FOREIGN BUYER GUIDE
According to Thai Law, foreigners are allowed to purchase condominiums in Thailand. There is a maximum quota of 49% foreign ownership ratio which is calculated on an saleable unit space of a condominium building while the remaining 51% must be owned by either Thai nationals or majority owned Thai Companies.
Guidance for Foreign Buyers of Condominium Units:
In order to purchase a condominium, all foreign buyers are required to transfer funds from overseas to bank account in Thailand in foreign currency, even if such foreign buyer has bank accounts in Thailand and/or has work permit to work in Thailand (no exceptional). Once the funds are transferred, they are required to be marked as a condominium purchase needs to be verified through obtaining an “Confirmation Letter of International Funds Transfer”, what was originally termed “ Tor Thor 3” document from the receiving bank in Thailand.
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.
The developer, as the beneficiary, will obtain the Confirmation Letter from the bank on behalf of the purchaser. The developer will keep all the certificates and/or credit notes with the letter from the bank until the date on which the ownership of the condominium units is transferred. In the event that the purchaser wishes to keep those documents, a request can be submitted to the developer.
If you have a bank account in Thailand the procedures will be the same but you will be the beneficiary and you will have to request and obtain the Confirmation Letter from the bank by yourself.
Presently, the Confirmation Letter of International Funds Transfer from the bank can be used as evidence when providing proof of fund remittance at the Department of Lands. Without providing this Confirmation Letter, the Department of Lands will not register the ownership of the condominium unit into your name.
Required information on the Letter :
1. Remittances must be sent in exactly (“to the letter”) the same name as appearing on the purchase contract, i.e. if Peter Kingston is the buyer, then the name Peter Kingston must be appeared on the remittance advice. P. Kingston or Kingston Enterprises are unacceptable. If the buyers are two individuals, then two names should be appeared on the Contract and the Confirmation Letter. If one of buyer remits funds on behalf of the other buyer, that remittance buyer must indicate the name of the whole buyers on the remittance advice.
2. Transfers of funds MUST be made in FOREIGN CURRENCY only and NOT in Thai Baht, i.e. if you have income as US Dollars then remit in US Dollars. Do not remit in Thai Baht.
3. The purpose of the remittance MUST be clearly stated on the remittance advice including the Project’s name and unit number. This should be “For Purchase Condominium…(Project Name)…unit…(unit number)…under…(your name)….”. For example, “For Purchase Condominium SEA BREEZE unit 1502 under Mr. Peter Kingston.
4. Please transfer the fund cover for Bank Charge/Fee before remittance to developer’s bank account.
The conversion into Thai baht may result in the difference either a surplus or a shortfall amount regarding each payment. As such the balance of all the payments will be deducted in the final payment due upon registration of the ownership of condominium or returned the overpaid out of the unit price later.
5. The total remittance amounts shown in the Confirmation Letter must be equal or greater than unit price under the Sales and Purchase Agreement, which included;
5.1 Reservation Fee
5.2 Signing Contract Payment
5.3 Monthly installments (if any)
5.4 Final Payment
6. Transfer of ownership
Prior to the transfer of ownership, the developer shall inform the buyer about the amount due, including the final payment, transfer fee, common area management fee, electricity meter deposit, and sinking fund as well as the means of payment and the developer’s bank account.
To be summary the “Confirmation Letter of International Funds Transfer”
Ensure that you follow the instructions below.
1. The name of the remitter must be the same as the purchaser as indicated in the Sales and Purchase Agreement. Please fill in full name of the remitter and the beneficiary.
2. The money is transferred as foreign currency. Do not convert in Thai Baht before making a transfer. The conversion into Thai Bath will be done by the beneficiary bank.
3. Please indicate in the transfer instructions that the purpose of transfer is “For purchase condominium …(Project Name)…unit…(unit number)…under…(your name)….”.
4. Please include both overseas and beneficiary bank charges for each payment.
5. Please keep a debit advice/ TT Slip of each remittances for your reference.
We hope the above information is useful and if you have any other queries, please feel free to contact us.