Authored by the expert who managed and guided the team behind the Thailand Property Pack
Everything you need to know before buying real estate is included in our Thailand Property Pack
Buying property in Thailand as a foreigner requires navigating strict ownership laws and complex legal procedures that have evolved significantly in 2025. The purchase process involves multiple steps from property reservation to final ownership transfer at the Land Office, with specific requirements for foreign fund transfers and mandatory due diligence checks.
Foreign buyers can legally own condominiums with freehold title within building quotas, acquire leasehold rights for up to 30 years, or purchase through Thai company structures, though recent Supreme Court rulings have made long-term lease extensions unenforceable while authorities increase scrutiny of shell companies.
If you want to go deeper, you can check our pack of documents related to the real estate market in Thailand, based on reliable facts and data, not opinions or rumors.
Foreigners can buy condos with freehold ownership (within 49% foreign quota), lease land/houses for 30 years maximum, or use Thai company structures with 51% local shareholding.
The purchase process requires overseas fund transfers with FET documentation, comprehensive due diligence, Land Office registration, and payment of 2% transfer fees plus additional taxes.
| Ownership Type | Foreign Rights | Key Restrictions |
|---|---|---|
| Condominium Freehold | Full ownership with title deed | Maximum 49% foreign quota per building |
| Leasehold (Land/House) | Use rights for 30 years | No automatic renewal, extensions unenforceable |
| Company Ownership | Land ownership through Thai company | 51% Thai shareholding required, increased scrutiny |
| BOI Special Projects | Limited residential land ownership | Minimum 40 million THB investment, max 1 rai |
| Transfer Process | Land Office registration required | Both parties must appear or use Power of Attorney |
| Payment Requirements | Foreign currency transfer mandatory | FET form required for ownership registration |
| Total Costs | 2% transfer fee plus taxes | Additional 3.3% business tax if sold within 5 years |
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
What types of properties can foreigners legally buy in Thailand?
Foreigners can legally purchase condominiums with freehold ownership rights within Thailand's residential property market.
The Thai government restricts foreign ownership of condominiums to a maximum of 49% of the total units in any building, known as the foreign quota system. This means that in a 100-unit condominium building, only 49 units can be owned by foreign nationals with full freehold rights.
Foreign buyers cannot directly own land or houses as private individuals under Thai law. However, they can acquire leasehold rights to land and houses for up to 30 years, which must be registered at the Land Office for leases exceeding three years duration.
Some foreigners attempt to purchase land through Thai company structures, where a Thai-majority company (minimum 51% Thai shareholding) holds the land title. As of September 2025, Thai authorities have significantly increased scrutiny and crackdowns on shell companies established primarily for foreign property ownership purposes.
It's something we develop in our Thailand property pack.
What are the exact ownership options available for foreign buyers?
| Ownership Structure | Property Types | Legal Rights & Duration |
|---|---|---|
| Freehold Ownership | Condominiums only | Full ownership rights, permanent, transferable title deed |
| Leasehold Agreement | Land, houses, villas | 30-year maximum term, renewal at landlord's discretion |
| Thai Company Structure | All property types including land | Company owns property, foreign minority shareholder (max 49%) |
| BOI Investment Scheme | Residential land (limited) | Up to 1 rai (1,600 m²) for investments of 40+ million THB |
| Nominee/Trust Structure | All property types | Illegal under Thai law, high risk of property loss |
| Marriage-based Ownership | Land through Thai spouse | Spouse owns land, foreign partner has use rights only |
| Long-term Visa Programs | Varies by program | Special ownership rights for Elite/LTR visa holders (limited) |
What's the step-by-step process for reserving a property?
The property reservation process begins with comprehensive market research and selecting a reputable real estate agent who specializes in foreign buyer transactions.
Once you identify a specific property, your lawyer must conduct thorough due diligence checks including title deed verification, ownership history, debt searches, and confirmation of the building's foreign ownership quota for condominiums. This due diligence process typically takes 7-14 days depending on the property's complexity.
After due diligence approval, you'll sign a reservation agreement and pay a non-refundable deposit of 5-10% of the total purchase price. This deposit secures the property for typically 30-60 days while finalizing the purchase contract and arranging overseas fund transfers.
Your lawyer will then draft and review the Sales and Purchase Agreement (SPA) to ensure all terms protect your interests and comply with Thai property law. The contract should specify completion dates, payment schedules, and any conditions precedent.
You must transfer the full purchase amount from abroad in foreign currency (USD, EUR, GBP, etc.) to receive the mandatory Foreign Exchange Transaction Form (FET) from your Thai receiving bank. This FET document is essential for property ownership registration at the Land Office.
