Buying an apartment (condominium) in Thailand as a foreigner is fully legal, but strictly regulated. The key is understanding three things: the difference between full ownership (freehold) and a lease (leasehold), the 49% ownership limit for foreigners, and the requirement to bring in funds from abroad (the FET document). This guide explains the law, the procedure, the risks, the tax issues in your home country and debunks the most common myths.
- What a foreigner can own in Thailand
- Condo freehold - real ownership
- Leasehold - 30 years and current case law
- The 49% limit - what exactly it means
- Transferring funds from abroad and the FET document
- The purchase procedure step by step
- Myths versus reality
- Inheriting an apartment and land
- Nominee companies - why they are a risk
- Taxes: the foreign tax resident
- The most important risks and due diligence
What a foreigner can own in Thailand
The starting point is simple: as a rule, a foreigner cannot own land in Thailand in their own name (the exceptions are very narrow, e.g. large investments under the BOI). They can, however, own an apartment in a building registered as a condominium in full ownership. This is the fundamental distinction on which the entire purchase strategy depends.
- An apartment (condo) - yes, in full freehold ownership (within the building's 49% limit).
- Land / a plot - not as ownership; leasehold or a Thai company come into play.
- A house / villa on land - the building itself can be owned, but not the land; hence leasehold or a company.
If you are considering not an apartment but a villa with a plot, read the separate comparison of forms of ownership: freehold or leasehold in Thailand.
Condo freehold - real ownership
Thai law (the Condominium Act) allows foreigners to own residential units in full freehold ownership up to 49% of the total usable floor area of all the apartments in a given building. With a freehold purchase, the buyer's name goes on the title deed (Chanote) of the specific unit, and along with it a share in the co-ownership of the common areas and the land on which the building stands.
This is a genuine ownership right: you can sell, rent out, mortgage and bequeath the apartment - on terms similar to those familiar in Europe. Freehold is the safest and most commonly chosen way for a foreigner to buy an apartment.
Leasehold - 30 years and current case law
The alternative to freehold is leasehold, a long-term lease governed by the Thai Civil and Commercial Code (as a "hire of property"). The maximum lease term for property is 30 years. Any contract concluded for a period longer than 3 years must be registered at the Land Office to be effective against third parties.
Provisions for "automatic renewal" of the lease for further 30-year periods (the 30+30+30 model), popular until now, are, according to the latest case law of the Thai Supreme Court, unenforceable as a property right. At most they can be the basis for a claim for damages against the lessor, but they do not guarantee a right to the property for a further 30 years. This is a significant change - with leasehold you must realistically reckon with a 30-year horizon and the wording of the contract, rather than a promise of an "eternal" lease.
That is why, for an apartment, freehold is usually chosen if the freehold amount is available. Leasehold remains the solution for villas and houses on land, or where the 49% limit in the building has already been used up.
The 49% limit - what exactly it means
The 49% limit applies to the total usable floor area of all the units in the building that may belong to foreigners on freehold (the so-called foreign quota). At least 51% of the floor area must remain in the hands of Thai nationals. If the 49% quota is already used up, the next foreigner cannot buy a freehold apartment in that building - they are left with leasehold.
In practice this means one mandatory step before buying: written confirmation from the community management (the juristic person) that foreign quota is available for the chosen unit. This is one of the most common points where buyers lose time or money if they skip it.
Transferring funds from abroad and the FET document
For a foreigner to register an apartment on freehold, the purchase funds must arrive in Thailand from abroad in a foreign currency and be exchanged into baht at a Thai bank. The bank then issues a Foreign Exchange Transaction Form (FET), which is a required document at the Land Office when transferring ownership. Without it, the office may refuse to register the freehold.
- In the transfer reference, state the purpose of the transaction (purchase of property / condominium).
- The details on the transfer, in the FET, in the contract (SPA) and on the title deed must be identical (the buyer's first and last name).
- Keep the FET - it will also be useful when reselling and transferring the funds back abroad.
The purchase procedure step by step
In short, the process of buying an apartment on freehold looks like this:
- Choosing a registered condominium - confirming the building is formally a condominium and has a Chanote for the land.
- Legal due diligence - a lawyer checks the title, encumbrances, permits and the availability of the 49% quota.
- Reservation agreement and deposit - with clear refund terms.
- Sales and purchase agreement (SPA) - price, payment schedule, finish standard, contractual penalties, the date of ownership transfer.
- Transferring funds from abroad and the FET - the transfer in foreign currency, gathering the documents.
- Visit to the Land Office - the formal transfer of ownership, paying the taxes and fees.
