The Condominium Act of 1991 states that non-residents who are buying a condominium must by law transfer the funds for the purchase of the unit from overseas, with the money being transferred entering Thailand as foreign currency. Any purchaser who buys property in Thailand needs to obtain a “Foreign Exchange Transaction Form” certificate for each payment. These certificates must be shown to the Land Department on transfer in order to register the condominium in your name.
When the money for the condo unit or villa is transferred to Thailand, you need to include in the transfer instructions from the foreign bank in your home country that the purpose of the transfer is to buy a condominium unit in Thailand. This is very important during the transfer process. Note however that Thai banks will only give you a “Foreign Exchange Transaction Form” certificate for transfers over the amount of US$ 50,000. When the amount is lower you must obtain a bank certificate from the Thai bank. If you have Thai Permanent Residence status, you can now buy the condo in Thai Baht (there is no need for a “Foreign Exchange Transaction Form”).
Note the transfer must be sent by Telegraphic Transfer, with a transfer identifying by name the purchaser being you. You can also where possible ask the third party to transfer the money for you to buy the property by identifying himself as the receiver. Note again as stated above you must note in the transfer that the purpose of the transfer is to buy a condo unit in Thailand.
The bank that receives money in a foreign currency will issue a Foreign Exchange Transaction Form, which contains the following information:
- The transferred amount in foreign currency
- The transferred amount in Thai Baht
- The name of the money sender
- The name of the money receiver
- The purpose of the transfer
The Land Department in Thailand will accept your name as being the sender and also the receiver of the transferred money. If the purchase is with 2 buyers then the sending bank must place both names of the people on the transfer instructions. Again it has to say for the purchase of property in Thailand.Once this is done the property transfer should be easy.
Speak to our property attorney in Phuket or Bangkok for more information about the transfer process and how best to ensure that the transfer is without problems. Call us today or walk into our offices located in all the main city centers of Thailand.