Thai Real Estate Law for Foreign Buyers (2026): Ownership, Title Deeds, Taxes and Rentals

By Peer Johannsen, Managing Director, Pearl Property Pattaya • Published: March 4, 2026 • Last updated: September 26, 2026 • 9 min read

The rules that actually govern buying, owning, renting and selling property in Pattaya as a foreigner: condo freehold, leases, title deeds, transfer costs and the Hotel Act.

Foreigners in Thailand can own a condominium unit outright, provided the building's foreign quota (49% of the saleable area) has room. They cannot own land. A house or villa is normally held through a registered right over the land: a lease of up to 30 years or a Sap Ing Sith right. This guide from Pearl Property Pattaya sets out the laws that matter in practice: ownership, title deeds, due diligence, transfer costs, annual tax, renting out and selling. It also covers the structures you should avoid.

1. What Foreigners Can and Cannot Own

Condominiums: freehold ownership (Condominium Act)

Under the Condominium Act B.E. 2522, a foreigner may own a condo unit in their own name. Two conditions apply:

Foreign quota: no more than 49% of a building's total saleable floor area may be foreign-owned. Once the quota is full, further units can only be registered to Thai buyers. Always confirm the quota before you pay a deposit; see our guide on checking the foreign quota.
Funds from abroad: the purchase money must be transferred into Thailand in foreign currency. For transfers above USD 50,000 the receiving Thai bank issues a Foreign Exchange Transaction form (FET, also called Tor Tor 3). The Land Office needs this document to register the unit under the foreign quota. Keep it safe, because you will also need it to send the money back out of Thailand when you sell.

Land and houses: no freehold for foreigners (Land Code)

The Land Code does not allow foreign individuals to own land. The main legal routes to a house or villa are:

Registered lease (Civil and Commercial Code s.540): up to 30 years, registered at the Land Office. The building itself can be owned by the foreigner, with a construction permit or transfer in their own name. Renewal options can be written into the contract, but they are a promise, not a registered right. Their enforceability against a future landowner or heirs is uncertain. Treat a lease as 30 years, and treat anything beyond that as a bonus.
Sap Ing Sith (Real Right Act B.E. 2562 / 2019): a registered real right over land or buildings for up to 30 years. It can be sold, mortgaged and inherited without the owner's consent, and it survives a sale of the land. It is newer and less tested at Land Offices than a lease, so have a lawyer draft it.
Superficies (s.1410): a registered right to own a building on someone else's land, often combined with a lease.
Usufruct (s.1417): the right to use and benefit from land, typically for life. It is common where the land is owned by a Thai spouse.
BOI or 40 million THB investment routes: these exist on paper but are rarely practical for private buyers.

Longer leases of up to 50 years exist only for commercial and industrial property under a separate law. Proposals for 99-year residential leases have been discussed repeatedly, but none have been enacted.

Thai companies and nominees: the risky route

Buying land through a Thai limited company is legal only if the Thai shareholders are genuine investors who put up their own money. A company whose Thai shareholders are "nominees" is illegal under the Foreign Business Act and the Land Code. Examples are shareholders holding shares for a fee, or a foreigner controlling the company through side agreements or preference shares that strip the Thai shareholders of real rights. Penalties include fines, prison terms and forced sale of the land. The authorities have stepped up enforcement against nominee companies; see our analysis of the nominee crackdown. For most foreign buyers, a freehold condo or a properly registered lease or Sap Ing Sith is the safer choice.

Reviewing Thai property documents before purchase

2. Title Deeds: Which Documents Are Safe

Chanote (Nor Sor 4 Jor): the full title deed, surveyed with GPS-fixed boundaries. This is the standard you want.
Nor Sor 3 Gor: a confirmed-use certificate with surveyed boundaries. It can be sold and leased, but it is less precise than a Chanote. Upgrading to a Chanote is often possible.
Nor Sor 3: boundaries are not properly surveyed, and a sale requires a public notice period. Treat it with caution.
Sor Kor 1, Por Bor Tor 5, Sor Por Kor 4-01: possession or land-reform documents. They either cannot be transferred or give no real ownership. Avoid them.
Condo units have their own unit title (Chanote for a condominium unit, Or Chor 2), issued per unit once the building is registered as a condominium.

3. Due Diligence Before You Sign

A lawyer who acts for you, not for the seller or developer, should check the following:

Title search at the Land Office: the current owner, mortgages, servitudes, leases or court orders registered against the property.
For new projects: the developer's track record, land ownership, construction permit, EIA approval (required for larger condos) and the payment schedule. See our off-plan guide.
For resale condos: the foreign quota, plus a debt-free letter from the building's juristic person showing no unpaid common fees or sinking fund. See new vs. resale.
For houses and land: access road rights, the town-plan zoning colour, building permits that match the built structure, and flood or drainage history.

