Finance in Thailand

admin September 18, 2014 0

Thailand has been an exotic country attracting millions of tourists for the last few decades. The tourism industry in the country is flourishing and it is an extremely important factor in the economy growth of Thailand. But the political and financial rift in the country is witnessing an upheaval.

Here is a look at the troubled political scene that is affecting financial sector in Thailand:

  • Politics and money do not go hand in hand in Thailand
  • The ruling party that received majority votes are not supported by the Thai regions that contribute the most to the country’s GDP.
  • Statistically the opposition Democratic Party has won seats in regions that contribute to more than 60% of the country’s GDP, whereas the ruling party Pheu Thai contributes to less than 30% of the GDP.
  • This difference that led to a political crisis in Thailand.
  • Today, as far as the country’s overall situation is concerned, Thailand’s domestic product and its domestic power are separated and politically divided.

Finance for foreigners


Whatever might be the political situation in the country, it is still a very welcoming place for foreigners. Millions of tourists visit and re-visit the country for its many attractions catering to the different preferences and tastes of a wide variety of visitors. Some fall in love with the country so deeply that they wish to settle down on Thai soil. Foreigners may also see the country as a scope for doing business and stay back for commercial reasons. The reason for living in Thailand can be different but to get financed by a Thai bank for buying property (commercial or residential) one will have to know about the financial processes in Thailand.

Some people may have adequate funding to buy property but getting finance is a good way to leverage the investments. In case you do not have sufficient capital, getting a loan from a bank becomes essential. Thai policies for property loan and mortgage are quite different from most of the countries in the west.

Money lending in Thailand


Bank of Thailand decides the terms and conditions for loaning out money to foreigners. The various banks in Thailand also devise their own strategies and marketing plans as far as money lending is concerned. For foreigners who have lived in the country for a certain period of time, personal loans are granted as per the bank’s terms and conditions. If a foreigner has been working in Thailand, obtaining finance becomes easier if official documents, as required by the banks are submitted. Most of these documents can be obtained from your employer.

For mortgages on your real estate property in Thailand you have to comply with the Thailand Civil and Commercial Code’s section 702. The rules to follow while applying for mortgage are as follows:

  • Legal right of ownership
  • A registered mortgage contract
  • If the property has “Land with Title Deed” it has to be registered at the Land Department
  • If the property has “Land with No Title Deed” it has to be registered at the specific District Office.

Obtaining finance in Thailand is not an easy task for a foreigner. However, the good news is that the finance sector is broadening its horizons and becoming more accessible to non-Thai nationals.

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