How does the due diligence process work for checking land titles?
Due diligence in Thailand's property market involves comprehensive legal and financial verification conducted by qualified property lawyers.
- Title Deed Verification: Lawyers verify the genuine Chanote title deed (the highest form of land title in Thailand) and confirm the seller's legal ownership rights
- Encumbrance Search: Check for any existing mortgages, liens, legal disputes, or government claims against the property through official Land Office records
- Foreign Quota Confirmation: For condominiums, verify that the building's foreign ownership quota (49% maximum) has not been exceeded and units are available for foreign purchase
- Developer Background Check: Research the developer's financial stability, construction permits, project approvals, and track record for off-plan purchases
- Zoning and Planning Verification: Confirm the property's zoning classification allows the intended use and check for any planned infrastructure developments that might affect property value
What documents and contracts do you need to sign?
The Thailand property purchase process requires several critical documents and contracts that must be properly executed and notarized.
Your passport with valid Thai visa serves as primary identification, along with the reservation agreement that secures the property during the purchase process. The Sales and Purchase Agreement (SPA) is the main contract outlining all terms, conditions, purchase price, and completion timeline.
Foreign Exchange Transaction Form (FET) from your Thai bank proves overseas fund transfer for the property purchase, while a bank certificate confirms the transfer was specifically for real estate acquisition. These documents are mandatory for Land Office registration.
If you cannot personally attend the Land Office transfer, you'll need a Power of Attorney document allowing your lawyer or representative to complete the transaction on your behalf. Additional documents may include developer permits, building completion certificates, and management company agreements for condominium purchases.
It's something we develop in our Thailand property pack.
Don't lose money on your property in Thailand
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How do property transfers at the Land Office actually work?
Land Office transfers in Thailand require both buyer and seller to appear in person or through authorized representatives with Power of Attorney.
The transfer process begins with document submission including the original title deed, Sales and Purchase Agreement, FET form, bank transfer certificate, and valid identification from both parties. Land Office officials verify all documents and calculate applicable taxes and fees based on the government-assessed property value.
Both parties pay their respective portions of transfer fees, taxes, and stamp duties at the Land Office cashier before the official ownership transfer. The 2% transfer fee is typically split equally between buyer and seller, though this can be negotiated in the purchase contract.
After payment completion, the Land Office issues a new title deed in the buyer's name, which serves as official proof of ownership. For condominium purchases, the buyer also receives a certificate of ownership showing their unit within the building's foreign ownership registry.
The entire Land Office process typically takes 2-4 hours, assuming all documentation is properly prepared and no complications arise during the transfer procedure.
What are the typical taxes, fees, and transfer costs?
| Fee/Tax Type | Rate/Amount | Paid By |
|---|---|---|
| Transfer Fee | 2% of government assessed value | Usually split 50/50 between buyer and seller |
| Specific Business Tax | 3.3% of sale price | Seller (if owned less than 5 years) |
| Stamp Duty | 0.5% of sale price | Seller (if Specific Business Tax doesn't apply) |
| Withholding Tax | 1-2% (individual) or 3% (company) | Seller (based on ownership structure) |
| Legal Fees | 50,000-150,000 THB typically | Buyer (for due diligence and representation) |
| Real Estate Agent Commission | 3-5% of sale price | Usually paid by seller |
| Bank Transfer Fees | 0.25% of transfer amount | Buyer (for international wire transfer) |
How do you pay for property and transfer foreign funds into Thailand?
Foreign property buyers must transfer the full purchase amount from overseas in foreign currency to comply with Thai foreign ownership regulations.
The buyer's overseas bank must wire the funds directly to a Thai bank account in the buyer's name, with the transfer clearly marked as "for purchase of condominium" or "for property investment." Thai banks will only issue the required Foreign Exchange Transaction Form (FET) when funds originate from abroad in foreign currency.
The Thai receiving bank issues the FET form and an accompanying letter confirming the foreign currency transfer was specifically for real estate purchase. These documents are mandatory for the Land Office to register foreign ownership of the property.
Bank transfer fees typically cost 0.25% of the transfer amount, while international wire transfers usually take 1-3 business days to complete. Some buyers split large transfers across multiple transactions to manage exchange rate fluctuations, though each transfer must be properly documented with FET forms.
Cash payments, domestic Thai bank transfers, or transfers from Thai-sourced income cannot be used for foreign property ownership registration, as they don't generate the required FET documentation.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Thailand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the common mistakes people make with ownership structures?
