Condominium in Thailand

Condominium laws and foreign ownership

Thai land laws generally prohibit foreigners from owning land. However, the Condominium Act allows foreigners to legally own a condo unit in Thailand, subject to statutory conditions.

Condo ownership is not limited to the unit itself. It also includes co-ownership of common areas such as the project land, the building exterior, hallways and staircases, the roof, and facilities like swimming pools.

Below are some frequently asked questions about condominiums in Thailand and foreign ownership.

Thailand has two types of apartment buildings: those officially registered with the Land Department as condominiums, and those that are not. Unlicensed apartment buildings are commonly found in some tourist areas.

While unlicensed apartment buildings must comply with general building regulations, hey are not governed by the Thailand Condominium Act.

The key legal difference lies in the form of ownership. Only licensed condominiums allow individual unit ownership together with joint ownership of common areas.

In unlicensed apartment buildings, ownership of individual units is not possible. Occupation rights must be structured contractually—typically through lease agreements— giving buyers usage rights rather than ownership.

Only a true condominium, licensed under the Condominium Act, has individual unit title deeds issued and registered by the Land Department.

How are condominiums regulated?

Condominiums in Thailand are regulated on two levels: internal rules and the Thailand Condominium Act.

The Condominium Act sets the external legal framework, including the procedure and requirements to register a building as a condominium.

Internal regulations (bylaws) govern daily use and management, such as restrictions on business use, company registration, and rules concerning pets.

These rules are adopted and amended through voting by unit owners at condominium general meetings.

How are condominiums managed?

A condominium is managed under the Condominium Act and the building’s internal rules, based on owner votes at general meetings—either in person or by proxy.

What are the size and unit requirements for a condominium?

The Condominium Act does not set specific requirements for height, floor area, or a minimum number of units.

The key requirement is that ownership can be separated by unit: each unit has private ownership, together with joint ownership of common property.

Technically, a condominium may be a single building or a group of attached low-rise buildings.

Can a condominium building in Thailand be 100% foreign owned?

The Condominium Act allows foreign ownership, but only within the foreign ownership quota.

Foreigners may own up to 49% of the total combined floor area of all units in a condominium building.

Between April 1999 and April 2004, a temporary measure allowed up to 100% foreign ownership in certain areas and under specific conditions.

This exception has expired, and the current legal limit has reverted to 49% foreign ownership.

Can all foreign nationals own a condo unit in Thailand?

There are no nationality restrictions. Any foreigner who can legally enter Thailand may own a condominium unit.

However, each buyer must personally qualify under Section 19 of the Condominium Act.

In practice, this generally means that the purchase price must be remitted into Thailand in foreign currency and converted into Thai baht by a licensed financial institution in Thailand.

Can a Thai company own a condo unit on my behalf?

Generally, setting up a Thai company to hold a condo “on behalf of” a foreigner (a nominee structure) to bypass foreign ownership limits is not permitted under Thai law. After 2006, the Land Department and Ministry of Interior issued regulations and guidance to prevent the misuse of Thai nominee shareholders, making this practice less common. Even so, it is still sometimes promoted—especially in high-end resort areas—to sell remaining units under the “Thai quota”, but the legal risk remains significant.

Can a foreign company own a condo?

A foreign juristic entity (for example, a BVI company) can register condominium ownership within the 49% foreign quota, just like a foreign individual. Typically, a board/shareholder resolution (minutes) approving the purchase is required, and the company’s incorporation documents must be prepared—often notarized, translated into Thai, and submitted to the Land Office (exact requirements can vary by office), together with supporting documents such as a Foreign Exchange Transaction (FET) form, similar to the process for a foreign individual buyer.

What is a FET form?

A FET form (Foreign Exchange Transaction), previously known as Thor Tor 3, is prepared by an authorized financial institution in Thailand when foreign currency in excess of USD 50,000 (or its equivalent) is exchanged. The transaction must be reported to the Bank of Thailand.

For foreigners purchasing a condominium, an original FET form is required for ownership registration at the Land Department, serving as proof of compliance with Section 19 of the Condominium Act.

I do not have a FET form?

When foreign currency is exchanged in an amount of less than USD 50,000, the bank is not required to prepare a FET form and therefore will not issue one.

In this situation, a foreign buyer can request a bank confirmation letter for the inward remittance and conversion into Thai baht. This letter contains the same key information as a FET form, such as the foreign currency amount, the Thai baht amount, the sender and recipient names, and the purpose of the transfer.

The confirmation letter can be used as proof of compliance with Section 19 of the Condominium Act and must be submitted to the Land Department when registering foreign ownership.

Can I rent out my condo unit?

In general, you may rent out your unit unless the condominium’s bylaws restrict it. If the activity is treated as operating a rental business, additional restrictions may apply (for example under foreign business/employment rules). Rental income is generally subject to Thai personal income tax, and property used for letting or commercial purposes may fall under the Land and Building Tax regime. Where the tenant is a foreigner, the owner/landlord (house master) is typically required to report the foreigner’s stay via TM30 under immigration rules.

When I sell my condo, do I have to pay taxes?

Yes. In practice, taxes and transfer fees are calculated and paid at the Land Office on the transfer date. This typically includes withholding personal income tax. With the Land Office tax receipt, sale documents, and proof that the original purchase funds were remitted into Thailand in foreign currency (for example an FET form or bank confirmation), the bank can generally remit the sale proceeds out of Thailand for a foreign seller in accordance with applicable banking requirements.

What are the transfer taxes?

