Buying an apartment
foreign currency exchange
To qualify for foreign ownership under the Thailand Condominium Act a foreign purchaser of a condo unit is required to remit the full purchase price for the condo in foreign currency into Thailand, unless he is a resident in Thailand or eligible for foreign ownership under one of the other less common grounds of section 19 of the Condominium Act.
The purchase price for the condo should be transferred from abroad in foreign currency and exchanged into Thai baht by the Thai recipient bank. The recipient bank inside Thailand must issue to the foreign purchaser evidence of the money transferred and exchanged into Thai baht in the form of a foreign exchange transaction form or credit note. These documents must show:
- The transferred amount in foreign currency
- The transferred amount in Thai Baht
- The name of money sender
- The name of money receiver
- The purpose of transferring (i.e. buying condominium unit x in the x condominium)
A non-resident foreigner buying a condo in Thailand must be able to show a copy of the bank's issued FET-form or confirmation letter of remittance of foreign currency (credit note) to the land department in order to qualify and register foreign ownership of an apartment unit in the condominium. The foreign exchange transaction form must show the foreign purchaser's name either as the sender or receiver of the money from the overseas bank.
FET-form, previously known as Thor Tor 3 form
For any foreign exchange transactions (buying, selling, depositing, withdrawing foreign currencies) between financial institutions and their non-interbank customers the recipient bank inside Thailand must prepare a FET form for each remittance and exchange of foreign currency with an equivalent of USD 50,000 or more and report this to the Bank of Thailand.
For lesser amounts the recipient bank in Thailand can but does not need to prepare a FET-form and issue a credit note letter based on the SWIFT document showing the same information as the FET-form. Such letter issued by the recipient bank can be used as proof of remittance of foreign currency into Thailand and exchange and withdrawal of Thai baht inside Thailand (similar to the official FET-form) and is accepted by the Land Office in Thailand when registering foreign ownership of a licensed condo.
Remittance out of Thailand
Whenever transferring money out of Thailand because the foreigner has sold the condominium a copy of the original FET-form and/or credite note together with the land office sale agreement and the land office tax receipt is required for transferring money tax free out of Thailand.
article source: foreign exchange form (tor thor 3)
Tags: real estate law