Discover the Best Option for Buying Your Dream Condo in Pattaya - Foreign Quota vs. Thai Company

As you contemplate becoming a proud owner of a stunning condominium in Pattaya, do you find yourself facing a crucial decision? 
Have you weighed the various ownership possibilities thoroughly? 
Rushing into a condo purchase without due consideration often leads to regret later.

Fortunately, you have four popular options to choose from when it comes to buying a condominium in Thailand:

1. Foreign Quota: Purchase under the quota reserved for non-Thais, allowing you to own the condo in your name.
2. Thai Company: Buy the condo through a Thai company, offering certain advantages in terms of pricing and tax savings.
3. Thai National: If you are a Thai citizen, you can buy the condo directly as a Thai national.
4. Spousal Ownership: Buy the condo in the name of your spouse.

This detailed report explores these four options in depth, focusing especially on the key decision between Foreign Quota and Thai Company ownership.

According to the Condominium Act of Thailand, foreign nationals can own up to 49% of the liveable area of a condominium. 
This portion is known as the Foreign Quota, providing an opportunity for non-Thais to own a freehold condominium with the title deed in their name. 
Units within the Foreign Quota are typically purchased by non-Thai individuals or foreign corporations.

When a new condominium project is launched by a developer in Pattaya, the 49% Foreign Quota is often sold quickly. 
Many foreigners in Pattaya prefer buying within the Foreign Quota, which commonly includes premium units on higher floors or with better views. 
These sought-after units command a premium price when resold in the thriving Pattaya resale market.

Foreigners often opt for Foreign Quota ownership as it allows them to have their names on the title deed, even if it's in Thai language. 
This imparts a sense of security, and they believe it may facilitate future sales since most condo buyers in Pattaya, until recently, have been foreigners like themselves. 

It's not uncommon for Sales Contracts of premium positioned Foreign Quota condos to be traded among investors before the final ownership transfer.

When purchasing directly from a developer, the buyer typically pays only a 1% transfer registration fee. Upon selling a condo in Foreign Quota, transfer costs are calculated based on the land office valuation figure or the declared price, not the actual selling price. These costs, which include transfer registration fee, specific business tax, and income tax, can range from approximately 6.6% to 3.3% of the declared price at the land office, depending on the duration of the seller's ownership. Longer ownership results in lower transfer fees.

If the Foreign Quota has been fully sold by the developer, or even before that, foreigners can consider buying within the 51% Thai Quota, which may offer advantages in certain cases. 
Some developers issue two price lists for their projects, with lower prices for Thai Company ownership. 
Developers expect Foreign Quota units to sell first, thus potentially making more money than if they set equal prices.

Buying a condominium under Thai company ownership can prove to be an excellent investment opportunity. 
Investors looking to rent out the condo units for a specific period before reselling can generate the maximum possible ROI per year in rental income using this method.

Establishing a Thai company is a straightforward process, easily done at a reputable lawyer's office for a fee starting around 15,000 THB. 
This allows the foreigner to be the sole managing director, exercising 100% control over the company and its valuable asset—the condominium.

There are numerous advantages to buying through a Thai Company, including lower prices compared to the Foreign Quota allocation and potential tax savings when selling. 

For a detailed discussion of the benefits and any concerns, get in touch with Five Star Villas & Condos.

In the booming Pattaya real estate market, an increasing number of Thai nationals are also buying condos as second homes and investments, preferring the Thai Quota. 

It's worth noting that the ownership type of a condominium can be changed at a later date if there is sufficient foreigner quota remaining in the building.

At Five Star Villas & Condos, we have extensive experience in facilitating the transfer of condominium ownership from Thai Companies to Foreign Quota. 

Trust our internationally qualified real estate brokers to guide you to your dream condo purchase. 

Come and secure your piece of paradise in Pattaya!

© 2023, Robert D Watson