The 56m Baht Phuket Condo That Blew Up the Debate on Taxes for Foreign Buyers

A viral purchase, a misleading headline and what property Thailand buyers really need to know

A recent high-profile purchase of a 56 million baht freehold condominium near Bang Tao Beach in Phuket sparked a wave of online debate when the British buyer claimed the deal left him with no personal income tax on his global earnings. The short version for anyone watching the property Thailand market: the claim is partly correct and partly wrong, and that distinction matters if you plan to buy a condo in Thailand.

We have followed the documents, the law and commentary from tax advisers. Our analysis explains what is legally permitted, what taxes you will still face when buying and owning, and why the Long-Term Resident (LTR) visa tied to Royal Decree No. 743 is the real game-changer for foreign income taxation.

How foreigners can legally buy a condo in Thailand

Thailand forbids foreign ownership of land but the Thai Condominium Act B.E. 2522 (1979) allows foreigners to own individual condominium units in freehold. That freehold right is real title, not a lease.

Key legal facts:

• Foreigners can hold freehold title to condo units but foreign ownership in a building cannot exceed 49% of total floor area (measured in square metres).
• Developers or the condo juristic person must confirm the foreign quota before sale. In hot markets such as Bang Tao and Sukhumvit, the quota is often full before projects complete.
• To register the unit in your name at the Land Department, the purchase funds must arrive from overseas in foreign currency and be converted through a Thai bank so the bank issues a Foreign Exchange Transaction (FET) Form.

Important FET threshold and rule:

• US$50,000 is the minimum foreign currency wire amount that triggers a formal FET Form. Below that, a bank credit-advice letter may suffice.
• The FET must name the buyer and the specific unit and match or exceed the purchase price. Funds cannot come from a local baht account.

Why that matters: the FET protects your ability to repatriate sale proceeds and is essential for proving the foreign origin of funds when qualifying investments for visas such as the LTR.

The taxes you pay at purchase — visas do not cancel Land Department charges

One of the most misleading claims in the viral post was that the buyer paid no taxes. That is wrong if you interpret it as meaning no taxes or fees on the property transaction itself. No visa removes the Land Department charges and seller-side taxes collected at transfer.

Common fees and taxes at transfer:

• Transfer fee: 2% of the Land Department appraised value (normally split 50/50 between buyer and seller by custom). On a 56 million baht sale the fee equals 1,120,000 baht, leaving the buyer commonly responsible for about 560,000 baht.
• Specific Business Tax (SBT): 3.3% when the seller held the property under five years or the seller is a corporate entity. On the Phuket purchase SBT would be around 1,848,000 baht if applicable.
• Stamp duty: 0.5% when SBT does not apply. Stamp duty is paid by the seller.
• Withholding tax: 1% (corporate) or progressive (individual) paid at transfer. For a corporate seller on the example transaction withholding tax was roughly 560,000 baht.

The example transaction totals above show that even where the buyer benefits from tax exemptions later, the transfer stage can carry meaningful costs.

A related point: the government temporary measure reducing transfer and mortgage registration fees to 0.01% through June 2026 applies only to Thai nationals buying properties under 7 million baht. Foreign buyers at 56 million baht are excluded.

Royal Decree 743 and the LTR visa: the income-tax dimension

The buyer who went viral was right about the income tax claim, but only because of a specific visa category. The Long-Term Resident (LTR) visa in the Wealthy Global Citizen category ties to Royal Decree No. 743, which provides a personal income tax exemption on foreign-source income for eligible visa holders.

Key LTR eligibility and conditions:

• Global assets: at least US$1 million in qualifying assets.
• Thai investment: at least US$500,000 in qualifying Thai instruments which can include a freehold condo in the buyer’s name.
• Visa duration 10 years (two 5-year blocks). Fee 50,000 baht.
• The Cabinet removed the annual income requirement in January 2025. Health insurance or a bank deposit of specified amounts remain part of the test.

What Royal Decree 743 exempts (Section 5):

• Foreign salary or employment income: Yes
• Offshore business profits or dividends: Yes
• Foreign rental income: Yes
• Capital gains on overseas assets: Yes (per prevailing practitioner interpretation)

What remains taxable despite the LTR:

• Thai rental income from your condo: taxable
• Capital gains on the resale of Thai property: taxable

This is the critical distinction: Royal Decree 743 offers an exemption for foreign-source income remitted to Thailand by eligible LTR holders. It does not wipe out Thai-source taxes.

Why the 2024 reporting change matters: Por. 161 vs. Royal Decree 743

From January 2024 the Revenue Department issued an instruction, Por. 161/2566, requiring Thai tax residents who spend 180 days or more in Thailand to declare foreign-source income in the year it is remitted. That ended the old practice of deferring remittances by a year to avoid Thai tax.

The legal hierarchy is clear: Royal Decree 743 is primary legislation and cannot be overridden by departmental instructions. Major accounting firms — BDO Thailand, HLB Thailand, PwC and KPMG — confirm the LTR exemption stands against Por.