4. Contracts

Reservation agreement: holds the unit for a small deposit. Check whether the deposit is refundable and on what conditions.
Sale and Purchase Agreement (SPA): sets out the price, payment schedule, completion date, specification, penalties for late delivery and who pays which transfer costs. Insist on an English version that you understand, and have it reviewed before signing.
Lease agreement (for houses): term, registration, renewal wording, what happens on the death of either party, and the right to assign or sublease.

Signing a property purchase contract in Pattaya

5. Transfer Costs and Who Pays Them

All costs are paid at the Land Office on transfer day. They are calculated on the Treasury Department's appraised value or the sale price, depending on the item:

Cost	Rate	Normally paid by
Transfer fee	2% of appraised value	Negotiable, often split 50/50
Specific Business Tax	3.3% of the higher of appraised value or sale price, only if the seller has owned the property for under 5 years	Seller
Stamp duty	0.5%, only when Specific Business Tax does not apply	Seller
Withholding tax	Individual seller: progressive rate on appraised value. Company seller: 1% of the higher value	Seller
Mortgage registration (if financed)	1% of the loan amount	Buyer

New-build developers often advertise "transfer fee shared 50/50" or pay part of it as a promotion. In Pattaya resale deals, sellers sometimes negotiate to split all costs 50/50. The split is whatever the SPA says, so read it before signing. For the full picture, including annual costs, see our Thailand property tax guide and what it costs to own a condo in Pattaya.

6. Annual Tax: the Land and Building Tax

Since 2020, the Land and Building Tax Act has replaced the old House and Land Tax, which charged 12.5% on rental value, and the local development tax. The tax is based on the appraised value and the use of the property. Residential property is taxed at low rates starting from 0.02% a year. A qualifying main residence can be exempt up to a threshold. Commercial or "other" use is taxed from 0.3%. For a typical Pattaya condo the bill is small, often a few hundred to a few thousand baht a year.

7. Renting Out Your Property

Hotel Act (stays under 30 days): renting accommodation by the day or week, or for less than 30 days, is a hotel business and requires a hotel licence. Private condo units cannot get one, so Airbnb-style short lets in condos are generally unlawful. Many buildings also ban them in their regulations. Monthly and yearly leases are fine. See monthly vs. yearly rentals.
TM30: when a foreign tenant moves in, the owner or house master must notify Immigration within 24 hours. This can be done online.
Tax on rent: rental income from Thai property is taxable in Thailand under personal income tax, after a standard expense deduction. Your home country may also tax it. German owners, for example, should read our article on taxing Thai rental income in Germany.
Lease terms: put the deposit, notice period, utilities and condition report in a written lease agreement.

8. Selling and Taking the Money Home

A foreign owner can sell a freehold condo to another foreigner, as long as the building's quota allows, or to a Thai buyer. The seller normally pays the Specific Business Tax or stamp duty and the withholding tax, and the transfer fee is split as agreed. To repatriate the proceeds, your bank will ask for the original FET form or credit advice from the purchase, plus the sale documents. This is why it matters to keep your paperwork from the day you buy.

9. Building Permits and Zoning

New construction and major alterations need a permit under the Building Control Act. In Pattaya the permit is issued by Pattaya City. The town plan assigns each area a colour zone that limits use, plot coverage and building height, with stricter limits near the coast. If you buy land to build on, check the zone and the access road before you commit. If you buy a finished house, check that the permit matches what was actually built.

10. Inheritance

A foreign-owned condo can be left to heirs, who may be foreign as long as the quota permits. Heirs who cannot hold the unit must sell it within a set period. A lease passes to heirs only if the contract allows it, so the wording matters. Pearl Property recommends a separate Thai will for Thai assets, alongside the will in your home country.

How Pearl Property Pattaya Helps

Pearl Property Pattaya has helped foreign buyers in Pattaya since 2015. For each purchase we:

check the foreign quota and the developer before a deposit is paid;
explain the cost split in the contract;
coordinate the FET paperwork with your bank;
accompany you to the Land Office on transfer day.

For independent legal review we work with Lawyers for Expats Thailand. This article is general information and is not legal advice; laws and rates change, so always have your specific purchase reviewed by a licensed Thai lawyer. Talk to our team. We advise in English, German, Thai, French and Chinese.