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 FAQ
| Are foreigners allowed to own land in Thailand? |
As a general matter, Thai law prohibits foreigners from owning land in Thailand. The prohibition applies to foreign individuals and juristic entities (e.g., companies or partnerships). Additionally, it applies to Thai registered juristic entities, which are owned or controlled by foreigners.
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This law note describes generally the Thai law prohibiting land ownership by foreigners, as well as exceptions to and strategies for operating under the prohibition.
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According to Thai law, foreigners are prohibited from purchasing freehold land and not more than 49% of the shares in a Thai limited company that owns freehold land under the company's name. However, foreigners may own a building distinct from its land, such as a unit in a condominium.
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| How can foreigners own land in Thailand? |
The safest and easiest methods for owning land include using a leasehold agreement or setting up a Thai limited liability company. |
| Can the Thai spouse of a foreigner own land in Thailand? |
This FAQ is FAI-frequently answered incorrectly. Previously the Land Department had a policy of denying land ownership to spouses of foreigners. This policy was based on the assumption that the Thai would be holding all or part of the interest in the land for the benefit of the foreign spouse.
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This policy fell especially hard on Thai women, who frequently would refrain from registering their marriages in Thailand out of fear of losing the right to own land. In theory the policy also applied to Thai men, but in practice it was not really an issue because under Thai law and tradition a man retains the Thai equivalent of the title “Mr.”, so his marital status goes undetected by the Land Office.
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In contrast, upon marriage a woman must assume the Thai equivalent of the title “Mrs.”, thus making her marital status apparent to the Land Office. However, a few years ago the Land Office revised its policy.
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The policy now allows a Thai spouse of a foreigner to own land so long as the foreign spouse presents the Land Office a signed letter waiving all interest in the land. The Land Office provides a form for this waiver ofinterest.
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| Can a foreigner own a condominium unit in Thailand? |
The Condominium Act allows some foreigners to own condominium units. To qualify for condominium ownership, the foreigner must meet one of five criteria contained in the Act. These are:
- Foreigner holding a residence permit
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Foreigner (including foreign juristic person) who brings the entire purchase price for the condominium unit into Thailand from abroad in a foreign currency _ - - Foreigner permitted to enter Thailand under the Investment Promotion Law
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Juristic person having some land rights as foreigners as provided in the Land Code
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Juristic person having BOI privileges in Thailand
If the foreigner intends to qualify based on bringing the purchase price into Thailand from abroad, it is critical that the funds not be converted into Baht until they have reached Thailand.
The Condominium Act generally limits the amount of space in a condominium project that can be owned by foreigners. Currently the limit for most condominium projects is 49% of the total unit space of the project. The restriction is based on the area-not the number-of the units. |
| Can a foreigner own a house under a long-term renewable lease in Thailand? |
There are no restrictions on a foreigner entering into a long-term lease in Thailand. Under Thai law, the maximum term for a lease is 30 years. A common arrangement is one in which a foreigner leases land for an initial term of 30 years, renewable for two additional terms of 30 years. The foreigner can then build a house on the land and enjoy its use for up to 90 years.
Under Thai law any lease having a term of more than three years must be registered with the Thai Land Office.
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To buy a condo or another property on a loan, you are going to need to get a loan in your country and then tranfer the money to a Thai bank account. But before you do this, you'd better thoroughly check with your bank and your lawyer, of course to make sure everything's going to work.
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