FET / Thor.Thor.3: How to Correctly Bring Foreign Currency into Thailand for a Condominium Purchase

Why the FET Form Is Needed at All

Buying a condominium in Thailand is almost the only way for a foreign national to hold real property in full freehold ownership in their own name. However, the right to do so does not flow from the sale and purchase transaction itself - it flows from compliance with a foreign-exchange rule: the funds used to pay for the unit must arrive from abroad in a foreign currency and be converted into Thai baht only once inside the country.

The document that confirms this is called the Foreign Exchange Transaction Form (FET). It was formerly known as Thor.Thor.3 (ธ.ต.3) - the old name is still widely used by lawyers, real-estate agents and Land Department officers, so do not be surprised if the office asks specifically for a 'Thor Thor 3'. In essence it is a bank-issued certificate in a prescribed format, recording the fact that foreign currency was brought in and exchanged for baht.

What the Law Says

The key provision is Section 19 of the Condominium Act. It requires a foreign national registering a unit in their own name to have paid the full purchase price with funds brought into the country from abroad in a foreign currency. This rule operates alongside another restriction in the same Act - the 49% quota: foreign nationals may collectively own no more than 49% of the total residential floor area of a building. To fall within that quota and receive a 'blue' chanote issued in one's own name, both conditions must be satisfied simultaneously: there must be available foreign-quota floor space in the building, and the funds must have been brought in through the correct foreign-exchange procedure.

The Land Department verifies the origin of funds at the time of title transfer registration, and it does so specifically by examining the FET form. A transfer sent directly in baht, or currency exchanged outside Thailand, does not qualify for foreign-national registration.

When the Full FET Is Required and When a Bank Letter Is Sufficient

The obligation to issue an FET and report to the Bank of Thailand (BOT) arises when a single foreign-exchange transaction reaches USD 50,000 (or the equivalent in another currency). This threshold has not always been at that level:

If a single transaction is below USD 50,000, the bank will issue, on request, not a full FET but a foreign-exchange confirmation letter (Credit Advice / confirmation letter). For Land Department purposes it carries the same weight - what matters is that it contains all the required particulars.

This means that when purchasing an inexpensive studio unit a confirmation letter may well suffice, while if a large sum is split into several smaller transfers it is important to ensure that the bank issues a properly completed document for each one.

What Information the Form Must Contain

Regardless of the document type (FET or letter), it must contain at a minimum:

• the amount in foreign currency received;
• the amount in baht after conversion;
• the name of the sender of the funds;
• the name of the recipient;
• the purpose of the transfer.

A note on purpose: the most prudent approach is to state a purpose directly linked to real property - for example, purchase of a condominium. Vague descriptions such as 'personal transfer' may raise questions later, both at registration and when repatriating the proceeds of a future sale.

How It Works in Practice

1. Open an account or transfer to the recipient's account. The funds must arrive from abroad in a foreign currency - US dollars, euros, Russian roubles, and so on. Conversion into baht must take place inside Thailand, carried out by a Thai bank.
2. Name on the transfer. The sender or recipient field must show your name - the name of the person who will be recorded as the owner. If the funds arrive from a third party or from a company, there is a risk that the Land Department will not accept the document.
3. Request the form from the bank. Only a Thai bank holding a BOT licence may issue an FET. It is not possible to produce this form independently. A SWIFT message may serve as a substitute only where it contains all the required fields.
4. Obtain the document promptly. Collect the FET or letter immediately after conversion - do not leave it until the day of registration.

Why You Should Keep the FET After the Transaction

The form will be needed not only at the time of purchase. When you sell the unit and wish to remit the proceeds abroad without unnecessary deductions, the bank will ask for documents confirming that the currency was once lawfully brought into the country. In addition to the original FET (or Thor.Thor.3) from the purchase, you will typically need:

• the sale and purchase agreement and the tax payment receipt from the Land Department;
• the title certificate (chanote) for the unit;
• a copy of your passport.

Withholding tax on the sale depends on the period of ownership, but the fact that the currency was lawfully imported allows the proceeds to be repatriated without additional loss. It is therefore worth keeping the original FET for the entire period of ownership.

Key Points to Check and Watch Out For

• Foreign currency, not baht. The transfer must arrive in a foreign currency; conversion must occur inside Thailand.
• Transfer amount. USD 50,000 or more per transaction triggers an FET; below that, a bank confirmation letter is issued (and is equally acceptable).
• Name. The transfer must show the name of the intended owner, not that of a relative or a company.
• Purpose of payment - state the purchase of a condominium and avoid vague descriptions.
• Completeness of fields in the form: foreign currency amount, baht amount, sender, recipient, purpose.
• The 49% quota in the specific building: before making the transfer, confirm that foreign-quota floor space is still available.
• Source of the form - only a licensed Thai bank may issue it.
• Retention of the original FET until the time of any future sale and repatriation of funds.