Thailand Property Buying for Foreigners: Legal Checklist

What types of real estate can foreigners and Thais own in Thailand?

Thais can generally own land, houses, condos, and other real estate without restriction, subject to local zoning and land-use rules. Foreigners are heavily restricted from owning land directly under the Land Code B.E. 2497 but can own freehold condominium units, buildings separate from land, and can register long-term leases and other rights over land.

The practical effect is that Thai buyers usually choose freehold land and houses, while foreign buyers most often buy condos in their own name or use leasehold and other legal rights for villas and land-based projects.

Ownership options for Thai nationals

• Freehold land (including agricultural, residential, and commercial, subject to zoning)
• Houses, villas, townhouses (with land)
• Condominium units (no foreign quota limitation for Thai citizens)
• Commercial buildings and shophouses
• Co-ownership in land (with family or partners), recorded at the Land Office

Ownership options for foreigners (individuals)

• Freehold condominium units under the Condominium Act B.E. 2522, subject to:
  • Maximum foreign ownership of 49% of the total unit area in a condominium project
  • Funds remitted from overseas in foreign currency (documented by Foreign Exchange Transaction Forms for transfers over USD 50,000 equivalent)
• Buildings without owning the land:
  • Own the villa/house as a structure (usually via a registered right called superficies)
  • Land is leased (typically 30 years) or owned by a Thai spouse or company
• Leasehold rights over land or buildings:
  • Maximum 30 years for residential leases under the Civil and Commercial Code
  • Renewals can be agreed contractually but are not guaranteed against third parties unless re-registered
• Other real rights:
  • Usufruct (right of use and enjoyment, usually for life or up to 30 years)
  • Superficies (right to own buildings on someone else's land)
  • Habitation and servitudes in specific cases

Special cases for foreign land ownership

• BOI-promoted or industrial projects: Companies with Board of Investment (BOI) promotion or operating in industrial estates may obtain approval to own land.
• Specific high-value investment schemes: Certain regulations allow limited land ownership for residential use by foreigners investing large amounts (for example, 40 million THB for at least 3 years), but these are tightly controlled, subject to change, and require Ministry of Interior approval.
• Embassies and international organizations: Can hold land under specific international or governmental arrangements.

How does land title work in Thailand and why does it matter?

Land title in Thailand determines how secure your ownership or lease rights are. The highest level is Chanote, which gives clear surveyed boundaries and full ownership rights, while lower forms provide weaker or incomplete rights.

When buying, you should strongly prefer Chanote title and always verify title status at the Land Office and through a lawyer before paying any significant deposit.

Main types of land title

• Chanote (Nor Sor 4 Jor)
  • Most secure and marketable title
  • Accurate GPS-based boundaries
  • Can be sold, leased, mortgaged, or encumbered freely
• Nor Sor 3 Gor
  • Upgraded use certificate with surveyed boundaries by reference to neighboring plots
  • Can often be upgraded to Chanote
  • Acceptable in many transactions but slightly less secure than Chanote
• Nor Sor 3
  • Older type, boundaries not properly surveyed
  • Transactions possible but riskier and slower to process
  • Usually discounted in price and less attractive to banks
• Lower-level documents (Sor Kor 1, Por Bor Tor 5, etc.)
  • Generally proof of possession, not full ownership
  • High risk for buyers, especially foreigners
  • Often unsuitable for secure residential investment

Key authorities and documents

• Land Department (กรมที่ดิน) under the Ministry of Interior supervises all land administration.
• Provincial / local Land Offices handle title registrations, transfers, leases, and encumbrances.
• Core documents to review:
  • Original title deed (back and front pages)
  • Survey map (if Chanote or Nor Sor 3 Gor)
  • Encumbrance record (mortgages, leases, court orders, etc.)
  • Zoning, environmental, and building permits if relevant

Why title level matters for you

• Impacts your ability to resell or refinance the property.
• Affects developer financing and bank mortgages.
• Determines the ease of registering leases, usufruct, or superficies.
• Influences market price and the pool of potential buyers.

What is the step-by-step process to buy property in Thailand?

The typical Thai property purchase involves initial due diligence, a reservation and deposit, a formal sale and purchase agreement, and final registration of ownership or lease at the Land Office. Foreign buyers also need to handle foreign currency remittance documentation for condos.

You can usually complete a straightforward resale condo purchase in 30 to 60 days, while land or villa purchases may take longer due to more complex checks and documentation.

