Information for foreign buyers of condominiums ( Thailand )
Under the 1991 condominium act, non-residents who purchase condominium units must transfer the funds to pay for the unit from overseas, coming into Thailand as foreign currency. Purchasers need to obtain a “Foreign Exchange Transaction Form” certificate for each payment from the beneficiary bank, and all these certificates must be shown to the Land Department in order to register the condominium.
When the money is sent to Thailand, the purchaser needs to include in the transfer instruction that the purpose is to buy a condominium unit.
Banks will only give “Foreign Exchange Transaction Form” certificates for amounts over US$ 50,001. For amounts below this, purchasers must obtain a credit note from the bank.
If the foreign purchaser has Permanent Residence, they can purchase the condominium in Thai Baht , no need to use “Foreign Exchange Transaction Form”).
The money must be T/T (Telex-Transferred), with a document identifying the name of the purchaser in the form of either the sender’s or receiver’s name. For example:
Mr. Smith wants to buy a condominium in Thailand. He has his own account at an overseas bank to buy the condominium, he has to instruct the overseas bank to issue the document in his name as the sender of that amount to his (savings) account in Thailand, or any law firm (with the permission from the particular firm) after which the appointed company will buy that condominium for him,
( or )
It is possible for the buyer to ask a third party to transfer the money for him to buy the property by identifying himself as the receiver.
2. The purchaser has to include the transfer instruction indicating that the purpose of this money is to buy a condominium unit. And Buyer Must Remit in foreign currency only from the origin country ( not in Thai baht )
Example of purpose when transfer fund
To purchase a ( name ) condominium unit number ( number )
The bank that receives money in foreign currency will issue the document (Foreign Exchange Transaction Form) or credit note which contains the following information:
-The transferred amount in foreign currency
-The amount receive in thai baht
-The name of money sender
-The name of money receiver
-The purpose of transferring
Normally in the transfer process, the purchaser has to instruct the gateway bank to identify the name of the sender to be the same as the receiver’s. The Land Department will accept the name of purchaser to be either sender or receiver of the transferred money.
If the money receiver is an individual but wants to put the unit in the name of two people, the land department will allow them to do so.
The amount of money must be equal to or higher than the selling price declared to the Land Department.
In order to obtain a Foreign Exchange Transaction Form, the amount of money must be above US$50,100; lesser amounts require the purchaser to obtain a credit note from the bank.
Why do we need to use Foreign Exchange Transaction Form?
1.Because the Bank of Thailand controls the flow of foreign currency, every single baht must have a source and a reason, and the Land Department must perform in accordance with this regulation. By this restriction, every foreign buyer must transfer money from abroad.
2.Non-residents who sell the condominium and transfer the money out of country do not have to pay the remittance tax (normally the tax is around 30%)
3. In case of transferring money out of the country, the tax-free amount is determined by the initial amount transferred.
Transfer of title deed
Documents needed : For Individual Purchaser
- Passport (copy if applicable, marriage/divorce certificate including a letter of consent from your spouse if married [Thai Language]).
- Foreign Exchange Transaction Form or credit note.
- Power of attorney, if anyone but yourself is representing you, in Thai script with a notarization by Notary Public or if overseas by the Thai Consul.
Documents needed: For Company Purchaser
- Certified copy of the certificate of incorporation
- Certified copy of the memorandum of association
- Notaries certificate
- List of shareholders (in English, but must be accompanied by a Thai translation)
- Minutes of directors’ meetings which have a resolution to sell/purchase the property (specifying name and number and agenda dealing with the finance of the purchase if the company’s registered capital is less than the purchase price)
- Letter of advice regarding specific signature
- Power of attorney, if the authorized directors do not make the transaction by themselves (Land Department form)
- Free debt letter
- Foreign co-owner letter
- The certified copy of the I.D. Card of the authorized directors
- The certified copy of the house registration of the authorized directors
- Title deed of the condominium unit