Frequently asked questions

Real estate in Thailand — buying, renting and investing. Clear, up-to-date answers from our on-the-ground experts for foreign buyers, tenants and investors.

Buying in Thailand

Everything a foreign buyer needs to know before signing for a condo, a villa or land in Thailand.

  • What is the foreign quota on a condominium in Thailand?
    Thai law (the Condominium Act, B.E. 2522) allows foreign nationals to own up to 49% of the total saleable floor area of a condominium building in freehold. Beyond this quota, only Thai buyers can purchase, or you have to go through a leasehold structure. Before any agreement, ask the agent or the juristic person for the current foreign ratio; a serious agent will provide you with the Foreign Quota letter issued by the Land Office.
  • What is the difference between freehold and leasehold in Thailand?
    Freehold is full ownership: your name (or your company's) appears on the Chanote, and it can be transferred and resold freely. It is open to foreigners only for condos (within the 49% quota). Leasehold is a long-term lease of 30 years, generally renewable twice (30+30+30), registered at the Land Office. This is the usual way for a foreigner to "own" a villa or land. Leasehold is secure if it is properly registered, but the residual value declines as the end of the lease approaches — a key point for resale.
  • What is the Chanote title (Nor Sor 4 Jor)?
    The Chanote (officially Nor Sor 4 Jor) is the strongest title deed in Thailand. It is issued by the Land Department after precise GPS surveying and guarantees full and complete ownership, enforceable against third parties. Any serious purchase should involve a Chanote — beware of Nor Sor 3, Nor Sor 3 Gor or Sor Kor 1, which are inferior titles carrying real legal risk. Always request a recent certified copy (less than 30 days old) before the transfer.
  • Can a foreigner obtain bank financing to buy in Thailand?
    Local banks rarely grant conventional mortgage loans to non-residents. A few institutions (UOB Singapore, ICBC Thai, Bangkok Bank Singapore branch) offer loans in USD or SGD, generally for condos above 3M฿, over 10–15 years, at rates of 6–8% with a down payment of 30–50%. The majority of foreign buyers pay in cash, via an international transfer (the FET form is mandatory for the future repatriation of funds), or via developer financing (staged payments up to completion).
  • What taxes and fees should you expect when buying property in Thailand?
    At the signing at the Land Office, expect roughly: 2% transfer fee (often split 50/50 between buyer and seller), 0.5% stamp duty OR 3.3% Specific Business Tax if the seller resells within 5 years, and a variable withholding tax (1% for a company, a progressive scale for an individual). In total, budget 4–6% in transaction costs, plus legal fees (50,000–80,000 ฿). For a new condo, add the sinking fund (≈ 500–700 ฿/m²) and 1 year of common area fees to be paid in advance.

Renting in Thailand

Practical advice for foreign tenants: visas, contracts, utilities, deposits and services.

  • Which visa should you choose to rent long-term in Thailand?
    To rent a home for more than 30 days, you need a suitable visa: the Non-Immigrant O (retirement, from age 50, with 800,000 ฿ in a Thai account or 65,000 ฿/month in income), the Non-Immigrant B (work), the Non-Immigrant ED (studies), the DTV Visa (digital nomads, 10 years), the Thailand Privilege (formerly Elite, 5 to 20 years), or the LTR Visa (10 years, for talents and investors). A 60-day tourist visa does not allow you to open a water/electricity meter in your name and complicates the landlord's TM30 registration.
  • Is it better to rent monthly or yearly in Thailand?
    On a yearly basis, you benefit from rates 30 to 50% lower than the monthly tourist rate, but the lease (often 12 months) is generally non-terminable without losing your deposit. On a monthly basis, you have total flexibility but pay the Airbnb/serviced apartment rate. For a stay of more than 6 months, the annual lease is almost always more cost-effective. Note: renting out a condo on a short-term basis (< 30 days) is prohibited by the Hotel Act unless licensed — check the condominium rules before subletting.
  • What are the common area fees (common fees) in a condo in Thailand?
    The common area fees (CAM) cover 24/7 security, cleaning of common areas, and maintenance of pools, gyms and gardens. They are charged per m² per month: expect 30–50 ฿/m²/month in a standard condo, 60–100 ฿/m²/month in a high-end residence with hotel-style services. They are added to the rent, and are generally paid by the owner (to be checked in your lease). The sinking fund, for its part, is a one-off contribution to the reserve fund, due at the time of purchase.
  • What security deposit is required to rent in Thailand?
    The standard is 2 months' rent as a deposit + 1 month in advance, paid at signing. The sum is held by the owner (not placed in escrow as in France) and returned 30 to 60 days after the check-out inventory, less any damage and unpaid bills. To limit disputes, insist on a detailed move-in inventory with dated photos, and include a clause specifying the deadline and the account for the refund.
  • How do water and electricity work in a rental?
    Electricity is billed by the PEA (provinces) or the MEA (Bangkok), at around 4–5 ฿/kWh at the residential rate. Many owners apply a marked-up rate of 6–8 ฿/kWh — this is legal but must be stated in the lease. Water is billed by the MWA (≈ 18 ฿/m³); in a condo, it often goes through the juristic person with a mark-up. Fibre internet (AIS, True, 3BB) costs 500–900 ฿/month for 500 Mbps–1 Gbps, generally at the tenant's expense and installable within 48 hours.