Step-by-step buying process

1. Initial screening and agent engagement
   • Choose target area and property type (condo, villa, land, commercial)
   • Select reputable agent or broker (if used), ideally with experience in foreign transactions
2. Legal due diligence
   • Engage a Thai real estate lawyer before signing binding documents
   • Check land title, encumbrances, zoning, and building permits
   • Review condo rules, common area ownership, and juristic person finances for condos
3. Reservation and deposit
   • Sign a simple reservation agreement with key terms (price, timeline, items included)
   • Pay a reservation deposit (commonly 50,000 - 200,000 THB for mid-market condos; more for villas)
   • Make deposit refundable or subject to due diligence conditions where possible
4. Sale and Purchase Agreement (SPA)
   • Have your lawyer draft or revise the SPA in Thai and English
   • Define payment schedule, allocation of taxes/fees, handover condition, and remedies for default
   • Sign SPA and pay further deposit or staged payments as agreed
5. Foreign currency remittance (for condos)
   • Transfer funds from overseas into Thailand in foreign currency
   • Ensure the bank issues a Foreign Exchange Transaction Form (FETF) in your name and references "for purchase of condominium"
   • Keep original FETFs for Land Office registration
6. Land Office registration
   • Prepare all required documents (ID/passport, marriage documents if relevant, corporate documents if buying via company)
   • Attend the Land Office with seller, agent, and translator or lawyer
   • Pay government fees and taxes; Land Officer registers the transfer or lease and issues updated title
7. Handover and post-completion
   • Inspect property and receive keys, meter numbers, and relevant manuals
   • Transfer utilities to your name and set up payments for common area fees (for condos)
   • Safely store original title documents and registration receipts

Indicative timeline

• Basic condo resale: roughly 4 to 8 weeks
• Off-plan purchase: build period plus registration on completion (often 1 to 3 years)
• Land/villa with complex title or corporate structuring: 2 to 4 months or more

What taxes and government fees apply to real estate in Thailand?

Thai real estate transactions attract several taxes and fees at the Land Office: transfer fee, specific business tax, withholding tax, and sometimes stamp duty. The exact mix and who pays them depends on how long the seller has owned the property, their legal status, and the deal you negotiate.

Ongoing costs include annual land and building tax and, for condos, monthly common area fees.

Main transaction costs at the Land Office

When specific business tax applies

• Applies when the seller has owned the property for less than 5 years in many cases.
• Some exemptions exist (for example, transfer to certain family members or inheritance scenarios).
• If SBT applies, stamp duty does not apply; if SBT does not apply, stamp duty usually does.

Example transaction cost range (residential)

For a typical resale condo sold by an individual, with more than 5 years ownership:

• Transfer fee: 2%
• Withholding tax: variable based on assessed value and deemed income
• Stamp duty: 0.5% (SBT usually not applicable after 5 years)
• Total at Land Office often falls in the 4% to 6% range of official value, sometimes higher.

Registration fees for leases and rights

Ongoing holding costs

• Land and Building Tax Act B.E. 2562:
  • Annual tax based on official land and building value
  • Rates differ for residential, agricultural, and commercial use
  • Often modest for typical residential units but can be significant for high-value plots
• Common area (CAM) fees for condos:
  • Usually charged per square meter per month
  • Common ranges: 40 - 80 THB per sqm per month, higher in luxury projects
• Sinking fund:
  • One-time payment at purchase for future major repairs in condos
  • Often 400 - 800 THB per sqm, paid to the condo juristic person

How do leasehold and long-term rights work in Thailand?

In Thailand, residential leases for individuals can be registered for up to 30 years, with options to renew contractually but not automatically enforceable against third parties. Other long-term rights like usufruct and superficies can also be registered to provide security of use and building ownership.

Foreigners commonly use a combination of a 30-year land lease plus a registered right to own the house or villa on the land.

Residential leasehold

• Maximum term: Generally 30 years for residential leases registered at the Land Office.
• Registration requirement: Any lease over 3 years must be registered to be enforceable beyond 3 years.
• Renewals:
  • You can include a renewal clause (for example, another 30 years), but it is a contractual promise, not a right in rem.
  • A new lease must be registered with the Land Office when the first term ends; the original owner or their heirs must cooperate.
• Inheritance:
  • Leases can be drafted to allow inheritance, but Land Offices differ in practice.
  • It is safer to combine a lease with other rights (for example, usufruct or superficies) if succession is important.

Usufruct (Sidhi-kep-kin)

• Gives the right to use and obtain benefits from land or buildings.
• Can be granted for a specific period (up to 30 years) or for the lifetime of the holder.
• Does not transfer ownership of land; the owner remains on title.
• Useful where a foreign spouse wants lifelong use of property owned by a Thai spouse.

Superficies

• Allows you to own buildings or structures on land owned by someone else.
• Can be registered for up to 30 years, for life of the owner, or for a fixed period in line with other agreements.
• Frequently used in villa projects where foreigners hold separate ownership of the building and a land lease.

