Foreign quota in Thailand condos refers to the legal cap set by the Thailand Condominium Act 1979: foreigners may collectively own no more than 49% of the total saleable floor area in any single condominium building. Thai nationals must hold the remaining 51%. Once exhausted, additional foreign buyers can only take leasehold.
What Is the Foreign Quota for Condos in Thailand
The foreign quota is the cornerstone of how foreigners legally own real estate in Thailand. Established by the Thailand Condominium Act B.E. 2522 (1979) and amended several times, the law allows non-Thai individuals to hold freehold title to condominium units, but only within a strict 49% ceiling of the total unit area in the registered building. Thai citizens or Thai-majority companies must own at least 51%.
This quota applies per project, not per developer. A single tower of 100 units with equal floor plans means roughly 49 units are available to foreign buyers in freehold form. The remaining 51 units are reserved exclusively for Thai owners. The calculation is based on saleable area (square meters), not unit count, so a foreigner buying a large penthouse consumes a disproportionate share of the quota.
The quota was designed to keep Thai citizens with meaningful ownership in residential buildings while opening the property market to foreign capital. For most popular Phuket projects in Patong, Bang Tao, Kamala and Rawai, the foreign quota is closely tracked by the developer and the local Land Office. When the 49% threshold is reached, no further freehold transfers to foreigners can be registered. See our freehold vs leasehold guide for the structural alternative.
How It Works for Foreigners
To take freehold ownership within the foreign quota, a foreign buyer must meet several Condominium Act requirements. First, the purchase funds must be transferred to Thailand from abroad in foreign currency. The receiving Thai bank issues a Foreign Exchange Transaction (FET) form, formerly known as a Tor Tor Sam, for any inbound transfer of USD 50,000 or more (or the equivalent threshold currently in force). This document proves to the Land Office that the funds originated outside Thailand and were properly converted to Thai baht.
The standard process is: (1) sign a reservation agreement and pay a booking fee; (2) sign the sale and purchase agreement; (3) instruct your home bank to wire the full purchase price in your name to the Thai seller, with the remitting reference clearly stating "for purchase of condominium unit X at project Y"; (4) collect the FET form from the receiving Thai bank; (5) attend the Land Office transfer appointment with the FET, your passport, and the developer or seller representatives. The Land Office then issues a new Chanote (title deed) in your name, with a notation that the unit is held under the foreign quota.
Before signing, ask the developer in writing for a current foreign quota report showing how many square meters in the project are already foreign-owned and how many remain. If the project is older or in a high-demand location, the foreign quota may already be exhausted. In that case the only legal path to occupy the unit long-term is a 30-year registered leasehold, which is a different ownership structure with different rights and exit options.
Costs and Taxes
The Land Office charges several official fees on every condominium transfer in Thailand. The headline costs are: Transfer Fee 2% of the appraised value (or contract value, whichever is higher); Withholding Tax 1% of the appraised value when the seller is a company, or progressive personal income tax when the seller is an individual; Stamp Duty 0.5% of the higher of appraised or contract value, but only if Specific Business Tax does not apply; Specific Business Tax (SBT) 3.3% of the higher of appraised or contract value, applied when the seller has owned the unit for less than 5 years.
How these fees are split between buyer and seller is negotiable and should be written into the contract. The market norm in Phuket new-build sales is "50/50 transfer fee, seller pays withholding and SBT or stamp duty." Always budget an additional 1% to 2% for legal due diligence, FET handling fees at the Thai bank (around 200 to 500 THB plus 0.25% commission), and condominium juristic person sinking-fund and common-area fees collected at handover. A safe rule of thumb is to allocate roughly 4% to 6% of the purchase price for closing costs on top of the headline ticket.
Common Pitfalls and Red Flags
The most common pitfall is buying a condo only to discover at the Land Office that the foreign quota is exhausted. The transfer cannot be registered as freehold and the buyer is forced into a leasehold or has to wait for a Thai owner to sell their unit out. Always demand a stamped quota letter from the developer or juristic person before paying anything beyond a small refundable reservation. Second, sending funds in Thai baht from your home country, or via an exchange office in Thailand, breaks the FET requirement and the Land Office will refuse the freehold transfer. Always remit in foreign currency.
Third, bureaucratic delays at the Land Office are routine, especially during peak season. Bring original documents, certified translations of your passport where required, and a Thai-speaking representative if you do not read Thai. Fourth, watch out for "company-held" condo units where the seller uses a Thai company structure to circumvent the quota. These often have a discount but inherit corporate liabilities and tax exposure. A clean foreign-quota freehold is always preferable. See our condo vs villa comparison for context.
FAQ
Can foreigners buy a condo in Thailand outright?
Yes. Foreigners may buy and hold freehold title to a condominium unit in Thailand, provided the building has not exhausted its 49% foreign quota and the buyer has remitted the purchase funds in foreign currency from abroad with a corresponding FET form issued by the receiving Thai bank.
What happens if the foreign quota is full?
If the 49% foreign quota in a building is full, the Land Office cannot register a new freehold transfer to a foreign buyer. The remaining legal options are a 30-year registered leasehold with renewal clauses, or waiting until a current Thai-owned unit in the building is resold, freeing quota for the foreign side.
Does the foreign quota apply to villas and land?
No. The 49% foreign quota applies only to condominium units under the Condominium Act. Foreigners cannot directly own land or villas built on land in their personal name. Common legal structures for villas are 30-year leasehold, Thai-majority companies for some commercial use cases, and freehold of the building separate from the land.
How do I verify the FET form?
Your receiving Thai bank issues the FET form after the inbound foreign-currency wire is converted to baht. Ask the branch's international remittance desk for it within a week of the transfer. The form must list your full name, the remitter, the purpose "purchase of condominium," and the project address. Keep the original for the Land Office appointment.
Can I resell a foreign-quota condo to another foreigner?
Yes. When you resell, the unit remains within the foreign quota allocation, so a new foreign buyer can take freehold without further consuming Thai-side quota. The new buyer still needs to remit the purchase price from abroad and produce their own FET form for the Land Office transfer.
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By Anna Baranova, Director, InDreams Phuket | Last updated: May 24, 2026
