Foreigners are generally not allowed to directly purchase land in Thailand
Foreigners are generally not allowed to directly purchase land in Thailand under Thai law (Land Code Act). However, they can buy a house under certain conditions. Here are the main ways a foreigner can purchase a house in Thailand:
1.Buying a Condominium
Ownership Rights:
Foreigners can buy a condominium in Thailand, but they must comply with the regulations set out in the Condominium Act, which states that foreigners can own a condominium of no more than 49% of the total area of the building.
Requirements:
Foreigners buying a condominium in Thailand must transfer funds from overseas, so that they can prove that the funds came from overseas, which will help prove that the funds used to purchase did not come from domestic sources.
2.Buying a house (Land and House)
Buying land:
Foreigners cannot buy land in Thailand directly (except in cases where the investment is approved by the National Board of Investment or BOI).
Buying a house on land:
Foreigners can buy a house in Thailand, but they must be aware of the land restrictions. In this case, the house purchased must be on a long-term lease or the land is held through a company.
Lease of land:
Foreigners can lease land for a long term (up to 30 years) using a long-term lease agreement, which can be extended for two more terms, totaling 90 years.
Set up a company:
Another way is to own land through a Thai company, where foreigners hold no more than 49% of the shares in the company and Thais hold 51% of the shares in the company.2. Buying a House in a Condominium
3.Special Cases (Investment Opportunities)
In certain cases, foreigners who invest in Thailand and receive approval from the Board of Investment (BOI) may be granted special privileges, including the right to own land and property for business or investment purposes.
4.Legal Requirements and Regulations
Government Permission:
In some cases, foreigners who wish to purchase real estate in Thailand may need to seek permission from the government, such as permission from the Ministry of Interior if purchasing land.
Showing the Source of Funds:
Foreigners purchasing real estate in Thailand must show the source of funds, such as transferring money from abroad.
5.Things to Consider
Document Verification:
It’s important for foreigners to carefully check all legal documents, such as land titles, purchase agreements, and ownership transfer procedures.
Legal Advice:
Foreigners should seek professional legal advice from a lawyer specializing in Thai property law to avoid legal issues.
Summary:
Foreigners cannot directly purchase land in Thailand, but they can buy houses if the property is on leased land or if they use a company structure (with Thai partners). Alternatively, foreigners can also purchase condominiums within the legal limits.
