Reselling Property in Thailand and Taking Your Money Out

The short version: what you can sell depends on whether your unit is registered yet; who can buy depends on the building's foreign quota; what you keep depends on Thai seller's taxes and on tax at home; and whether you can send the money abroad smoothly depends largely on bank confirmations you collected when you bought. None of it is complicated, but most of it is decided long before you list the unit.

This guide is general information, not legal, tax or investment advice. Taxes, fees and the rules on moving money out of Thailand change and depend on your circumstances. Talk to an independent Thai lawyer before you sell, and to a tax adviser about tax where you are resident.

Two exits, two different things to sell

Before the building is handed over and the unit registered in your name, you own a contract with the developer, not a flat. Exiting then means assigning that contract to someone else. After registration, you own a unit and sell it in an ordinary transfer at the Land Office. The parties, the paperwork and the tax questions differ, so it pays to know which one you are planning.

Before completion: assigning your contract

In an assignment the buyer steps into your place with the developer and continues the payment schedule. It is possible only if your contract allows it and on its terms — some contracts prohibit assignment, some permit it only after a set share of the price has been paid, some charge a fee. A foreign buyer will also need to bring money in from abroad for eventual freehold registration. Assignment as part of the off-plan decision is discussed in our guide to off-plan or ready-built property.

When exiting this way, get the developer's assignment conditions in writing before you look for a buyer, agree how the buyer reimburses what you have already paid and how that payment is documented, and ask a tax adviser before signing: an assignment can be a taxable event both in Thailand and in your country of residence.

After registration: selling the unit

Start with the file. You will need the unit title deed; your purchase contract, final statement and the Thai bank confirmations for every transfer from abroad; a certificate from the juristic person that no common fees are owed, without which the Land Office will not register the transfer; your passport and, if someone signs for you, a power of attorney; any tenancy and management agreements; and a list of the furniture and appliances included in the sale.

Then the price. Look at comparable units listed in the building and nearby, remembering that asking prices are not sale prices. In a newer building the developer may still be selling similar units, and buyers will compare with those too. A professional valuation is an option; check whether you need one and what it costs. If your listing mentions rental returns, be ready to show the workings — our rental yield guide explains what buyers should ask.

You can sell privately or through one or more agents. Before signing an agency agreement, check whether it is exclusive and for how long, what the commission is and when it is due, and who will show the unit while you are abroad. If the unit is let, coordinate viewings with the tenant and the manager.

A sale may start with a reservation agreement and deposit, followed by the sale and purchase agreement; ownership passes on registration at the Land Office. The agreement should state exactly how and when you are paid — bank transfer, banker's cheque or otherwise — and what happens if either side withdraws. Do not sign the transfer until payment has been received or secured in a way your lawyer has approved.

Who can buy from you

A Thai buyer can purchase a condominium unit without quota restrictions. A foreign buyer seeking freehold needs room in the building's foreign quota on the transfer date and funds arriving from abroad in foreign currency. Ask the juristic person about the quota before you market the unit, so you know who your realistic buyers are. How the quota works is explained in our guide to foreign ownership.

If what you hold is not a freehold unit in your own name — a long lease, a villa on leased land, property held through a Thai company — the sale works differently and depends on the lease terms or the company structure. Involve your lawyer before you talk to buyers.

Selling to a buyer from home

The obvious buyer is sometimes a friend, a relative or a compatriot who knows the building. To Thailand they are a foreign buyer like any other: they need room in the quota, and their money must reach Thailand from abroad in foreign currency with a Thai bank's confirmation. Settling between your accounts at home may be convenient, but it can leave the buyer without the document needed to register freehold title — and leave you with nothing in Thailand to repatriate. Agree the payment route with a Thai lawyer before you agree the price.

Seller's taxes and fees

As the seller, you now stand on the other side of the transaction. On transfer day the Land Office collects a transfer fee and taxes, some of which are withheld from the seller. Which tax applies depends among other things on how long you have owned the property, and how the transfer fee is split is a matter for agreement between buyer and seller. We do not quote rates here; the types of charge are described in our guide to taxes and fees, and your lawyer can calculate the figures for your sale before you sign.

Your country of tax residence will probably want the sale reported too, possibly with credit for tax paid in Thailand. The calculation will need your purchase price, your costs and the exchange rate on the date of each payment — another reason to keep everything from the start.

Getting your money out of Thailand

Sale proceeds are paid in baht, in Thailand. To send them abroad, the Thai bank may ask you to show that the funds originally came from overseas and that the sale was lawful: the transfer confirmations from your purchase, the sale agreement, the registration documents and tax receipts. If you kept the bank confirmation for every payment, the hardest part is already done. How those documents are created is covered in our guide to sending money to Thailand.

A few practical points. Check early whether you will need a Thai bank account to receive the proceeds and whether yours is still active. Banks convert at their own rates and charges, so compare before you transfer. Whether you can send everything at once or in parts depends on the bank's policy and the documents you present. Your bank at home may ask where the money came from, so keep the sale agreement and registration document to hand. And remember that the amount in your own currency depends on the rate on the day you convert: the baht may have moved either way while you owned the unit, regardless of what happened to its price in baht.

Selling from abroad

You do not need to fly in. A lawyer handles the agreement and the tax calculation, an agent or your manager shows the unit, and an attorney signs at the Land Office. A power of attorney signed outside Thailand must meet form and certification requirements, so check them before you see a notary. Sort out the bank account for the proceeds early, because opening or reactivating a Thai account can be difficult without a visit. The same tools are used for buying at a distance — see our guide to buying remotely.

Tenants, furniture and the building

A long-term tenant does not disappear when the unit is sold: an existing lease may remain binding on the new owner. Tell buyers, attach the agreement and ask your lawyer how it applies in your case. If a manager runs the letting, check the termination clause in your management agreement and what happens to future bookings. List the furniture and appliances that stay with the unit item by item. Finally, settle common fees with the building in good time — the juristic person's certificate is a condition of transfer. More on running a let in our guide to rental and property management.

Planning your exit when you buy

• Does the purchase contract allow assignment, and on what terms?
• Are you keeping the bank confirmation for every transfer, and the final statement?
• Who could buy from you later — only Thai buyers, or foreigners within the quota?
• Is the building well run, with a sinking fund that is actually funded?
• Would a long tenancy suit the buyer you imagine, or narrow your market?

Our guides to ownership costs and checking a developer cover the building and the developer side of these questions.

How ROMA ThaiProperty helps

If you bought through us, we can help you gather your purchase documents — transfer confirmations, final statement, contract — and, if the building is not yet complete, ask the developer for its assignment terms. We explain the steps in English and, if needed, recommend an independent Thai lawyer. We do not promise a sale price or a time to sell: the market on the day you sell sets the price.

Where to go next

Still at the buying stage? Each project page in our project catalogue shows, where the fields are filled in, construction status, planned completion and the foreign quota by unit. By destination: Pattaya, Phuket, Bangkok.