Using Cryptocurrency for Property Investments in Thailand: A Legal Perspective

Real Estate Deals with Cryptocurrency

As Thailand’s real estate market continues to attract both local and international investors, the rise of cryptocurrency has introduced an innovative payment option for property purchases.

Leading developers like Sansiri, Origin Property, and Ananda Development have actively pursued solutions to enable cryptocurrency payments for Thai condominiums. However, while demand for buying property with crypto is gaining traction, the legal and practical framework in Thailand requires careful navigation. Here’s what investors need to know about leveraging cryptocurrency for property investments, from a Thai legal standpoint.

Foreigners Buying Thai Condominiums

For new property purchases, particularly condominium units – the only property type foreigners can own outright in Thailand – many developers have attempted to use exchanges like Bitkub to facilitate transactions. However, Thai exchanges generally cannot be utilized by foreign buyers due to requirements under the Condominium Act. Under the Act, foreigners must remit foreign currency into Thailand, which is then converted to Thai Baht at or above the condo’s purchase price. Thai exchanges generally operate only within Thailand and do not have the capability to transfer foreign currency from overseas bank accounts. 

For foreign buyers, compliance with the Foreign Exchange Transaction Form (FET) remains mandatory. This document, required by the Land Department for condo purchases, ensures that funds originate from overseas and are processed in fiat currency. 

To help our clients comply with BOT policy and the Condominium Act, we work with Bangkok based partners who facilitate the liquidation of cryptocurrency for fiat currency outside of Thailand, with subsequent Euro transfers to a Thai bank account via SWIFT.

Secondary Market Transactions: Flexibility with Caveats

Purchasing property from individual sellers on the secondary market is also possible with cryptocurrency, though it hinges on the seller’s willingness to accept it. In such cases, buyers and sellers might agree to a direct wallet-to-wallet transfer, or the crypto could be converted to THB via an exchange for legal documentation purposes assuming the buyer is a Thai National and does not need to remit foreign currency into the country, a primary requirement for foreign purchasers. Both parties must ensure the transaction aligns with Land Office requirements, which still demand fiat valuation for registration and tax purposes.

Alternatives to Ownership, in particular Leasehold

Foreign investors eyeing land ownership – prohibited under Thai law – often turn to alternative structures, such as securing long-term leaseholds. Cryptocurrency can fund these arrangements if the seller agrees, either through direct payment or conversion to THB. The crypto-to-THB exchange rate at the time of transfer sets the value. However, it should be noted that land officers may require proof of payment of the rental price in fiat currency, depending on their discretion. Legal oversight is essential to ensure compliance with Thailand’s foreign ownership restrictions.

Legal and Tax Considerations

While Thailand’s real estate sector is increasingly crypto-friendly, the legal landscape imposes clear boundaries. The Securities and Exchange Commission (SEC) regulates cryptocurrency exchanges, ensuring secure and transparent transactions, but the Bank of Thailand does not recognize digital currencies as legal tender. Some service providers specializing in crypto payment now offer feasible solutions, though official property transfers and registrations still require THB.

Tax implications also warrant attention. Gains from cryptocurrency transactions may be subject to personal income tax, with rates up to 35%, depending on how profits are realized or remitted. Buyers and sellers should consult legal and tax professionals to clarify obligations, especially in high-value deals common in tourist hotspots like Phuket, Koh Samui, and Bangkok.

Why It Matters for Investors

The integration of cryptocurrency into Thailand’s property market reflects a forward-thinking approach, particularly appealing to tech-savvy investors and expatriates. It offers a faster, more flexible payment method, especially for international buyers accustomed to digital assets. The need for fiat conversion and compliance with ownership laws underscores the importance of legal guidance.

At FRANK Legal & Tax, we can support you in bridging the gap between innovative payment methods and Thailand’s regulatory framework. Whether you’re a foreign investor exploring condo purchases or a local buyer navigating the secondary market, our team can ensure your crypto-funded property investment is secure, compliant, and tailored to your goals. Contact us today to learn how we can support your next real estate venture in Thailand.