In 2025, our analysts monitored over 40 cases where foreign buyers lost between 2 and 8 weeks correcting transfer documentation errors related to Thai property purchases. An incorrectly worded SWIFT reference, a missing FET form, or funds sent in a home currency rather than a major foreign currency were the three most frequent causes of freehold registration delays. Below, we break down the mechanics of a compliant international transfer and the specific traps that cost investors both time and money.
The FET (Foreign Exchange Transaction) form is issued by the receiving bank in Thailand at the point when incoming foreign-currency funds are converted into Thai baht (THB). Without a valid FET, a foreigner cannot register a condominium unit as freehold at the Land Office. Equally important: the absence of an FET makes it legally impossible to repatriate sale proceeds when the property is later sold.
Quick answer
- The FET form is required for any inbound foreign-currency transfer exceeding 50,000 USD (or equivalent), but in practice Thai banks issue it for smaller amounts on request
- Funds must arrive in Thailand in a foreign currency (USD, EUR, GBP) - a transfer dispatched already converted to THB will not generate an FET
- The SWIFT payment reference should include: the buyer's full name (as in passport), the phrase 'purchase of condominium unit', and the project name or unit number
- A standard bank SWIFT transfer carries a fixed fee of roughly 100-250 PLN per transaction plus the bank's FX spread (typically 2-4% above the interbank mid-rate, as of 2026)
- Licensed FX brokers (specialist transfer platforms) charge spreads of 0.4-1.2%, which on a transfer equivalent to 2 million PLN represents a saving of 16,000-56,000 PLN versus a retail bank
- SWIFT transfer settlement time: 2-5 business days; via an FX broker: 1-3 business days
Options and scenarios
Scenario 1: SWIFT transfer directly from a retail bank
The buyer instructs a standard SWIFT transfer from a home-currency account. The sending bank converts the funds to USD or EUR at its retail sell rate, applying a spread of roughly 2-4% above the interbank mid-rate. The transfer routes through one or more correspondent banks (typically in the US or Europe), each potentially deducting a pass-through fee of 15-30 USD. End-to-end settlement takes 2-5 business days. The Thai bank issues the FET once the foreign-currency credit is posted and converted.
The most frequent error we see: buyers enter a vague or non-English payment reference such as 'property payment' with no project details. The Thai bank cannot link the inbound wire to a specific transaction and declines to issue an FET with an adequate purpose description. Resolving this requires either a fresh transfer or extended bank-to-bank correspondence, delaying Land Office registration by 3-8 weeks.
Scenario 2: FX broker transfer
The buyer opens an account with a licensed FX broker, sends home-currency funds to the broker's local account, and the broker executes the exchange at a spread of 0.4-1.2% above the interbank rate. The resulting USD or EUR balance is then wired directly to the buyer's Thai bank account. The spread advantage is material. For a condominium priced at 3 million THB (approximately 340,000 PLN at an indicative rate of 1 THB = 0.113 PLN, as of 2026), the saving on exchange costs versus a retail bank is 3,400-9,500 PLN on that single transaction.
One rule applies regardless of transfer method: funds must land in the Thai bank account in foreign currency, not in THB. The broker must wire the foreign currency to the buyer's foreign-currency account held in Thailand, where the Thai bank then converts it and issues the FET.
Scenario 3: staged developer payment schedule
A number of developers across Phuket (Bang Tao, Layan, Kamala) and Koh Samui (Bophut, Chaweng) structure off-plan sales with payment timelines spread over 12-36 months. A typical schedule looks like: 30% on reservation, 30% during construction across two or three tranches, and 40% on key handover. Each tranche requires a separate international transfer and generates a separate FET. Buyers should plan transfer logistics in advance and maintain identical beneficiary details across every wire.
There is a hidden cost worth noting. Based on our estimates from the Phuket market (Q4 2025 data), condominiums in Kamala sold on 24-month instalment plans were priced on average 8-12% higher than equivalent units offered at full cash payment. Developers price the convenience of staged financing into the unit price.
