living in Thailand

News/ Family & Individual/ Buying a condo in Thailand as a foreigner

Buying a condo in Thailand as a foreigner

Marisa Chicarelli

06/01/2021

Foreigners who want to make a home in Thailand generally may not be able to buy land, but they can purchase a condominium as long as they meet certain criteria. The requirements are not that arduous, although there is some confusion regarding the source of funds. This article will shed some light on the process and requirements for buying a condo in Thailand.

(Note: this article discusses purchases by private individuals, not juristic persons or corporate entities.)

Three types of foreign individuals can buy condos in Thailand

Under the Condominium Act of 1979 (amended in 2008), there are five categories of “aliens” that can own a condominium in Thailand. The three that reference foreign individuals are:

Foreigners living in Thailand with Permanent Residence status;
Foreigners living in Thailand with a work permit and visa sponsored by a Board of Investment promoted company; or
Foreigners who pay with funds:
1. transferred into Thailand from overseas;
2. from a Thai-baht account where the account owner resides outside of Thailand; or
3. from a foreign currency-based deposit account.

In simple English, for buying a condo in Thailand, you must either a) hold a permanent resident permit or, b) work for a BOI company and hold a valid work permit/visa, or c) intend to legally bring in or have brought in foreign currency into the country to be used for the purchase of a condo (and properly notated as such).

This is important because in order to register ownership with the Land Department in your name, you will have to provide proof of your status under a, b, or c.

Take note of condominium foreign ownership quotas

A foreigner can buy into any condominium project anywhere in the Kingdom, as long as foreign ownership does not exceed 49% of the total space available for sale. The condominium project or juristic person will have to provide documentation certifying this to be submitted to the Land Department. It is the developer or juristic person management company’s responsibility to ensure the ratio is maintained, but you should have your attorney check as part of the due diligence process to ensure that your purchase is legitimate under Thai law.

Confusion sometimes occurs when paying for the condo

We typically find that there is a misunderstanding of the statute when it comes to payment for buying a condo in Thailand. Many banks and realtors will insist that all foreigners must bring money in from overseas to purchase a condominium unit. As this article points out, this is not the case, however there are only two very narrow categories where a buyer does not have to do this.

Unfortunately, if you are not a permanent resident or are not validly working for a BOI company, you may have to transfer locally parked funds out of Thailand and back in again to receive a Foreign Exchange Transaction (FET) letter from the bank. If the account is held by an overseas individual or is a foreign currency-based deposit, the bank may issue the letter based on the fact these funds originated overseas. Regardless, you need this letter when registering your purchase with the Land Department.

Please note: There are rare cases where individuals working in Thailand and living here on a long-term, non-immigrant visa with a work permit can pay with funds earned in Thailand. However, the bank where the funds are deposited must be willing to issue a confirmation letter of the source of these earnings and the Land Department in question must be willing to accept this letter in lieu of an FET. This is by no means a guaranteed outcome as it requires both the Land Department and the Thai bank to be amenable to this option.

GPS Legal can help when buying a condo in Thailand

GPS Legal has years of experience assisting in real estate transactions, both commercial and residential, all over Thailand. If you’re condo hunting and think you’ve found the perfect place, but now need help navigating the purchase process, contact us today for your free initial consultation.

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News/ Estate Planning/ On Becoming a Permanent Resident in Thailand

On Becoming a Permanent Resident in Thailand

Marisa Chicarelli

07/09/2019

If you plan on residing in Thailand for an extended period, becoming a permanent resident may be an option over applying for a visa or annual renewal. Once a year, the Immigration Department begins accepting permanent resident applications, usually from October to December; however, this year (2019), the application window was opened in July.

With Immigration only accepting 100 applications from each nationality annually and professional fees reaching as much as 200,000 baht in addition to costs and government fees, here is some information about permanent residency to help you make an informed choice.

Being a permanent resident has its perks

For any foreigner who has made Thailand their long-term home, becoming a permanent resident makes a lot of sense. Once granted, you will no longer need to worry about Thai visa applications, renewals, and 90-day reports. Permanent residents are also exempt from TM30 reporting requirements.

Furthermore, permanent residents, also known as “PRs”, may find the process for buying a condominium easier with direct access to local bank loans, although a PR still may not own land in Thailand. And while a permanent resident still requires a work permit to be legally employed in Thailand, companies hiring permanent residents do not need to meet the 4:1 local to foreign employee ratios since PRs do not require a separate “B” visa – companies only need to meet the capital requirements.

Becoming a permanent resident is also part of the path to Thai citizenship. While it is possible to obtain Thai citizenship without first obtaining your PR status (for instance if you are already married to a Thai), being a permanent resident eases the process.

Different categories and requirements for Thai permanent residency

Every adult applicant for permanent residency must meet these minimum requirements:

Living in Thailand for three consecutive years with unbroken non-immigrant visas and contiguous visa renewals up to the date of application;
Be subject to a criminal background check with Thai and “home country” authorities with no criminal record or outstanding warrants; and
Be able to understand and speak Thai at a conversational level.

Then, depending on the category the application is being filed under, there are separate requirements for:

Investment – subject to minimum 10 million baht for three years;
Working/Business – subject to minimum wage levels;
Family – subject to having the following relationships with a Thai citizen or an alien who already possesses a permanent residence permit:
- A legal husband or wife;
- A legal father or mother; or
- A minor child (under 20 years of age up to the application submission date and single);
Experts; or
Special circumstances determined on a case-by-case basis.

Some of these requirements also include tax and employment histories going back three years as well as confirmation letters from employers and government ministries.

