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Ways to Transfer Money to Thailand

If you want to buy property in Thailand, whether for residential or business purposes, you will usually need to transfer funds from abroad as part of the transaction. This is especially common when buying a condominium, as it’s one of the few properties foreigners can legally own in Thailand. However, transferring money internationally without knowledge of local processes may result in delays or a cancelled transaction, and could even leave you open to scams that can put your financial security at risk.

This page will explain how to transfer your funds into Thailand from overseas for the purposes of buying real estate, the difficulties you may encounter, and how to overcome them.

Foreign Ownership Restrictions in Thailand

The restrictive nature of property ownership in Thailand makes it harder for foreigners to acquire real estate. To protect Thai citizens and prevent excessive foreign ownership of Thai property, non-Thai citizens are prohibited from buying land and can only purchase certain kinds of property, notably condominiums.

Additionally, to prevent international financial crimes such as money laundering, Thai law requires foreign buyers to transfer funds from abroad and have them converted into Thai Baht through a domestic bank as part of most transactions.

Even if you have a sufficient amount of funds in your Thai bank account, you may be required to send the money back into your overseas account and transfer it to your Thai account to begin the exchange. This is usually done via telegraphic transfer (T/T), which incurs fees.

International transfers also carry risks. They may lack strong security safeguards, leaving you exposed to errors or fraud. Because the money is arriving from overseas, certain Thai banks might also charge additional fees for the transfer. Banks review remittance details before receiving funds, and missing documents can cause delays.

Despite the restrictions on foreigners, you can obtain a mortgage for the property you intend to purchase, but this option comes with its own problems. Some Thai banks refuse mortgages to non-Thai residents, while those that do may impose strict requirements that you must meet, such as needing to hold a Thai work permit.

Obtaining a Foreign Exchange Transaction Form (FET)

If you are purchasing property in Thailand, a Foreign Exchange Transaction (FET) Form is a key requirement of the process. This is a document obtained from a Thai bank that confirms that your funds have been transferred into a Thai bank in foreign currency and converted into Thai baht in accordance with the required procedure. You must present this document to the Thai Land Department when registering ownership of the property to prove the origins of the money used to buy it.

It is important to note that only the first bank that receives your funds can issue this document to you. You must obtain an FET for any transfers that are equal to or exceed $50,000 USD (or the international equivalent).

How to Transfer Money to Thailand from Abroad

Start by opening a bank account in Thailand, and transfer the purchase funds from your overseas account. The receiving bank will convert the funds into Thai baht before you remit them to the seller or developer.

The transfer amount must also be equal to or higher than the total purchase price outlined in the property contract. When transferring funds into Thailand, you must specify the transfer purpose (e.g., property purchase) on the transaction form.

Alternatively, you may transfer funds in advance to a property seller or developer’s bank account in Thailand. If you opt for this method, the seller will be responsible for obtaining evidence of the money’s deposit. However, some sellers or developers do not offer this as an option.

Using an Escrow Service

As international transfers carry a lot of risk, a safer option if you do not have a Thai bank account is to enlist an escrow service. These services are carried out by banks and lawyers who store your money in an escrow account and only release it to the seller once certain conditions have been met, such as after transferring ownership rights.

Escrow arrangements provide several advantages, such as:

• Protecting you from fraud and financial risks by ensuring the funds are only released after you and the seller have met all important conditions.
• Offering added fairness and clarity to transactions, as the escrow account holder is constantly updating you on the status of all finances held in the account.
• Streamlining money transfers from abroad by ensuring the funds are properly received and exchanged correctly.

Once your overseas funds have been deposited into the account, the escrow account holder will inform their bank to convert your funds into Thai baht. The holder will also request a FET certificate as proof that the money was remitted.

Transferring Money to Thailand FAQ

Can I Use Online Money Transfer Services Instead of Banks?

While online transfer services can be an option, it is generally safer to use a Thai bank. Many banks in Thailand offer this service, especially the major financial institutions that deal with foreign clients. You can also only obtain an FET from a licensed bank, as transfer service companies do not provide such documents. Online money transfer services typically come with high fees, and do not enjoy the same legal protections that banks do.

How Much Time Does the Escrow Process Take in Thailand?

If you opt for an escrow service, how long it can take depends on the timeline outlined in the sales and purchase agreement (SPA). For example, if the agreement requires funds to be released within 30 days, then the money will be released following that schedule once you provide confirmation.

How Do You Transfer Funds if Two Foreigners Are Purchasing the Property?

If there are two buyers involved, and both need to be registered as owners of the property, only one person must transfer the funds. That person must declare the names of both buyers to the receiving bank, stating that the property will be purchased jointly by both parties.

Professional Assistance in Transferring Money Internationally

Transferring money without professional legal assistance can result in mistakes and inaccurate conversions that can lead to significant financial losses. To transfer funds and purchase property in Thailand without complications, consult Siam Ä¢¹½ÊÓƵ’s property team for assistance.

As a full-service law firm with over 20 years of experience helping foreigners in Thailand with their real estate needs, our Thai property lawyers have the skills and qualifications to make sure you transfer your funds smoothly and in compliance with Thai regulations. We are an authorized escrow agent and can safeguard your funds in a special account for you, especially if you do not hold a Thai bank account yet. We will collect the FET on your behalf and submit both the certificate and funds to the appropriate authorities.

Contact Siam Ä¢¹½ÊÓƵ and book a consultation with our property team today to ensure you can buy the property you want with full confidence that your funds are secure.