The most frequent mistake foreign buyers make is believing lease agreements can automatically extend beyond the legal 30-year maximum term.
Recent Supreme Court rulings in 2025 have made "30+30+30" year lease extensions completely unenforceable in Thai courts, despite what many agents and sellers claim. Any lease extension beyond 30 years depends entirely on the landowner's discretion and cannot be legally guaranteed at the time of initial lease signing.
Many foreigners establish Thai shell companies without genuine business activities, believing this provides secure land ownership. As of September 2025, Thai authorities have intensified crackdowns on nominee company structures, with violators facing forced property sales and potential legal prosecution.
Foreign buyers often skip foreign quota verification for condominium purchases, only to discover after payment that their desired unit cannot be registered under foreign ownership because the building has exceeded its 49% foreign ownership limit.
Another critical error involves accepting verbal promises about lease renewals or using informal agreements instead of proper Land Office registration for leases over three years duration, leaving buyers with no legal recourse if disputes arise.
What legal and financial risks should you watch out for?
Property title fraud represents the highest legal risk in Thailand's real estate market, where fake Chanote deeds and forged ownership documents can result in complete property loss.
- Unregistered Lease Agreements: Leases over three years that aren't registered at the Land Office are legally unenforceable and provide no protection against property seizure or forced eviction
- Developer Financial Instability: Off-plan purchases with financially unstable developers risk project cancellation with limited buyer recourse for deposit recovery
- Currency Exchange Fluctuations: Large property purchases expose buyers to significant exchange rate risks between contract signing and final payment
- Illegal Nominee Structures: Using Thai nominees to circumvent foreign ownership laws carries criminal penalties and guaranteed property forfeiture
- Incomplete Due Diligence: Insufficient title deed verification, encumbrance searches, and ownership history checks can result in purchasing disputed or encumbered properties
What protections do you have when buying off-plan or through developers?
Off-plan property purchases in Thailand require extra legal protections due to higher risks of project delays, specification changes, or developer bankruptcy.
Reputable developers offer escrow account facilities where buyer payments are held by independent third parties until specific construction milestones are completed. The purchase contract should include staged payment schedules tied to construction progress, with clear penalties for delayed completion.
Your lawyer should verify the developer's construction permits, environmental impact assessments, and municipal approvals before signing any off-plan purchase agreement. Request regular construction progress reports and schedule site visits to monitor building advancement.
The contract must specify exact unit dimensions, finishing materials, common area facilities, and completion dates with clear remedies if the developer fails to meet these commitments. Some developers provide completion guarantees or insurance policies protecting buyers against project non-completion.
It's something we develop in our Thailand property pack.
What's the role of a lawyer and how do you choose a good one?
A qualified property lawyer in Thailand conducts comprehensive due diligence, reviews all contracts, manages Land Office procedures, and protects foreign buyers' legal interests throughout the purchase process.
Choose a lawyer who specializes specifically in real estate transactions with extensive experience handling foreign buyer cases, not general practice attorneys. Request references from recent foreign clients and verify the lawyer's credentials with the Thai Bar Association.
Your lawyer should provide transparent fee structures upfront, typically ranging from 50,000-150,000 THB for standard purchases, with additional charges for complex transactions or company structure setups. Avoid using lawyers recommended solely by developers or agents, as this creates potential conflicts of interest.
The lawyer must be fluent in English and capable of explaining complex Thai property law in understandable terms. They should maintain professional indemnity insurance and provide clear written reports on all due diligence findings and legal recommendations.
A competent property lawyer will advise against illegal ownership structures, warn about regulatory changes affecting foreign buyers, and ensure all documentation complies with current Thai property law as of September 2025.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Thailand's property purchase process has become increasingly complex in 2025 with new Supreme Court rulings limiting lease extensions and increased scrutiny of company ownership structures.
Foreign buyers must navigate strict documentation requirements, mandatory overseas fund transfers, and comprehensive due diligence procedures while understanding the legal limitations of different ownership options available in the Thai real estate market.
Sources
- Siam Legal - Buying Property in Thailand in 2025
- FOSR Law - Supreme Court Lease Ruling 2025
- Rest Property - New Property Rules Thailand 2025
- Minerva Thailand - Leasehold and Freehold Properties
- Hero Realtor - Bangkok Condos Freehold vs Leasehold 2025
- The Nation Thailand - Business Property
- AIM Bangkok - Foreign Ownership Property Rights Thailand
- Fazwaz - Step-by-Step Guide Buying First Condo Thailand