Escrow Accounts in Thailand

Escrow Accounts in Thailand. Thailand’s property market beckons foreign investors with its beauty, affordability, and, in some cases, favorable tax treatment. Unlike many countries, Thailand doesn’t have a general annual property tax for homeowners. However, secure transactions involving property can benefit from utilizing escrow accounts. Let’s delve into the role of escrow accounts in Thailand’s property market.

Understanding Escrow Accounts and Their Benefits

An escrow account acts as a neutral third-party holding area for funds during a transaction. In Thailand, authorized banks can act as escrow agents, holding onto the buyer’s payment until the seller fulfills agreed-upon conditions, such as transferring the property title. This process safeguards both parties:

  • Buyers: Gain peace of mind knowing their funds are secure until they receive the property and its rightful ownership.
  • Sellers: Have the assurance of receiving payment once they’ve completed their obligations.

Who Can Use Escrow Accounts?

While not mandatory, escrow accounts offer a secure option for various property transactions in Thailand, including:

  • Real estate purchases: Ensuring a smooth flow of funds upon property transfer.
  • Business acquisitions: Protecting both parties during the sale of a company or its assets.
  • International trade: Providing a secure platform for cross-border transactions.

Important Considerations

While escrow accounts offer advantages, there are some key points to remember:

  • Limited Application: Currently, only authorized banks can act as escrow agents in Thailand. This can limit accessibility compared to some countries where lawyers or real estate agents can handle escrow services.
  • Agreement Details: A well-drafted escrow agreement outlining the disbursement conditions and timeframe is crucial for a smooth transaction. Consulting with a lawyer is advisable.


Escrow accounts can be a valuable tool for mitigating risks and ensuring a secure property transaction in Thailand. Understanding their application and limitations allows you to make informed decisions when navigating Thailand’s dynamic property market.