Editorial
Freehold Condo Ownership Rules in Thailand: 2026 Guide
By THAI.ESTATE Editorial Team13 min read
Foreigners can legally own a condominium unit in Thailand in their own name under the Condominium Act. That ownership is freehold - meaning permanent, inheritable, and registered on a title document called a chanote (a full-ownership land and building title). There is no lease, no renewal risk, and no Thai nominee required. However, one strict quota rule applies, and understanding it before you reserve a unit will save you from a costly mistake.
The rule is simple in principle: foreigners can own a maximum of 49% of the total sellable floor area in any single condominium building. The remaining 51% must be owned by Thai nationals or Thai juristic persons (companies or partnerships). If that 49% quota is already full in the building you want, you cannot take freehold title - your only legal alternative is a long-term lease, which carries very different risks.
Quick answer
- Foreigners may own Thai condo units freehold under the Condominium Act, as of 2026
- The foreign quota is capped at 49% of total sellable floor area per building
- Ownership is registered at the Land Office and shown on a chanote title deed in your name
- You must transfer funds from outside Thailand in foreign currency - this transfer record is called an FET (Foreign Exchange Transaction) form and is essential for resale and repatriation of funds
- Inheritance is possible: you can will a freehold condo unit to a foreign heir, who then has a statutory period (per current Land Office practice, up to one year) to dispose of it if the foreign quota is already full at that time
- A condo bought inside the foreign quota can be mortgaged to a Thai bank, giving you financing options unavailable to leasehold buyers
Options and scenarios
Buying inside the foreign quota (the standard freehold route)
This is the route most international buyers take. You identify a unit in a building where the foreign quota (49% of floor area) is not yet reached, transfer the purchase price from your overseas bank account to a Thai bank account, obtain the FET form documenting the inward foreign currency transfer, and then complete the transfer of title at the Land Office. The FET form is not optional: without it, the Land Office will not register the transfer in a foreign name, and you will be unable to repatriate sale proceeds later.
Costs at transfer, as of 2026 typical practice:
- Transfer fee: 2% of the appraised value set by the Treasury Department (not necessarily the sale price)
- Stamp duty or specific business tax: either 0.5% stamp duty (if the seller has held the unit for 5 or more years) or 3.3% specific business tax (if held for less than 5 years) - paid by the seller in standard practice, though negotiable
- Withholding tax: paid by the seller, calculated on a sliding scale based on the appraised value and holding period
Buyer and seller typically split the transfer fee 50/50 in practice, although this is negotiable and should be confirmed in the sale-and-purchase agreement.
Buying when the foreign quota is full (the leasehold alternative)
If the 49% quota in your preferred building is already used up, a developer or resale seller may offer you a 30-year registered lease instead. This is a fundamentally different product. A registered lease at the Land Office provides security for the lease term, but it is not ownership. The unit remains in the name of the Thai owner. You hold a contractual right to use it.
Many developers market a '30+30+30' or '90-year lease' structure. The first 30-year term can be registered at the Land Office and is legally enforceable against the current landowner and, in most interpretations, against a new owner who purchases with notice of the lease. However, the second and third 30-year renewal periods exist only as a contractual promise between you and the current developer or seller. They are not automatically registerable at the Land Office for future terms. If the developer sells the project, goes into administration, or the land changes hands in a foreclosure, your renewal rights depend entirely on the enforceability of that contract - and Thai courts have not produced a uniform body of case law guaranteeing renewal against all successors in title.
The honest summary: the first 30 years is a real right registered against the title. Years 31 to 90 are a contractual promise, not a real property right. Do not pay a freehold-equivalent price for a leasehold unit on the basis that '90 years is as good as ownership.' It is not.
Buying through a Thai company
Some advisers suggest placing land or a condo in the Thai quota through a Thai company majority-owned by Thai shareholders with the foreign buyer as a minority shareholder or director. The Land Department and the Revenue Department have repeatedly signalled that structures where the Thai shareholders are nominees (holding shares without genuine economic interest) are illegal under the Land Code and the Foreign Business Act. The risk is title cancellation and criminal liability. The THAI.ESTATE Editorial Team does not recommend this route for residential property.
