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Foreigners who are interested in acquiring condominiums in Thailand may come across the term Foreign Exchange Form or what is also known as Foreign Exchange Transaction Certificate as it is among the documentary requirements needed when purchasing properties in the Kingdom and registering these on their names.
As prescribed by law, when a foreign individual purchases a property specifically a condominium unit, the funds to be used must come from a foreign source and not from within Thailand. Among the reasons why this is in place is because of the fact that the Thai government aims for an increase in the entrance of foreign currency to the Kingdom. The form, in turn, provides proof that indeed the funds has been sourced out from abroad and that the foreign individual is complying with the requirements on this aspect.
The issuing entity is a Thai bank and the form is issued automatically for amounts in excess of $50,000 (USD) otherwise for a fund transfer of lower than such, the bank may still issue the form upon request of the involved party.
Contents of the Foreign Exchange Transaction Certificate
In order to be valid, the form must contained the basic info such as:
- The amount in foreign currency.
- The amount converted to and in Thai Baht.
- Names of the fund’s sender and receiver.
- The intended use of the transferred fund.
Foreign Exchange Transaction Certificate
The form is specifically needed when the condo is to be transferred to and be registered under the name of the foreign individual. Aside from other documentary requirements, the form is needed to prove that the fund has been sourced out from abroad and that the transferred fund is in foreign currency when it entered Thailand and not in Thai Baht.