Thailand Condo Foreign Quota: The 49% Rule Explained

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.

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
• Parking Spaces: If deeded separately, parking spaces count toward the foreign percentage (clarified in 2025 Department of Lands guidance)
• Developer Internal Caps: Some developers set their own internal quotas lower than 49% to retain marketing flexibility

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:

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

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)

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.

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

2025-2026 Developments: What Has Changed

The period from mid-2025 through early 2026 has seen significant government proposals, judicial rulings, and enforcement actions that directly affect foreign condo buyers in Thailand. As of February 2026, none of the proposed quota or leasehold reforms have been enacted, but the regulatory landscape has shifted substantially.

Proposed 75% Foreign Quota Increase

The Thai government has reviewed proposals to raise the foreign ownership quota from 49% to as high as 75% in designated zones, particularly resort areas such as Phuket, Koh Samui, Pattaya, and Chiang Mai. A more moderate proposal would raise the cap to 60-70% in these areas.

99-Year Leasehold Proposal

Deputy Prime Minister and Minister of Finance Pichai Chunhachaichan announced at the Thailand Capital Market Forum 2025 (May 17, 2025) that the government was fast-tracking amendments to the Rights Over Leasehold Asset Act to extend the maximum lease term from 30 years to 99 years. The proposed framework would:

• Apply to non-agricultural land (residential, commercial, and industrial)
• Allow leases of up to 99 years with clear registration rights
• Permit lessees to mortgage, transfer, or inherit the lease during its term
• Transfer land title to state ownership first, with foreigners obtaining usage rights
• Revert land to state ownership at the end of the 99-year term

Supreme Court Ruling on "30+30+30" Leases (March 2025)

A landmark Supreme Court ruling issued on March 18, 2025 decisively closed the door on extended lease workarounds. The Court ruled that:

• Any lease provision attempting to grant a term exceeding 30 years is void beyond the initial 30-year period
• Pre-agreed renewal contracts (the "30+30+30" model) are contractual promises between the original parties only, not "real rights" attached to the land
• Automatic renewal clauses are invalid and unenforceable as property rights

Nominee Crackdown: Unprecedented Enforcement

Following the Thai Cabinet's June 24, 2025 review of the Ombudsman's report on nominee landholding, authorities have launched the most significant enforcement wave since the Foreign Business Act's enactment in 1999:

• 46,000+ nominee companies identified for investigation, with 27,000 more targeted in 2025
• 852 companies prosecuted for nominee-related offenses between 2025-2026, with estimated damages exceeding THB 15.1 billion
• AI-powered tools deployed to identify nominee arrangements with greater precision
• Inter-agency task force established coordinating police, DSI, and AMLO (Anti-Money Laundering Office)
• Thai nominees, accountants, and lawyers who facilitated structures are also being prosecuted
• A proposed standalone Nominee Transactions Act is under development
• Nominee use is proposed to be classified as a predicate offense under AML laws, enabling asset seizure

New Tax and Fee Changes

• Additional property tax (2025): A 2-5% surcharge applies to properties valued above THB 10 million (approx. EUR 250,000)
• Fee reduction (Thai buyers only): Transfer and mortgage registration fees reduced to 0.01% through June 30, 2026 -- but this only applies to Thai nationals for properties under THB 7 million. Foreign buyers pay the full 2% transfer fee and 1% mortgage fee
• Enhanced fund origin checks: Banks now more frequently require proof of fund origins, especially for overseas transfers

BOI Land Ownership Rules Tightened

The Board of Investment updated its rules for BOI-promoted foreign companies owning land (Notification No. Por. 9/2568, effective July 18, 2025):

• Minimum paid-up registered capital of THB 50 million required throughout the ownership period
• New online application process through the e-Land system
• Land assessed based on the legal entity, not individual promotion certificates
• Sector-specific restrictions in manufacturing (metals, chemicals) effective September 1, 2025

Note: BOI promotion is a corporate investment pathway, not a shortcut for personal residential purchases.

LTR Visa and Property: No Ownership Shortcut

Thailand's Long-Term Resident (LTR) Visa was updated in January 2025 with relaxed income requirements, expanded dependent coverage, and lower employer revenue thresholds. However, LTR visa holders have no special property ownership rights. The same restrictions apply regardless of visa type:

• Condo freehold within the 49% quota -- same as any foreigner
• Leasehold up to 30 years -- same as any foreigner
• No land ownership -- same as any foreigner

Thai real estate investment can count toward LTR eligibility requirements, but the visa itself does not unlock any additional ownership rights.

New OCPB Buyer Protection Rules (Effective January 31, 2025)

Thailand's Office of the Consumer Protection Board (OCPB) enacted the Notification Prescribing the Business of Selling Condominium Units Through Reservations as a Contract-Controlled Business B.E. 2567 (2024), which came into force on January 31, 2025. These rules significantly strengthen protections for off-plan condo buyers.

What the New Rules Require

• Standardized contracts: Reservation contracts must be in Thai with specified terms, provided to the buyer in duplicate
• Accurate project details: Developers must present complete and accurate project information
• Permits first: All necessary permits must be obtained before construction proceeds
• Reservation fee receipts: Every payment must be documented with receipts

Prohibited Clauses

The following terms are now banned in condominium reservation agreements:

• Clauses excluding or limiting developer liability
• Clauses allowing confiscation of reservation payments when the buyer is not in default
• Assignment fees for transferring a reservation
• Unilateral contract changes (materials, pricing, specifications) without buyer approval
• Automatic forfeiture of payments for minor breaches
• Unauthorized collection or disclosure of personal data
• Developer exclusive access to shared facilities or charging for standard amenities

Your Refund Rights

Buyers may terminate contracts and claim refunds if developers:

• Fail to obtain necessary permits
• Make unauthorized changes to project specifications or materials
• Breach contract terms

Refund timelines: 15 days for bank transfers, 45 days for credit card payments.

Warning: Off-Plan Purchases

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

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
• Know your OCPB rights (2025): Since January 31, 2025, developers cannot confiscate your reservation payment if you are not in default, and cannot unilaterally change project specifications. See the OCPB Buyer Protection section above for full details

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:

Transfer Costs to Budget (2026 Rates)

• Transfer Fee: 2% of appraised value (often split 50/50 with seller). Note: the reduced 0.01% rate through June 2026 applies only to Thai nationals for properties under THB 7 million -- foreign buyers pay the full 2%
• 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)
• Additional Property Tax (2025): 2-5% surcharge for properties valued above THB 10 million
• Legal Fees: Varies by lawyer
• Common Area Fund: First-time contribution to sinking fund