Thailand’s property laws restrict foreigners from directly owning land in the country. However, there are several alternative methods for foreigners to have a stake in property in Thailand:
Using a Thai Company
Foreigners can own land in Thailand through a Thai company, where at least 51% of the company’s shares are held by Thai nationals, with the remaining 49% owned by foreigners. Typically, a Thai Limited Company is the chosen vehicle for this purpose. If the company seeks to support work permit applications, a minimum capital of two million baht per work permit is required.
Board of Investment (BOI)
Foreign investors who inject a minimum of one million baht into Thailand without a specified minimum investment duration can purchase up to 20 Rai of land for employee residential purposes or 10 Rai for executives and directors of the company. However, BOI approval is subject to the size and nature of the company’s activities and must align with the Board of Investment’s discretion. The land must also be located within the area where the company operates. BOI may also grant land ownership privileges for activities promoted by them, not exceeding 5 Rai and owned by a foreign company, with approval from the Ministry of Interior.
Marriage to a Thai National
Since 1999, Thai property law allows foreigners married to Thai citizens to own land in Thailand. However, the land must be registered under the Thai spouse’s name. The foreigner must declare that the funds used for the land purchase belong to the Thai spouse and not the foreigner.
Leasing Property
Foreigners can lease land or property from Thai nationals. Thai property law permits leases of up to 30 years, with the possibility of renewal upon agreement. Renewal periods, though, are not enforceable through a contract and may be subject to negotiation. Registering leases of three years or more is necessary at the Land Department for legal enforceability.
Structured Ownership
A foreigner can obtain a Right of Superficies granted by a company or a Thai spouse. This right allows the foreigner to own any structures on the land without owning the land itself. The Right of Superficies can be granted for up to 30 years, with the potential for renewal (not automatic). The Land Officer at each Land Office holds discretion over this matter.
FAQ
Can you own land in Thailand as a foreigner?
No, foreigners are not allowed to own land in Thailand under their name. However, they can own a unit in a condominium, lease land, or own land through a Thai company with certain shareholding structures.
Can you stay in Thailand if you own a property?
Owning property does not automatically grant you the right to stay in Thailand. Foreigners must obtain the appropriate visa or residency permit to stay in the country.
Do you get residency if you buy property in Thailand?
Buying property in Thailand does not grant residency status. Residency must be obtained through other means, such as a visa, which can be based on retirement, employment, marriage to a Thai citizen, or investment, among others.
How to transfer property ownership in Thailand for foreigners?
Foreigners can transfer property ownership through a leasehold agreement or by transferring shares if the property is owned by a Thai company. Inheritors of property must dispose of the land within one year from the date of acquisition unless they qualify for ownership under Thai law. It is recommended to consult with a legal expert in Thai property law to navigate the specifics of such transactions.