When purchasing property in Thailand, you cannot pay cash directly to the developer, nor can you wire funds directly from a bank in China to the developer's account in Thailand; the transfer must be processed through a local Thai bank. Since the Land Department of Thailand requires the presentation of a 'Foreign Exchange Transaction Form' (FET) to verify the legality of your source of funds when purchasing property, this document is mandatory at the time of property transfer.
1. What is a Foreign Exchange Transaction Form?
The so-called Foreign Exchange Transaction Form is known as FOREX/FET. It is an official document issued by a Thai bank for foreign currency remittances, certifying that foreign currency equivalent to or greater than 50,000 USD has been transferred from an overseas account into a Thai bank account. Therefore, a crucial point for foreigners purchasing property in Thailand is that they must provide this Foreign Exchange Transaction Form to prove that all funds used for the actual purchase price of the property were transferred from a country outside of Thailand in your own name. Although foreign exchange restrictions are relatively strict, there are always ways to overcome these challenges.
2. How do you obtain a Foreign Exchange Transaction Form?
First, you must exchange the required US dollars at a bank in your home country; it is recommended to use online banking via a computer, as this is much more convenient. Second, when making the remittance, it is best to include a note in the remarks field specifying the project name, unit number, and your name for the property purchase in Thailand. Finally, because exchange rates fluctuate constantly, it is advisable to transfer a little extra beyond the property price to avoid any issues with the transfer process due to daily exchange rate fluctuations or transaction fees.
3. How do foreigners open a bank account in Thailand?
One of the requirements for obtaining a Foreign Exchange Transaction Form is to have a bank account in Thailand, and opening such an account as a foreigner is not a simple matter.
First, those who hold a Thai work permit need to open a non-resident Thai Baht account. Required documents include your passport, Thai work permit, a letter from your employer stating your job title, length of service, and income, as well as the company's business registration documents.