- Receiving the title - an updated Chanote with your name entered on it.
We describe each stage, together with the payment schedule and remote purchase, in detail in the guide how to buy property in Thailand step by step. You will find a full breakdown of fees in the article on costs and taxes.
Myths versus reality
Many misconceptions have grown up around buying property in Thailand. Here are the most common ones, set against the facts:
| Myth | How it really is |
|---|---|
| "A foreigner can't own anything in Thailand." | They cannot own land, but they can own an apartment (condo) in full freehold ownership, within the building's 49% floor-area limit. |
| "Freehold is a sham, you only get 30 years anyway." | Freehold is indefinite ownership. The 30 years applies to leasehold (a lease), not to condo ownership. |
| "The state can just take the apartment from me." | A properly acquired condo freehold is not subject to confiscation outside standard situations (crime, fraud), as in other countries. |
| "After my death the apartment will be lost." | A condo can be inherited if the heir qualifies for ownership and the 49% limit is not exceeded. |
Inheriting an apartment and land
Foreigners can inherit a condo in Thailand, but two conditions apply: the heir must themselves qualify for ownership of the apartment, and the total foreign ownership in the building after inheritance must still not exceed 49%. If either condition is not met, the unit must be sold within a set period (usually within a year).
With land it is more restrictive: a foreigner who inherits land usually has to sell it within a set time or convert the right (e.g. to a lease), because they cannot retain title to land in their own name. The building (the house) itself, without the land, can be inherited, but the land issue remains restricted by statute. This is another reason to plan the form of villa ownership with a lawyer from the outset.
Nominee companies - why they are a risk
Historically, some foreigners bought houses with land through Thai companies in which 51% of the shares formally belonged to Thais (so-called nominee shareholders) with no real involvement. Today this practice is actively combated. The authorities increasingly scrutinise such structures, and finding them to be a circumvention of the law can result in an order to sell and in sanctions.
A company as a form of purchase is not in itself illegal, but it must carry on genuine business activity and be set up correctly. Companies established solely to circumvent the ban on land ownership are unlawful. If you are considering this route, you must consult an independent lawyer on the decision and the structure.
Taxes: the foreign tax resident
This is the topic sellers say least about, yet for a foreign buyer it can be crucial. As a tax resident of your home country you are taxed there on your worldwide income, so income from Thai property also concerns your home tax authority.
Rental
Income from renting out property in Thailand is subject to Thai income tax there. At the same time, as a tax resident of your home country you must also declare this income there, applying the double-taxation relief method arising from the relevant tax treaty. In practice, income from property located in Thailand may be taxed in Thailand, while at home the appropriate method applies (proportional credit or exemption with progression).
Sale
In your home country, income from selling property (including foreign property) is, as a rule, taxed if the sale takes place before 5 years counted from the end of the year in which it was acquired; after 5 years the sale generates no income tax at home. In Thailand, on sale the Land Office collects taxes at source (including transfer fee, withholding tax and, in certain situations, specific business tax or stamp duty), depending on the holding period and the seller's status.
Tax matters are individual and depend on your situation and the current rules on both sides. The above is a general outline, not tax advice - before the transaction, consult a tax adviser familiar with the cross-border specifics.
The most important risks and due diligence
Most problems can be avoided with thorough checks before buying. What to pay attention to:
- An independent lawyer - do not rely solely on the developer's lawyer; hire a lawyer acting in your interest.
- The building's legal status - only a formally registered condominium gives a foreigner freehold. Verify the Chanote and registration documents.
- Available foreign quota - written confirmation of the level of foreign ownership in the building.
- The developer's reputation - especially when buying off-plan (under construction): a track record of completed projects, quality, delays.
- Encumbrances - mortgages, pledges and claims checked at the Land Office.
- Consistency of details and the FET - an identical name on the transfers, in the FET, the contract and the title.
- An escrow account with off-plan - funds released to the developer on transparent terms.
- Market cyclicality - in resorts (Phuket, Pattaya) there can be periods of oversupply; the quality of building management affects value.
These are precisely the elements we take on as a European agency: we present only projects from vetted developers, arrange due diligence and guide you through the transaction in your own language - with zero commission on the buyer's side. See our current listings or go back to the main market guide.
Prepared on the basis of Thai legislation (including the Condominium Act and the Civil and Commercial Code), current case law on leasing and the relevant double-taxation treaty. The information is general and educational in nature and does not constitute legal or tax advice. The rules and their interpretation (especially regarding companies, leasehold and taxes) may change - before buying we verify the current legal position for the specific property with an independent lawyer. Last updated: 6 June 2026.