Can a Foreigner Own Real Estate Property in Thailand?
Yes, foreigners can own real estate in Thailand under specific conditions. The most straightforward option is purchasing an apartment in a condominium. Under Thai law, up to 49% of the total livable area in a condominium development can be owned by foreigners as freehold. This means the ownership is registered directly in the buyer’s name at the Land Department, which is Thailand’s equivalent of a land registry.
The remaining 51% of the condominium units must be owned by Thai nationals or made available for long-term lease (3 x 30
years) to foreigners. In new real estate developments, freehold units are often the first to be sold. Once the 49% foreign ownership quota is reached, the only available option for foreign buyers is a long-term lease, which is also registered at the Land Department.
For villas or properties that are not part of a condominium, foreigners have two main options:
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Leasehold Ownership – The most common approach is a 30-year lease with two renewal options, allowing a total of 90 years. This long-term lease is legally registered with the Land Department.
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Thai Company Ownership – Some foreign buyers choose to establish a Thai
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company to hold the property. This method requires careful structuring to comply with Thai law, and legal experts can assist in ensuring a secure investment.
Are There Agency Fees in Thailand?
No, buyers do not pay agency fees in Thailand. Real estate agencies are compensated by sellers, meaning the price displayed on listings already includes agency fees.
What Are the Costs of Buying or Selling Property in Thailand?
- Property Transfer Fee – 2% of the government-appraised value of the property, typically shared between buyer and seller.
- Stamp Duty – 0.5% of the selling price, payable upon resale.
- Withholding Tax – 3.3%, applicable if the property is sold within 5 years of ownership.
If purchasing a condominium or a villa within a managed community, buyers must also contribute to a sinking fund. This fund covers future major maintenance expenses, such as road repairs, swimming pool maintenance, and electrical infrastructure.
How Much Are Common Fees, and What Do They Cover?
When purchasing property in a condominium or a gated community, buyers should consider monthly maintenance fees. These costs vary depending on the size of the residence, available facilities, and services provided.
In Phuket, common fees typically range from 30 to 100 THB per square meter per month. These fees cover:
- Maintenance of common areas (gardens, walkways, etc.)
- Swimming pool, gym, sauna upkeep
- Garbage collection
- Security services
- Condominium management operations
- In some cases, private pool maintenance for villas
Condominium residence in Phuket – Rawai Beach
Is There a Property Tax in Thailand?
Thailand has a land tax, but in practice, it is very low—usually just a few thousand baht per year. As of 2019, a new property tax was announced, though details were still pending confirmation at the time.
Unlike many other countries, Thailand does not have an annual housing tax or significant property tax for private residences.
What Is the Process for Buying Property in Phuket?
The property purchase process in Thailand involves two key professionals:
- Real Estate Agent – Helps the buyer find a suitable property and provides market insights.
- Legal Advisor – Ensures the purchase is legally secure.
The process includes:
- Signing a sales agreement and paying a deposit to reserve the property.
- A due diligence period of about one month, during which the legal advisor checks:
- Sales contract details
- Title deeds
- Land ownership status
- Developer credentials
- Any outstanding mortgages or encumbrances
- If necessary, the lawyer modifies the contract before providing final approval for the buyer to proceed with the full payment.
How to Pay for Property in Phuket?
For a foreigner to obtain a freehold title or register a long-term lease, the payment must be made via an international bank transfer in a foreign currency to a Thai bank account.
Once the funds arrive, the bank issues a Foreign Exchange Transaction Form (FETF). This document is essential for:
- Registering ownership with the Land Department
- Ensuring that when the property is later sold, the seller can legally repatriate the funds out of Thailand