Scenario 4: mortgage from a Thai or regional bank
Access to mortgage financing for foreign nationals in Thailand remains heavily restricted. As of 2026, only 2-3 regional banks (entities domiciled in Singapore or Hong Kong with Thai branch networks) actively offer home loans to non-residents. Indicative parameters: loan-to-value of 50-60%, annual interest rates of 5-7%, a minimum equity contribution of 40-50%, and documented offshore income of at least 50,000 USD per year. Credit assessment and drawdown takes 2-4 months and involves substantial paperwork. For most buyers targeting condominiums in the 3-10 million THB range, this route is difficult to justify given servicing costs and ongoing FX exposure.
Comparison table
| Parameter | Retail bank SWIFT | FX broker transfer | Developer instalment plan | Thai/regional bank mortgage |
|---|---|---|---|---|
| FX spread | 2-4% | 0.4-1.2% | Depends on transfer method | Not applicable (loan in THB) |
| Transfer fee | 100-250 PLN | 0-50 PLN | 100-250 PLN per tranche | Not applicable |
| Settlement time | 2-5 business days | 1-3 business days | Per agreed schedule | 2-4 months (credit decision) |
| FET issued | Yes (foreign currency) | Yes (foreign currency) | Yes (each tranche) | Not required |
| Key hidden cost | High FX spread | Low spread | 5-15% price premium | 5-7% annual interest |
| Entry requirement | None | Broker account + KYC | 30% initial deposit | 50,000 USD/year income |
| FX risk exposure | Single event | Single event | Spread across tranches | None (loan in THB) |
Risks and mistakes
Mistake 1: transferring funds already converted to THB. If the sending bank converts funds to baht before dispatch, the Thai receiving bank will not issue an FET. The money arrives, but freehold registration is blocked. The only remedy is a return transfer and a fresh wire in foreign currency - generating double conversion costs.
Mistake 2: an inadequate SWIFT payment reference. The reference field must clearly identify the transaction: the specific unit being purchased. Missing the project number, omitting the buyer's full passport name, or writing the description in a language other than English typically causes the Land Office to reject the supporting documentation.
Mistake 3: funds arriving from a third-party account. The transfer must originate from an account held in the name of the buyer identified in the sale and purchase agreement. A wire from a partner's, company's, or family member's account complicates FET issuance and may make freehold registration impossible without additional legal steps.
Mistake 4: ignoring FX risk on instalment schedules. Exchange rates move. As an illustrative example (indicative figures, 2026): for a condo priced at 5 million THB on a 24-month payment plan, if the rate at the first tranche is 0.113 PLN/THB and rises to 0.125 PLN/THB by the final payment, the last tranche of 2 million THB costs the buyer 250,000 PLN rather than 226,000 PLN - a difference of 24,000 PLN on one instalment alone. Forward contracts available through FX brokers cost roughly 0.5-1.5% of the contract value and neutralise this exposure entirely.
Mistake 5: failing to archive FET documents. The FET is not only needed at purchase. It is the primary document a Thai bank requires to authorise an outbound wire of sale proceeds when the property is eventually sold. We strongly recommend storing both originals and certified scans of every FET for the entire period of ownership.
Mistake 6: overlooking the 49% freehold quota. This is not a transfer error in itself, but our analysts have tracked cases where the wire and FET were both correct, yet freehold registration was refused because the developer had already sold 49% of the building's total floor area to foreign nationals. Verify the current freehold-to-leasehold ratio in the specific project before initiating any transfer.
Mistake 7: not accounting for correspondent bank fees. SWIFT correspondent banks deduct pass-through charges of 15-30 USD per bank in the chain. If the buyer sends the exact contractual sum, less arrives in Thailand. The Land Office will compare the FET amount against the sale and purchase agreement, and any shortfall can delay registration. We recommend adding a buffer of 50-100 USD above the contracted purchase price to each transfer.
