frequently asked questions

Buying a condominium unit in Thailand has become easy and straightforward since the “1992 Condominium Act”, and is accessible to all foreigners (individual or company)

The 3 conditions to purchase a condo as a foreigner

All the conditions listed below must be checked by your property agent and your lawyer before the acquisition

1) The residence is registered as a condominium

2) The funds necessary to purchase the condo must have originated from outside Thailand, in foreign currency (EUR, USD, HKD, SGD, GBP, AUD, etc.).

The Thai bank that receives the funds issues a Foreign Exchange Transaction Form. The foreign buyer must present this form to the land department to become the legal owner of the condo. The purpose of the transaction must be indicated (ex: “purchase of a unit in the condominium X”).

If you don’t have a Thai account, you can send the funds to the account of your Thai lawyer assisting in the transaction.

3) The foreign quota of 49% of the total space of all units in the residence is not reached yet See section 19 of the Condominium Act on http://www.dol.go.th/

In case the quote is already reached (some condos are in this case already, contact us for more information), the solution is to purchase the condo through a Thai company

Although not often clearly explained by developers of new projects, it is critical for foreign investors to assimilate the difference between “freehold” and “leasehold”.

• Freehold: the purchaser fully owns the property without limitation of time; the property can be donated.
• Leasehold: the purchaser own the property during the contract period but the contract period expire after a period of time.

•⁠ ⁠Condominium : Residential building where each unit is bought & owned individually. The individual share the same rights & obligations regarding the common shared area maintenance.

•⁠ ⁠Apartment : Residential building generally owned by an individual owner(developer/landlord) where each unit is being rented to a tenant. The individual owner is responsible for the common shared area maintenance.

•⁠ ⁠Serviced Apartment : Similar to apartment except it offer more “service related” features. (Eg, Housekeeping, Internet/Wifi…) Generally more common for short-term rental among expats in Thailand.

How to rent a property in Thailand

• Foreigners are allowed to own directly standalone properties (land, house, villa, hotel, factory…) but they cannot directly own the land on which the property is built
• However, numerous villa developments targeting foreigners offer a legal structure offered based on leasehold investment, generally 30 years extendable, sometimes more
• Owning a land through a Thai company is also possible for foreigner buyers

You may be considering to purchase a condominium in Thailand or you may already have bought one or more. Perhaps you are licking your wounds over a costly mistake or wondering where it went wrong in the first place.

Fear not, we are here to give you advices to consider before buying a condominium in Thailand.

1.⁠ ⁠Hire a professional realtor to assist the purchasing process. It’s free for most cases as the seller pays the commission and the advice can be invaluable

2.⁠ ⁠Hire a local lawyer with good reputation.

3.⁠ ⁠Ensure you have enough money for the purchase and all the additional costs advised by your lawyer.

4.⁠ ⁠Be open minded, if purchasing for investment purposes. A property that may be appealing may not be the wisest investments and visa-versa.

5.⁠ ⁠Once you find a unit, visit it at different times of day. It will provide another perspective of the building.

6.⁠ ⁠Parking space is worth extra money. If you don’t plan on using it, you can always rent it out to another resident.

7.⁠ ⁠Avoid purchasing a unit opposite or beside the elevator. It can be very noisy and put off potential investors in future.

8.⁠ ⁠What are the facilities available? Is there a gym? A pool? 24hour concierge and security personnel?

9.⁠ ⁠You will need air-conditioning in Thailand. Ensure the indoor units are working properly and positioned in the right place.

10.⁠ ⁠Pet friendly condominium tend to fetch higher price as most condominium in Thailand aren’t pet friendly.

11.⁠ ⁠Purchase the largest unit you can afford if re-selling. Space is crucial and an extra bedroom or storage can fetch higher resale price.

12.⁠ ⁠For renting, the lower end of the market will be easier to access by the majority of tenants and thus yield better long-term rents.

13.⁠ ⁠Do your own research and ask your realtor what price to offer for unit, What have other similar properties sold for and is there an upward or downward curve in recent times?

14.⁠ ⁠Buy early! Speculating on a newly developed plot can also pay dividends if the development proves popular. If you are investing in a condominium, take a long-term view as short-term gains are increasingly hard to come by.

These pointers are just personal view from an experience realtor. It’s not meant as an official statement.

For more informations, please contact us at : support@siamrealtors.net

How to purchase a property in Thailand?
The tax regime for condo investors in Thailand is very favorable compared with western countries. From low conveyance taxes (transfer taxes) to the absence of tax on capital gains.

You may be considering to purchase a condominium in Thailand or you may already have bought one or more. Perhaps you are licking your wounds over a costly mistake or wondering where it went wrong in the first place.

Fear not, we are here to give you advices to consider before buying a condominium in Thailand.

 1.⁠ ⁠Hire a professional realtor to assist the purchasing process. It’s free for most cases as the seller pays the commission and the advice can be invaluable

 2.⁠ ⁠Hire a local lawyer with good reputation.

 3.⁠ ⁠Ensure you have enough money for the purchase and all the additional costs advised by your lawyer.

 4.⁠ ⁠Be open minded, if purchasing for investment purposes. A property that may be appealing may not be the wisest investments and visa-versa.

 5.⁠ ⁠Once you find a unit, visit it at different times of day. It will provide another perspective of the building.

 6.⁠ ⁠Parking space is worth extra money. If you don’t plan on using it, you can always rent it out to another resident.

 7.⁠ ⁠Avoid purchasing a unit opposite or beside the elevator. It can be very noisy and put off potential investors in future.

 8.⁠ ⁠What are the facilities available? Is there a gym? A pool? 24hour concierge and security personnel?

 9.⁠ ⁠You will need air-conditioning in Thailand. Ensure the indoor units are working properly and positioned in the right place.

10.⁠ ⁠Pet friendly condominium tend to fetch higher price as most condominium in Thailand aren’t pet friendly.

11.⁠ ⁠Purchase the largest unit you can afford if re-selling. Space is crucial and an extra bedroom or storage can fetch higher resale price.

12.⁠ ⁠For renting, the lower end of the market will be easier to access by the majority of tenants and thus yield better long-term rents.

13.⁠ ⁠Do your own research and ask your realtor what price to offer for unit, What have other similar properties sold for and is there an upward or downward curve in recent times?

14.⁠ ⁠Buy early! Speculating on a newly developed plot can also pay dividends if the development proves popular. If you are investing in a condominium, take a long-term view as short-term gains are increasingly hard to come by.

These pointers are just personal view from an experience realtor. It’s not meant as an official statement.

For more informations, please contact us at : Support@siamrealtors.net

Foreigners looking to purchase a condominium unit in Thailand can finance a part of their investment through a loan, under certain conditions.