Buying or Selling a Condominium in Thailand – Important Information for the Foreign Buyer/Seller
Buying a condo or apartment as a foreigner
- Foreign Ownership Quota – Due to the legal restrictions regarding foreigners not being able to own land in their name, most foreigners choose to simply buy a condominium or apartment in Thailand. However, a foreigner can only purchase a condominium in his/her own name if the % amount for foreign ownership (49% of the condominium) is not already full.
- Transfer of Foreign Currency is Required – Most importantly this means that the purchase price for the condo must be transferred into Thailand in foreign currency and converted into Thai Baht by a licensed financial institution within Thailand. For a foreigner buying a condominium, an original copy of the so-called “FET-Form” (Foreign Exchange Transaction Form), with his/her name either as the receiver or sender of the foreign currency, is part of the required documents for registration of foreign ownership at the Land Department.
Selling and Transfering ownership of your condominium
You have just sold your condominium and now wondering about the next step, the transfer of the property to the buyer.
The following is based on the premise that a foreigner is transferring his/her condominium.
Here is a list of items you or a person authorized to represent you (power of attorney) will need to provide to the land department at the time of the transfer:
- Original Title Deed, also known as the Chanote.
- Proof of identification – such as your passport
- Marriage or divorce certificate (if applicable). Note: if you are the sole owner of the condo and you are currently married to a Thai national and you were married at the time of purchasing/obtaining your condo then you will need a letter of consent from your Thai spouse permitting you to transfer the property. The letter of consent is not required if you were married after purchasing/obtaining your condo.
- The house registration book (blue book – Tabian Baan).
- The signed purchase agreement between the buyer and you.
- Power of attorney document stating the person’s name that is representing you at the Land Department (if applicable).
- A letter from your Juristic condominium manager (this cannot be dated more than 7 days old) stating the following: that there is less than 49 per cent foreign ownership in the condo building (if selling to another foreigner) and a document stating that there are no outstanding maintenance fees for common ground applicable to your condo.
- If there is still a mortgage owing on the property then the mortgage lender or bank will also have to be involved in the selling process as they will be holding the title deed for the property.
- Money to pay for the property taxes.
Transfer fee – 2% of the registered value of the property (usually paid by the buyer).
Stamp Duty – 0.5% of registered value. Only payable if exempt from business tax (usually paid by the seller).
Withholding tax – 1% of the appraised value or registered sale value of the property (whichever is higher and if the seller is a company). If the seller is an individual, withholding tax is calculated at a progressive rate based on the appraisal value of the property (usually paid by the seller).
Business tax – 3.3% of the appraised value or registered sale value of the property (whichever is higher). This applies to both individuals and companies (usually paid by the seller).
The above split-up with what taxes are to be paid by the buyer or seller are nominal and to be used as a guide only. It all depends on the agreed deal between the buyer and seller.
Happy Living in a Condominium from the Home2go Team 🙂
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