Buying condo units in a new project off-plan
Off-plan purchases carry the additional risk that the foreign quota stated at the time of reservation may change by the time the building is complete - for example, if the developer reclassifies units or if other foreign buyers register ahead of you. Your reservation agreement should specify in writing that your unit is allocated within the foreign quota. A lawyer should review this before you pay any deposit.
Payment during construction is typically made in installments direct to the developer. There are no escrow arrangements for foreign real estate buyers in Thailand in the traditional sense, so your deposit is at risk if the developer fails. Due diligence on the developer's track record, financial position, and project licensing (EIA approval where required, building permit, land title status) is essential before committing funds.
Comparison table
| Parameter | Freehold condo (foreign quota) | 30-year registered lease | Thai company structure |
|---|---|---|---|
| Ownership type | Full freehold, chanote in your name | Contractual right to use for 30 years | Shares in a Thai company; not direct ownership |
| Foreign quota required | Yes - 49% of floor area cap applies | No | No |
| Registerable at Land Office | Yes, permanently | Yes, for the first 30-year term only | Title in company name |
| Renewal certainty | Not applicable | First term: high. Subsequent terms: contractual only | Depends on company continuity |
| Inheritance | Yes, by will or intestate succession | Lease terminates on lessee death unless the contract states otherwise | Shares can be inherited |
| Financing (Thai bank mortgage) | Possible for foreigners at some Thai banks | Generally not available to foreign lessees | Possible in company name |
| Resale liquidity | Higher - freehold units command a premium | Lower - buyers discount leasehold, especially near term-end | Limited - share transfers are complex |
| FET form required | Yes - mandatory for registration and repatriation | Yes - for funds transferred from abroad | Yes - for capital injected into the company |
| Renovation rights | Subject to juristic person rules; structural changes require approval | Subject to lease contract terms | Same as freehold in practice |
| Legal risk | Low if quota confirmed and FET documented | Medium - renewal risk after year 30 | High - nominee structures are illegal |
| Typical transfer cost (buyer share) | 1% of appraised value (half of 2% transfer fee) | Lease registration fee: 1% of total lease value | Stamp duty on share transfer |
Risks and mistakes
Not confirming the foreign quota before paying a deposit
The foreign quota is calculated on floor area, not number of units. A large penthouse sold to a foreign buyer uses proportionally more quota than a studio. Developers do not always track this precisely in pre-sales. Ask for written confirmation of current foreign quota utilization before paying any reservation fee. Once your deposit is in, recovering it if the quota turns out to be full can be difficult.
Missing the FET form
The FET form (also called a FETF or a Thor Tor 3 form, issued by the receiving Thai bank when you transfer funds from abroad in a foreign currency) is the proof that your purchase money entered Thailand legally as foreign currency. Without it:
- The Land Office will not register the unit in a foreign name
- You cannot legally repatriate the sale proceeds when you sell
- You may be unable to demonstrate the source of funds if challenged
If you transfer baht (having converted abroad), or transfer in instalments from multiple sources, the documentation becomes complex. Use a single overseas account for the transfer and brief your Thai bank to issue the FET form for each transfer.
Treating a leasehold unit as equivalent to freehold
Some developers price leasehold units at or near freehold prices and emphasise the '90-year' marketing figure. As explained above, only the first 30 years is a registered right. If you are buying as an investment or a long-term home, assess the resale value of the unit with 20 years remaining on the lease - because that is when buyers will start discounting heavily. A unit with 8 years remaining on a lease can be very difficult to sell at any reasonable price.
Ignoring the juristic person and sinking fund
Every registered condominium in Thailand is managed by a juristic person - the legal entity formed by all unit owners collectively, governed by a committee elected by owners. The juristic person sets monthly common area maintenance fees (CAM fees) and holds a sinking fund (a reserve fund for major repairs and capital works, paid as a one-time contribution on purchase). Unpaid CAM fees become a lien on the unit. Before buying a resale unit, obtain a debt-clearance letter from the juristic person confirming no outstanding fees.
Underestimating renovation restrictions
Structural changes - moving walls, altering plumbing, modifying the building envelope - require approval from the juristic person and may require a building permit. In leasehold arrangements, the lease contract may further restrict what you can do. Confirm your renovation intentions in writing with the juristic person before purchase.
