Whether you want to make Thailand your second home or you simply want to invest in Thai property, buying a condo in Thailand is a great idea.

Why? Well, because Thailand makes it quite easy for foreigners to purchase condominiums in the country. But if you want to buy a condo in Thailand, you need to know the ins and outs of the market, the requirements for foreigners, and much more.

In this guide, we’ll explore the unique nuances of buying a condo in Thailand and provide you with a roadmap to navigate the process seamlessly.

Can I own a condo in Thailand as a foreigner?

The short answer is yes. Thai condominium law states that while foreigners cannot own land in the country, they can own condos so long as they meet other legal requirements. Additionally, foreigners are not required to have a work permit or other long-stay visa to purchase a condo in Thailand.

What are the legal requirements for buying a condo in Thailand as a foreigner?

Before diving into the Thai property market, it’s crucial to grasp the legal landscape. Thai condominium laws can be intricate, and understanding them is fundamental to successfully purchasing a condo in the country. The Thai government has established certain criteria and conditions to regulate foreign ownership of condominiums.

Here’s a detailed breakdown of the key requirements:

1. Percentage of Foreign Ownership:
   • Thai condo law restricts the percentage of foreign ownership in a condominium project to a maximum of 49%. This means that no more than 49% of the total saleable area of all units combined in a given condominium can be owned by foreigners. It’s crucial to verify this aspect before committing to buying a condo in Thailand.
2. Funds Must Come from Abroad:
   • To ensure compliance with Thai regulations, the funds used for the purchase of a condo must be transferred from a foreign country to Thailand in foreign currency. This requirement aims to prevent money laundering and ensures transparency in property transactions.
3. Obtaining Foreign Exchange Transaction Form:
   • Upon transferring funds into Thailand, it is imperative to obtain a Foreign Exchange Transaction Form (FETF) from the receiving bank. The FETF serves as documentation of the foreign funds being brought into the country and is often required during the property registration process.
4. Compliance with Condo Ownership Act:
   • Foreigners looking to purchase a condominium must adhere to the Condominium Act of Thailand. This legislation outlines the rights and responsibilities of both Thai and foreign condo owners. Ensuring compliance with these regulations is essential for a smooth and lawful ownership experience.

Is Airbnb legal in Thailand?

If you are thinking about buying a condo in Thailand as an investment and renting it out on Airbnb, then you should exercise caution. As it stands now, Airbnb is in a legal grey area in the country. Well, put more specifically, it is illegal to rent residential units for less than 30 days in Thailand without a hotel license.

However, it’s an open secret that short-term rentals on Airbnb are still very common in Thailand. This is thanks mostly to an exception in the law that allows short-term property rentals without a hotel license so long as the property has eight or fewer rooms, it accommodates 30 guests or less, and the rental of the property is used merely as an additional source of income.

Before renting a property on Airbnb in Thailand, it’s best to consult with your condo building first to see if they are okay with it.

Guide to purchasing a condo in Thailand for foreigners

1. Choose the right location

Thailand is a country filled with vastly different cities and each of those cities has vastly different neighborhoods and areas. For example, Bangkok has every type of neighborhood you could imagine, ranging from luxurious and modern to local and affordable–and everything in between.

Choosing the right location for your condo involves considering your lifestyle preferences, proximity to amenities and public transport, and potential for rental income if you’re buying a condo in Thailand as an investment.

2. Engage a reputable real estate agent

Certainly, if you are looking to own a condo in Thailand, you can do the leg work of finding a condo yourself. However, navigating the Thai real estate market can be a daunting task for foreigners, given the language barrier, intricacies of local regulations, and lack of knowledge of the market.

Engaging a reputable real estate agent is in most cases probably a wise decision. Look for agents with a track record of successfully assisting foreigners in property transactions, and don’t hesitate to ask for referrals. A reliable agent can guide you through the legalities, provide insights into local property trends, and ultimately streamline the entire purchasing process.

3. Conduct due diligence

Once you’ve identified a condominium that piques your interest, it’s time to dive into due diligence.

Thoroughly scrutinize the condominium’s financial health, management practices, and any pending legal issues. Request a copy of the condominium’s juristic person documents and ensure that all maintenance fees and taxes are up to date.

Also, if you intend to purchase the property as an investment, carefully consider the amount of return on investment you can get yearly. A good return on a condo rental investment in Bangkok is 7-9% per year. And look for a property appreciation of 5-10% per year.

4. Understand financing options

Generally speaking, if you wish to finance a condo purchase in Thailand, you need to either have a work permit with a stable income or hold legal permanent residency in the country.

Local banks may offer mortgages to foreigners, typically covering up to 50-70% of the property’s value. It’s essential to evaluate interest rates, loan terms, and eligibility criteria before committing to a mortgage.

Most foreigners who buy a condo in Thailand, however, opt to purchase the condo outright using their foreign currency.

5. Negotiating the purchase price

Thailand’s real estate market is known for its flexibility in negotiations. So once you’ve found a condo you want to buy, don’t be afraid to engage in price discussions with the seller or developer.

Research comparable properties in the area, consider market trends, and leverage these insights to secure a favorable deal. If you hire a real estate agent beforehand, he or she will help you negotiate a fair price.

6. Navigate the purchase process

Once the price is settled, the purchase process begins. The buyer is typically required to pay a reservation fee, which is followed by the signing of a sales and purchase agreement.

At this stage, a deposit ranging from 10-30% of the property’s value is paid. The remaining balance is settled upon the transfer of ownership, usually facilitated at a Thai Land Department office.

You can always hire a reputable legal professional to oversee the entire process and ensure that all documentation is in order.

7. Secure a condominium title

The title deed is the legal document confirming your ownership of the condominium.

In Thailand, there are three main types of condominium titles: Chanote, Nor Sor Sam Gor, and Nor Sor Sam. Chanote is the most secure and widely accepted, providing clear ownership rights.

Ensure that the title deed for your chosen condominium is in order, and verify its authenticity with the Land Department.

8. Be aware of taxes and fees

At some point in the process of buying a condo in Thailand, there will be certain taxes and fees that need to be factored into your budget.

Common charges include transfer fees, stamp duty, and withholding tax. You are also likely to have to pay a condominium fee that supports your condo building’s many amenities like the gym and pool.

You will also have to pay a yearly property tax on the condo.

Owning a condo as a foreigner in Thailand

As you can see, buying a condo in Thailand isn’t a super complicated process. That’s because Thailand has made it easy for foreigners to purchase condos in order to promote foreign investment in the country.

So if you have the spare cash and want to own a condo in Thailand, now is the time to do it–either as a place to live in, as a vacation home, or even as an investment. All are great options!

Related: A Complete Guide for Renting a Condo in Bangkok (For Foreigners)