Unlocking the Mystery: Who Can Really Buy Land in Thailand as a Foreigner?

Thailand is a country with a booming real estate market, and many foreigners are looking to invest in property in this beautiful and vibrant nation. However, buying land in Thailand as a foreigner can be a confusing and complicated process, with many restrictions and regulations in place. As a result, it's crucial to understand who is eligible to purchase land and under what conditions. In this blog post, we'll be delving into the mystery of buying land in Thailand as a foreigner and exploring the different types of foreigners who are allowed to own property in this fascinating country. So, if you're considering investing in Thai real estate, read on to find out everything you need to know.

Measures that cater to foreigners

The following are the financial and investment measures which cater to foreigners.

Measures to Attract Foreigners with High Potential: 4 Eligible Groups of Foreigners Allowed to Buy Land in Thailand

This measure seeks to stimulate the economy through income, investment, and employment opportunity generation within the country with emphasis on four targeted groups of foreigners, namely:

• Wealthy individuals worldwide.
• Foreign Retirees.
• Individuals seeking employment in Thailand.
• Individuals with specific expertise.

The following are the important factors and conditions for the four groups of highly skilled foreigners seeking Thai real estate investment:

1. Must be within the Bangkok Metropolitan Area, Mueang Pattaya District, or municipal areas, or located within the areas designated as residential zones according to city planning laws.
2. The amount of land granted rights shall not exceed 1 rai (1,600 square meters) in accordance with Section 96 of the Land Code. The land must be used for personal residence.
3. One must have an investment amount of no less than 40 million baht and must maintain the investment for not less than 3 years in a business or enterprise of a certain type, such as purchasing Thai government bonds, investing in real estate investment trusts, infrastructure mutual funds, property investment trusts, etc., established under the law on transactions in the capital market (added by the Ministry of Finance regulation in 2002).
4. Relevant officials must be notified within 60 days in case of business or enterprise investment withdrawal before the investment term is due,
5. Law is valid for five years.

Long-term resident visa

For foreigners migrating to Thailand for residential purposes as a special case and are highly skilled, they may be granted a Long-term Resident Visa (LTR Visa) for long-term residency. The important details of this visa are as follows:

• The immigration inspection for newly approved Long-term resident visa (LTR Visa) holders is set for 10 years.
• The four qualifications of target foreigners are as follows: Wealthy individuals worldwide, foreign retirees, individuals seeking employment in Thailand, and individuals with specific expertise as well as accomplices such as spouses or children not older than 20 years of age and no more than 4 children.
• Foreigners and their accomplices who pay a one-time stamp duty fee will now be charged at a rate of 50,000 baht (previously 100,000 baht) and can apply for a work permit under the law on management of foreign workers.

How are these measures useful?

The Office of the National Economic and Social Development Council (NESDC) predicts that the following benefits will come into effect after measure implementations with the budget from 2022-2026:

1. Economic value system spendings increasing by 1 trillion baht.
2. Thai-residing foreigners increasing by 1 million people.
3. Increase investment in the country by 800 billion baht and generate additional tax revenue of 270 billion baht.
4. To ensure that Thailand has enough personnel with expertise in various fields to support the government's efforts to promote the economy, in line with the National Strategy (2018-2037) on Industry and Services of the Future, Infrastructure, Logistics Systems, and Digital Technology, it is necessary to increase investment in education and training programs. This will help to produce a skilled workforce that is capable of meeting the demands of the private sector and driving the country's economic growth.

Foreign Condo Ownership Transfers in Thailand

The real estate market in Thailand has seen a significant increase in the number of condominium units transferred to foreigners in the fourth quarter of 2022. According to the Real Estate Information Center of the Government Housing Bank, 3,780 units were transferred, representing an 82.3% increase from the previous year.

This trend has been on the rise since Q2 2022 and is the highest number of units transferred in a 16-quarter period, starting from Q1 2019. The total number of units transferred also exceeds the quarterly average during the COVID-19 period (2020-2021) by 80.7%, with a total of 2,092 units per quarter.

In terms of value, the transferred ownership rights of condominium units to foreigners across the country amounted to 19,544 million baht, an increase of 95.8% YoY. This is a continuous high value from Q3 2022 and the highest value in the last 20 quarters since Q1 2018. The total value of transferred ownership rights also exceeded the average value during the COVID-19 outbreak, which was only 9,979 million baht per quarter.

The proportion of transferring ownership of condominiums to foreigners in the fourth quarter of 2022 was 11.5%, which was slightly higher than the same period of the previous year. Meanwhile, the proportion of the value of transferred ownership of condominiums to foreigners was 21.1%, which increased significantly higher than the same period of the previous year.

Which nationality gained the most ownership transfer? Which provinces were most attractive to foreigners?

Chinese nationals topped the list of foreigners with the most transferred ownership rights of condominiums in Thailand in 2022, with 5,707 units, accounting for nearly half of all units. Following China, Russian nationals came in second with 813 units (7%), followed by the United States with 542 units (4.7%), the United Kingdom with 393 units (3.4%), and France with 351 units (3%).

Looking back at 2018-2021, the top five nationalities with the highest number of accumulated units were China, Russia, the United Kingdom, the United States, and Germany in that order. But, in 2565, the rankings changed with China, Russia, the United States, the United Kingdom, and France now taking the top five spots, respectively. Interestingly, the top three nationalities remained the same throughout the years in question.

The top five provinces in Thailand that have the highest number of transferred ownership rights of condominiums to foreigners are Bangkok, Chonburi, Samut Prakan, Phuket, and Chiang Mai, in descending order. The majority of these provinces are found in the top two, with Bangkok having the highest number of transferred units at 5,260, accounting for 45.5%, followed by Chonburi with 3,567 units (30.9%). Together, these two provinces make up 76.4% of the total number of units transferred throughout Thailand. As such, it can be concluded that Bangkok is the most popular province for foreign ownership of condominiums.

Conclusion

In conclusion, while it is possible for foreigners to buy land in Thailand under certain conditions, such as establishing a Thai company or purchasing a condo, it is important to be aware of the restrictions and regulations that come with it. These regulations can be complex and subject to change, so it is advisable to seek professional legal advice before making any significant investment in Thailand. Despite the challenges, Thailand remains an attractive destination for foreign property buyers due to its beautiful landscapes, rich culture, and affordable property prices.

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