Finance

Following are guidelines for foreigners to securing a property purchase loan in Thailand, and the currency exchange procedure for obtaining the correct property transfer documentation.

Mortgage loans for foreigners are not widely available in Thailand, but for qualified foreign buyers we will be pleased to arrange an introduction to the local representative of United Overseas Bank (UOB) who will grant loans to foreigners under certain conditions.

Further information from UOB is attached and we would ask all mortgage applicants to ensure, as far as possible, they meet the bank’s requirements before making further enquiries. Please note that UOB's terms and conditions are updated from time-to-time.

Please let us know if you have any questions regarding finance for property purchases in Thailand. Most foreign buyers of property in Thailand remit the full payment in cash from abroad and we recommend that should you require finance in order to purchase a condominium, you make enquiries to have a loan in principle agreed first.
The procedure foreigners should follow when remitting funds to Thailand in order to purchase a condominium is straight-forward, but should be followed closely to ensure there are no delays when it comes to registering the property transfer at the Lands Department.

Please see our guidelines below and do feel free to contact us should you require any clarification.

Currency rules for foreign buyers of condominium units in Thailand

1. Currency: Any foreign currency can be used to purchase a condominium unit. The foreign currency MUST be transferred into Thailand as foreign currency and exchanged into Thai Baht by a local bank in Thailand.

2. Documents required when buying a condominium: For foreigners to be eligible to purchase a condominium unit in Thailand they must present proof to the Department of Lands that the funds have been remitted from overseas in foreign currency. On request, a letter confirming the transfer will be issued by the Thai recipient bank. Without such proof, the Department of Lands will not register the transfer of ownership to the foreign buyer.

3. Remittances must be sent in exactly ("to the letter") the same name as that appearing on the purchase contract. If the buyers are two individuals, then two names should appear on the contract and two separate remittances should be made by such two persons, in equal amounts.

4. Transfers of funds MUST be made in FOREIGN CURRENCY only and NOT in Thai Baht, i.e. if you are working in US Dollars then remit in US Dollars. Do not remit in Thai Baht.

5. The purpose of the remittance MUST be stated on the remittance advice. This should say "FOR THE PURCHASE OF BUYING A CONDOMINIUM, UNIT #__ IN TOWER __IN THE ____PROJECT". The Bank of Thailand's transaction purpose code for this is 381069.

6. Money Transfer: There are 2 options to transfer money to a Developer as follows:

a. Transfer the funds into a local bank account of the buyer in Thailand in the prescribed format as outlined above, and execute a domestic transfer of this amount onwards to the Developer.

In this case, the buyer must request the buyer’s local bank of the buyer to issue a Foreign Exchange Transaction Form.

Amounts transferred should be at or greater than USD$50,000, in order to automatically qualify for a Foreign Exchange Transaction Form. (The buyer has to request (by telephone or by written notice, according to the procedure of the relevant local bank) to obtain the Foreign Exchange Transaction Form as the funds have been transferred.

If the amount remitted is less than USD $50,000, the buyer is required to send a letter to the bank who will in turn send you a letter confirming the purpose of the remittance is for purchasing a condominium unit.

In due course, either the Foreign Exchange Transaction Form or the Letter from the bank can be used as evidence when providing proof of fund remittance to the Lands Department.

Without either the Foreign Exchange Transaction Form or a bank letter, the Lands Department will not register the transfer of the condominium unit into your name.

b. The second option is to transfer the funds directly to the Developer’s bank account in the prescribed format, whereupon the Developer will arrange for the Foreign Exchange Transaction Form to be issued by the Developer’s Bank.