Condominium Inheritance Thailand
20 March 2010
Foreign condominium apartment ownership and inheritance by foreigners
the following foreigners are permitted to own a condominium apartment in Thailand:(1) Foreigners permitted to have residence in the Kingdom under the Immigration law;
(2) Foreigners permitted to enter into the Kingdom under the investment promotion law;
(3) Juristic persons as provided in Section 97 and 98 of the Land Code and registered as juristic persons under Thai law;
(4) Juristic persons which are foreigners under the Announcement of the National Executive Council No.281 dated November 24, B.E. 2515 and have obtained promotion certificate under investment promotion law;
(5) Foreigners or juristic persons regarded by law as aliens who have brought in foreign currency into the Kingdom or withdraw money from Thai baht account of the person who have residence outside the Kingdom or withdraw money from a foreign currency account.
Only the above listed qualified foreigners are permitted to register ownership of a condo with the Thailand Land Department within the 49% foreign ownership quota (section 19 bis of the Condominium Act B.E.2522).
Qualified and unqualified foreign successors under the Condominium Act
Any foreigner who receives a condominium unit by inheritance in Thailand shall have ownership rights, however inheritance does not automatically entitle the foreigner to registration of foreign ownership under the Condominium Act. The Condominium Act deals with inheritance of a condominium unit by foreigners in sections 19/5 and 19/7 and makes a distinction between qualified and unqualified foreign heirs and legatees. Qualified foreign successors are allowed to register ownership, unqualified foreigners are not and have to sell the unit within 1 year from the date of acquisition. Any foreigner who receives as condominium apartment unit in Thailand by inheritance, either as a statutory heir or inheritor under will (or even as a gift during the owner's lifetime), must qualify under the Condominium Act for ownership;
- the foreign heir must qualify under section 19 of the Condominium Act to register ownership, similar to a situation where a foreigner would buy a condominium, and;
- registration of ownership may not exceed the foreign ownership quota of the condominium.
Section 19/5 of the Condominium Act permits qualified foreigners (1 to 5 above) to register ownership of a unit in a registered condominium in Thailand as long registration does not exceed the foreign ownership quota within the condominium.
'When the alien or juristic person stipulated in Section 19 (a qualified foreign natural or juristic person) has acquired an apartment unit by legacy in the capacity of statutory heir or inheritor under will or by other means (e.g. gift) as the case may be, and when included the apartment already held by aliens or juristic persons stipulated in Section 19 exceeding the ratio prescribed in the first paragraph of Section 19 bis.'
Section 19/7 of the condominium Act deals with unqualified foreigners (not being 1 to 5 above). Unqualified foreigners (any foreigner who would also not be permitted to register ownership as a foreign buyer of a condominium) must sell the unit within 1 year of the acquisition of the unit.
'An alien or juristic person regarded by law as alien other than those specified in Section 19 who acquires an apartment by inheritance as statutory heir or legatee or otherwise, as such case may be, shall notify in writing the Competent Official within a period of sixty days from the date of acquisition of ownership of apartment, and shall dispose of such apartment within a period of not exceeding one year from the date of acquisition of ownership of apartment. If disposition is not made within said period, the provisions of the fourth paragraph of Section 19 quinque shall apply mutatis mutandis.'
In case of a unqualified foreign heir under section 19/7 a solution for registration of ownership could be (contact the local Land Department's branch office first) to transfer foreign currency into Thailand equal to at least the official appraised value of the condominium. The foreign successor in this case purchases the unit on paper from the estate, and by remitting and exchanging foreign currency qualifies for foreign ownership under section 19 (brought in foreign currency into Thailand). If the foreigner does not qualify under the Condominium Act he must dispose of the unit within 1 year of the date of acquisition by inheritance.
Thailand Condominium Lawyer and Legal Services in Thai and English: We offer condominium legal services and condo conveyancing service packages for the acquisition of a condominium in Bangkok, Pattaya, Hua Hin or Phuket, as well a professional online drafting and review of condominium contracts in Thai and English.
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