How to Pay for Property

If you are purchasing property in Thailand and you want to pay in Thai Baht ensure that your funds are transferred into Thailand in foreign currency and converted to Thai Baht here.

The reason for this is that the receiving bank will issue the relevant exchange control form (formerly the Thor Tor 3 form) confirming the transaction.

The relevance of the exchange control form is that it is one of the documents you will need in the future if you wish to repatriate funds without incurring tax (15%).

Also, please be aware that Banks will only issue exchange control forms for individual inward foreign currency transfers exceeding 20,000 US$ or in the case of other currencies apart from US$, exceeding the equivalent of 800,000 Baht.

Repatriation of investment funds and repayment of overseas borrowing in foreign currency can be remitted freely upon submission of supporting evidence.

One of these documents would be the exchange control form mentioned above, or in respect of a foreign currency loan, the loan contract. Remittance of funds without proper documentation will be regarded as income and become liable for tax.

Most real estate agents and property developers on Koh Samui prefer to simplify the process by allowing you to purchase your property in foreign currency. Your money is usually transferred directly into one of their offshore accounts. They will setup the freehold or leasehold for you directly on remittance of this money.

When the time comes that you wish to sell your property you simply sell it on in foreign currency.