The Foreign Exchange Transaction (FET) Form in Thailand

 

Foreign nationals planning to purchase a condominium in Thailand must comply with the strict regulations set under the Thailand Condominium Act. Among these regulations is the requirement to present a Foreign Exchange Transaction (FET) form, which confirms the transfer of funds from abroad into Thailand and their conversion into Thai baht for a real estate purchase.

What is the Foreign Exchange Transaction Form in Thailand?

The Foreign Exchange Transaction form, formerly known in Thai as the Thor Tor 3 (ต.ท.3), is an official statement issued by an authorized Thai bank. It records the transfer of foreign currency into Thailand in compliance with the Bank of Thailand’s Foreign Exchange Policy and is required by the Land Department for condominium purchases.

If a foreign buyer or their legal representative is unable to present an FET form when registering the purchase of a condominium at the designated Land Office, the purchase will be denied. Local banks may also require the form when a foreign seller transfers the proceeds of a property sale back to their home country.

Contents of an FET Form

An FET form includes the following details:

• Transferred amount in foreign currency
• Transferred amount converted into Thai baht
• Full name of the sender and recipient
• Purpose of the transfer

How to Obtain an FET Form in Thailand

To obtain an FET form in Thailand, foreign buyers must follow specific procedures set by the Bank of Thailand and the Land Department. The transfer of funds must meet the conditions below:

1. The full condominium purchase price must be transferred from an overseas bank account in foreign currency and converted into Thai baht by the receiving Thai bank.
    
2. The transfer must include the foreign buyer’s name.
    
3. The purpose of the transfer must be clearly stated in the bank’s remittance application form, such as “for purchase of condominium unit #XX in the project YY.”
    

Once these conditions are met, the foreign buyer or their legal representative can request the FET form from the Thai bank that received the converted funds and then move on to purchasing the condominium. However, if payment for the condominium is made directly to the developer of the property, the developer will usually handle this entire process; all that is required from the buyer is to adhere to the above conditions when making the payment and then notify the developer.

It should also be noted that banks will only issue an FET form for transfers exceeding 50,000 USD. For smaller amounts, alternative documents can be issued. 

Keeping the FET Form for Future Use

After completing the condominium purchase, buyers should keep the original FET form in a safe place, as Thai authorities may require it as proof of the initial investment when the property is resold or when the proceeds are repatriated abroad. 

When repatriating the funds from Thailand after a condominium sale, banks will require the following documents:

• Land Office sale agreement and tax receipt (evidence of the sale transaction and taxes paid)
• Copy of the condominium title deed (confirmation of ownership before the sale)
• Original FET form (proof of the original foreign investment)

While banks may require additional documents, the ones listed above form the core requirements for repatriating funds from a condominium sale.

FET Form Alternatives

In cases where the transfer amount is under the required 50,000 USD threshold, local banks may issue alternative documents, such as a credit note or a bank letter of guarantee, both of which are accepted by the Land Department.

These documents must include the following details: 

• Amount of foreign currency received
• Amount converted into Thai baht
• Purpose of the transfer

With this information, the Land Department can verify that the funds are eligible for use in a condominium purchase.