Foreign Exchange Regulation When Buying Real Estate in Thailand: How to Bring In Funds and Prove Their Origin

Why Currency Rules Matter Specifically to the Property Buyer

For a foreign national purchasing a condominium unit, foreign exchange regulation is not a bureaucratic formality - it is a prerequisite on which the very ability to register ownership directly depends. Thai law (Condominium Act B.E. 2522, §19) permits foreign ownership of a unit only within the 49% quota of a building's total floor area, and only on the condition that the purchase funds were remitted from abroad in foreign currency and exchanged into Thai baht inside the country. Without documentary proof of this fact, the Land Department will refuse to register title.

For this reason, understanding how currency importation and exchange work is essential before making the first payment to a developer.

Who Oversees This Area and on What Basis

Currency control in Thailand rests on the Exchange Control Act (B.E. 2485) and Ministerial Regulation No. 13 (B.E. 2497). The Ministry of Finance has delegated administration to the Bank of Thailand, and in practice all transactions are processed through commercial banks and licensed non-bank participants - exchange bureaux, money transfer agents, and authorised companies. Any transaction conducted outside this framework requires an individual permit from an authorised officer.

For a buyer, this translates into a simple rule: funds must enter the country through a bank holding a foreign exchange licence, and that bank will issue the required document.

The Key Document - the FET (formerly Form Tor.Tor.3)

The central document for a foreign buyer is the Foreign Exchange Transaction Form (FET), previously known as Tor.Tor.3. It is a bank confirmation stating that a specified sum in foreign currency was received from abroad and converted into Thai baht.

Several practical points:

• The bank is required to issue a separate FET for each inward remittance that meets the prescribed threshold. Historically, the threshold triggering the FET has been the equivalent of 50,000 USD; for smaller amounts the bank issues a credit advice or bank letter, which the Land Department also accepts.
• The payment reference should state that the transfer is intended for the purchase of real estate (for example, 'to purchase condominium unit'). This facilitates issuance of the FET and pre-empts questions at registration.
• Payer and recipient: ideally the funds arrive in the buyer's own name. If funds are sent directly to the developer, the FET is issued in the developer's name but must also reference the foreign buyer's name - otherwise the document will not link the funds to the specific individual.
• The amount shown on the FET must cover the purchase price of the unit. The Land Department cross-checks the foreign currency figure against the price stated in the sale agreement.

Importation, Declaration and Repatriation

The restrictions on bringing currency into Thailand are relatively light, but certain formalities apply:

• Foreign currency may be transferred or brought into Thailand with no upper limit on amount.
• When bringing cash foreign currency into Thailand in excess of 20,000 USD (or equivalent), it must be declared at customs.
• Thai baht may be taken out of the country without a permit: up to 500,000 THB to neighbouring countries and up to 50,000 THB to all other countries.
• A person receiving foreign currency from abroad is generally required within 360 days to sell it to an authorised bank or deposit it in a foreign currency account. Exceptions apply to foreigners present in the country for no more than three months, diplomats, and staff of international organisations.
• Cash foreign currency deposited into a foreign currency account is limited to 10,000 USD per person per day.

Taking Money Out After a Sale

Thailand's foreign exchange regime is symmetrical: funds that were lawfully brought in may equally be repatriated. Repatriation of proceeds from a property sale is permitted upon presentation of documents confirming the transaction - principally the FET (or bank letter) that was issued when the funds were originally brought in, together with the sale agreement and sale documents. The FET should therefore be retained throughout the entire period of ownership: without it, demonstrating the 'foreign' origin of the funds and repatriating the proceeds without difficulty will be considerably harder.

Comparison: What Qualifies Under the Foreign Ownership Quota

The core criterion is straightforward: for a foreigner to hold freehold title to a condominium unit, the funds must arrive from outside Thailand in foreign currency and be exchanged into baht inside Thailand.

A Note on Purchase Structures

The foreign exchange mechanism described above applies specifically to the purchase of a condominium unit in personal freehold ownership within the 49% quota. Under other arrangements - a long-term lease (leasehold) pursuant to §540 of the Civil and Commercial Code (CCC) for a term of up to 30 years, or a purchase through a Thai company - the requirements for proving inward remittance of funds may differ, and in the case of a company, its own additional rules apply. This is a separate topic, but it should be taken into account when selecting the transaction structure.

What to Check and What to Watch Out For

• Transfer funds from abroad in foreign currency and convert to baht at a Thai bank - do not send baht directly.
• Verify that the payment reference specifies a real estate purchase and includes the buyer's name.
• Request the FET from the bank immediately upon receipt (for amounts of approximately 50,000 USD or more) or a bank letter for smaller remittances.
• Ensure that the aggregate amount shown across all FETs covers the purchase price stated in the sale agreement.
• When bringing in cash in excess of 20,000 USD, a customs declaration is mandatory.
• Retain the FET and all bank confirmations throughout the period of ownership - they will be needed when repatriating proceeds after a sale.
• Verify the specifics with your particular bank: internal thresholds and terminology can vary between institutions.