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What is The original amount in Thailand?
The Definition
In Thai real estate and finance, "the original amount" typically refers to the principal loan amount borrowed for a mortgage, or the base purchase price of a Thai property before taxes, transfer fees, and interest are applied.
Global Expectations vs. Thai Reality
Globally, the original amount simply means the loan principal or sticker price. In Thailand, it forms the exact baseline for calculating specific transfer fees (2%), stamp duty (0.5%), and the specific business tax (3.3%) at the local Land Office, making it a critical, legally binding figure.
The Problem It Presents
Buyers often confuse the original amount with the final out-of-pocket cost. Failing to account for the Thai Land Department's appraised value versus the original contract amount can lead to unexpected tax burdens on transfer day.
Foreigner vs. Thai Citizen Rules
Thai citizens can easily secure local mortgages where the original amount is clearly defined by local banks. Foreigners, however, must prove they transferred the exact "original amount" (or more) into Thailand from overseas to receive a Foreign Exchange Transaction (FET) form, which is mandatory for foreign condominium ownership.
The Thai Legal Context
Under the Thai Civil and Commercial Code, the original amount (principal) dictates the maximum statutory interest rates. The Revenue Department and Department of Lands use either the original declared sale amount or the government appraised value—whichever is higher—to assess transaction taxes.
Benefits & Risks
Advantages
- Provides a clear, legally binding baseline for contract negotiations and deposit calculations.
- Essential for foreign buyers to calculate the exact inward remittance needed for the FET form.
Risks & Disadvantages
- Often significantly lower than the final out-of-pocket cost after Land Office taxes and fees.
- Can trigger higher transfer taxes if it vastly exceeds the government's official appraised value.
Showcase: How It Works
Let’s look at a real-world scenario to understand how The original amount is applied during a property transaction.
The Scenario
- A buyer agrees to an original amount of 5,000,000 THB for a Bangkok condo.
- They secure a local mortgage based exactly on this principal figure.
- The Land Office evaluates transfer taxes comparing this figure to the state appraised value.
The Result
Because the original contract amount (5M THB) was higher than the appraised value, the Land Office calculates the 2% transfer fee based on the 5M THB figure.
Outcome: 100,000 THB Total Transfer Fee
The original amount vs. Total Acquisition Cost
A quick breakdown of how this term compares to its closest alternative.
| Feature | The original amount | Total Acquisition Cost |
|---|---|---|
| Composition | Base price or loan principal only | Base price + Taxes + Legal Fees |
| FET Form Requirement | Must match inward remittance exactly | Excess fees can be paid locally |
| Land Office Taxes | Used as the baseline for calculation | The result of the calculation |
Frequently Asked Questions
What does the original amount mean in a Thai mortgage?
It refers to the exact principal balance borrowed from the bank before any interest is applied.
Does the original amount include Thai transfer taxes?
No, taxes such as the 2% transfer fee and 3.3% specific business tax are calculated in addition to or based on this amount.
Why is the original amount important for foreign buyers?
Foreigners buying a condominium must prove they brought the exact original amount (or more) into Thailand from overseas to get an FET certificate.
How does the Land Office view the original amount?
The Land Office compares the original contract amount to the government's appraised value and uses the higher of the two to calculate taxes.
Can the original amount be renegotiated after signing?
Generally, no. Once the Sales and Purchase Agreement is signed, the original amount is fixed unless both parties agree to a formal amendment.
Related Terms
REMAX Thailand Editorial Team
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Why It Matters
Knowing the exact original amount protects you from under-calculating your closing costs and ensures your international money transfers meet strict Thai legal standards.
💡 REMAX Pro Tip
Always ask your agent to calculate a 'Total Estimated Expense' sheet. Never assume the original amount on your contract is the final number you will pay on transfer day!
Common Misconceptions
Myth: The original amount covers all closing costs.
Reality: It only covers the base property price or loan principal; Land Office fees, taxes, and lawyer fees are extra.
Myth: Foreigners can pay the original amount using local Thai baht.
Reality: To legally own a condo, foreigners must remit foreign currency equivalent to the original amount to obtain an FET certificate.
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