The Complete Guide for Overseas Buyers Purchasing Property in Thailand

Introduction

Thailand has long been a favourite destination for Irish travellers, retirees and property investors. Its tropical climate, modern infrastructure, relatively low cost of living and attractive rental yields make it an appealing market for overseas buyers. Yet, buying property abroad can feel daunting, especially when you have to navigate foreign legislation, currency transfers and unfamiliar tax regimes.

This guide walks you through everything an Irish expat or investor needs to know before purchasing property in Thailand. From legal ownership limits and the paperwork required at the Land Office, to taxes, financing options and the pros and cons of buying a condominium versus a house, the article provides a clear roadmap to help you make an informed decision and avoid costly pitfalls.

1. What Types of Property Can Foreigners Own?

1.1 Condominiums (Condos)

Full ownership: Foreigners may own the freehold of a condominium unit outright, provided the building’s foreign ownership quota does not exceed 49 % of the total saleable area.
No land ownership required: The law permits foreigners to own the unit itself, not the land beneath it.
Popular for investors: Condos in Bangkok, Phuket, Pattaya and Chiang Mai often deliver 7‑9 % gross rental yields and capital appreciation of 5‑10 % per annum in high‑demand locations.

1.2 Land and Houses

Direct land ownership is prohibited for non‑Thai nationals. However, there are a few legal routes:
- Leasehold: Up to 30 years (renewable for another 30 years) – commonly used for beachfront villas.
- Thai company: Setting up a Thai limited company (with at least 51 % Thai shareholders) can hold land, but this structure is heavily scrutinised and not recommended for first‑time buyers.
- Married to a Thai national: A Thai spouse can hold the title, while the foreign partner retains a usufruct or a long‑term lease.

Bottom line: For most overseas buyers, a condominium is the simplest and safest way to own property in Thailand.

2. Legal Requirements and Documentation

Requirement	Details
Foreign Ownership Quota	≤ 49 % of total floor area in the condo project. Verify the developer’s foreign ownership certificate.
Funds Transfer	Money must be transferred from abroad in foreign currency and converted to Thai Baht (THB) by a Thai bank.
Foreign Exchange Transaction Form (FETF)	Issued by the receiving bank; it proves the money came from overseas and is required for registration at the Land Department.
Identification	Passport, Thai tax identification number (if applicable) and, for some transactions, a work permit or residence permit.
Power of Attorney (if needed)	Allows a Thai lawyer to act on your behalf for document signing. Must be notarised and authenticated at the Irish embassy/consulate.
Sale & Purchase Agreement (SPA)	Should detail price, payment schedule, fee responsibilities and any conditions precedent (e.g., loan approval).

Tip: Engage a bilingual Thai‑English solicitor experienced in foreign property transactions. They will verify the title deed (Chanote is the most secure) and ensure the FETF and SPA are correctly drafted.

3. Step‑by‑Step Buying Process

Research & Choose a Location
- Bangkok offers urban convenience and high rental demand.
- Phuket and Koh Samui are ideal for holiday‑home investors.
- Chiang Mai provides a lower cost of living and a growing expat community.
Engage a Reputable Real Estate Agent
- Look for agents registered with the Thai Real Estate Association and with a proven track record of assisting foreign buyers.
Shortlist Properties & Conduct Due Diligence
- Verify the developer’s licence, the building’s management corporation (juristic person) and any outstanding maintenance fees.
- Request the title deed and confirm it is a Chanote (original title) or Nor Sor 3 Gor (registered title).
Reserve the Unit
- Pay a reservation fee (usually 1‑2 % of the price) to take the unit off the market. The fee is typically refundable if the sale does not proceed.
Negotiate Price & Fee Allocation
- In Thailand, negotiation is common. Agree in writing who pays the transfer fee (2 % of appraised value), stamp duty (0.5 %), specific business tax (3.3 %) (if applicable) and withholding tax (1 % or based on seller’s income).
- For new developments the buyer usually pays 1 % transfer fee, with the developer covering the remainder.
Sign the Sale & Purchase Agreement
- Pay the agreed deposit (normally 10‑30 % of the purchase price).
Transfer Funds & Obtain FETF
- Transfer the remaining balance to a Thai bank, obtain the FETF, and keep the receipt for registration.
Register the Transfer at the Land Office
- Your solicitor will present the SPA, FETF, passport copies and tax certificates.
- Pay the transfer fee (2 % of the Land Department’s appraised value) and any applicable taxes.
- Receive the new title deed in your name.
Post‑Purchase Tasks
- Open a Thai bank account for ongoing expenses.
- Set up a maintenance fund contribution (usually monthly).
- If you plan to rent, obtain the building’s rental consent and register the lease with the Land Department (mandatory for leases over three years).

