Foreign ownership of Condominium Property
According to Thai Law, foreigners may own 49 percent of the aggregate saleable unit space of a condominium building while the remaining 51 percent must be owned by either Thai nationals or majority owned Thai Companies.
1. Pre-completion payments (40 percent)
1.1 Reservation: Make a deposit of THB 100,000 which is completely recoverable by deduction from the final payment.
1.2 Signing: The Sales and Purchase Agreement is to be signed within 2 weeks following the reservation. A 10 percent payment of the unit price is required upon the signing of the agreement.
1.3 Instalments: The remaining pre-completion payment will be divided into regular instalments over the construction period of the project-typically every 30 days.
2. Balance on transfer remaining (60 percent)
Money Transfer: There are three options to transfer money.
2.1 Set up local bank account in Thailand in the name of purchaser and forward funds into the account.
2.2 Transfer funds to Raimon Land account and Raimon shall organize all appropriate paperwork/certificate.
2.3 In the case the property is purchased via a Thai company, transfers can be made directly to the company bank account.
Each phase of the project will comprise of units an allocation of foreign quota in each tower.
3. Additional Expenses
3.1 Transfer fee - Calculated as 2% of the sales price. 50% paid by Raimon Land 50% paid by Purchaser upon transfer of title deed.
3.2 Sinking Fund - One time payment. The amount of payment will be according to the unit size. It is payable upon transfer of title deed.
3.3 Advanced Juristic Fees - Paid in advance on a per square meter per month basis.
Note : The juristic fee or management/maintenance fee is used for general monthly maintenance of the building, common areas, security, pool maintenance, etc.
More Information:
Foreigners are required to remit at least USD 20,000.00 into Thailand per transfer to receive a FOREX Transfer Form. This form will be needed to transfer the unit under foreign ownership and also remit money back out of Thailand if so needed in the future.
Currency: Any foreign currency can be used to purchase a condominium unit. The foreign currency MUST be transferred into Thailand as foreign currency and exchanged into Thai Baht by a local bank in Thailand.
Documents needed when buying a condominium:
For foreigners to be eligible to purchase a condominium unit in Thailand they must present proof to the Department of Lands that the funds have been remitted from overseas in foreign currency. Without such proof, the Department of Lands will not register the transfer of ownership to the foreign buyer.
- Remittances must be sent in exactly ("to the letter") the same name as appearing on the purchase contract, i.e. if Tom Smith is the buyer then the name Tom Smith must appear on the remittance advice. T. Smith or Smith Enterprises are unacceptable. If the buyers are two individuals, then two names should appear on the contract and two separate remittances should be made by such two persons, in equal amounts.
- Transfers of funds MUST be made in FOREIGN CURRENCY only and NOT in Thai Baht, i.e. if you are working in US Dollars then remit in US Dollars. Do not remit in Thai Baht.
- The purpose of the remittance MUST be stated on the remittance advice. This should be "FOR THE PURCHASE OF BUYING A CONDOMINIUM, UNIT #____ IN TOWER ____ IN _______ PROJECT". The Bank of Thailand's transaction purpose code for this is 381069.
- Amounts Due Under Contract
- 4.1 Reservation – Baht 100,000 which is deducted from the final transfer payment.
- 4.2 Signing Sale and Purchase Agreement – 10 per cent payment of the total purchase price is to be paid upon signing the sale and purchase contract.
- 4.3 Instalments – An additional 30 per cent payment of the total sale price is to be paid in instalments in accordance with the sale and purchase agreement.
- 4.4 The Transfer – The transfer amount will be the balance of the total purchase price i.e. 60% of the total purchase price less Baht 100,000.
- Money Transfer
There are 2 options to transfer money to the Developer as follows:
- 5.1 Transfer the funds into a local bank account of the buyer in Thailand in the prescribed format as outlined above, and execute a domestic transfer of this amount onwards to the Developer. In this case, the buyer must request the local bank of the buyer to issue the Foreign Exchange Transaction Form.
Amounts transferred should be at or greater than $20,000, in order to automatically qualify for a Foreign Exchange Transaction Form. (The buyer has to request (by telephone or by written notice, according to the procedure of the relevant local bank) for obtaining the Foreign Exchange Transaction Form from the local bank as soon as the funds has been transferred.
If the amount remitted is less than USD $20,000, the buyer is required to send a letter to the bank that will in turn send you a letter confirming the purpose of the remittance is for purchasing a condominium unit. Presently, either the Foreign Exchange Transaction Form or the Letter from the bank can be used as evidence when providing proof of fund remittance at the Department of Lands. Without providing either the Foreign Exchange Transaction Form or the letter from the bank, the Department of Lands will not register the transfer of the condominium unit into your name.
For the avoidance of any doubt, we recommend wherever possible all buyers arrange for their local bank to issue the Foreign Exchange Transaction Form for all remittances.
- Transfer the funds directly to the Developer’s bank account in the prescribed format, and the Developer will arrange for the Foreign Exchange Transaction Form to be issued by the Developer’s Bank.
For the buyers convenience, we strongly recommend that you should transfer the funds directly to the Developer’s bank account.
