Foreign Property Ownership Laws in Thailand: Who can buy What?
Welcome to the fascinating world of foreign property ownership laws in Thailand! If you've ever dreamt of owning a piece of paradise in the Land of Smiles, you're in for an exciting ride. In this blog post, we'll unravel the legal intricacies surrounding the ownership of properties by foreigners in Thailand. So, let's dive into this tropical legal adventure and discover how you can make your Thai property ownership dreams come true!
Can Foreigners buy Property in Thailand?
In simple terms, it IS possible for foreigners to buy property in Thailand with a few minor regulations to keep in mind. The first and most obvious hurdle is that foreigners cannot own land and any property owned (such as a condo or one's own company) must not exceed the 49% ownership quota limit set for foreigners (meanwhile the other 51% is Thai-owned). On the flip side of things, foreigners can own condos or structures and buildings located on a plot of land.
Buying a condo is the easiest method for foreigners to own property in Thailand and have their name registered on the title deed (known in Thai as Chanote; โฉนด). Be sure to verify that the title deed is real and officially originates from said property, all of which you can do so at the Land Department.
Buying a Condo
According to the 1979 Condominium Act, foreigners can own at least 49% of the total unit space in any registered condominium building. The buyer must request a letter of guarantee from the condo's juristic person to set out the foreign ownership proportion. Then the buyer must submit the guarantee letter to the Land Department upon ownership transfer.
Common Alternatives for Legally Owning Land
The following are the common alternatives to owning land for foreigners while still abiding by Thai laws.
Long-Term Leaseholds
One alternative to owning land for foreigners in Thailand while abiding by the law is buying a leasehold property. The basic leasing period is 30 years with the option for at least two renewals of the same duration, which totals up to 90 years. While leasehold does not grant complete ownership in the same vein as freehold, leaseholders should at least gain exclusive rights to the property.
Since you are the legal owner of the property, the land possession gets secured. As a result, the lessor cannot claim the property when the lease expires. This is because the property is distinct from the land and doesn't fall under the Civil Law as an integral part.
Setting up a Company in Thailand
If you prefer greater ownership rights without the confines of leasehold terms and conditions, setting up a company in Thailand to buy a property might be a viable option. Foreigners can set up a Thai company for indirect ownership and control as long as the company is at least 51% Thai-owned while the other 49% is foreign-owned and vice versa.
Buying Property via Marriage to a Thai Spouse
The other option for buying a Thai property is getting married to a Thai spouse. This way, you get to settle down and have a family as well as getting a place to call home in one go. Do keep in mind, though, that the property will get bought under the name of your Thai spouse even if you intended to buy the property.
Final Verdict
Thailand's foreign property ownership laws, while complex, offer exciting opportunities for those looking to invest here. With leasehold options and legal safeguards in place, your dream of owning a slice of Thai paradise is within reach. By understanding these regulations, you can begin your journey to becoming a property owner in the Land of Smiles. So, whether it's the bustling cityscape of Bangkok or the tranquil beaches of Phuket that call to you, rest assured that Thailand's real estate market has a place for everyone. Cheers to your future as a property owner in Thailand!
From condos in the bustling cities of Bangkok to pool villas in Phuket, get in touch with us today to begin your property ownership in Thailand!
