How is a Condominium defined by Thai law?
to the Condominium Act B.E. 2522 (A.D. 1979), a
condo is defined as a building that can have its
separate portions sold to individuals or groups
for personal property ownership.
What classes of foreigners may purchase condominiums in Thailand?
Foreign investors as well as other foreigners may own condos in the Kingdom of Thailand under certain circumstances.
What types of Condominiums are available for foreigners to purchase?
Certain condo buildings allow for foreigners to purchase condos in free hold (fee simple). The condo buildings are located in specified metropolitan areas and may have limits on the amount of units available for sale to foreigners.
What are the requirements for a foreign individual or organization to purchase a condominium in Thailand?
order to purchase a condominium certain requirements
must be met, for example:
1: A foreigner has permanent residence in Thailand
in accordance with Thai Immigration Law, or
2: A foreigner is allowed into or resides in Thailand
in accordance with Thai Investment Promotion Law,
3: A foreign legal entity is in accordance with
the Announcement of the Foreign Business Act BE
2542 (AD 1999), and has been granted an Investment
Promotion Certificate in accordance with the Investment
Promotion law, or
4: A foreigner or foreign legal entity who brings
foreign currency into Thailand, or brings in Baht
currency from the account of a person residing abroad,
or uses foreign currency from their deposit account.
This requirement is normally met by the presentation
of a Dor Tor 3 form which is provided by the bank
receiving an incoming remittance from abroad.
Are there any restrictions to this ownership?
In many areas of Thailand a foreigner or foreign legal entity can acquire up to, but not exceeding, 49% of the total floor area of the combined condo units. However, more that 49% of ownership may be allowable in certain condominium buildings in Greater Bangkok and various other municipalities and districts according to Ministerial Regulations.
What is the most typical way for a foreigner to purchase a condominium in Thailand?
Most Foreigners purchase a condominium by showing evidence of an incoming remittance of foreign currency into their bank account from abroad as demonstrated by a valid Dor Tor 3 form from a Thai Bank.
Can ownership of a condominium be inherited by a foreigner?
Property ownership of a condominium can be inherited if the heir to ownership meets one of the original criteria for foreign ownership. Otherwise the condo must be sold within one year of inheritance. Similarly, inheriting ownership of more than 49% of total condominium floor area must conform to certain regulations, namely that the condo not occupy more than 5 rai, that it not exist outside of Greater Bangkok or other designated municipalities, and that it has at least 40 units in a building registered for at least one year.
Is a lawyer necessary to purchase a condominium in Thailand?
A lawyer is recommended to review the documents concerning the condo and to supervise the transfer.
Are condominium long-term leases available?
Yes. Condos may be leased to foreigners for periods of up to 30 years and may have options to renew. Leases of greater than 3 years are required to be registered with the Land Department.