Ways to Transfer Money to Thailand for Property Purchase. Foreign nationals purchasing property in Thailand—whether a condominium unit, leasehold interest, or off-plan development—must not only navigate Thailand’s property laws, but also ensure that the funds transferred into the country comply with legal requirements. This is particularly important because Thailand strictly regulates the inflow of foreign currency for property acquisitions, and proper documentation is critical for ownership registration, tax compliance, and potential future repatriation of funds.
This article provides an in-depth examination of the methods, legal requirements, and procedures for transferring money to Thailand for the purpose of buying property, with a focus on condominium purchases (where foreign freehold ownership is allowed) and other property structures commonly used by foreigners.
Legal Framework Governing Funds Transfer
Property purchases by foreigners are subject to:
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The Condominium Act B.E. 2522 (1979) (for freehold condo units).
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The Exchange Control Act B.E. 2485 (1942) and its regulations (for foreign currency transactions).
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The rules of the Bank of Thailand (BOT) governing foreign exchange transactions.
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Anti-money laundering (AML) and counter-terrorism financing laws.
The Land Department (for land/condo registration) and commercial banks authorized by the BOT are key authorities involved in monitoring funds transferred for property transactions.
Key Requirement: Foreign Currency Remittance
For foreigners buying a condominium unit (freehold), the law requires that:
✅ The purchase funds be remitted from abroad in foreign currency.
✅ The amount remitted be at least USD equivalent to the full purchase price (or equivalent in other major currencies).
✅ The remittance be properly documented through official forms for ownership registration.
Failure to comply with these requirements may:
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Prevent registration of ownership at the Land Department.
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Impair the foreigner’s right to repatriate proceeds in the future.
Common Methods for Transferring Money
1️⃣ International Bank Wire Transfer (Telegraphic Transfer / SWIFT)
This is the most secure and preferred method for transferring funds for property purchases in Thailand.
Process:
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The buyer instructs their overseas bank to transfer funds directly to the developer’s or seller’s Thai bank account (or to the buyer’s own account in Thailand, if pre-arranged).
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The transfer must clearly specify the purpose (e.g., “For purchase of condominium unit XYZ”).
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The receiving bank issues a Foreign Exchange Transaction Form (FETF) or equivalent (previously called Tor Tor 3 form) for amounts over USD 50,000 or equivalent.
Advantages:
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Recognized by the Land Department as valid proof of foreign remittance.
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Fulfills the Condominium Act requirement for foreign ownership registration.
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Facilitates future repatriation of funds upon resale.
2️⃣ Opening a Foreign Currency Account (FCA) in Thailand
Foreign buyers may open an FCA at an authorized Thai bank.
Process:
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The buyer remits foreign currency from abroad into their FCA in Thailand.
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When payment is due, the buyer converts foreign currency into Thai Baht via the FCA for the property transaction.
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The bank issues an FETF for the converted amount.
Advantages:
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Greater control over currency exchange timing and rates.
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Complies fully with foreign remittance rules.
3️⃣ Escrow Transfers (for off-plan or regulated transactions)
For certain off-plan developments or where the law mandates (e.g., under the Escrow Act B.E. 2551), funds may be transferred into an escrow account administered by a licensed escrow agent.
Process:
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The foreign buyer remits funds directly into the escrow account.
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The escrow agent disburses funds to the developer in accordance with contract milestones.
Advantages:
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Enhanced security for buyers.
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Provides regulatory assurance in projects where escrow is mandatory.
Forms and Documentation
For the Land Department to register condominium ownership:
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A Foreign Exchange Transaction Form (FETF) must be submitted for each transfer (or aggregated transfer) exceeding USD 50,000.
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The form must specify:
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The sender’s name (must match buyer’s name).
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The recipient’s name (buyer, developer, or seller).
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The purpose of transfer (e.g., property purchase).
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For transfers below this threshold:
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Banks provide a bank confirmation letter or credit advice, which must still state purpose and sender details.
Other key documents:
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Sale and purchase agreement.
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Passport copy (and visa, where applicable).
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Evidence of payment (e.g., bank receipts, SWIFT messages).
Practical Considerations in Funds Transfer
✅ Currency of Transfer
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The funds must arrive in Thailand in foreign currency and be converted into Baht within Thailand.
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Direct remittance in Thai Baht from overseas does not meet the legal requirement.
✅ Sender Identity
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The remitter’s name must match the name of the foreigner who will register ownership.
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Transfers from unrelated third parties (e.g., family members) may create complications.
✅ Timing
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Ensure that transfers are made in advance of the registration date, allowing time for documentation to be prepared by the receiving bank.
✅ Purpose Statement
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Clearly state on the transfer instructions that the purpose is property purchase (to avoid issues with FETF issuance).
Repatriation of Funds
Upon resale of the property:
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The foreign owner may repatriate funds equal to the original foreign currency remittance recorded on the FETF.
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The Land Department and the bank will require evidence of original remittance.
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Capital gains (if any) may be subject to withholding taxes at time of sale and registration.
Failure to comply with proper remittance procedures at the time of purchase can impair repatriation rights.
Pitfalls and Risks
⚠ Improperly documented remittance
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Without an FETF or equivalent, foreign ownership registration may be denied.
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Future repatriation of sale proceeds could be blocked.
⚠ Use of non-bank or informal transfer methods
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Non-bank channels (e.g., money transfer services not issuing FETFs) will not fulfill legal requirements for property registration.
⚠ Third-party remitters
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Funds remitted by someone other than the buyer can lead to ownership registration or repatriation issues unless properly documented.
⚠ Currency mismatches
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Funds must arrive in foreign currency and be converted in Thailand. Transfers in Baht from abroad are treated as local funds, disqualifying foreign freehold ownership.
Recommendations
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Use well-established banks familiar with property transactions in Thailand.
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Coordinate with your legal advisor and the receiving bank to ensure proper documentation.
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Maintain records of all transfers, FETFs, and related documents for future use (e.g., resale, tax reporting).
Conclusion
Transferring money to Thailand for property purchases involves more than simply wiring funds. It is a regulated process designed to ensure compliance with foreign ownership rules, exchange control laws, and anti-money laundering standards. Foreign buyers should plan carefully, use proper channels, and document all transactions meticulously to secure ownership rights and protect future financial interests.
