Foreign Quota

Full explanation

Section 19 of the Thai Condominium Act B.E. 2522 (1979) and its amendments permit foreign nationals to hold freehold ownership of individual condominium units, subject to a hard ceiling: the aggregate floor area of all foreign-owned units in any single condominium project may not exceed 49% of the total registered floor area of all units in that project. The remaining 51% must remain in Thai hands, held by Thai nationals or Thai juristic persons. The 49% is calculated on floor area, not on the number of units. Developers and condominium juristic persons are required to track foreign ownership ratios and report them to the Land Office. In practice, some highly popular projects in central Phuket and beachfront zones have foreign quotas that are fully sold and remain on waitlists. Projects outside prime corridors often have significant quota remaining. Foreigners may only purchase within the foreign quota in freehold condominium transactions, there is no equivalent foreign freehold right for landed property (houses and villas on land). When a project's foreign quota is exhausted, foreign buyers who still want a long-term hold in that building can use a registered leasehold arrangement, which carries its own legal and practical implications.

What it means for buyers

Why this matters when you buy in Phuket.

Before committing to any Phuket condominium purchase, a foreign buyer must confirm with the developer or juristic person how much foreign quota remains in the building. This is not a piece of information to take on faith, it should be confirmed in writing before a reservation deposit is placed, and verified again through the condominium juristic person at the time of transfer. Running out of quota between reservation and transfer, while rare, has happened and has caused significant complications.