Risks and pitfalls of buying property in Thailand as a UK foreigner

Thailand is a popular destination for UK buyers looking for good investment and a relaxed lifestyle. While there are plenty of opportunities, there are also risks that come with buying property abroad.

In this guide, we’ll walk you through the common risks of buying property in Thailand. We’ll offer practical advice to help you avoid costly mistakes.

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Pitfalls of buying property in Thailand

Buying property in another country can be very different from buying at home, no matter how much experience you have. To help you avoid mistakes, here are some key risks to keep in mind when purchasing property in Thailand.

Land ownership issues

In Thailand, one of the biggest risks for foreigners buying property is the issue of land ownership. According to the Land Act Code, only Thai citizens can own land directly.¹

Breaking this rule can lead to serious consequences, including fines or even jail time for up to two years. If the authorities find that you own land illegally, you could lose the property and your investment without any compensation.¹

A safer option for foreigners is to buy a condominium, as the law allows foreign ownership under specific conditions. Before making any property purchase in Thailand, it is essential to consult with a qualified local lawyer. They can help you understand the legal requirements and ensure that your investment is secure and complies with Thai law.¹

Registering land in the name of a Thai citizen

Foreigners sometimes try to get around ownership rules by registering land under the name of a Thai citizen, often called a Thai nominee. This practice is illegal and risky for both parties and it can lead to fines or even jail time.²

Another issue is that since the land is legally owned by the Thai citizen, you as the foreign buyer won’t have any official rights to the property. This means that if there’s a disagreement or if the Thai owner decides to sell the land, you could lose your entire investment with no legal protection.²

To avoid losing your property and facing legal trouble, it’s important to fully understand these risks and seek professional legal advice before considering such an option.

FET form issues

One risk that often catches foreign buyers off guard is the need for a Foreign Exchange Transaction form or FET form. This document is required when purchasing a condominium in Thailand and must be presented to the Land Department to register the unit under your name.³

The FET form is issued by a Thai bank when you transfer more than $50,000 into the country and exchange it into Thai baht. It must include your name as the sender or receiver of the funds. Without this document, the Land Office may refuse to register the property and you could run into serious issues if you decide to sell it later on.³

If the transfer amount is below $50,000, the bank won’t issue a formal FET form but may provide a confirmation letter instead. To avoid delays or legal trouble, make sure the paperwork is handled properly and always keep a copy for your records.³

Condominium ownership limits

Foreigners can only own up to 49% of the total space in any condominium building in Thailand.¹ This limit means that if the foreign ownership quota is already full, you won’t be able to buy a property there, even if it is for sale.

To avoid this, always check the current foreign ownership status of the building before making any commitments. Working with a trusted local agent or lawyer can help you confirm this and ensure your purchase is valid under Thai law.

Difficulty obtaining mortgages

Thai banks usually don’t provide mortgages to foreigners unless they meet strict requirements, such as having permanent residency, a Thai passport or a Thai spouse.⁴ For many foreign buyers, these conditions are difficult or impossible to meet.

Because of this, most foreigners have to pay in cash when buying real estate. If you are unable to do so, it may be best to reconsider buying property in Thailand.

Fake listings

If you’re thinking about buying property in Thailand, it’s important to watch out for scammers targeting foreign buyers. Many pretend to be real agents and use fake listings to catch people off guard. They manage to do this by relying on official-looking documents and high-pressure tactics, promising unrealistically high returns to rush you into sending money.⁵

A common scam involves someone contacting you through messaging apps, claiming to represent a well-known agency. You may be pressured to make quick deposits or payments for special deals, but the scammer always disappears as soon as you send them money.⁵

Keep in mind that the law can only protect you if all transactions are properly documented.⁵ If an agent or seller will not show you contracts or verified ID, take that as a big red flag and step back before moving forward with the purchase.

Buying property through a Thai company

In addition to buying property through a Thai nominee, some foreigners try to purchase real estate through a Thai company. Since companies with majority Thai ownership also have the right to own land, this is another legal option, but it comes with risks.⁶

If you choose this route, it’s important that the Thai company has a real, genuine business. If the company was set up solely to own property, it can be classified as a shell company. This often leads to property loss and forces the sale of the land.⁶

Since government checks have intensified, this method is only recommended if you’re absolutely certain the company is legitimate.⁶

Weak legal protection for foreign investors

Finally, one of the biggest risks when buying property in Thailand is dealing with the legal system. The law tends to favour Thai nationals and their interests, which can put foreign buyers at an disadvantage if any legal issues come up.⁷

Language barriers often make things more complicated, especially when it comes to contracts and court proceedings. On top of that, the legal system works differently from what many foreigners are used to, which can make it hard to understand or keep up.⁷

That’s why hiring an independent property lawyer is essential. Make sure you choose someone who understands Thai real estate law and has real experience helping foreign buyers.

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Sources used:

Sources last checked on date: 23-Sep-2025