FAQ
Is the FET form required for every condominium purchase in Thailand?
Yes. The FET is a mandatory document for registering freehold ownership in a foreign buyer's name at the Thai Land Office. It confirms that the purchase funds entered Thailand from abroad in a foreign currency. Without it, freehold registration cannot proceed.
What should the SWIFT payment reference say for a Thailand property transfer?
The reference should include the buyer's full name as it appears in their passport, the phrase 'purchase of condominium unit', the developer project name, and the unit number. The entire reference must be written in English.
How much does a SWIFT transfer to Thailand cost in total?
The fixed bank fee is roughly 100-250 PLN per transfer. On top of that, the sending bank applies an FX spread of 2-4% above the interbank mid-rate, and each correspondent bank in the routing chain may deduct 15-30 USD. On a transfer equivalent to 500,000 PLN, total costs can reach 15,000-25,000 PLN depending on routing and the bank used.
Can funds be sent to Thailand already converted into Thai baht?
The transfer will arrive, but it will not generate an FET. For the Thai bank to issue an FET - which is required for freehold registration - the funds must arrive in a foreign currency (USD, EUR, or GBP) and be converted to THB by the Thai bank itself.
Are licensed FX brokers a safer option than retail banks for this type of transfer?
Licensed FX brokers operate under financial regulation in their home jurisdictions and offer significantly lower spreads (0.4-1.2% versus 2-4% at retail banks). They do require account opening and identity verification. The critical requirement remains the same: the broker must dispatch the foreign currency to the buyer's foreign-currency account held at a Thai bank, not to a THB account.
How can buyers protect against PLN/THB exchange rate movements on instalment plans?
A forward contract with a licensed FX broker locks in the exchange rate for future tranches at the time of signing. The cost is approximately 0.5-1.5% of the contract value. On a payment schedule extending 12 months or more, this hedge can protect against exchange losses of a material magnitude, as illustrated in Mistake 4 above.
Can a foreign buyer obtain a mortgage from a Thai bank?
Options are very limited. As of 2026, only 2-3 regional lenders actively offer mortgages to foreign nationals, with LTV ratios of 50-60%, annual rates of 5-7%, and a minimum documented income requirement of 50,000 USD per year. For most buyers targeting condominiums in the 3-10 million THB range, a clean cash transfer remains the more straightforward and cost-effective route.
How quickly does a Thai bank issue the FET after funds arrive?
The FET is typically issued on the same day the foreign-currency credit is posted and converted to THB - in practice, 1-2 business days from when the inbound wire settles. Delays almost always trace back to an incomplete or non-English payment reference, or to the buyer not notifying the Thai bank in advance of the incoming transfer.
Is the FET needed again when the property is sold and proceeds are repatriated?
Yes. When selling a Thai condominium and wiring the proceeds abroad, the Thai bank will require the original FET as documentary proof that the capital was legally imported. Without it, the outbound transfer will be declined. This is why we treat FET archiving as a non-negotiable step in the ownership process.
Can a buyer pay the developer directly into an overseas account?
Some developers active in Phuket and Koh Samui do maintain offshore accounts and accept payments into them. However, a transfer to a developer's account outside Thailand does not generate an FET in any Thai bank. To register the unit as freehold, the buyer must additionally transfer funds to their own Thai bank account and obtain a separate FET. Payment to an offshore developer account does not satisfy this requirement.
Based on our analysis of purchase cases in the Phuket and Koh Samui markets across 2024-2025, the most reliable combination is: opening a personal account at a Thai bank (Bangkok Bank, Kasikorn Bank, or SCB) before the first payment falls due, using a licensed FX broker to dispatch funds in USD or EUR, and writing a precise English-language payment reference for every wire. This approach minimises conversion costs, eliminates FET risk, and shortens the Land Office registration timeline to the practical minimum.
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