Practical structure using lease and rights

• Land owned by:
  • Developer, Thai individual, or Thai company
• Foreign buyer obtains:
  • 30-year registered lease over the land
  • Registered superficies or building ownership certificate for the villa/house
  • Option agreements or future sale rights in some projects (careful legal drafting required)

How is condo ownership regulated for foreigners in Thailand?

Foreigners can own condos freehold under the Condominium Act B.E. 2522, provided the building has not exceeded the 49% foreign ownership quota and foreign currency has been remitted correctly. Title to each condo unit is recorded at the Land Office, along with a share in the common property.

This makes condos the most straightforward and legally secure way for foreigners to own property in Thailand in their own name.

Key legal rules for foreign condo ownership

• 49% foreign quota:
  • Maximum 49% of total unit floor area can be foreign-owned in any condominium project.
  • Check quota status with the condo juristic person and Land Office before committing.
• Foreign currency requirement:
  • Purchase funds must come from overseas in foreign currency and be converted to THB in Thailand.
  • Bank issues FETFs or bank letters that you must show at the Land Office.
• Title and documentation:
  • You receive a condo unit title deed (Chanote for condominium) with your name in Thai and often English.
  • Title deed shows your percentage share in the common property.

Condo common property and management

• Condo juristic person:
  • Legal entity managing the building, elected committee, and building manager.
  • Responsible for maintenance, staff, utilities for common areas, and enforcement of rules.
• Common area fees:
  • Calculated based on unit size and approved at annual general meetings.
  • Payable monthly, quarterly, or annually in advance.
• Rules and regulations:
  • Cover renovations, short-term rentals, pets, noise, and use of facilities.
  • Foreign investors should check rental rules, especially for Airbnb-style rentals which may conflict with local hotel laws.

Pros and cons of condos for foreigners

Can foreigners own villas or houses on land in Thailand?

Foreigners cannot usually own the land underneath a villa or house, but can own the building itself and secure long-term rights to use the land through lease or other registered rights. Common structures combine a land lease with a registered superficies or separate building ownership.

Using Thai nominees to hold land on behalf of foreigners is illegal and can lead to forced sale and penalties under the Land Code and Foreign Business Act.

Typical villa structures for foreign buyers

• Land lease + building ownership:
  • 30-year land lease registered at Land Office in buyer's name (foreigner).
  • Superficies or building ownership registration for the villa/house.
  • Option for contractual renewal of the lease (no automatic guarantee against third parties).
• Thai spouse ownership:
  • Thai spouse buys land in their name; foreign spouse may own or co-own the building.
  • Land Office will usually ask the foreign spouse to sign a declaration that the funds belong to the Thai spouse and the foreign spouse has no claim to the land.
  • Often paired with a usufruct or lease to give the foreign spouse use rights.
• Thai company ownership:
  • Thai majority-owned company (at least 51% Thai shareholding) purchases land.
  • Company structure must reflect genuine Thai participation and business activity.
  • Illegal nominee structures where Thais act only as "name holders" are heavily scrutinized.

Red flags to avoid

• Offers to put land in a company where you hold 49% and "paper Thai shareholders" own 51% without real participation.
• Agreements where the foreigner secretly funds Thai shareholders to circumvent restrictions.
• No registration of leases or rights at the Land Office, relying only on private contracts.
• No clear explanation of exit options and what happens upon death or sale.

How does financing and mortgages work for property in Thailand?

Thai banks are generally conservative in lending to foreigners, especially non-residents, but some offer mortgages for condos under strict conditions. Many foreign buyers instead use cash, overseas financing, or developer payment plans.

Thai buyers have broader access to local bank mortgages secured over land and buildings.

Financing for Thai buyers

• Wide range of mortgages from local banks and finance companies.
• Loan-to-value ratios commonly between 70% and 90%, depending on income and property type.
• Interest rates may be fixed initially, then float based on bank reference rates.
• Land and building serve as collateral; registration occurs at Land Office.

Financing options for foreigners

• Local bank mortgages (limited):
  • Some Thai banks and branches of foreign banks offer mortgages to foreigners for condos.
  • Often require higher down payments (for example, 30% to 50%) and proof of foreign income.
  • Property usually must be in major cities or established resort areas.
• Offshore financing:
  • Borrow in home country against assets or via personal loans, then remit funds to Thailand.
  • Need to comply with your home country tax and reporting rules.
• Developer financing / payment plans:
  • Common in off-plan condo and villa projects.
  • Stage payments during construction; sometimes short-term post-completion finance.

Points to check before borrowing

• Currency risk if you borrow in one currency and hold assets in THB.
• Ability to remit funds out of Thailand in future (document your inbound transfers and sales).
• Prepayment penalties and default consequences in loan agreements.

