The 49% Foreign Quota Explained

Unlike land, which foreigners generally cannot own in Thailand, condominiums offer a legal pathway to freehold ownership. Under the Condominium Act B.E. 2522 (1979), foreigners may own condominium units outright, provided that the total foreign-owned floor space in the building does not exceed 49% of the total saleable area.

This is one of the few ways foreigners can hold true freehold property in Thailand, making condos an attractive option for both residence and investment.

Condominium Act Section 19

"Aliens or juristic persons qualified under Section 19 may own units in a condominium provided that the ratio of the aggregate floor space of units owned by aliens and such juristic persons shall not exceed forty-nine percent of the total floor space of all units in such condominium at the time of registration of ownership."

This is the statutory basis for the 49% foreign ownership rule.

How the Quota Is Calculated

  • Based on Floor Space: The 49% limit applies to total sellable floor area, not number of units
  • Per Building: Each condominium building has its own quota
  • Registration Time: Quota compliance is verified at the time of ownership registration
  • Common Areas Excluded: Calculation is based on saleable unit floor space only

Example Calculation

A condominium building has 10,000 sqm of total saleable floor space. Under the 49% rule, up to 4,900 sqm can be owned by foreigners. If 4,500 sqm is already foreign-owned, only 400 sqm of foreign quota remains available.

Freehold Ownership for Foreigners

When you purchase a condominium unit within the 49% quota, you receive true freehold ownership. This means:

  • Permanent Title: Your ownership has no expiration date, unlike leasehold
  • Full Ownership Rights: You can sell, lease, mortgage, or bequeath the unit
  • Title Deed: Your name appears on the official title deed (Chanote)
  • Inheritance: Your heirs can inherit the unit, subject to quota availability at that time

Freehold vs. Leasehold Condos

In buildings where the 49% foreign quota is exhausted, developers often sell the remaining units to foreigners on a leasehold basis. It is critical to understand the difference:

Aspect Freehold Condo Leasehold Condo
Ownership Type Full ownership Right to use for 30 years
Duration Perpetual 30 years (max)
Resale Value Typically higher Diminishes over time
FET Required Yes No
Mortgage Options Available Very limited

Always Verify Before Buying

Never assume a unit is freehold simply because the developer says so. Always verify quota availability directly with the Land Office or through your lawyer before committing to a purchase.

How to Verify Quota Availability

Before purchasing any condominium as a foreigner, you must verify that the building has available foreign quota. There are several ways to do this:

Methods to Check Quota

1

Request from the Juristic Person

The condominium's management office (Juristic Person) maintains records of foreign ownership. Request an official letter confirming the current foreign ownership percentage and available quota.

2

Land Office Verification

The local Land Office where the condo is registered has official records. Your lawyer can conduct a formal title search that includes quota information.

3

Developer Confirmation

For new projects, the developer should provide written confirmation of quota availability. Get this in writing and verify independently.

What to Look For

  • Total saleable area of the building
  • Current total foreign-owned floor space
  • Available foreign quota remaining
  • Any units currently in transfer process (may affect available quota)

Quota Can Change

The foreign quota status can change between your verification and registration. This is why working with an experienced lawyer who can expedite the transfer is important. A quota reservation can sometimes be arranged, but this is not guaranteed.

Foreign Exchange Requirements (FET Form)

To register freehold ownership of a condominium, foreigners must prove that the purchase funds were brought into Thailand from abroad in foreign currency. This is documented through a Foreign Exchange Transaction Form (FET), sometimes called a "Tor Tor 3" form.

Condominium Act Section 19(3)

"An alien who brings into the Kingdom foreign currency or withdraws from a bank account in Thailand being a deposit of money brought into the Kingdom in foreign currency... shall be entitled to own a unit in a condominium."

This establishes the foreign currency remittance requirement.

