Thailand Condominium

Thailand Condominium. Condos are the main route by which foreigners can hold Thai real estate in their own name. The headline is simple: a foreigner can own a condominium unit freehold — but only within strict statutory limits and practical steps that determine whether the unit is secure, financeable and usable. This guide explains the legal framework, the foreign-quota rule and fund-sourcing requirements, the buying and registration process, taxes and fees, the juristic person and ongoing charges, financing and leasing alternatives, key risks, and a day-one checklist you can use with counsel.

Quick legal framework — what the Condominium Act does for you

Condominiums in Thailand are governed by the Condominium Act (and Land Department practice). A condominium title gives you a proprietary unit right (a freehold interest in the unit’s space) plus an undivided share in the common parts of the building. The real practical points for foreign buyers are (A) the foreign ownership quota, (B) how purchase funds must be brought into Thailand, and (C) the need to register properly at the Land Office to protect title and to qualify for bank financing or mortgage registration.

Load-bearing fact (foreign quota): foreigners may own no more than 49% of the total usable floor area in a condominium project (the remainder must be Thai-owned). This is statutory and enforced at registration. If the foreign quota is full, remaining units cannot be transferred in freehold to foreigners, although some projects may offer leases.

Funds & remittance rules — chain of funds matters

To register a freehold condo in a foreigner’s name the Land Office requires evidence that the purchase price was paid from funds remitted into Thailand in foreign currency (often evidenced by foreign-to-Thai bank SWIFT/FET receipts and bank statements). If the buyer uses local baht or unclear domestic cash flows, registration for a foreign buyer will likely be refused. Banks and the Land Office scrutinize the remittance trail: keep original SWIFTs, bank confirmations and transfer docs.

Buying process — steps that matter

  1. Check the foreign quota for the specific project (ask the developer or request a Land Office extract). If quota is full, consider a lease or a Thai-owned SPV structure only with specialist advice.

  2. Reservation and SPA — negotiate price, deposit terms and a completion timetable; include clear seller warranties on title, encumbrances and building compliance.

  3. Due diligence — get a fresh Land Office extract, check pending mortgages, developer warranties, condo rules and any special assessments or easements.

  4. Proof of funds — remit purchase funds from overseas and collect original SWIFT/FET confirmation; bank and Land Office will need them at registration.

  5. Registration at the Land Office — the crucial step: submit original title (chanote), seller ID, buyer ID/passport, and proof of foreign currency remittance; once accepted you get the registered condominium ownership certificate.

A failure at step 4 or 5 is the common reason buyers cannot secure title even after paying large sums.

Taxes & transfer costs — what you pay on purchase and sale

Purchase and sale of condos attract several possible charges depending on circumstances:

  • Specific Business Tax (SBT) 3.3% — generally payable by the seller if the sale is considered business activity (developer sales or sales within a short holding period).

  • Stamp duty — 0.5% where SBT is not applicable (small transactions differ).

  • Withholding tax — a final or provisional withholding (1% for companies; progressive rates for individuals based on appraisal or actual price) is collected at registration from the seller or buyer depending on circumstances.

  • Registration fee — normally 2% of the official appraised or declared value (some temporary government measures have reduced registration fees to 0.01% for eligible transactions under certain thresholds — check current notifications as they may be temporary or targeted).

Who pays which tax is negotiable in the SPA, but the Land Office enforces collection at transfer — plan cashflow accordingly.

The juristic person, maintenance fees & sinking fund — ongoing cashflow

Every condo development must have a juristic person (condo association) that runs the building. Key practical items:

  • Monthly maintenance fees — owners pay a monthly amount (normally quoted as THB per square meter) to cover cleaning, security and utilities for common areas. Typical ranges vary by project but common market practice runs from a few hundred baht per sqm per year (confirm the exact rate in the rules).

  • Sinking fund — a one-off payment on purchase to fund long-term capital repairs; it’s kept in a separate account for the building and is non-refundable. Sinking-fund rates are typically set in the rules and recorded at the time of registration. Importantly, increases to fees or sinking-fund levies sometimes require a super-majority vote under the Act.

Before buying, get the current maintenance ledger and confirm any planned special assessments — they can materially affect holding costs.

Financing & mortgages — what banks will ask

Thai banks will lend to foreigners for condo purchases, but expect strict documentation: registered title, proof of remitted foreign funds, the borrower’s income proof and a mortgage that the bank will register at the Land Office. Lenders also price loan-to-value conservatively for non-resident borrowers. If the unit is within the foreign quota and title is clean, mortgage finance is possible; otherwise lenders will not proceed.

Leasehold and alternative structures — when freehold isn’t available

If the foreign quota is full, the common alternatives are:

  • Long leases (commonly 30 years) — can provide long-term control but are technically tenancy contracts with narrower property rights; banks and registries treat them differently, and renewals are not automatic. Recent judiciary and Land Office practice has tightened assumptions around automatically renewable multi-term leases — treat renewals as contracts, not ironclad rights.

  • Thai company ownership — where a Thai majority (51%+) holds the freehold; this is risky if not structured correctly because the company is ultimately controlled by local shareholders — use only with specialist tax and corporate advice.

Common risks & how to mitigate them

  • No proof of foreign remittance → registration refused. Mitigation: remit via bank, keep originals, get seller/agent to confirm acceptance conditions.

  • Full foreign quota → cannot get freehold title. Mitigation: verify quota before paying deposits; consider lease or another project.

  • Unexpected special assessments or high maintenance → review the juristic person’s minutes and financials.

  • Tax surprises on resale → model SBT/stamp duty/withholding consequences with tax counsel before pricing.

Practical day-one checklist (give this to your lawyer)

  1. Obtain developer’s certificate of available foreign quota (or Land Office extract).

  2. Instruct bank to remit purchase funds from abroad and obtain original SWIFT/FET proofs.

  3. Get fresh Land Office extract and condo rules; request juristic person financial statements and meeting minutes.

  4. Draft SPA with clear tax allocation clauses, escrow triggers and completion conditions tied to Land Office registration.

  5. Check mortgage/financing options and lender acceptance conditions.

Final practical note

Condos are the most practical path for foreigners to own Thai real estate — but the security of that ownership depends entirely on process discipline: verifying the foreign quota first, remitting funds correctly, securing clean Land Office registration and understanding both the taxes on transfer and the recurring commitment of maintenance and sinking-fund payments.

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