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Thailand Condo Purchase and Foreign Capital Requirements

Transcript of the above video:

In this video, I'm going to discuss briefly freehold condominium ownership in Thailand by foreign nationals and some of the requirements associated therewith. For those of you who are unaware, there are videos on this channel and on this website with respect to foreign freehold titles which can be held on condominiums by foreign nationals.

There are restrictions in Thailand based on nationality. Most notably, foreign nationals will have a difficult time to own Thai property in the form of real estate although it's not impossible as noted in another video on this channel. There are ways in which a foreigner can own land but it's very difficult to go about that and effectively, it's virtually an impossibility.

That being said, the foreign freehold ownership of condominiums is allowed pursuant to the condominium act here in the Kingdom of Thailand and it's a significant benefit to foreigners. A foreigner can own their condominium outright. They can have Chanote or freehold title to that condominium. They can buy and sell it to a member if they wish. There are certain rules with respect to that. For example, quota.

Foreigners can only own 49 percent in all the units in one's specific jurisdiction a.k.a condominium complex so if there are hundred units in a given complex, then foreigners/foreign nationals are only able to own 49 percent of those units.

That being stated, there's another rather important issue with respect to Thai condominium ownership especially freehold condominium ownership and that is the requirement that the funds for the condominium coming from abroad and this can really be a difficult formality to deal with as people don't really understand how words and for that reason. Across the board with respect to real estate in Thailand, it is an extremely good idea to hire a professional to assist. We have Thai attorneys who deal with all Thai legal matters. We have Thai attorneys who can handle conveyancing of the condominium here in Thailand to a foreign national and there are some formalities that need to be dealt with most notably, again this requirement that the fund comes from a foreign source.

Essentially in my opinion, I think one of the major reasons that the Condominium Act was promulgated and has been subsequently been enforced is because it provides a benefit. It's sort of a win-win situation. It provides a benefit to the foreigner living here in the form that they can own their own condo. And also, it provides a benefit to the Thai economy because there's foreign exchange coming into the Kingdom and for that reason, the formalities associated with the banking documentation on the foreign freehold condo are extremely important. Most notably because if the funds are brought in in the wrong manner, it's not possible to lock in the freehold title ownership.

Moreover, when wanting to take one's funds out of Thailand upon a later sale of the condominium, one needs to be able to show that the funds in fact came in pursuant to all of the necessary formalities following all the necessary rules with respect to the foreign funds coming to the country. That's if one wants to get their funds back out of Thailand with minimum hassle upon selling of the property in question.

So for that reason, it's strongly encouraged that those interested in this topic, contact professionals to assist them but also be aware that notwithstanding the fact that this is an exception to the overall rules against foreign nationals owning property in Thailand, it's not a hop, skip and a jump to get this taken care of. There are formalities that need to be dealt with most notably with the banks and also with the Land Department here in Thailand in order to make certain that one's title to one's property specifically one's condominium are properly and duly formalized, legalized and are going to be locked in, for lack of better term, with respect to one's right to that property.