Condos Bangkok, foreign ownership details

Condos
Thai law allows a maximum of 49% foreign ownership in a condo. Prior to agreeing a purchase, it is necessary to check with the condominium building management the current rate of foreign ownership.

Also check that the condominium unit is freehold, as there are some condominium units that are leasehold.

There are no other restrictions for foreign ownership (as of December 2005). Non-Thai nationals are allowed to own a condo unit in their own name. However, foreigners must show to the Land Department Officer that the money used to purchase the unit has been brought into Thailand from abroad. Normally, a foreigner will transfer the funds electronically from abroad, and in the country of origin the foreigner will be required to state on the 'transfer slip' the objective of the transfer — i.e. 'To purchase a condominium unit in Bangkok' etc. This transfer slip will then be needed to be shown to the Land Department Officer on the day of title deed transfer.

Taxes
Normally, the transfer taxes to be paid are paid by the Landlord, who will incorporate these costs into the sales price. Sometimes, the Landlord will not include the transfer taxes in the offer price, so be sure to ask. To calculate the transfer taxes payable, you will need to find out the Land Department's 'appraisal price' of the condo unit. You can calculate the taxes by using our tax calculator.

Houses
Non-Thai Nationals are not allowed to own land. Foreigners who wish to purchase land or a house cannot do so in their own name. In this case, the foreigner will be required to set up a Thai Company, with 51% Thai Ownership. Normally the 51% Thai ownership consists of 'dummy' shareholders — real people with no correlation to the company or personal interest.

Having said that, mechanisms must be put in place to legally protect your interest. However, bear in mind that there may be additional costs involved, of setting up the company, accounting and auditing etc. Thai law requires balance sheets to be filed yearly and a company address must be maintained. Technically, inactive companies (companies not earning income) are subject to de-listing. Therefore, an active company is better for purchasing property or buying land in Thailand. It is possible to mortgage the land and/or subdivide the land for resale.

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