What you need to know about transferring funds into Thailand for property purchase
So you’ve decided to purchase property in Thailand? As a foreigner, buying a property in Thailand can be complicated. You need to really understand the process of buying real estate, including how to transfer your money to Thailand.
Any foreigner planning to buy a property must adhere to the proper steps to transfer money into Thailand. If you don’t follow the correct procedure, it could be difficult to repatriate the funds when it’s time to sell the property and/or leave the country. According to the Condominium Act, anyone who is not a Thai citizen but wants to purchase a condominium must send the necessary funds from overseas, particularly for that purpose. No matter where the buyer is from, the cash must be sent in a foreign currency. Then, the receiving bank will exchange it into Thai Baht (THB) when it reaches Thailand.
It might seem complex at first. But in reality, the process is pretty simple. You can easily do it without any problems as long as you have the correct documentation.
Transfer Money to Thailand
If you need to transfer money to Thailand to purchase a property, you usually have to send all funds by T.T (Telegraphic Transfer).
You need to provide proof of inbound transfer of funds from the issuing bank. Moreover, you have to include the precise purpose of the transfer, such as “Property Purchase, Building Name, Unit Number, Location”. Then, the bank that receives the money in a foreign currency will issue a Foreign Exchange Transfer (FET) form.
Suppose you transfer the money into a bank account you hold in Thailand before transferring it to the developer’s bank account. In this case, you are responsible for obtaining the FET form from your bank. However, if you transfer straight to the developer’s bank, the developer will get the FET form from the bank for you.
Foreign Exchange Transfer Form Explained
The Foreign Exchange Transfer (FET) form, also known as Tor Tor 3 or TT3, is the official form required to transfer money over 50,000 USD to Thailand in any currency to purchase a property. In simple words, the FET form serves as evidence that foreign funds were transferred to Thailand and then converted into Thai Baht by a local bank. The form contains the following information:
- The transferred amount in foreign currency
- The transferred amount in Thai Baht
- The name of the money sender
- The name of the money receiver
- The purpose of the transfer.
You need to present the FET form to the Land Department in order to register foreign property ownership. When presenting it to the Land Department, the form needs to include the name of the purchaser as either the sender or the receiver of the money from the overseas bank. The Land Department may also accept the transfer even if the sender’s and the receiver’s name is not the purchaser’s name. However, the sender of the money needs to instruct the bank to put the purpose of the transfer as “for the purchase of the property by (Purchaser’s name)”.
The amount of money you transfer to Thailand has to be equal to or higher than the selling price that the Land Department declares.
Keep in mind that a FET form can only be obtained and is only required if the amount of money you transfer to Thailand is above 50,000 USD. For smaller amounts, the purchaser must obtain a bank certificate or payment slip from the bank as support documentation instead of the FET form when you eventually transfer money back to your home country.
It’s important to issue the FET Form Properly
The proper issuing of the FET Form is vital since it will facilitate you in transferring the funds out of Thailand in case you want to sell the property in the future. If you are planning to inherit the property, it’s a good idea to add multiple names, such as your children or grandchildren, to the original telegraphic transfer. This way, they will the FET form will include their names. Thus, inheritance is easier since the funds can be returned to the account of an heir.