Assuming Thai inheritance law mirrors your home country
A freehold condo can be willed to a foreign heir. However, if the foreign quota in that building is already at 49% when the heir inherits, the heir has a period (currently up to one year under Land Office practice) to either sell the unit or transfer it to a qualifying buyer. The unit does not automatically vest free of this constraint. Have a Thai will (a Thai-law will covering Thai assets specifically) drafted by a qualified Thai lawyer to avoid delays.
FAQ
Can a foreigner own a condo in Thailand outright in 2026?
Yes. Under the Condominium Act, foreigners can own a condo unit freehold in their own name, provided the building's foreign quota (49% of total sellable floor area) is not exceeded. The title is registered at the Land Office in the buyer's name on a chanote document.
What is the 49% foreign quota and how is it calculated?
The quota limits foreign freehold ownership to 49% of the total sellable floor area of a condominium building - not 49% of the number of units. A developer or the building's juristic person can confirm the current utilisation. Always get this confirmation in writing before paying a deposit.
What is an FET form and why does a foreign buyer need one?
An FET (Foreign Exchange Transaction) form is a document issued by a Thai bank confirming that funds arrived in Thailand from abroad in a foreign currency. It is required by the Land Office to register a condo title in a foreign name, and it is also needed when you later sell and want to send the proceeds out of Thailand. Without it, you may be unable to repatriate your money.
Is a 90-year lease the same as freehold ownership?
No. Only the first 30-year term can be registered at the Land Office as a real property right. The second and third 30-year periods are contractual renewal promises. They bind the current owner contractually but are not automatically enforceable as registered rights against a new landowner. Do not pay a freehold price for a leasehold unit on the assumption that 90 years equals permanent ownership.
Can a foreigner get a mortgage from a Thai bank to buy a condo?
Some Thai banks offer mortgage products to foreign buyers for freehold condominium units. Approval is not guaranteed and typically requires proof of income, a valid visa, and an assessment of the property. Leasehold units are generally not accepted as mortgage collateral by Thai banks. Loan-to-value ratios and interest rates vary by bank and applicant profile - check directly with Thai banks for current 2026 terms.
What costs does a buyer pay at the Land Office when transferring a condo?
As of 2026 typical practice, the main cost for the buyer is half of the 2% transfer fee calculated on the Treasury Department appraised value (so effectively 1% of that appraised value). Stamp duty or specific business tax, and withholding tax, are seller costs but are sometimes negotiated differently in the sale contract. Confirm the cost split in writing in the sale-and-purchase agreement.
What is a sinking fund and do I have to pay it?
A sinking fund is a one-time capital reserve contribution paid by the buyer on purchase of a new-build condominium unit. It is held by the juristic person for major future expenses such as roof replacement, lift overhaul, or facade repair. Rates vary by project but typically range from around 400 to 700 baht per square metre of unit area, based on market estimates in 2026. On resale units, confirm with the juristic person that the previous owner's sinking fund contribution has been properly handled.
Can I rent out my freehold condo?
You can legally rent out a freehold condo unit. However, short-term rentals (under 30 days) in a residential condominium building may violate the Hotel Act unless the building holds a hotel licence. Many condo buildings in tourist areas operate a managed rental programme - check the building's rules and licencing status before buying with rental income as your primary objective.
What happens to my condo when I die?
A freehold condo can be passed to heirs by will or intestate succession under Thai law. A foreign heir has a period of up to one year (current Land Office practice) to sell or transfer the unit if the foreign quota is full at the time of inheritance. A Thai-law will drafted for your Thai assets is strongly recommended to simplify the process.
Do I need a Thai lawyer to buy a condo in Thailand?
No Thai law requires it, but the THAI.ESTATE Editorial Team strongly recommends engaging an independent Thai lawyer - one who acts for you, not for the developer or seller. Key tasks include reviewing the sale-and-purchase agreement, confirming the foreign quota in writing, verifying the chanote title, checking for encumbrances and outstanding fees, and advising on the FET documentation process.
Planning a property purchase in Thailand? Send us your requirements - the THAI.ESTATE team will reply with specific options and a safety checklist for your case.