How to acquire property in Thailand?
A reservation agreement is made between the buyer and seller to secure booking of the unit and a down payment deposit by the buyer. Reservation requires the presentation of the buyer’s passport along with a single copy. For foreign buyers who have previously purchased a property in Thailand, it is necessary to ensure that the spelling of the buyer’s name in Thai is exactly the same as the name used for previous purchases. The down payment amount will vary depending on the project and the terms of the contract. For further information on the reservation process, buyers may contact the project’s sales representative.
Purchasing and Payment Options
There are two methods by which buyers can make payment for the purchase of a new property:
- Transfer money to the bank account of Sansiri PLC or one of its affiliates, or prepare a bank draft, payable to Sansiri PLC or one of its affiliates (as the case may be). All of the necessary documents for the property transfer will then be prepared by Sansiri.
- Open a Non-Resident Baht account with a bank in Thailand for the purpose of issuing a cashier cheque. It is essential that the buyer’s name is used to open the account and that all name spellings, in both Thai and English, are identical to those on the Purchase Contract. Foreign currency can then be transferred into the Non-Resident Baht account. Amounts transferred of 50,000.00 USD or more (amount subject to change) will immediately qualify for a Foreign Exchange Transaction Form which should be requested after the transfer.
- When making a money transfer, it is important to specify that the money being transferred is for the purpose of purchasing the condominium unit, and to include details such as the condominium unit number, building, project, and full purchase price.
- Transfers of funds should be made in foreign currency and not Thai Baht.
- Please keep all Foreign Currency Transaction Forms to use later during the ownership transfer process. The total amount of money transferred must be no less than the net price of the condominium unit bought.
- In the case where such a transaction is less than 50,000.00 USD, the bank will issue a credit note with a confirmation letter which can be presented to the Land Office when registering ownership of the property.
- In the case where such a transaction is more than 50,000.00 USD, the bank will issue a FOREX Transfer Form which will be needed to transfer the unit under foreign ownership and also remit money back out of Thailand if needed in the future.
- When transferring payment to the bank account of Sansiri PLC, please be aware that there are several Sansiri affiliate companies. The following is an example of the information you will need when transferring payment to one of Sansiri’s affiliate’s bank accounts:
Bank Account Name : N.E.D Management Co., Ltd.
Bank Name : Siam Commercial Bank (SCB)
Bank Account No. : 401-632-318-1
Bank Address : Siripinyo Building
SWIFT CODE : SICOTHBK
- To obtain a Foreign Currency Transaction Form, please take note of the following:
- The name of the remitter must be the same as that of the purchaser. The full name and address of both the remitter and the beneficiary must be filled in.
- Transactions must be made in foreign currency and not converted into Thai Baht. Conversion into Thai Baht will be taken care of by the bank.
- In the transfer instructions, clearly specify the purpose of the transaction :
“For the purchase of condominium Unit No._________ in _________ Tower, _________ Project”
The above wording will ensure that there is no misinterpretation by the Land Department. As previously mentioned, condominiums have a special property status in Thailand, and it is important not to replace the word ‘condominium’ with other words which may be used synonymously in other countries.
- Include the overseas and beneficiary bank charges for each individual payment.
Payment Instalment No.1 Baht 1,500,000.-
Assume bank charges = US $200 Baht 8,000.-
TOTAL Baht 1,508,000.-
Assume exchange rate = 40 Baht/US$
Amount to be transferred US$ 37,700.-
When transferring ownership of property in Thailand, it is necessary to provide the following documentation and evidence:
- A foreigner who has been permitted residence status in the Kingdom according to immigration law is required to produce a passport, indicating the foreigner’s nationality, and a certificate of residence (either TM. 11, TM. 15 or TM. 17 Form, as the case may be) issued by the Immigration Division, National Bureau of the Royal Thai Police Force. In the case of a foreigner who possesses a foreigner identification card issued by the Police Station in whose jurisdiction the foreigner is domiciled, such card can be used as evidence for the purpose of applying for acquisition of ownership of a condominium unit without the need to produce a passport.
- A foreigner who has been permitted to enter the Kingdom according to the law on promotion of investment is required to produce a passport, indicating the foreigner’s nationality, and a letter from the Office of the Board of Investment certifying that the individual has been granted permission to stay in Thailand according to the law on promotion of investment.
- A juristic person deemed by law to be an alien under sections 97 and 98 of the Land Code, who has been registered as a juristic person in accordance with Thai law, is required to produce evidence of registration as a juristic person in accordance with Thai law, i.e., a certificate issued by the corporate Registrar of the Department of Business Development, Ministry of Commerce, must be produced in the cases of a limited company, public limited company, limited partnership, or registered ordinary partnership.
- A juristic person deemed an alien under the Alien Business Operation Act B.E. 2542 (1999), who is granted a certificate of promotion of investment according to the law on promotion of investment, is required to produce a letter from the Office of the Board of Investment certifying that the person has been granted stay for promotion of investment according to the law on promotion of investment.
- A foreigner, or a juristic person deemed by law to be a foreigner, who brings a foreign currency into the Kingdom or withdraws money from a non-resident Baht account or foreign currency account, should provide evidence of transferring money of no less than the net price of the condominium unit being purchased. The following documentation is also necessary, depending on the case:
- Foreign Currency Declaration Form from Thai Customs Department
- Evidence of foreign currency being brought into Thailand (Tor.Tor.3 Form, Foreign Exchange Transaction Form, or Credit Note)
- Evidence of the depositing of foreign currency into a Thai bank account (Bank Certificate)