Legal Conditions under Thai Law

1. Foreign Ownership

• Condominiums Foreigners may own up to 49% of the total project area.
• Land Foreigners are not permitted to own land directly. However, they may hold rights through long-term leasehold agreements, superficies rights, or via properly structured Thai companies.

2. Sale Transaction

• Sale to Thai buyers Can be processed normally at the Land Office.
• Sale to another foreign buyer Must check the foreign quota (for condominiums) and provide Foreign Exchange Transaction Form (FET) as evidence of funds transferred from abroad.

3. Taxes and Fees

• Personal Income Tax (Withholding Tax)
• Transfer Fee (2%)
• Specific Business Tax or Stamp Duty (as applicable)

In Case of Consignment Sale

• The Property Owner (Foreign National) authorizes an agent or brokerage firm to handle the sale.
• A Consignment Agreement should be drafted in both English and Thai.
• A Power of Attorney (POA) is recommended for the Land Office in case the owner is not present in Thailand.
• The agreement should clearly specify:

1. The minimum selling price required by the owner

2. Commission fees or profit margin

3. Method of repatriating funds overseas

4. Responsibility for taxes and transfer expenses

Sample Contract Clause

"The Consignee agrees to sell the Property on behalf of the Consignor (a foreign national). The Consignee shall ensure that all relevant documents, including Foreign Exchange Transaction Forms (FET), are properly prepared to enable the repatriation of sales proceeds to the Consignors overseas bank account in compliance with applicable laws."