What are the common risks and due diligence checks when buying Thai real estate?

The biggest risks in Thai real estate are unclear title, illegal use of Thai nominees to hold land, poor quality or incomplete developments, and undisclosed encumbrances or building violations. Thorough legal and technical due diligence significantly reduces these risks.

Foreign buyers in particular should not rely solely on agents or sellers and should independently verify all critical information at the Land Office and with local authorities.

Key legal due diligence checks

• Title deed verification:
  • Confirm the type of title (ideally Chanote).
  • Ensure seller's name matches ID/company documents.
  • Check plot size and boundaries against survey and actual site.
• Encumbrance and dispute search:
  • Check for mortgages, leases, court orders, or rights of way registered on the title.
  • Search court databases, where relevant, for disputes involving the property owner or developer.
• Planning and zoning:
  • Verify land use restrictions, coastal setback rules, and environmental zones (especially near beaches or protected areas).
  • Check building permits and construction approval for villas and projects.

Developer and building due diligence

• Review the developer's track record and completed projects.
• For off-plan:
  • Check EIA (Environmental Impact Assessment) approvals where required.
  • Confirm that the developer owns the land with a proper title.
  • Understand escrow or payment protection mechanisms for your installments.
• Inspect construction quality with a surveyor or engineer for completed units.

Contract and commercial risk

• Unbalanced clauses that heavily favor the developer or seller.
• Poorly drafted renewal clauses for leases that might be unenforceable.
• Lack of clear timelines, penalties, or remedies for late completion.
• No clear provisions on fixtures, furniture, and snagging at handover.

When should you hire a Thai real estate lawyer or expert?

You should hire a Thai real estate lawyer for any transaction involving significant money, off-plan projects, land or villa purchases, or where you do not fully understand the Thai-language documents being signed. A lawyer is particularly important for foreigners, who rely on structuring (leases, usufruct, superficies, companies) and must avoid prohibited nominee arrangements.

Property inspectors, surveyors, and tax advisers can also add value in more complex or high-value deals.

Situations where legal help is strongly recommended

• Buying land or a villa, especially on anything less than Chanote title.
• Using or setting up a Thai company structure that will own land or property.
• Purchasing off-plan condos or villas with multi-year payment plans.
• Entering into long-term leases, usufruct, or superficies agreements.
• Buying as a foreigner married to a Thai, where declarations about ownership must be signed.

What a good Thai real estate lawyer typically does

• Conduct title, encumbrance, and zoning checks at the Land Office.
• Review or draft the reservation agreement, SPA, and all Thai-language contracts.
• Explain the allocation of taxes and fees and the net price you will actually pay.
• Advise on appropriate structures (condo, leasehold, rights, or company) based on your goals.
• Coordinate with your agent, the seller, and the Land Office on closing.

Other experts to consider

• Surveyor / engineer for structural inspections and snag lists.
• Tax adviser if you plan to run rentals or hold multiple properties.
• Property manager if you will not live in Thailand full time.

What are the practical next steps if you want to buy property in Thailand?

Your next steps are to clarify your budget and objectives, choose a property type and target area, and then assemble a small team of trusted professionals. From there, you can shortlist properties, run due diligence, and execute a carefully structured transaction at the Land Office.

Taking time upfront to plan and verify information usually saves far more time and money than rushing into a reservation or deposit.

Actionable next steps

1. Define your objective and budget
   • Decide if you are buying for personal use, rental yield, or long-term capital appreciation.
   • Clarify your total budget including 5% to 10% for taxes, fees, and legal costs.
2. Choose a structure and property type
   • For simplicity and direct foreign ownership, prioritize condos.
   • For villas or land, plan for leasehold and rights-based structures and accept higher complexity.
3. Identify professionals
   • Shortlist independent Thai real estate lawyers who regularly act for foreign buyers.
   • Ask for fixed-fee quotes for due diligence and contract work.
4. Shortlist and inspect properties
   • Use reputable agents and portals, and physically inspect properties and neighborhoods.
   • Check condo management quality, occupancy, and surrounding infrastructure.
5. Run due diligence before committing
   • Have your lawyer check title, encumbrances, zoning, and developer credentials.
   • Negotiate SPA terms, payment schedule, and responsibility for taxes and fees.
6. Prepare funds and documents
   • Arrange foreign currency transfers and gather ID, marital status, and corporate papers if needed.
   • Schedule the Land Office registration date and interpreter if you do not speak Thai.
7. Complete and then safeguard your investment
   • Attend the Land Office, register the transfer or lease, and receive original documents.
   • Set up insurance, utilities, and management or rental services as appropriate.