This information is for reference only and is not legal advice. Consult a licensed lawyer before any transaction.
Exchange Control Act (FET)
Exchange Control Act B.E. 2485 (1942)
The information is reviewed and updated monthly against official sources.
In short
Thailand's Exchange Control Act B.E. 2485 (1942) is the framework statute that lets the Ministry of Finance and Bank of Thailand regulate foreign-currency flows; under its regulations every inbound remittance used to buy a condominium must be evidenced by a Foreign Exchange Transaction Form (formerly Tor.Tor.3), which the Land Office requires for foreign-name registration and which later supports lawful repatriation of sale proceeds.
Section 3: Key definitions (currency, foreign currency, foreign exchange)
The Act defines the terms it controls. Currency means Thai legal tender; foreign currency means legal tender of any other country plus foreign exchange; foreign exchange covers bank balances, cheques, bills, transfers and money orders payable abroad. These definitions set the perimeter for regulating money a foreign buyer brings in to purchase a condominium.
Section 4: Power to regulate foreign-currency operations
The Minister may issue Ministerial Regulations to control, restrict or forbid dealings in foreign currency: its purchase, sale and lending, the export of money and securities, exchange rates, and the licensing of banks to handle exchange business. This is the legal engine behind every later rule governing inbound property transfers.
Section 4(10): Rules on receiving and using inbound remittances
A specific limb empowers the Minister to set the manner and conditions under which money sent from abroad may be received or used inside Thailand. This is the statutory hook for the requirement that a foreign buyer's purchase funds be remitted, converted and documented through an authorized Thai bank before they may register a unit.
Section 4(6): Authorization of banks as exchange agents
The Minister may authorize banks or other persons to carry out exchange operations. In practice the Bank of Thailand designates commercial banks as Authorized Agents; only such a bank may convert a buyer's incoming foreign currency into baht and issue the official transaction record on which condominium registration depends.
Section 4 bis: Banks must follow ministerial directions
When buying or selling foreign currency or a letter of credit, or sending money abroad, an authorized bank or person must act strictly in line with the Minister's Notifications and Directions. This obliges the buyer's bank to apply the reporting, threshold and documentation rules consistently to each property-related transfer.
Section 5: Power to order surrender of foreign currency
The Minister may order holders to sell gold, foreign credit, foreign currency or foreign securities to a competent officer or designated person at a set rate, and the order must be obeyed within the time stated. This surrender power historically underpinned mandatory conversion of inbound funds into baht.
Section 6/1: Cross-border cash declaration (AML/CFT)
For anti-money-laundering and counter-terrorist-financing purposes, the Minister may regulate carrying currency, foreign currency and negotiable instruments into or out of the country, treating them as goods under the Customs laws. Travellers physically importing or exporting cash above set limits must declare it, which matters for buyers who consider hand-carrying funds.
Section 7: Competent officers and document demands
The Minister appoints competent officers and fixes their powers, including the right to demand production of relevant books, accounts and documents. This audit authority supports verification that a foreign buyer's funds genuinely originated abroad and were converted through proper channels.
Section 7 bis: Bank of Thailand as administering authority
Once the Minister entrusts execution of the Act to the Bank of Thailand, its Governor may appoint Bank officers as competent officers. This is why the day-to-day exchange-control rules, including the form used for property purchases, are issued and supervised by the Bank of Thailand rather than directly by the Ministry.
Section 8: Penalties for non-compliance
Anyone who breaches the regulations, notifications or directions issued under the Act faces a fine of up to 20,000 baht, imprisonment of up to three years, or both. Misreporting the purpose or origin of an inbound property transfer, or using improper channels, can therefore carry criminal exposure.
Section 8 bis: Currency treated as restricted goods under Customs law
To curb unauthorized cross-border movement of money, currency, foreign currency, foreign banknotes and securities are deemed goods under the Customs laws. Moving them in breach of the rules counts as dealing in restricted articles, exposing the goods to seizure and the person to Customs enforcement, search and prosecution.
FET-Form-Reg-19: FET Form (formerly Tor.Tor.3) required for foreign condo registration
Under regulations made beneath the Act and the Condominium Act, a foreigner must bring the full price into Thailand in foreign currency. The authorized bank issues a Foreign Exchange Transaction Form (formerly the Tor.Tor.3) recording the conversion to baht. The Land Office requires this form to register the unit in a foreign name.
FET-Threshold-USD50k: Mandatory FET reporting threshold and stated purpose
By Bank of Thailand rules, any inbound foreign-currency transaction at or above the equivalent of USD 50,000 must be reported and documented on the Foreign Exchange Transaction Form. The remittance should state purchase of a condominium as its purpose and name the buyer, so the funds match the unit being registered.
FET-Buyer-Name-Match: Funds must show the buyer as sender or recipient
The transferred funds must identify the foreign buyer as sender or beneficiary, and the FET Form must reflect that name. Baht-only transfers from inside Thailand do not qualify a foreigner for ownership registration. Where price is split, several FET records together must cover the full amount paid for the unit.
FET-Repatriation: Repatriation of sale proceeds abroad
When the foreign owner later sells, the original FET Form (or Tor.Tor.3) supports lawful repatriation of the proceeds in foreign currency. The bank typically asks for the FET evidence plus the Land Office sale contract, tax receipt, title deed copy and passport, confirming the original inflow before allowing funds to leave.
Section 9: Minister of Finance administers the Act
The Minister of Finance is in charge of executing the Act and may issue Ministerial Regulations to carry out its provisions, effective on publication in the Government Gazette. This confirms that detailed exchange-control rules affecting property buyers derive their force from this short framework statute.