Glossary, ownership

Freehold in Thai property

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Freehold is outright ownership of property with no time limit, registered in the owner's name at the land office. In Thailand a foreigner can own a condominium unit freehold within the building's foreign quota, but cannot own land.

A foreign freehold buyer of a condominium receives a unit title deed (Or Chor 2) in their own name, together with a proportionate share of the common property. The unit can be sold, let, mortgaged and left to heirs. Two conditions apply under the Condominium Act: foreign ownership in the building must stay within 49% of total unit floor area, and the purchase money must arrive from abroad in foreign currency, evidenced by a Foreign Exchange Transaction Form or bank credit advice.

Land is different. The Land Code bars foreigners from owning it, with narrow exceptions such as companies promoted by the Board of Investment and a rarely used route that allows up to one rai of residential land in return for a THB 40 million investment. A foreigner can own a building, as distinct from the land under it. Most foreign villa buyers therefore hold a registered lease of up to 30 years.

See can foreigners buy property in Thailand and freehold vs leasehold.

General guidance, not legal or tax advice. Take independent legal advice before you commit to a purchase.

Terms related to freehold

Leasehold: Leasehold is the right to occupy and use property for a fixed term under a lease. In Thailand the longest term that can be registered is 30 years, and a lease of more than three years is enforceable beyond three years only if registered at the land office.
Foreign quota: The foreign quota is the share of a condominium that foreigners may own freehold: no more than 49% of the total floor area of all units in the building, under section 19 bis of the Condominium Act.
Condominium Act: The Condominium Act B.E. 2522 (1979) is the statute governing how condominiums in Thailand are registered, owned and managed. Sections 19 and 19 bis set out which foreigners may own units and cap foreign ownership at 49% of a building's unit floor area.
Foreign Exchange Transaction Form (FET): A Foreign Exchange Transaction Form is the certificate a Thai bank issues to show that funds arrived from abroad in foreign currency. The land office asks for it, or a bank credit advice for smaller sums, before registering a condominium in a foreign buyer's name.