Foreign Ownership Rule for Land and Property in Thailand

Purchasing a land or property in Thailand isBuying a property in the name of a Thai company
regarded as a great option for investment as well- As per the property law, a non Thai can own a
as for residence and retirement purposes. Due toproperty in Thailand through a Thai company,
its infancy and strong potential for a profitableprovided 51% of the company's share is Thai and
future, Thai land and property is becoming popular49% is foreign.
and attract all categories of property buyers.Buying a property through Investment (BOI) - A
Further, since the tourism sector in the countryforeigner can acquire a limited amount of land or
has grown from an established position into anproperty with considerable investment of fund.
even more productive economy, Thailand,Under the Thai Property Law, a non Thai citizen
acknowledged as 'the Spain of the East' providesinvesting 40 million baht for not less than five
superb opportunities for property investment.years can purchase up to 1500 square meters of
Above all, Thailand boasts of some excellent landland and that too for only residential property. But,
or property development and that too fora prior permission should be obtained from the
astonishingly cheap prices.Ministry of Interiors. Likewise, this option cannot
No wonder why many expats including Americansbe availed by foreigners who are looking to invest
and Europeans invest in Thai property such asin his second house or retirement homes.
villas, condos, and other housing options. But,Structure Ownership - In this case, a foreigner
investing in a Thai property is based on yourmay be granted a Right of Superficies by a Thai
requirements, location ie whether nearspouse or a Thai company. This in turn provides
supermarket or beach, and lifestyle, ie, whetherforeigners to have rights over all kinds of
you prefer a Thai or a mixed neighborhood.constructions on the land. The Right of Superficies
For retired foreigners seeking tranquility andusually last for a period of ten years with options
solace, a best option would be to invest into renew it again for 30 years, if required.
property located in destinations like Koh Samui,Leasing - This is perhaps the least complicated
Chiang Mai, and Phuket. If you want to have anoption for a foreigner to acquire a property or
easy accessibility to almost all facilities, then itland in Thailand. Mostly, the land is leased to a non
would be better to invest in cities includingThai for a period of 30 years, which can be again
Bangkok, al though prices would be exceptionallyrenewed for a period of 30 years. Leasing a land
high compared to other parts of the country.in Thailand is quite simple and does not require
However, certain restrictions have been imposedmuch maintenance.
on foreign investors in order to own a land orDespite these options, it is important to make a
property in the country. In other words, thethorough analysis of title deeds prior to investing
property law in Thailand does not allow foreignersin Thai property. Title deeds usually include three
or non Thais to have a freehold land in themain types such as Chanot (Nor Sor 4), the Nor
country. But, there are certain exceptions in theSor 3 Gor, and the Nor Sor 3.
law with regard to this issue. Al though a foreignerBut, there is not any restriction for a foreigner to
cannot purchase land or property in his ownown or purchase a condominium in the country
name, he has been given some alternatives toexcept for that he should bring in the whole
acquire a property in Thailand according to themoney for buying a condominium in foreign
Section 86 of the Thai Land Law, which are ascurrencies. Further, a foreigner could own only up
follows:to 49% of units of a condominium block.
Buying a property through Thai spouse - ThaiWith a myriad of real estate agents and property
property law allows a foreigner with a Thaibuilders in the scenario, it is not at all a chaotic
spouse to invest in a property or land in theprocess to own a land or property in Thailand.
country. But, the land or property must beMajority of them provide assistance to deal with
registered under the name of the Thai. It is alsocomplicated Thai law for acquiring a property in
important for the foreigner to specify that thethe country. Some of them even provide legal
funds used for the purchase of a property are ofadvice and conduct investigation and consultation
a Thai spouse. However, this option mayin order to acquire a property. There are also
sometimes become a problem in a divorce case,firms providing management, project planning, and
since a foreigner may find difficult to prove that itdevelopment in connection with a property.
was a marital property.