Condominium Foreign Quota: How the 49% Rule Works

Condominium Foreign Quota: How the 49% Rule Works #

What is the condominium foreign quota? #

The condominium foreign quota is the one practical freehold route open to foreign buyers in Thailand, but it is capped. Section 19 bis of the Condominium Act limits foreign freehold ownership to 49% of the total floor area of all units, measured building-wide, not unit by unit. The juristic person managing the building tracks this ratio continuously.

Freehold under the quota is real, unqualified ownership. The title deed lists the foreign buyer's name directly, with no lease, no company vehicle, and no expiry date, which is why buyers compete for quota space in popular buildings.

How is the 49% calculated, and what happens when a building is full? #

The 49% threshold is measured against the building's total saleable area at registration, not against unsold or resale units in isolation. Once the foreign-held area reaches the cap, the juristic person must refuse further foreign transfers regardless of the price agreed, a point that established developments in Bangkok, Phuket and Pattaya commonly reach.

Popular buildings, particularly in Phuket, where transfers grew roughly 10% in 2025, frequently sit at or near quota, so buyers should request the juristic person's current foreign-ownership percentage in writing before signing a reservation agreement. A verbal assurance from an agent is not evidence.

What is the FET requirement, and why does it matter? #

The Foreign Exchange Transaction form, issued by a Thai bank under Bank of Thailand rules, evidences that the full purchase price arrived from overseas in foreign currency and was converted to Thai baht inside Thailand. The Land Department will not register a foreign freehold condominium transfer without it. Banks issue the formal FET form for a single transfer of USD 50,000 or more; for smaller transfers, the buyer should ask the bank for a credit advice or confirmation letter at the time of transfer.

Local cash payments do not satisfy the requirement. Neither does a transfer of baht already inside Thailand, however well documented the source. Buyers relying on savings already held in Thailand might find registration blocked at the final stage, often after deposits are committed. Confirm the FET mechanics with the receiving bank before any deposit is paid.

Is the quota really rising to 75%? #

A proposal to raise the foreign condominium quota from 49% to 75% remains unenacted. It has circulated in Thai policy discussion and is best read as direction, not deadline, consistent with the pattern seen across other pending property and anti-money-laundering reforms this year.

Buyers should not defer decisions on the expectation of a higher quota arriving on any timetable; the 99-year lease proposal, shelved in September 2025, shows how readily such proposals stall. Plan around the 49% rule as it stands today, verified against the specific building.

Why do buyers try to work around a full quota, and what does that recreate? #

When a building's foreign quota is exhausted, some buyers are offered a Thai company structure instead, in which a Thai-majority company holds the unit while the foreign buyer funds the purchase and directs decisions. Whatever a sales agent calls it, this is a nominee structure under the Foreign Business Act, not a lawful alternative to a full quota.

Section 36 of the Foreign Business Act imposes up to three years' imprisonment and/or a fine of THB 100,000 to 1,000,000 on both the Thai nominee and the foreign beneficiary, plus court-ordered cessation of the shareholding and daily fines of THB 10,000 to 50,000. The Land Department can also force disposal of the property.

Central Registrar Order 2/2569, effective 1 August 2026, carries forward the sworn PorOr.1 statement and bank-audit trail first introduced by DBD Order 1/2569 in April, and is stricter in places, so these structures are harder to register and easier to detect. Growth provinces such as Phuket, Surat Thani and Prachuap Khiri Khan are also among those under the heaviest nominee investigation.

How does Better-than-Freehold™ fit alongside the quota? #

Compliance comes first. Where the foreign quota is exhausted, or a buyer prefers not to compete for scarce freehold allocation, Thailand Investor Network, a 100% Thai-owned property holding and management company with institutional capital, holds legal title. The structures require no foreign funding or foreign control. That leaves nothing in the ownership chain for IBAS AI screening to flag.

Security follows. The structure uses four principal instruments, including a registered 30-year lease and mortgage, with a separate year-30 Option Agreement appended to the mortgage, and a share pledge; Clear Blue Security Agents mediate and enforce on the client's behalf, independently of the parties.

The benefits complete the picture. SPH Trustees Ltd, a Labuan FSA-regulated trust company, holds investor rights, with resale available by assignment of trust interest and succession passing without Thai probate; financing to 50% loan-to-value (LTV) is planned (expected H1 2027). And this route does not depend on quota space in any specific building.

FAQ Section #

Related Terms #

• Nominee Company Risks in Thailand
• Thailand Property Market Analysis
• Foreign Property Ownership in Thailand: Legal Framework
• Can Foreigners Buy Property in Thailand: A Legal Guide

Expert Guidance #

Our advisers regularly assess quota availability, FET mechanics and structuring choices for buyers facing a quota-full building. For guidance specific to a building or a proposed purchase, see how BtF™ works.

Conclusion #

The 49% condominium quota gives foreign buyers in Thailand freehold title in their own name, but it is finite, building by building, and it depends on funds arriving correctly documented from abroad. A proposed rise to 75% remains unenacted and should not shape purchase timing. Before signing a reservation agreement or paying any deposit, buyers should obtain the juristic person's current foreign-ownership percentage in writing and confirm FET mechanics with the receiving bank. Where quota is unavailable, a compliant structure such as Better-than-Freehold™ addresses the same commercial need without recreating the legal exposure of a nominee company.

Sources: Land Department, Bank of Thailand, Anti-Money Laundering Office, Department of Business Development

This article is provided for general information only and does not constitute legal, tax, or investment advice. Laws and enforcement practices change; obtain advice tailored to your situation before acting.