Meeting all the requirements does not guarantee permanent residency will be granted. There is also an interview process with immigration officials to gauge Thai-language abilities and to assess suitability. Unfortunately, this can be a subjective determination, but it remains an instrumental part of the process.

GPS can help you navigate your way to permanent residency

Some may consider the permanent residency application process and fees too cumbersome, but others may find that this process outweighs the other standard visa alternatives, particularly those with businesses in Thailand or Thai family members. If you wish to discuss whether permanent residency is a viable path for you, contact GPS today for a free initial consultation.

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News/ Corporate & Finance/ Myths about Foreign Business in Thailand: Are You Doing This to Own Land?

Myths about Foreign Business in Thailand: Are You Doing This to Own Land?

Marisa Chicarelli

26/07/2019

At GPS Legal, we get many inquiries about starting a business in Thailand. We often find that these entrepreneurs have received misleading or even completely erroneous information. In this article, we would like to discuss land ownership by businesses in Thailand.

A Foreign Business Should Not Use Nominees to Own Land

Under Thai law, neither foreign individuals nor companies, with some exceptions, can own land in Thailand. Despite that, there are advisors who will recommend a foreigner set up a majority Thai-owned company to buy property or have a Thai individual own the property on their behalf. Both options are nominee arrangements, which are illegal in Thailand. The former is doubly so, as a nominee structure for business is also illegal in Thailand.

This may sound obvious, but a company should be established for doing business, not for the sole purpose of owning property for the foreigner/proprietor to live in.

Other Options are Available for Foreigners Who Want to Reside in Thailand

As Thailand has grown in popularity as a new home destination for foreigners who are drawn to the climate, local destinations, and affordability, there are those who would mislead naïve people into legally tenuous situations at a price.

If you do not want to just rent a house or apartment and prefer to establish stronger roots in Thailand, you might choose to buy a condominium. Foreigners can purchase freehold condos in Thailand so long as the aggregate of total owners are a majority Thai.

If your spouse is Thai, he or she can own property with you as a registered resident. However, you both must file papers with the Land Office stating that you relinquish all claims to the property (i.e., the land is no longer a marital asset). You are still entitled to inherit the property as a marital asset; however, you must divest it within 12 months. Also, if you paid for the property yourself, your financial interests can be protected as a mortgagee.

One option for foreigners to directly own real property is available with a purchase of 40 million baht or more in qualified investments, in which case, you can apply for permission from the Land Department to acquire up to 1 rai (about 1,600 square meters) of land for residency purposes.

And although not ownership, you may lease a property for up to 30 years. Unfortunately, leases with a longer term are not enforceable, and renewing a lease after the 30 years is not a lease right protected under Thai law, meaning it too may not be enforceable. Then there is also superficies and usufructs, by which you can receive long term rights to property under certain conditions.

GPS Legal is Well-Versed in Real Estate in Thailand

GPS Legal understands why you would want to move to Thailand. Let us help you do it the right way so don’t have to worry. Contact us today find out what your options are and how we can help you!

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News/ Corporate & Finance/ TM30 Paperwork Now Required for All Visa Types

TM30 Paperwork Now Required for All Visa Types

Marisa Chicarelli

24/04/2019

Although in affect since 1979, TM30 filings were loosely enforced and mainly expected from hotels, focusing on travelers with tourist visas. However, over the last few years, Thai police and immigration authorities have looked to TM30s to keep track of foreigners, particularly those here illegally through overstayed visas or involved criminal acts. Since they may not necessarily be staying at hotels, the full definition of the law is now being enforced. Unfortunately, this resulted in increased bureaucracy for all foreigners, especially those with long-term visas who plan on renewing them.

TM30 Filing is the Property Manager or Owner’s Responsibility

According to the Immigration Act of 1979, Section 38:

The householder, the owner, or the possessor of a dwelling place or a hotel manager, who takes in, as a resident, an alien with permission to temporarily stay in the Kingdom, shall notify the competent official at the immigration office located in the locality in which the house, dwelling place, or hotel is located within twenty four hours from the time the alien has taken residence. If there is no immigration office located in that locality, the police officer at a police station of that locality jurisdiction shall be notified.

Basically, any property owner or manager hosting a foreigner must register them by filing a TM30 either at Immigration (if in Bangkok) or at a local police station (if in another province) within 24 hours of that foreigner staying with them. There is an online option, but, as of this posting, its accessibility is inconsistent.

This applies to all types of properties and to all foreign visitors staying for any time period, including married couples where the Thai spouse owns the property and foreigners who own their own condominium. In the case of the former, the Thai spouse must file regarding their foreign spouse, and, for the latter, the foreign owner/resident must file regarding themselves.

Property owners or managers who do not file TM30s within the deadline may face a fine of up to THB 10,000.

But Foreigners Need TM30s For Visas

For tourists here on a short-term visa, this is not necessarily a problem. The issues arise for foreigners who live or work in Thailand and will be applying for a long-term visa or renewal. This is can be especially problematic if you plan on traveling abroad, as a TM30 filing is required every time you enter Thailand, even if you are at the same address. This is because now the TM30 filing is mandatory for almost all long-term visa applications and renewals.

Many owners/managers are unaware or unwilling to take the time to file a TM30. One way around this is to have the landlord sign over a power of attorney or proxy specifically related to TM30s. However, if there’s a chance a fine may be levied, the property owner/manager must appear in person.

GPS Legal Can Help

New enforcement of an old regulation can cause a lot of confusion, and this case is no different. GPS Legal has been tracking this development and speaking to relevant officials to help our clients ensure their paperwork is up to date. If you are not sure about your TM30 situation, please contact us, and we will be happy to discuss your options with you.