The 49% rule
Thailand's Condominium Act B.E. 2522 (1979) permits foreigners to hold freehold title to condominium units. The binding constraint is set by Section 19 bis: aggregate foreign ownership in any single condominium building cannot exceed 49% of the total saleable floor area of all units combined.
The limit is statutory and calculated by floor area, not unit count. A 100-unit building of mixed sizes tracks the quota in square metres. Each separately registered building in a multi-building development carries its own 49% ceiling.
The Land Office checks the building's quota at the moment of transfer registration. If the foreign quota is exhausted, the Land Office refuses to register the transfer regardless of the contract or payments already made (Condominium Act §19 bis, §19 quinque).
What you need at the Land Office
Funds for the purchase must be remitted into Thailand in foreign currency and converted to Thai baht by a Thai-licensed bank. The receiving bank issues a Foreign Exchange Transaction form (FET, formerly Thor Tor 3 / ต.ท.3) as evidence. Without an FET or its sanctioned substitute, the Land Office will refuse the transfer (Bank of Thailand FX regulations; Condominium Act §19).
A single inward transfer of USD 50,000 or more triggers automatic FET issuance and Bank of Thailand reporting. For transfers below USD 50,000 (or for split transfers totalling the purchase price), the Land Office accepts a bank-issued credit note or letter of guarantee in lieu of an FET, provided the documents identify the buyer, the property, and the foreign-currency origin of funds.
Three common reasons banks refuse to issue an FET: funds wired in baht rather than foreign currency, the SWIFT remittance reference omitting the condominium purpose, or funds arriving from a corporate account when the buyer is an individual. The reference cannot be amended after settlement.
Since 29 December 2025 the Bank of Thailand requires an additional documentation layer on the high-value end. Single inbound transfers of USD 200,000 or more destined for Thai real estate must present full supporting documents (typically the signed sale-and-purchase agreement) to the receiving bank on the transaction day. The earlier KYB shortcut, which let established bank customers transfer at this size on a lighter file, no longer applies to real-estate purposes. Buyers in this band should prepare the SPA, identification, and source-of-funds evidence before the wire lands rather than after.
When a building reaches 49%
Popular Pattaya buildings regularly sit at quota. Once the building hits 49%:
- Remaining units can only transfer to Thai nationals, or be granted to foreigners under a registered leasehold (maximum 30 years, Civil and Commercial Code §540).
- Some developers reserve foreign-quota units and release them at a 10-30% premium.
- Informal waitlists run on the principle that quota reopens when a foreign owner sells to a Thai buyer.
- Nominee structures (a Thai shareholder or buyer fronting for a foreigner) are illegal under the Foreign Business Act §36 and increasingly detected. Since October 2025 the Department of Business Development operates the Intelligence Business Analytic System (IBAS), which cross-references DBD corporate filings with Revenue Department tax records and AMLO data to flag patterns consistent with nominee ownership.
Houses, villas, and land
Foreigners cannot hold land title in Thailand (Land Code §86). The compliant routes for villa or land use are:
- Registered leasehold, capped at 30 years per Civil and Commercial Code §540. The lease must be registered at the Land Office to bind successors. A separate freehold title to the structure on the leased land is possible.
- Thai company structures with a 51% Thai shareholding are increasingly enforced against where the Thai shareholders are passive or unfunded. Under DBD Order 2/2568 (Royal Gazette, 22 December 2025; effective 1 January 2026), Thai shareholders in companies with any foreign involvement must provide three months of personal bank statements evidencing the source of their capital at incorporation or share-transfer stage.
The Supreme Court's Judgment No. 4655/2566 (delivered 18 March 2025) held that pre-signed lease-renewal clauses extending beyond the initial 30-year term are personal contractual promises only. They do not run with the land, do not bind successor owners, and cannot be specifically enforced against the lessor's heirs or assignees. The "30+30+30" lease structure marketed for decades has lost the legal weight it was sold on (Section 540 CCC; Supreme Court 4655/2566).
Common misconceptions
"I can buy any condo." Only condos where foreign quota remains AND where the buyer can evidence overseas remittance through an FET (or substitute bank documentation).
"My lawyer said the company structure is safe." Enforcement is tightening on two tracks. The administrative track is live: DBD Order No. 1/2569 came into effect on 1 April 2026, requiring written investment confirmations and source-of-funds evidence at company registration where foreign involvement is present. The statutory track, the Foreign Business Act amendment introducing an "actual control" test, asset-seizure powers, and AMLA predicate-offence classification, completed public consultation on 30 April 2026 and is not expected to pass parliament before 2027. Existing structures that rely on passive or unfunded Thai shareholders carry rising exposure from the administrative tightening even before the statutory amendment lands.
"Buying property gives me a visa." Property ownership confers no immigration status on its own. The Long-Term Resident (LTR) Wealthy Pensioner visa is the one route where Thai real estate has direct visa weight: applicants aged 50+ with USD 40,000-80,000 in annual passive income can satisfy the lower-income track by holding at least USD 250,000 in qualifying Thai assets, of which Thai real estate is one accepted category (BOI LTR programme).