Condo transfer taxes and fees

When a condominium is transferred from one person to another taxes and fees are on the spot at the time of transfer imposed by the provincial or local land branch office where the conveyancing of the condominium takes place. The taxes could be paid either by the seller or the buyer of the condominium or divided between them. The land office will calculate the payable amounts and issue a receipt specifying the total amounts of transfer fees, specific business tax, local municipality tax, stamp duty and income withholding tax. These calculation are based on the registered sale value of the condominium or the government assessed registered value of the condominium.

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Licensed condos vs leasehold residential apartment buildings in Thailand

In tourist resort areas such as Pattaya, Phuket and especially Koh Samui leasehold apartments are often confused with condominiums licensed and registered under the Thailand Condominium Act. On the outside these buildings look the same but legally they cannot be compared. Buying a condo in a building registered under the Condominium Act is not the same as buying a leasehold apartment in an unregistered apartment building.

With leasehold apartment in this blog post we refer to an apartment complex not registered under the Condominium Act. For lease of a condominium unit registered under the Condominium Act we refer to the article 'lease purchase of a condominium'

Dispose of a condo by will to another foreigner

Bequeath a condominium under provisions of a will

A foreigner who complies with the Condominium Act can own a condominium unit in Thailand outright, but upon his death his right of foreign freehold ownership won't pass to his foreign successors/ heirs. Any foreigner who receives a condo in Thailand by inheritance must qualify for ownership under section 19 of the Condominium Act or he must sell the unit within one year of acquisition by inheritance.

Condos in Thailand may be inherited by foreigners through testamentary or intestate succession, however, in order to legally register ownership of the unit with the Land Department the receiving foreigner must proof that he qualifies for ownership under section 19 of the Condominium Act.

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The condominium lease option

If the 49 percent foreign ownership quota in a condominium project is sold-out it is possible to lease the remaining condominium units under 30-year condominium lease agreements to foreigners, as long as a Thai person is the freehold owner of the condominium unit.

Lease of a condominium unit is governed by the Civil and Commercial Code and not the Condominium Act. As opposed to foreign freehold ownership of a condominium there is no special laws regulating lease of condos by foreigners in Thailand and the same rules apply as in any other real estate lease. There is in principle for foreigners no FET form needed to register a lease agreement at the land office but local land offices (Phuket) may ask for one. It is in any case recommended to obtain a foreign exchange transaction form for the remittance of foreign currency into Thailand.

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