Thailand Condominiums

Thailand Condominiums represent one of the few forms of immovable property that foreigners can legally own under Thai law. Governed primarily by the Condominium Act B.E. 2522 (1979) and its subsequent amendments, condominiums have become the preferred property type for both local and foreign buyers seeking urban residences, vacation homes, or income-generating real estate.

However, condominium ownership is subject to strict legal rules, including foreign ownership quotas, title deed registration, juristic person management, and co-ownership obligations. These rules are intended to regulate land use, prevent over-foreignization of Thai urban space, and ensure the rights and obligations of all co-owners are balanced.

This article provides an in-depth legal and procedural analysis of the condominium system in Thailand, focusing on types of ownership, registration formalities, foreign ownership limits, juristic person governance, and compliance requirements.

1. Legal Definition and Structure of Condominiums

Under Section 4 of the Condominium Act, a condominium is defined as:

“A building that can be separated into individual personal units, each with its own ownership, combined with joint ownership in common property (such as land, structure, and shared facilities).”

1.1 Structure of Ownership

Condominium ownership in Thailand consists of two elements:

• Private ownership of a specific unit (e.g., an apartment)

• Undivided co-ownership of the common property, which includes:

  • Land on which the building is constructed

  • Structural elements (e.g., foundations, columns)

  • Facilities (e.g., lifts, lobby, pool, security office)

  • Machinery and systems

2. Legal Basis for Condominium Ownership

2.1 Relevant Laws

• Condominium Act B.E. 2522

• Land Code B.E. 2497 (governs land ownership rules)

• Building Control Act B.E. 2522

• Civil and Commercial Code (contracts, obligations, co-ownership)

3. Unit Ownership and Title Deed

3.1 Title Deed (Or Chor 2)

Each condominium unit has its own title deed (Or Chor 2), issued by the Land Department, which specifies:

• Floor plan and unit boundaries

• Unit size (in square meters)

• Ratio of common property ownership

• Owner’s name

• Encumbrances (mortgages, liens)

The title deed is separate and transferable, unlike leasehold interests.

4. Foreign Ownership of Condominiums

4.1 Foreign Quota Rule (Section 19 of Condominium Act)

Foreigners may legally own up to 49% of the total saleable area of all units in a condominium project.

Example: If the building has 10,000 m² of total unit area, foreigners can own up to 4,900 m².

4.2 Foreign Eligibility Criteria

To purchase freehold condominium units, a foreigner must satisfy one of the following:

• Hold a long-term residence permit or BOI privilege

• Be a foreign entity with business under Thai law

• Be a foreigner bringing in foreign currency for the purchase

Most foreigners use the foreign currency remittance route, which requires:

• Transferring funds in foreign currency into Thailand

• Annotated as “for purchase of condominium”

• Supporting documents from the receiving bank (e.g., Foreign Exchange Transaction Form)

5. Purchasing Procedure for Foreigners

1. Due diligence on the project: check developer reputation, land title, and building permits.

2. Sales and purchase agreement (SPA): includes unit size, payment schedule, transfer conditions.

3. Foreign currency transfer: must be properly documented.

4. Title transfer at Land Office: buyer and seller (or representatives) must appear.

5. Registration fees and taxes:

   • Transfer fee: 2% of the official appraised value

   • Withholding tax and business tax (depends on holding period and seller’s status)

6. Common Property and Juristic Person

6.1 Juristic Person Condominium

Every condominium has a juristic person (นิติบุคคลอาคารชุด) established upon registration with the Land Office. This entity:

• Manages the common property

• Collects common area maintenance (CAM) fees

• Enforces building rules

• Organizes co-owners’ meetings

• Keeps financial records and contracts

6.2 Co-Owner Rights

• Attend and vote in co-owners’ meetings

• Propose agenda items

• Access financial records and meeting minutes

• Use common facilities (as regulated)

7. Management and Voting Rights

7.1 General Assembly of Co-Owners

• Held at least once a year

• Decisions made by majority or supermajority, depending on the matter

• Voting weight is based on unit area ownership ratio

7.2 Examples of Voting Requirements

8. Condominium Leasehold (Alternative Structure)

If a condominium is located on leasehold land, units may still be sold to foreigners, but:

• The land is leased (not owned) by the condo juristic person or developer

• Typical lease term: 30 years, with optional renewal

• Units are still registered, but the land is not owned in freehold

Leasehold condos are less valuable and harder to resell than freehold units.

9. Tax and Fees Overview

10. Restrictions and Considerations

• Short-term rentals (e.g., Airbnb) are often prohibited under the Hotel Act, unless the building is licensed as a hotel.

• Some condominiums prohibit foreign juristic entities from owning units, even within quota.

• Developers must obtain EIA (Environmental Impact Assessment) approval for large projects.

• Delayed or incomplete construction projects may lead to disputes; buyer protections are stronger in licensed developments.

Conclusion

Condominiums in Thailand provide a legally recognized pathway for foreign individuals to acquire secure, registered, and transferable property rights in the country. The Condominium Act offers a well-regulated framework for ownership, co-management, and legal protections—as long as buyers comply with procedural formalities, foreign ownership caps, and financial remittance rules.

However, the condominium landscape also demands due diligence, contractual scrutiny, and understanding of shared governance responsibilities. Buyers—particularly foreign investors—should engage with qualified legal professionals and conduct proper investigations into the property, developer, and building management before proceeding.