BANGKOK, THAILAND – Foreign buyers of Thai condominiums faced tight legal and banking rules that made documented foreign currency transfers essential for securing ownership.
Legal cap on foreign ownership in condominium blocks
Thailand’s key law for apartment purchases by non‑Thais was the Condominium Act of 1979, which strictly limited how much of a building could be sold to foreigners. No more than 49% of the saleable area in any condominium could be owned by non‑Thai nationals, with the remaining 51% reserved for Thai citizens.
Prospective buyers were advised to obtain written confirmation from the building’s management that the foreign quota had not been exhausted. Without such a letter, the land office refused to register a purchase even if all other conditions were met.
Proof of imported capital and the FET requirement
A central condition for overseas buyers was proof that the purchase funds had been brought into Thailand from abroad as foreign currency. A Thai bank had to confirm that the incoming money was a foreign exchange transaction, not a domestic transfer in baht.
This proof was provided through bank documents such as the Foreign Exchange Transaction Form (FET) or an equivalent bank confirmation. Without these papers, land offices declined to transfer title, regardless of any agreement between buyer and seller.
Thresholds, alternatives and common transfer mistakes
Banks typically issued an FET form only for transfers from abroad of at least 50,000 US dollars, as part of a reporting duty to the Bank of Thailand. For smaller amounts, institutions instead supplied a “Credit Advice” or “Confirmation Letter” that carried the same legal weight for property registration.
A frequent error occurred when buyers sent money already converted into Thai baht before arrival in Thailand. Funds had to reach the Thai bank in a foreign currency such as euro, US dollar or Swiss franc so that the conversion inside Thailand created a reportable foreign exchange transaction.
Reinvestment and the foreign currency deposit workaround
For owners selling one Thai apartment to purchase another, sale proceeds were typically received in baht. Land offices, however, again demanded proof of “fresh” overseas capital for the new acquisition, meaning those baht could not simply be reused directly.
The solution offered by Thai banks was a Foreign Currency Deposit Account (FCD). Sellers could take the baht proceeds and sale documents to a bank, convert the baht back into their home currency and credit the amount to the FCD account, then later withdraw it for the new purchase together with a fresh bank confirmation acceptable to the land office.
Taxes, fees and losses on reinvested capital
Reinvestment also triggered notable costs at the point of sale. A transfer fee of 2% of the appraised property value was due, alongside withholding tax on any gain.
If a unit had been owned for less than five years, a specific business tax of 3.3% applied in addition. Double currency conversion between baht and foreign currency further eroded the final amount, with overall losses of roughly 6–8% of the sale price considered realistic.
Long-term saving transfers remain acceptable
Foreigners who gradually sent smaller sums to Thailand over many years were not disadvantaged, as land offices recognised long‑term capital inflows. There was no statute of limitations on such imports.
Multiple transfers, even spread over a decade, could be combined as long as their documented total matched at least the agreed purchase price. The key condition was that every partial transfer could be verified through bank records as foreign currency inflows.
Documentation demands for historic payments
Buyers who had accumulated funds over time were expected to obtain a consolidated confirmation from their bank before completing a purchase. Old account statements were not considered sufficient by land office officials.
Because banks often kept detailed online records for only around six months, older transactions sometimes had to be retrieved from archives, a process that could take several days and incur modest charges. Authorities insisted on an up‑to‑date, official overview of all relevant transfers.
Fintech transfers risked derailing property deals
Modern money transfer services such as Wise or Revolut were described as convenient for everyday payments but risky for real estate transactions. These providers often used local accounts on each side, meaning the Thai receiving bank might treat the inflow as a domestic transfer.
In such cases, no foreign exchange transaction would be visible, and the bank could not issue the FET form or equivalent confirmation needed for property registration. For condominium purchases, traditional SWIFT transfers via a buyer’s home bank were recommended despite higher costs to avoid registration problems.
Exchange rate risks for slow savers
Buyers saving in euro or other currencies over several years faced exchange rate risks against the baht. The rate on the day of each transfer determined how much Thai currency ultimately arrived for the future purchase.
An example showed that 20,000 euros were worth about 760,000 baht in 2018 but only around 700,000 baht in 2024. If the baht strengthened, accumulated capital might no longer be sufficient for the desired apartment, making a financial buffer or timing major transfers close to the purchase advisable.
From deposit to title: the formal purchase process
Once a suitable condominium had been selected, the formal process began with a deposit and a signed purchase contract. The main payment was made at the land office on the day of the title transfer.
Buyers had to bring all bank confirmations, their passport and the sale contract. A notary or land officer checked the documents, calculated taxes and entered the buyer into the register as the new owner, a procedure that typically took two to three hours.
Shared fees and attempts to pass on tax burdens
On purchase, the buyer usually bore half of the transfer fee, effectively paying 1% of the appraised value, and sometimes an additional 0.5% in stamp duty. The seller settled their own tax obligations separately.
Some sellers tried to shift parts of their tax burden onto buyers in negotiations. Observers urged purchasers not to accept such arrangements and to insist that the statutory allocation of costs, considered fair for both sides, be clearly defined in writing before completion.
Importance of stating the correct transfer purpose
For every international transfer, buyers were advised to use a precise payment reference. The recommended phrase was “for purchase of condominium” to help banks issue the right confirmations and to make the intended use clear to the land office.
Vague purposes such as “living expenses” or “savings” risked later challenges, as officials could argue that the money had not been imported specifically for a property purchase. Accurate descriptions from the start reduced the chance of disputes over capital qualification.
Local discretion and the value of early file checks
Despite clear overarching rules, local land office staff retained some discretion in how they handled unusual cases. In smaller provincial towns, this sometimes led to delays when documentation did not fit standard patterns.
Foreign buyers were therefore encouraged to visit the land office about a week before the planned transfer date with copies of all documents. Early checks by officials were presented as a way to avoid last‑minute surprises during registration.
Economic rationale and benefits for compliant investors
The strict framework was intended to protect Thailand’s economy and prevent property markets from overheating if foreign investors could buy freely with locally generated funds. Authorities also aimed to prevent local residents from being priced out.
At the same time, proper registration via the FET form was portrayed as an advantage for compliant buyers. Those who registered their capital correctly could later transfer sale proceeds back abroad without additional taxes, turning today’s bureaucracy into what officials described as a form of future insurance for investors.
Guidance, limits and legal disclaimers
The guidance on Thailand’s condominium rules was prepared as general information rather than legal advice or a substitute for individual consultation. Readers were reminded that laws, regulations, banking practices and official interpretations could change at any time.
The publication stressed that any property purchase in Thailand took place at the buyer’s own risk and responsibility. It recommended seeking personalised advice from a lawyer specialising in Thai property law and from one’s own bank before any transaction, noting that no liability was accepted for losses arising from use or non‑use of the information provided.