Several taxes and fees apply when transferring a condominium unit in Thailand, including the transfer fee (2%), stamp duty (0.5%), withholding tax (personal or corporate), and specific business tax (3.3%) where applicable. For resales, how these costs are split depends on the agreement between buyer and seller. When purchasing from a developer, consumer protection laws limit the amount passed on to the buyer to no more than half of the 2% transfer fee.

What is a title deed?

Each condominium unit has its own ownership title deed issued by the Land Department. This official document confirms legal ownership of the unit.

A condominium title deed typically includes: the location and details of the project land, the unit’s position, size, and floor plan, the ownership ratio in the common property (which determines voting rights), the name of the unit owner, an index for registered rights and juristic acts, and the signature and seal of the competent Land Officer.

Any transfer of ownership or amendment to the title deed must be registered at the Land Department.

Can ownership of a condo be passed on to my children?

Yes, a condo can be passed on by inheritance. However, if the heir/recipient is a foreigner, they must personally qualify under Section 19 of the Condominium Act and the transfer must still fit within the building’s 49% foreign ownership quota. If the foreign heir does not qualify (or the quota is full), they generally must dispose of the unit within 1 year from the date of acquisition.

What is a house book in a condominium?

A house book (Tabien Baan)—often the “blue book”—is an official residence/address registration booklet issued by the local district office (Amphur/Khet). For a condominium, it records the address and the people registered as living there. It is not proof of ownership (ownership is shown by the condominium title deed). For foreigners, it is usually less important unless you need proof of address; eligible foreigners may apply for a yellow house book or use an alternative proof of residence depending on the situation.

Buying a condo pre-construction (off-plan)

When buying a condominium off-plan, Thai law allows the use of an escrow arrangement to protect both buyer and seller. In practice, however, most developers in Thailand require progress payments to be made directly into the developer’s bank account, rather than into a third-party escrow account. Paying directly to the developer carries significant risks for buyers, particularly if construction is delayed, suspended, or the developer faces financial difficulties.

Buying a condo on a leasehold basis

Under Thai property law, a lease is a personal contractual right governed by the “hire of property” provisions of the Civil and Commercial Code. A leasehold buyer is therefore essentially a tenant with prepaid rent, not an owner. As a general rule, a lease is attached to the lessee and is not freely transferable unless the lease agreement expressly allows assignment. A lessee has no voting rights in the condominium owners’ meetings and no say in the management of the building. In addition, under Thai law, a lease terminates upon the death of the lessee unless otherwise agreed, and is not automatically transferable to heirs.

Sale and purchase agreement

A condominium sale and purchase agreement (SPA) sets out the key obligations of buyer and seller, including the price and payment schedule, transfer date, unit details, allocation of taxes/fees, warranties, and basic due diligence points. A developer’s SPA (off-plan or new project) typically has additional requirements and must comply with consumer protection rules. Ownership transfer is completed at the local/provincial Land Office, where the parties sign the official Thai Land Office sale/transfer document (commonly referred to as Tor.Dor.13 (ท.ด.13), the standardized “sale agreement” form with the Garuda emblem). Land Office procedure and paperwork are generally in Thai.

Saleable floor area

For off-plan purchases, the contract price is usually based on the unit size shown in the building plans (the “saleable area”), with a price adjustment once the unit is completed. The registered area (used for final registration and shown on the unit title deed/registration documents) reflects the final measured size at completion. In practice, the completed/registered area can be higher or lower than the plan-based size, so the SPA should clearly define the measurement standard and include a maximum allowed adjustment (a cap) for any size difference—both upward and downward.

What are the common mistakes?

• Failing to clearly agree in an off-plan SPA that the purchase is a freehold condominium under the Condominium Act, rather than a leasehold arrangement
• Not remitting foreign currency into Thailand in an amount at least equal to the purchase price, resulting in non-compliance with Section 19
• Not obtaining legal advice on the allocation of taxes and transfer fees, and paying more than necessary
• Not reviewing the sale and purchase agreement (payment structure, escrow vs direct payment, key obligations)
• Not conducting proper due diligence on the project or unit before signing and paying a deposit
• Not checking the condominium title deed and prior Land Office registrations for encumbrances
• Buying in a building that is not registered as a condominium under the Condominium Act
• Misunderstanding leasehold law in Thailand and facing unexpected restrictions, costs, or tax exposure
• Not reading the condominium bylaws, resulting in restricted use of the unit (e.g. prohibition on business use or company registration)

Condo fees

Every condominium requires ongoing management and maintenance. For this, each unit owner pays common area fees (condo fees), usually calculated per square meter of the unit. Fees are commonly billed monthly (sometimes quarterly or annually) and cover the owner’s share of the building’s common expenses and upkeep. In practice, condo fees typically fund services such as building management, cleaning and common-area utilities, security, routine maintenance, and the upkeep of shared facilities (for example pools, gyms, and elevators). The exact scope depends on the condominium bylaws and the approved budget.

Condominiums also maintain a reserve (sinking) fund for major repairs and upgrades. Buyers should check the fee rate, the reserve fund level, and any planned major works, because these can become an additional financial burden. Late payment may also lead to surcharges or restrictions under the bylaws.

Condo manager and condominium meetings

Every condominium must have at least one condominium manager to handle day-to-day administration and the common property. The manager is appointed (and can be removed) by a vote at the general meeting of the co-owners.

General meetings are where owners vote on key matters such as budgets and common fees, major maintenance and repairs, building rules/bylaws, and the appointment of the manager and/or committee. Voting rights are typically linked to the unit’s ownership share in the common property.