provincial and local Land Department’s branch offices in Thailand only accept the official standard Land Department’s Thai script ‘Power of Attorney’ (Tor Dor 21 for land and house; Or Chor 21 for condominium).

Taxes and Fees when purchasing or selling a property

1. Transfer Fee

2% of the appraised value of the property.

2. Stamp Duty/Fee

0.5% of the assessed value or the actual selling price, whichever amount is higher. You don’t have to pay a stamp duty if specific business tax is applicable.

3. Specific Business Tax

3.3% calculated on the basis of the government appraised value or the actual selling price, whichever amount is higher. This tax only applies if the property is sold within the first five years of ownership. Otherwise, a stamp duty will be assessed instead.

4. Income Tax

Income from the sale of a property is subject to income taxation. The calculation of the tax based on the government appraised value of the property, the length of ownership time and the applicable personal income tax rate.

Property owned by a company, the withholding tax is 1% of the selling price or of the assessed value, whichever is higher.

Property seller owned by an individual, the withholding tax will be calculated by a progressive income tax scale. Under Thai tax laws the land office must take the income withholding tax at the time of transfer of property ownership.