Russians Hold Third Place by Volume of Thai Condominium Purchases
Russian citizens remain among the top three largest foreign buyers of condominiums in Thailand for the first half of 2026. According to data from the Land Department of the Ministry of Interior, Russians occupy third position after Chinese and Hong Kong citizens by number of registered condominium transactions valued up to 7 million baht. The Cabinet of Ministers on June 30, 2026 approved an extension of preferential registration rates until June 30, 2027, making property purchases by foreigners even more attractive.
New Registration Conditions: Reduction to 0.01% Valid for Another Year
The Thai government through two notifications from the Ministry of Interior, published in the Royal Gazette on July 1, 2026, confirmed the extension of preferential rates. The first notification covers residential and commercial buildings under the Land Code, the second covers condominiums under the Condominium Act B.E. 2522 (1979).
The transfer of ownership registration fee is reduced to 0.01% of the appraised value instead of the standard 2%. Mortgage registration is also 0.01% of the loan amount instead of the usual 1%. The benefit applies to transactions where the purchase price, appraised value and mortgage amount do not exceed 7 million baht each.
Important note: the preferential mortgage rate applies only when registration of purchase and mortgage occur simultaneously. If you register a mortgage later, you will have to pay the standard 1%.
Which Properties Qualify for the Benefit
The measure covers:
- Detached houses, duplexes, townhouses
- Commercial buildings
- Land plots with such structures
- Condominiums in registered buildings
The buyer must be an individual - Thai or foreign. Foreign citizens may purchase condominiums within the 49% foreign quota under the Condominium Act §19 bis and receive the same preferential rates as Thais.
Partial sale of ownership shares does not qualify for the program.
Economic Effect: 540 Billion Baht in Transactions per Year
The Thai Ministry of Finance forecasts that the measure will stimulate transactions worth approximately 540.81 billion baht annually. Investments in residential real estate will grow by 305.81 billion baht. The contribution to GDP will be 1.06% per year compared to a scenario without benefits.
The Bank of Thailand has simultaneously eased loan-to-value (LTV) requirements for housing loans executed from July 1, 2026 to June 30, 2027. This facilitates access to mortgages for both Thais and foreigners with work permits and legal income in the country.
Gap Between Decision and Publication: Risk for July Transactions
There is a short but critical period between the Cabinet decision on June 30 and publication of notifications in the Royal Gazette. Law firm Dej-Udom & Associates warned that any registration conducted on July 1 or later before the texts appear in the Gazette is subject to standard rates of 2% and 1%.
The previous program, approved on April 8, 2025, expired on June 30, 2026. New notifications take effect from the date of publication, not from the date of Cabinet decision. Buyers planning to close transactions in early July were advised to check the Royal Gazette before going to the Land Office. If the texts are not yet published, the budget should include full fees or the registration should be postponed.
Annual Taxes and Expenses for Foreign Condominium Owners
In addition to one-time fees at purchase, owners bear ongoing expenses. The Land and Building Tax Act B.E. 2562, effective from January 1, 2020, establishes an annual tax on residential real estate on a progressive scale from the Treasury's appraised value:
| Appraised Value | Annual Rate |
|---|---|
| Up to 40 million baht | 0.02% |
| 40-65 million baht | 0.03% |
| 65-90 million baht | 0.05% |
| Over 90 million baht | 0.10% |
Thai citizens registered at the address of their sole residence on January 1 receive an exemption on the first 50 million baht of the combined value of land and building (or 10 million if they own only the building). Foreigners owning condominiums cannot be entered in the Thai house registration book (ทะเบียนบ้าน) at this address, therefore the exemption does not apply. Tax is calculated on the full appraised value.
For a typical condominium in Pattaya with an appraised value of 5-15 million baht, the annual tax is 1,000-3,000 baht.
Complete Owner Expense Structure
In addition to land tax, a condominium owner pays:
- Common area maintenance fees (CAM): 0.6-1.5% of value per year
- Sinking fund contributions: one-time at purchase, plus replenishments
- Property insurance: 0.03-0.08% per year
- Reserve for minor repairs: 0.5-1.0% per year
Total annual expenses (excluding rental income tax) amount to 1.2-2.6% of the condominium's market value.
For villa owners with land, expenses are similar: 1.1-2.3% per year, but include higher costs for garden, pool and security system maintenance.
Rental Income Tax: 15% for Non-Residents
If you rent out your condominium, the income is taxable. Non-residents (those in Thailand less than 180 days in a calendar year) pay 15% withholding tax at source. Residents declare income under the progressive personal income tax (PIT) scale, which starts at 0% on the first 150,000 baht and reaches 35% on income over 5 million baht.
The landlord is obligated to withhold tax and remit it to the tax authority. The tenant is not responsible for payment but may be held jointly liable if they did not monitor withholding.
49% Rule and Foreign Quota Registration
Foreigners may own a condominium with full ownership rights (freehold) only within 49% of the total area of the building registered under the foreign quota. The remaining 51% must belong to Thai citizens.
When purchasing, always check at the Land Office the current percentage of the foreign quota for the specific building. If the quota is exhausted, you can only buy in a Thai name (with risks) or arrange a long-term lease (leasehold) for 30 years with possible extension.
For registration in a foreigner's name, confirmation of currency transfer to Thailand for the purchase amount is required. The bank issues a Foreign Exchange Transaction Form (FETF), which must be presented to the Land Office along with the purchase agreement.
What This Means for a Buyer in Pattaya
The extension of preferential rates until mid-2027 gives Russian buyers an additional year to save on registration fees. For a condominium worth 5 million baht, the savings are approximately 99,500 baht on transfer of ownership and another 49,500 baht on the mortgage - nearly 150,000 baht in total.
Pattaya remains one of the most accessible markets for foreigners. The average price per square meter in new projects in Central Pattaya is 80,000-120,000 baht, in the Pratumnak area 100,000-180,000 baht. Studios of 25-30 m² fit within the 7 million baht limit, one-bedroom apartments of 35-45 m² in mid-range projects also qualify for the benefit.
The timing of registration is important. If you book an apartment in a project under construction with handover in 2027, make sure the developer schedules registration before June 30, 2027. After this date, rates will return to the standard 2% and 1%, unless the government extends the program again.
The Bank of Thailand's easing of LTV requirements facilitates mortgage access for foreigners with work visas and official income. Major banks (Bangkok Bank, Kasikornbank, Siam Commercial Bank) offer loans up to 70-80% of value for terms up to 20 years. Interest rates for foreigners are higher than for Thais: 5.5-7% per annum versus 3.5-5%.
Russian buyers traditionally prefer areas with developed Russian-speaking infrastructure: Jomtien (especially sois near Pratumnak), Naklua, Wongamat. Demand in the secondary market in these zones is stable, which facilitates resale. Returns from short-term rentals (daily through Airbnb) in high season reach 8-12% per annum, long-term rentals yield 4-6%.
Pay attention to the legal cleanliness of the transaction. Verify that the developer registered the condominium under Act B.E. 2522, obtained an occupancy permit and that the condominium juristic person is functioning. Request an extract from the Land Office on the current foreign quota of the building and ensure that your purchase will not push it beyond 49%.
Conclusion
The maintained position of Russian buyers in the top three on the Thai condominium market reflects sustained interest in property in the Kingdom. The extension of preferential registration rates to 0.01% for another year lowers the entry barrier and makes investments more profitable. Pattaya with its affordable prices, developed infrastructure and high liquidity remains an optimal choice for those seeking a balance between ownership costs and income potential. The key is to act before the program expires on June 30, 2027 and carefully verify all documents before registration.
