Many customers that want to purchase properties for investment or holiday home in Thailand ask about property laws and if they can purchase a property here in their own name. The answer is yes you can buy condominiums into your own name as foreigner but cannot buy land or houses this is strictly prohibited.
When buying a condo in Thailand you have 3 ownership’s options to choose from. One of them is foreign owned, second is Thai and the third option is Thai company. There might be some price difference for the same sized units in projects between the different ownership’s. This is because the developers price foreign quota condominiums slightly higher because of high demand. Foreign owned units will always be sold out first and are therefore higher priced.
When you come here as foreigner the best way is to buy the condo in your own name. Buying into your own name gives a lot of benefits as you can easy resell to foreigners in the future without complications and can get a higher price as well, there is a big demand for foreign owned condos here in Pattaya, Thailand.
Purchasing in foreign name requires that the money is transferred from abroad into the country into your Thai bank account. After the bank will issue the foreign exchange transaction form (Tor Tor 3 document), this is required to transfer the title deed into your name and needs to be submitted at the land office on the day of transfer. You should keep a copy of the foreign exchange transaction form as you will need this to transfer funds back to your home country when selling the condo. The foreign exchange transaction form is prove that the money came from abroad legally into Thailand.
If you transfer the funds direct to the developers bank account, the developer will take care of the foreign exchange transaction form and arrange the title deeds for you, however you should ask for the foreign exchange transaction form for your own records.
Buying in Thai ownership is a good option when you have a Thai Spouse or family members you trust. The process is not complicated and the price will be much lower, funds can come from anywhere. You do not have to show where the money came from when purchasing in Thai name and can just bring in cash. However when reselling the condo it can only be sold to Thais and most of the time it’s difficult to find Thai buyers that pay cash for a condominium here in Pattaya. Thai ownership will not gain a lot of capital appreciation only for high-end developments.
Is the third option and is widely used used by foreigners to buy properties in Thailand. This means you have to create a local Thai company with a law firm first which cost approximately 40,000.- THB. The company will hold the property and you will be the director and control the company 100%. The company requires to do the annual bookkeeping which cost 20,000.- THB yearly. When selling the property you will be selling the company and just transfer the directors within the company and do not have to pay any property taxes.