16 October 2025
Buying property in Thailand can be an exciting opportunity, whether you’re investing, retiring, or relocating. However, the legal framework and property ownership rules differ significantly from many other countries. Taking the right precautions before purchasing ensures your investment is safe and legally protected.
Here’s a comprehensive guide to the most important steps and considerations when buying property in Thailand.
1. Understand Ownership Laws for Foreigners
Foreigners cannot directly own land in Thailand. However, there are several legal ways to acquire property:
Condominium Ownership: Foreigners can own up to 49% of the total saleable area of a condominium project. This is the most straightforward and secure form of ownership.
Leasehold Property: You can lease land or a villa for up to 30 years, with renewal options. This is common for houses and pool villas.
Thai Company Ownership: Some buyers form a Thai company to hold the land. This method requires legitimate business activity and compliance with Thai company law — not a “shell company.”
Married to a Thai Citizen: If married to a Thai national, land can be registered under your spouse’s name, but you must sign a declaration waiving any claim to the property.
Tip: Always confirm ownership structure before signing any agreement, and consult a licensed Thai lawyer to ensure compliance with Thai property law.
2. Conduct Proper Due Diligence
Due diligence is essential before placing a deposit or signing a contract. It ensures that the property is legally clear and free from risks.
Key checks include:
Land Title Verification: Confirm the title deed type (Chanote is the most secure) and ownership at the Land Office.
Encumbrances: Check for mortgages, liens, or legal disputes.
Access and Utilities: Confirm legal road access and availability of water and electricity connections.
Zoning & Building Permits: Verify that construction complies with zoning laws and building regulations.
Developer Reputation (for off-plan): Review previous projects, completion history, and registered ownership ratios.
Tip: Request copies of the title deed (Chanote), house registration, and building permit for review before making any payment.
3. Review All Contracts Carefully
Contracts in Thailand are often written in Thai. Always request an English translation and have both versions reviewed by a property lawyer.
Important points to check:
Correct names and passport/ID numbers
Payment terms, deposit, and balance schedule
Transfer of ownership conditions
Furniture or fixture inclusions
Penalties for delay or default
Responsibility for transfer taxes and fees
Tip: Never sign a contract drafted only by the seller or developer without independent legal review.
4. Check Financial and Tax Obligations
Before transferring ownership, you should know all financial obligations associated with the property.
Typical fees include:
Transfer fee: 2% of the registered value (usually shared 50/50).
Stamp duty: 0.5% (if no specific business tax).
Specific business tax: 3.3% (if property sold within 5 years).
Withholding tax: Based on the seller’s income or company type.
Tip: Ask your lawyer or agent to estimate total costs in advance so there are no surprises at the Land Office.
5. Be Cautious with Off-Plan or Pre-Construction Projects
Buying off-plan can be attractive due to lower prices and flexible payments, but it also carries risk.
Check before you buy:
Developer’s legal ownership of the land
Building permits and environmental approvals
Construction schedule and progress reports
Escrow or payment protection system
Reputation and track record of the developer
Tip: Avoid large deposits upfront. A standard structure is 25–30% on contract signing, followed by staged payments based on construction progress.
6. Register Properly at the Land Office
All property ownership transfers (including leases and condominiums) must be registered at the Land Department.
This is the only legal proof of ownership in Thailand.
During transfer:
Both buyer and seller (or their legal representatives) must be present.
All payments should be completed at the Land Office.
You’ll receive an updated title deed (Chanote) showing your name or lease rights.
Tip: Never finalize payment outside the Land Office before the title is legally transferred.
7. Work with Qualified Professionals
Foreign property buyers should always work with reputable, licensed professionals:
Real Estate Agent and/or lawyer: To help find vetted properties and negotiate on your behalf. Due diligence, contracts, and registration.
Accountant or Tax Advisor: If purchasing through a company or rental investment.
Tip: Choose service providers with local experience and English (or multilingual) support.
8. Think Long-Term: Maintenance, Resale, and Inheritance
Once you’ve purchased, consider the long-term aspects of ownership:
Maintenance fees: Condos and gated communities charge monthly common area fees.
Resale process: Ensure ownership documents are always up to date.
Inheritance: Foreigners can inherit condominiums, but not land, under Thai law. Proper estate planning is recommended.
Tip: Keep a copy of every receipt, contract, and official document in both physical and digital form.
Conclusion
Purchasing property in Thailand can be a rewarding and secure investment when done correctly. Understanding the laws, performing due diligence, and working with trusted professionals are the keys to a safe transaction.
At Selection, we work closely with licensed lawyers and local authorities to help our clients buy property in Thailand safely and confidently — whether it’s a holiday condo, retirement villa, or long-term investment. Browse our selection of properties with peace of mind!