Foreign Exchange Transaction Form: Buying Property in Thailand

The Foreign Exchange Transaction Form (FET), formerly known as the Thor Tor 3, is a crucial document that foreign buyers must prepare...

For individuals looking to purchase a condominium in Thailand, adherence to the regulations established by the Thai Condominium Act is essential. This set of laws governs the ownership of condos, flats, and apartments by foreigners and outlines the necessary legal documents for the smooth transfer of condo ownership.

The Foreign Exchange Transaction Form (FET), formerly known as the Thor Tor 3, is a crucial document that foreign buyers must prepare to facilitate the successful acquisition of a condo in Thailand.

What exactly is the Foreign Exchange Transaction Form (FET)?

The Foreign Exchange Transaction Form (FET) is an official document overseen by the Bank of Thailand (BOT), designed to monitor foreign currency exchanges within the country.

To put it simply, this document, issued by the recipient’s bank, serves as evidence that foreign currency has been transferred from abroad and then converted into Thai Baht within the local banking system.

To ensure the authenticity of the FET, the issuing financial institution or bank must include the following transaction details:

  • The amount of foreign currency that was converted and transferred.
  • The corresponding amount of Thai Baht received.
  • The names of both the money sender and receiver.
  • The purpose of the currency transfer.

Additional information regarding the FET

If the transferred foreign currency amount falls below 50,000 USD, the Thai Bank typically issues a Credit Note or a Bank Letter of Guarantee, both of which are equally accepted by the Land Department.

Foreign buyers who invest in off-plan condo development, which usually involve installment payments, are also required to adhere to FET regulations.

Foreigners holding permanent residency or long-term visas in Thailand may be exempt from the FET requirement. However, this exemption necessitates the submission of an alternative set of legal documents to verify the source of funds. It is recommended that buyers falling into this category seek advice from a reputable law firm.

How can you apply for and obtain a Foreign Exchange Transaction Form (FET)?

The issuance of the FET generally falls under the responsibility of the Thai Bank receiving and converting the foreign currency. While the process of transferring money might appear straightforward, foreign condo buyers must ensure they meet specific criteria:

  1. The transferred amount must exceed the property’s purchase price. This sum should be transferred in foreign currency and then converted into Thai Baht by a Thai bank.
  1. The buyer’s name should appear either as the money sender, the money receiver, or in the purpose of the transfer.
  1. The purpose of the transfer must be clearly indicated in the Bank remittance form.

(Example: Transfer of funds for the purchase of Condo x by Buyer x)

Assuming the potential buyer satisfies the aforementioned three requirements, the funds can be received, and an FET can be requested by the buyer themselves or their authorized representatives (such as family members, law firms, partners, etc.).

Adhering to these requirements is crucial to ensure the issuance of an FET-form that aligns with the regulations of the Thailand Condominium Act and the regulations established by the Bank of Thailand.

Repatriation of Proceeds from Property Sale

In the future, when the buyer decides to sell the property and intends to repatriate the sale proceeds, they will need a copy of the original FET, the land office sale agreement, and the land office tax receipt. These documents are essential to facilitate the tax-free transfer of funds out of Thailand! 

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