FET Requirements

  • Amount: Must equal or exceed the purchase price of the unit
  • Currency: Must be remitted in foreign currency (USD, EUR, GBP, etc.)
  • Purpose: The transfer purpose must state "for purchase of condominium"
  • Recipient: Funds should be received in the buyer's name at a Thai bank
  • Minimum: Each transfer over USD 50,000 equivalent generates an automatic FET

Getting Your FET

  1. Wire funds from your overseas bank account to your Thai bank account in foreign currency
  2. Instruct your overseas bank to include "for purchase of condominium" in the purpose field
  3. For amounts over USD 50,000, the Thai receiving bank automatically issues an FET
  4. For smaller amounts, request the Thai bank to issue an FET (some may decline)
  5. Keep all FETs and corresponding bank transfer records for the transfer

Critical: FET Must Match

The name on the FET must match the name that will appear on the title deed. If purchasing jointly, ensure both names appear on the wire transfer. Common problems include:

  • Funds wired in Thai Baht instead of foreign currency
  • Transfer purpose not mentioning condominium purchase
  • Funds sent from a company account when individual is the buyer
  • FET issued to wrong person (spouse, family member)

Warning: Off-Plan Purchases

Purchasing a condominium "off-plan" (before construction is complete) carries unique risks that buyers must carefully consider.

Off-Plan Risks for Foreign Buyers

When buying off-plan, you are typically required to make deposits and progress payments before the building is even completed. Consider these risks:

  • Quota Not Guaranteed: The developer may sell more foreign quota units than actually available
  • Developer Failure: If the developer goes bankrupt, recovering deposits may be difficult
  • Completion Delays: Projects may take years longer than promised
  • Quality Issues: Finished product may differ from marketing materials
  • Market Changes: Property values may decline before completion

Protecting Yourself with Off-Plan Purchases

  • Have a lawyer review the sale agreement before signing
  • Verify the developer's track record and financial stability
  • Get written confirmation of quota allocation for your specific unit
  • Understand what happens to your deposit if quota is unavailable at transfer
  • Check if the project has proper EIA approval and building permits
  • Consider escrow arrangements for deposits where available

Resale vs. Off-Plan

For foreign buyers, purchasing a resale unit often provides more security:

  • You can inspect the actual unit before purchase
  • Quota availability can be definitively verified
  • The building's management and condition are known
  • Transfer can occur quickly (usually 30-60 days)

Condo Purchase Due Diligence Checklist

Before completing any condominium purchase, ensure you have addressed each of these items:

Pre-Purchase Verification

  • Verified foreign quota availability with the juristic person
  • Conducted title search at the Land Office
  • Confirmed unit floor area matches official records
  • Checked for any encumbrances, mortgages, or disputes on title
  • Verified seller is the registered owner

Financial Requirements

  • Arranged foreign currency wire transfer from overseas
  • Confirmed transfer includes "for purchase of condominium" purpose
  • Obtained FET from Thai receiving bank
  • FET shows correct buyer name(s)
  • FET amount equals or exceeds purchase price

Building and Unit Inspection

  • Physically inspected the unit
  • Reviewed condominium regulations and rules
  • Checked common area maintenance fees
  • Verified sinking fund status
  • Reviewed juristic person meeting minutes (if available)
  • Checked for any outstanding fees owed by seller

Legal and Documentation

  • Engaged a Thai property lawyer
  • Reviewed and negotiated sale agreement
  • Confirmed all taxes and fees allocation (buyer vs. seller)
  • Arranged for transfer at Land Office
  • Prepared passport and required identification documents

Transfer Costs to Budget

  • Transfer Fee: 2% of appraised value (often split 50/50 with seller)
  • Withholding Tax: Varies based on seller type and holding period
  • Specific Business Tax: 3.3% if seller held less than 5 years (seller's responsibility)
  • Stamp Duty: 0.5% if no SBT applies (usually seller)
  • Legal Fees: Varies by lawyer
  • Common Area Fund: First-time contribution to sinking fund

Related Guides

Superficies Building Rights 30-Year Leasehold Guide Nominee Structure Risks BOI Promotion Pathways Thai Legal Hub Home