Requirements for Foreign Property Ownership

The acquisition of real estate abroad entails varying regulations depending on the country, ranging from strict restrictions to welcoming policies.

For instance, in Thailand, foreigners may own condominiums, but certain limitations apply to other property types such as apartments or land.

Thai legislation, particularly the Condominium Act, allows foreigners to own full units in condominiums under a regime of absolute ownership.

This provision has positioned Thailand as an attractive destination for foreign investors, whether for business or leisure.

However, there are specific requirements that foreigners must meet when investing in Thai properties. Firstly, they must ensure that there is a quota available for foreigners in the building.

The Condominium Act stipulates that up to 49 percent of the total condominium area can be foreign-owned, excluding common areas such as lobbies or pools. The remainder, i.e., 51 percent, must be Thai-owned.

To ensure compliance with this requirement, foreigners purchasing properties must verify the availability of the foreign quota, either at the building’s legal office or through the developer in the case of off-plan purchases.

The second requirement pertains to the funds used for the purchase. All foreigners investing in properties in Thailand must transfer their funds to the country in foreign currency, which is then converted to Thai baht for the transaction. This transfer must be backed by a foreign exchange transfer form issued by the bank, and the transferred amount must be equal to or greater than the agreed sale price.

For a more detailed understanding of these requirements and other related property rights, it is advisable to consult the Thai Condominium Act of 1979, amended in 2008, which provides clear guidance on the property acquisition process in Thailand.