Property Selection and Deposit
After selecting a property independently or through an agency, a deposit is paid, usually 2,000–5,000 USD, to reserve the property and remove it from the market. Agent services are typically free for the buyer: the seller pays the commission.
Due Diligence: Pre-Contract Verification
A lawyer checks the legal cleanliness of the transaction. They review the developer's title documents and check for any encumbrances on the property. When buying off-plan, they also check the developer's reputation and track record of completing previous projects. For projects of 80 units or more, or buildings above 23 metres, an Environmental Impact Assessment (EIA) is mandatory: the report is published on the ONEP website, and its absence for a project of this scale means construction is illegal.
Contract, Payment, and the FET Certificate
The contract specifies the payment schedule for off-plan properties or the transfer conditions for secondary market properties. Funds must come from abroad in foreign currency: the Bank of Thailand issues an FET (Foreign Exchange Transaction) certificate, and without it, the Land Department will not register the transfer of ownership into the foreigner's name.
Registration at the Land Department and the Chanote
The final stage: transfer of rights at the Land Department and obtaining the Chanote, the title deed. It is the date of registration at the Land Department, not the date of contract signing, that determines the moment of ownership transfer. For existing secondary market properties, the entire process from deposit to Chanote typically takes 4–8 weeks; for off-plan properties, the timeline extends over the entire construction period, which developers specify separately in the contract.
Just before registration for off-plan properties, there is a handover inspection: the buyer inspects the unit and records any defects in a written report attached to the key handover. Fixing defects after this stage usually requires separate arrangements with the developer — it is essential to document everything during the inspection, not retroactively.
Additional Costs and Taxes
Transfer Fee, Stamp Duty, and Specific Business Tax
At registration, the Land Department charges a transfer fee of 2%, calculated not on the contract price but on the appraised (cadastral) value of the property, which can differ from the market price by 20–40%. Additionally, either a Stamp Duty of 0.5% or a Specific Business Tax (SBT) of 3.3% is charged in its place if the seller has owned the property for less than 5 years. Thai law does not specify who pays what: the allocation of costs between seller and buyer is determined by the contract, not by law. This is a matter of negotiation, not an automatic 50/50 rule.
What to check: before agreeing to the contract terms, request the appraised value of the property from the Land Department separately from the seller's price. A 20–40% difference directly changes the amount of the transfer fee, which you may have to partially cover.
Withholding Tax: Usually the Seller's Responsibility
Withholding tax is a progressive tax on the seller, ranging from 5% to 35%, which the Land Department withholds directly at the time of the transaction. For the buyer, this is not a direct expense, but it is worth understanding: if the seller factors the tax into the property price, the final price for the buyer ends up higher than the nominal amount.
Sinking Fund and Monthly Common Fees
Upon moving into a condominium, a one-time payment is usually required into the sinking fund for major building repairs. Thereafter, there is a monthly common fee for services: security, grounds maintenance, and pool — typically 40–80 baht per m² per month. Water (30–35 baht per m³) and electricity (5–6 baht per kWh) are paid separately based on actual consumption.
Mortgages for Foreigners in Thailand
Thai banks practically do not lend to foreigners without residency status or Thai income: a mortgage for a non-resident is a rare exception rather than a standard scenario. Therefore, 70–80% of transactions with foreign buyers in Phuket in 2026 go through instalment plans directly from the developer: an initial payment of 10–30% of the price, with the remaining balance interest-free over 24–36 months during the construction phase. This scheme does not require a credit history or income certificates, but works only for off-plan properties, not for existing secondary market homes.
Residence Permit and Permanent Residency When Buying Property: What Changed in 2026
Until 2026, owning property in Thailand did not in itself grant the right to a visa or residency. Owners lived for years on tourist visas and visa runs, regularly crossing borders.
New Non-B Investor Visa Through Purchase from 3 Million Baht
In 2026, Thailand's immigration authorities officially launched the Non-B investor visa directly linked to property ownership. Conditions for the purchase option: a unit in a registered condominium, freehold ownership, property value from 3,000,000 baht, full payment, and a Chanote in the applicant's name. The annual visa costs 40,000 baht for the applicant and 40,000 baht for each family member (spouse, children under 20, parents over 50) plus 4,000 baht for participation in the programme. The visa is issued without leaving Thailand: first a 90-day Non-B, then an extension to a one-year multi-entry visa.
LTR Visa: For Larger Investors
The LTR (Long-Term Resident) visa is a separate programme for wealthy investors and pensioners, requiring assets of 1 million USD or annual income of 40,000–80,000 USD, and grants residency for up to 10 years with tax benefits. Purchasing a freehold condominium in Phuket can count as part of the investment portfolio for LTR purposes, but the entry threshold here is incomparably higher than the new Non-B visa through property ownership.
Risks: What Most Often Goes Wrong
Developer Delays in Handover
When buying off-plan, the main risk is delayed completion. Due diligence before signing the contract should include a review of the developer's track record on previous projects: whether they delivered on time and to the stated quality, not just a glossy presentation of the current project. The financial statements of the developer company itself can be ordered from the DBD (Department of Business Development) for 500 baht: these show the debt-to-asset ratio and cash flow. Debt above 70% of assets or negative cash flow for three consecutive years is a signal of increased risk of delay or project freeze.
Cadastral Valuation Differs from the Contract Price
The transfer fee and withholding tax are calculated on the Land Department's appraised value, not the contract price. A 20–40% discrepancy is common practice in the region, and it is worth clarifying in advance rather than on registration day, so the tax budget does not come as a surprise.
Real case: a buyer budgeted for taxes based on a contract price of 5 million baht, but the Land Department appraised the property at 6.5 million — the transfer fee and some other charges were recalculated on the higher amount right on registration day, and the allocated budget fell short.
