Transferring property ownership in Thailand requires compliance with legal regulations, tax payments, and proper documentation. Whether you are a Thai national or a foreign investor, understanding the property title transfer process is essential to avoid disputes and ensure a smooth transaction.
This guide provides a detailed overview of property title transfer in Thailand, including legal requirements, types of land titles, required documents, taxes, and key steps involved in the process.
1. Legal Framework for Property Title Transfer in Thailand
The Thai Land Code Act, Civil and Commercial Code, and Condominium Act regulate property ownership and title transfers in Thailand. The Land Department oversees all property transactions, ensuring legal compliance.
1.1 Who Can Own Property in Thailand?
✔ Thai Citizens – Can own land, houses, and condominiums without restrictions.
✔ Foreigners – Cannot directly own land, but can own condominiums (up to 49% of a building’s units) or lease land for up to 30 years.
✔ Foreign Companies – Can own land if they receive approval from Thailand’s Board of Investment (BOI).
✔ Thai Companies – Can own land if Thai nationals hold at least 51% of shares.
💡 Tip: Foreigners can purchase land through long-term leases, setting up a Thai company, or through investment programs.
2. Types of Land Title Deeds in Thailand
Before transferring property, it’s crucial to understand the types of land title deeds. The best option is Chanote, which offers full ownership rights.
| Title Deed | Ownership Rights | Best for Investment? |
|---|---|---|
| Chanote (Nor Sor 4 Jor) | Full ownership with official land boundaries | ✅ Best |
| Nor Sor 3 Gor | Ownership but not fully mapped by GPS | ✅ Good |
| Nor Sor 3 | Ownership but no precise boundary markings | ❌ Risky |
| Sor Kor 1, Por Bor Tor 5, Nor Sor 2 | No ownership rights, only possession | ❌ Not recommended |
✔ Always ensure the property has a Chanote or Nor Sor 3 Gor title before purchasing.
3. Property Title Transfer Process in Thailand
3.1 Step 1: Perform Property Due Diligence
Before proceeding with the title transfer, it’s essential to verify:
✔ Ownership history – Ensure the seller is the legal owner.
✔ Encumbrances and mortgages – Check for outstanding loans or legal disputes.
✔ Zoning and land use laws – Ensure the property complies with Thai building regulations.
💡 Tip: Conduct a title search at the Land Office to verify property details.
3.2 Step 2: Prepare Required Documents
✔ For Individual Buyers & Sellers:
- Thai ID card & House Registration (Tabien Baan) for Thai citizens
- Passport & Visa for foreign buyers
- Title deed (Chanote)
- Sale and Purchase Agreement
- Power of Attorney (if a representative is acting on behalf of the buyer or seller)
✔ For Companies Buying or Selling Property:
- Company Registration Certificate
- Company Affidavit
- Shareholder List
- Board of Directors’ Resolution approving the sale
💡 Tip: If a foreigner is buying a condominium, they must show proof of fund transfer from a foreign bank account in foreign currency.
3.3 Step 3: Pay Applicable Taxes and Fees
Property transfers in Thailand involve various taxes and fees:
| Type of Tax/Fee | Who Pays? | Rate |
|---|---|---|
| Transfer Fee | Buyer | 2% of government-assessed value |
| Withholding Tax | Seller | 1% (individual) or 20% (company) |
| Specific Business Tax (SBT) | Seller | 3.3% if owned for less than 5 years |
| Stamp Duty | Seller | 0.5% (if SBT not applicable) |
✔ Ensure taxes are paid at the Land Office before the title transfer.
3.4 Step 4: Sign the Sale and Purchase Agreement
Both buyer and seller sign the Sale and Purchase Agreement (SPA), which should include:
✔ Property details (title deed number, location, size)
✔ Agreed purchase price and payment terms
✔ Deposit conditions and penalties for breach of contract
✔ Ownership transfer date
💡 Tip: Always have the contract reviewed by a real estate lawyer before signing.
3.5 Step 5: Complete the Title Transfer at the Land Office
✔ Both parties (or their representatives) must be present at the Land Office.
✔ Submit all required documents.
✔ Pay applicable transfer taxes and fees.
✔ The Land Officer records the transfer and issues a new title deed in the buyer’s name.
💡 Tip: This process usually takes 1 day if all documents are in order.
4. Special Considerations for Foreign Buyers
4.1 Buying a Condominium in Thailand
✔ Foreigners can own condominiums outright, as long as foreign ownership does not exceed 49% of the total building units.
✔ Buyers must show proof that the funds were transferred from abroad in foreign currency.
4.2 Leasing Land Instead of Buying
Since foreigners cannot own land, they can sign a 30-year lease agreement (renewable) to control the property legally.
4.3 Setting Up a Thai Company to Own Land
Foreigners can own property through a Thai-registered company, but at least 51% of shares must be held by Thai nationals.
💡 Tip: Consult a real estate lawyer before using this method, as Thai authorities monitor companies for nominee ownership violations.
5. Common Risks and How to Avoid Them
❌ Fake Title Deeds – Verify ownership at the Land Office before purchasing.
❌ Unpaid Mortgages or Debts – Conduct a title search to check for outstanding loans.
❌ Illegal Land Use – Ensure the land complies with zoning laws before buying.
❌ Overpriced Transfer Fees – Always check official rates at the Land Office.
✔ Hire a lawyer to assist with due diligence and contract review.
6. Conclusion
Transferring property ownership in Thailand requires legal compliance, proper documentation, and tax payments. Whether buying as a Thai national or a foreigner, understanding the title transfer process is essential to ensure a secure and hassle-free transaction.
✔ Key Takeaways:
- Always check the title deed (Chanote preferred) before purchasing.
- Conduct due diligence to verify ownership and legal status.
- Ensure all documents and taxes are properly handled.
- Foreign buyers must follow special rules for condos and land leases.
- Hire a lawyer for contract review and legal guidance.