Thailand Property Finance FAQ: Mortgages, Payment Schedules & Foreign Capital

Can foreigners get a mortgage to buy property in Thailand?

The simple answer is no - a foreigner looking to buy property in Thailand cannot obtain financing from a Thai bank or lender in almost all cases. The reasons for this are mainly due to legal complications with ownership structures. When buying land or villas through company ownership, the structure itself makes lending lack security - after all, the foreigner can only legally hold a minority shareholding, which makes the asset difficult to secure from a lender's perspective. In the case of leasehold property, the standard 30-year term is not long enough to support a mortgage.

This naturally leads to the question of freehold condominiums, which do allow a foreigner to register ownership directly in their own name, with full and indefinite title. See our guide here: Ownership Structures in Thailand.

It is theoretically possible for foreign investors to get a loan from a handful of banks - such as UOB - to buy a condo. But lending criteria are extremely strict, and rates are often uncompetitive. In practice, after many years in the Thai property market, we’ve never had a client successfully obtain a mortgage for a condo purchase.

Very occasionally, a developer will offer in-house finance, but in nearly all cases you will need to bring all the funds into Thailand for your purchase.

Do I need a Thai bank account to buy property in Thailand?

No - a Thai bank account is not required to purchase property. Most foreign buyers send funds directly into Thailand from overseas. In some cases, payment is made offshore and no transaction occurs within Thailand. However, when funds are transferred into Thailand, proof of foreign remittance is essential, not just for condominium registration but also for other property types, as it allows the inbound amount to be offset against future capital gains. The receiving bank will issue a Foreign Exchange Transaction (FET) form, or alternatively, a letter from the sending bank may be accepted. Funds are typically sent to the buyer’s lawyer’s escrow account, though sometimes they are transferred directly to the seller.

Can I pay for a property in Thailand in a foreign currency?

Foreign buyers typically send funds from overseas in a foreign currency. For condominium purchases under the foreign ownership quota, Thai regulations require that the money is remitted into Thailand in foreign currency and converted into Thai baht by a local bank. This process generates a Foreign Exchange Transaction (FET) form or equivalent, which is mandatory to register ownership at the Land Office.

For other types of property, such as leasehold villas or company-held structures, it may be possible to transfer foreign currency directly to your Thai lawyer’s escrow account. Some lawyers maintain USD or EUR accounts specifically for this purpose. In these cases, the lawyer can settle with the seller in baht, or in some situations, payment may be made offshore in foreign currency.