In buying a property in Thailand, a foreigner must first qualify for ownership as stipulated in section 19 of Condominium Act of Thailand. However, once the foreign owner dies, the title is not automatically transferred to a foreign heir or successor that the owner had identified.

In buying a property in Thailand, a foreigner must first qualify for ownership as stipulated in section 19 of Condominium Act of Thailand. However, once the foreign owner dies, the title is not automatically transferred to a foreign heir or successor that the owner had identified. Therefore, the right to freehold ownership ends upon the death of the qualified foreign owner. Section 19-5 of the Condominium Act says that in order for the successor to own the property, he or she must qualify within the foreign ownership quota of 49 percent.

How can a foreigner qualify for condo inheritance in Thailand? 

A condominium unit may be inherited by a foreign national given the proper documentations. But before one can do so, he or she must first successfully qualify for ownership based on the rules set by the Condominium Act. These include foreigners who are allowed to reside in Thailand, as stated under the Immigration law; those who are legal to enter the country via the investment promotion policy; juristic persons as stipulated in Sections 97 to 98 of the Land Code; and those juristic personalities under the Thai law. Foreign juristic persons covered by the National Executive Council Announcement No.281 or have acquired certification of promotion under Thailand’s investment promotion law also qualify.

In addition, foreign nationals or juristic persons considered by the law as foreigners who have infused foreign currency into the Thai Kingdom are also permitted for inheritance. Even those who obtain or withdraw assets from a baht account or foreign currency account of an individual who live outside of the country may also inherit a property. Qualified foreigners may register the unit that has been acquired through succession so long as this adheres to the 49 percent quota for foreign ownership within a condominium building.

The Case of Unqualified Foreigners

For foreigners who have inherited a property but are unqualified or those who are not listed in the Condominium Act Section 19, as listed earlier, they have to sell the unit within a year from the acquisition by way of inheritance. If the heir fails to do so, the Land Department will dispose of the property and will retain a certain fee equivalent to 5 percent of the sale price prior to taxes and other deductions. But there is another way for the heir to be granted ownership. He or she must buy the condo unit for a price not lower than the government assessed value. Therefore, a transfer of foreign currency equal to the appraised amount into the Kingdom for exchanging into baht including transfer fees is required. Upon exchanging foreign currency into baht within the country, the heir can then show a certain FET-form that qualifies him for inheriting the unit.

Inheriting a Condominium Under Leasehold Agreement

A lease contract, on the other hand, is terminated when the lessee dies and is not automatically transferred to an identified successor.  But what one can do is make sure there is a succession clause clearly stated in the contract. Still, this does not serve as a guarantee for the heir of the lessee.