4. Financing – How to Pay for Your Thai Property

Option	Pros	Cons
Cash Purchase (Foreign Currency)	No mortgage interest, simple currency transfer, no need for Thai work permit.	Requires substantial liquid funds; exchange‑rate risk if you later need to repatriate money.
Thai Bank Mortgage	Allows leverage (up to 70 % of value) and spreads payments over 15‑20 years.	Only available to foreigners with a Thai work permit, permanent residence, or a Thai spouse. Interest rates range from 5‑7 % (as of 2024).
International Mortgage	Some Irish banks have partnerships with Thai lenders; may offer better rates for EU residents.	Complex paperwork, possible higher fees, and limited availability.
Developer Financing	Often 0‑5 % down payment, flexible terms for new projects.	Usually higher interest rates; tied to the developer’s financial health.

Recommendation for Irish investors: If you have the capital, a cash purchase avoids the bureaucracy of obtaining a Thai mortgage and eliminates foreign‑exchange exposure over the loan term.

5. Taxes and Ongoing Fees

5.1 Taxes When Buying

Tax	Rate	When Applied
Transfer Fee	2 % of the Land Department’s appraised value	Paid at the Land Office (normally split 50/50).
Specific Business Tax (SBT)	3.3 % of sale price or appraised value (whichever is higher)	Applies if the seller has owned the property < 5 years.
Stamp Duty	0.5 % of appraised value	Payable only if SBT is not applicable.
Withholding Tax	1 % of sale price (or personal income tax rate for individuals)	Deducted from the seller’s proceeds; the buyer may withhold and remit to the Revenue Department.

5.2 Annual Property Tax (Since 2020)

Primary residence up to THB 10 million: Exempt.
Value above THB 10 million: 0.02 % on the excess.
Secondary or investment property: 0.02 % – 0.10 % depending on land use and location.

Example: A condo valued at THB 12 million used as a rental property incurs THB 2,400 (0.02 % of 12 M) per year.

5.3 Rental Income Tax

Residency	Tax Treatment
Thai tax resident (≥ 180 days/yr)	Progressive personal income tax 0‑35 % on net rental profit after allowable deductions (e.g., 30 % standard deduction, maintenance, loan interest).
Non‑resident	Flat 15 % withholding tax on gross rental income, unless a tax treaty reduces it. The 15 % can be credited against Irish tax under the Ireland‑Thailand Double Taxation Agreement.

5.4 Capital Gains

Thailand does not levy a separate capital gains tax. Gains are captured through the withholding tax and, if the sale occurs within five years, the Specific Business Tax.

5.5 Inheritance Tax

Threshold: THB 100 million (≈ €2.5 million).
Rate: 5 % for spouses/children, 10 % for other heirs.
Transfer fee on inheritance: 0.5 % (spouse/descendant) or 2 % (others).

6. Practical Tips for Irish Buyers

Currency Management – Use a specialist FX provider to lock in favourable rates and avoid the 1‑2 % spread typical of retail banks.
Insurance – Purchase building insurance (often covered by the condo corporation) and consider contents insurance for personal belongings.
Rental Management – If you intend to let the unit, hire a reputable property management company. They can handle short‑term rentals, collect rent and ensure compliance with the building’s rules.
Legal Costs – Budget 1‑2 % of the purchase price for solicitor fees, title searches and translation services.
Travel for Due Diligence – It is advisable to visit the property in person, meet the developer/agent and inspect the building’s common areas before signing any contract.
Stay Informed on Visa Rules – A Thai Retirement Visa (OA) or Smart Visa can provide a longer stay and may simplify banking and tax matters.

7. Common Pitfalls and How to Avoid Them

Pitfall	How to Avoid
Buying in a project that exceeds the 49 % foreign quota	Request the foreign ownership certificate and confirm the current percentage with the developer.
Using a non‑registered agent	Verify the agent’s licence with the Real Estate Broker Association of Thailand.
Ignoring the building’s management fees	Ask for the latest monthly sinking fund statement; high fees can erode rental returns.
Assuming you can rent on Airbnb without restriction	Check the condo’s by‑law; many buildings prohibit short‑term rentals or require a hotel licence.
Failing to declare rental income in Ireland	Report the income on your Irish tax return and claim any foreign tax credit under the DTA.

8. Summary Checklist for Your Thai Property Purchase

Confirm the condo project’s foreign ownership quota ≤ 49 %.
Open a Thai bank account and arrange the FETF for fund transfer.
Hire a Thai‑English solicitor to review the SPA and title deed.
Agree in writing who pays transfer fee, SBT, stamp duty and withholding tax.
Verify the type of title deed (Chanote preferred).
Budget for legal fees (≈ 1‑2 % of price), registration fees (2 %) and annual property tax (0.02 %).
If renting, understand income tax rates and obtain building consent for leases.
Keep copies of all receipts, contracts and tax certificates for Irish tax compliance.

Conclusion

Buying property in Thailand can be a rewarding investment and a gateway to a relaxed lifestyle in the “Land of Smiles”. By understanding the legal framework, adhering to the 49 % foreign ownership rule, managing currency transfers correctly, and budgeting for the modest but varied taxes and fees, Irish expats and investors can navigate the process with confidence.

Take the time to work with experienced professionals—real estate agents, solicitors and tax advisers—who understand both Thai law and Irish tax obligations. With careful planning, your Thai property can become a valuable asset, a comfortable holiday home, or a steady source of rental income for years to come.

Happy house hunting!