Q&A

Laws of Thai property

Condominiums (Condos)

Foreigners can own up to 49% of the total area of a condominium building. The remaining 51% must be owned by Thai nationals. Foreigners must transfer the funds for the purchase from a foreign bank account, and the transaction must be recorded as a foreign currency transaction by a Thai bank. The foreign buyer will receive a Foreign Exchange Transaction Form (FET-form or Thor Tor 3) from the bank, which is required for the transfer of ownership.

Houses and Land

Basically it is not allowed for foreigners to own houses in Thailand, But actually there are ways to own house as a foreignesr. Typically, if a foreigner has a Thai wife, they can purchase a house under their Thai wife’s name. Another option is to establish a company for purchasing the house through the company’s documentation. This is commonly seen in places like Phuket and Pattaya, where foreigners own houses using these methods. Such processes can be carried out with the assistance of experts and lawyers. If you are interested in owning a house in Thailand, please feel free to contact us. We will help you to provide detailed assistance one by one.

Leasehold

Foreigners can lease land for up to 30 years, and this can often be renewed. Some choose to form a Thai company to buy land and build a house, but the majority of shares must be held by Thai nationals. This method has legal complexities and risks.

Usufruct Interest

This allows the foreigner to use the land and derive benefits from it (e.g., agriculture, residence, rent), but not to sell it.

Superficies

Foreigners can own structures upon land that they do not own, often used in conjunction with a long-term lease of the land. It’s crucial to consult with legal experts and real estate advisors familiar with Thai property laws before making any decisions. Laws and regulations can change, and there are various legal complexities involved.

Eligibility Criteria

Thai banks are generally cautious when lending to foreigners. You may need to have a work permit or be a long-term resident to be considered. Some banks may require a Thai co-signer or guarantor.

Documentation

Proof of income, employment, and credit history are usually required. You may also need to provide a business or employment history in Thailand.

Loan Terms

Interest rates can be higher for foreigners. The loan-to-value ratio is generally lower, meaning you may need to make a larger down payment. Loan terms may be shorter compared to what is offered to Thai nationals.

Alternatives

Some foreigners opt for financing from their home country. Developer financing is another option, where the property developer themselves offer financing options, although these can be at higher interest rates.

Legal Considerations

As a foreigner, you can only own certain types of property (e.g., condominiums up to 49% of the total area). It’s crucial to consult with legal experts familiar with Thai property laws and banking regulations before proceeding.

Offshore Financing

Some foreign banks that operate in Thailand offer loans to foreigners, but these usually come with strict conditions and require substantial documentation. It’s advisable to consult with financial advisors and legal experts to explore your options and understand the risks involved. Laws and regulations can change, and each bank may have its own set of criteria and conditions.