Transferring property ownership in Thailand involves legal and financial procedures that must be carefully followed to ensure a smooth and lawful transaction. Whether you are a Thai citizen or a foreign investor, understanding the property title transfer process is essential to avoid disputes and legal complications.
This guide explains what a property title transfer Thailand is, the required documents, the step-by-step process, government fees, and legal considerations to ensure a secure transaction.
1. What is a Property Title Transfer?
A property title transfer is the legal process of transferring ownership of land, a house, or a condominium from one party to another. It is completed at the Land Department in Thailand and requires compliance with Thai property laws.
✅ When is a Property Title Transfer Required?
- Buying or selling real estate (land, houses, condos).
- Inheritance (passing property to heirs).
- Gifting property to a family member.
- Divorce settlements (transferring ownership between spouses).
- Company ownership transfers (when a company owns land).
💡 Example: A foreign investor buys a condominium in Bangkok. Before ownership is legally recognized, the title deed must be transferred at the Land Department.
2. Who Can Own Property in Thailand?
Before proceeding with a title transfer, it is important to understand ownership restrictions in Thailand:
✔ Thai Citizens – Can own land, houses, and condominiums without restrictions.
✔ Foreigners – Cannot own land but can own condominiums (up to 49% of total units in a building).
✔ Thai Companies – Can own land if the majority (51%) of shares are Thai-owned.
✔ Married Foreigners – Can own property in their Thai spouse’s name but must sign a disclaimer stating the property is not part of marital assets.
💡 Example: A foreigner attempts to buy land in Phuket but later finds out foreigners cannot own land under Thai law. Instead, they lease the land for 30 years.
3. Required Documents for Property Title Transfer
For the Buyer and Seller
✔ Original Title Deed (Chanote or Nor Sor 3 Gor)
✔ Identification Documents (Thai ID card or passport for foreigners)
✔ Marriage Certificate (if applicable)
✔ Power of Attorney (if the transaction is completed by a representative)
✔ House Registration Book (Tabien Baan)
✔ Sale and Purchase Agreement (SPA)
Additional Documents for Foreign Buyers
✔ Foreign Exchange Transaction (FET) Form – Required if purchasing a condominium.
✔ Condominium Quota Verification – Confirms foreign ownership is within the 49% limit.
💡 Example: A foreigner buying a condo must provide a Foreign Exchange Transaction Form, proving the purchase funds came from outside Thailand.
4. Step-by-Step Property Title Transfer Process
Step 1: Due Diligence and Contract Signing
✅ Verify the title deed’s authenticity at the Land Department.
✅ Ensure the property is free from mortgages, debts, or disputes.
✅ Sign a Sale and Purchase Agreement (SPA) with payment terms.
💡 Tip: Hire a property lawyer to check for any legal issues before making payment.
Step 2: Payment of Transfer Fees and Taxes
The buyer and seller must agree on who will pay the transfer fees and taxes. These are paid at the Land Office before the transfer is completed.
Step 3: Title Transfer at the Land Department
✅ Both parties visit the Land Department with all required documents.
✅ The officer verifies the paperwork and processes the ownership change.
✅ A new title deed is issued with the buyer’s name.
💡 Tip: If the buyer or seller cannot attend, they can sign a Power of Attorney allowing a representative to act on their behalf.
5. Government Fees and Taxes
5.1 Transfer Fee
- 2% of the property’s government-assessed value.
- Usually paid by the buyer, but negotiable.
5.2 Stamp Duty or Specific Business Tax (SBT)
✔ Stamp Duty (0.5%) – Applied if the property was owned for more than 5 years.
✔ Specific Business Tax (3.3%) – Applied if the property was owned for less than 5 years.
💡 Tip: The seller usually pays these taxes, but agreements can vary.
5.3 Withholding Tax
✔ Individuals: Progressive tax rate (0-35%) based on property value and ownership period.
✔ Companies: 1% of the government-assessed value or sales price (whichever is higher).
💡 Example: A Thai seller who has owned a house for 3 years will pay Specific Business Tax instead of Stamp Duty.
6. Special Cases in Property Title Transfer
6.1 Foreigners Buying Condominiums
Foreigners can only own condos if:
✔ The building is at most 49% foreign-owned.
✔ The purchase funds come from abroad, verified by a Foreign Exchange Transaction Form (FET).
6.2 Property Transfer Through Inheritance
✔ If a foreigner inherits a condominium, they must qualify under foreign ownership laws.
✔ If they do not qualify, they must sell the unit within one year.
6.3 Property Transfers Between Family Members
✔ Transfers between parents and children are allowed but may still be subject to gift tax.
✔ Transfers between spouses are legal but must follow marital property laws.
💡 Tip: Gifts of land or property over 20 million THB are subject to gift tax (5%).
7. Common Mistakes and How to Avoid Them
🔴 Not Verifying the Title Deed – Some properties have disputed ownership or legal claims.
🔴 Ignoring Foreign Ownership Restrictions – Foreigners cannot directly own land.
🔴 Not Reviewing Transfer Fees and Taxes – Some sellers pass all fees to buyers unfairly.
🔴 Failing to Check Outstanding Mortgages – Some properties are still under bank loans.
💡 Solution: Always conduct property due diligence and hire a lawyer before transferring the title.
8. Hiring a Lawyer for Property Title Transfer
A Thai property lawyer can:
✔ Verify ownership and legal restrictions.
✔ Review contracts and ensure fair terms.
✔ Handle disputes and negotiations with sellers.
✔ Assist with Land Department procedures.
💡 Example: A lawyer helps a foreigner legally purchase a condominium, ensuring all documents and payments comply with Thai law.
9. Conclusion
A property title transfer in Thailand is a legally complex process that requires careful planning. By understanding ownership laws, required documents, government fees, and legal procedures, buyers can ensure a smooth and secure transaction.
✔ Key Takeaways:
- Always verify title deed authenticity before purchase.
- Foreigners cannot own land but can own condominiums.
- Expect to pay transfer fees, taxes, and legal fees.
- Hiring a property lawyer can prevent legal issues.