Investing in Thailand

Strategies, yields and the regulatory framework for foreign investors in Thai real estate.

  • What ROI can you expect on a rental condo in Pattaya?
    Pattaya offers one of the best gross yields in Thailand: 6 to 8% per year on a well-located condo (Pratumnak, Wongamat, Jomtien beachfront), versus 4 to 5% in Bangkok and 5 to 7% in Phuket. The market is driven by Russian, Chinese and European demand for long-term and seasonal rentals. Net of costs (CAM, taxes, management 10–15%, vacancy 1–2 months/year), the real yield falls between 4.5 and 6%. Capital appreciation over 5–7 years is more modest than in Phuket — Pattaya is a cash-flow play, not a capital-gain play.
  • What is the BOI (Board of Investment) and how do you use it?
    The BOI is the Thai body that grants tax incentives and facilitates the creation of foreign companies. In real estate, it is mainly of interest to developers and operators of serviced apartments / hotels: corporate income tax exemption (up to 8 years), streamlined work permits, and the possibility for a foreign-majority company to own land in certain cases (industrial zones, large-scale tourism projects). For an individual investor buying 1–3 condos, the BOI is not the relevant route — it targets management structures from 50M฿ of investment upwards.
  • Does the retirement visa allow you to buy real estate in Thailand?
    The Non-Immigrant O-A (retirement, 50+) grants no specific land rights, but it makes life easier: it allows you to stay for 1 year, renewable, to open a local bank account (essential for receiving rent in ฿), and to obtain the FET form to repatriate the capital gain upon resale. Conditions: 800,000 ฿ deposited 2 months before the application, or 65,000 ฿/month in proven income, or a combination. Buying a condo in freehold remains possible and independent of the visa.
  • What rental yield should you target between Bangkok, Phuket, Chiang Mai and Koh Samui?
    Average gross yields for 2025: Bangkok 4–5% (Sukhumvit, Asok, Thonglor), Chiang Mai 5–6% (Nimman, Old City), Phuket 5–7% (Bang Tao, Layan, Kata), Koh Samui 6–9% (Bophut, Chaweng Noi, Lamai), Pattaya 6–8%. Bangkok offers maximum liquidity and the lowest vacancy; Phuket and Samui target short-term rentals with seasonality (high season Nov–Apr). For a passive investor, a Bangkok condo rented on a yearly basis is the most stable profile; for an active investor, a Samui villa on holiday rental can target 9–12% gross under professional management.
  • What exit strategy for a real estate investment in Thailand?
    Three main scenarios. (1) Cash resale to a foreign buyer: an active market in Phuket and Pattaya, but allow 3–9 months and 5–7% in fees (agent + transfer + SBT). (2) Resale to a Thai buyer: possible for a condo within the Thai quota or a freehold villa held through a company — giving access to a larger pool of local buyers. (3) Long-term holding + succession: the freehold condo can be bequeathed to foreign heirs, who will have to comply with the 49% quota. To repatriate the capital gain without excessive foreign-exchange costs, the initial FET form (proof of the incoming foreign-currency funds) is essential — without it, repatriation is very costly from a tax standpoint.