Can Foreigners Own Property?

Foreigners cannot directly own land in Thailand under their name.

However, Thai law permits foreigners to own freehold titles to condominium units, provided they meet certain criteria.

According to the Condominium Act, up to 49% of the total floor space of a condominium building can be owned by foreigners.

This means you can purchase a condo outright, with your name on the title deed, granting you full ownership rights.

For those who wish to own land or a house, leasehold agreements are a common workaround.

Under Thai law, foreigners can lease land for up to 30 years, with the option to renew for two additional terms of 30 years each.

While you won’t own the land outright, leasehold agreements provide long-term security and are often coupled with the right to build or own structures on the leased land.

Key considerations include:

• Lease terms.

  • Ensure the contract specifies renewal rights and protects against potential disputes.

  • A well-structured lease can offer peace of mind and ensure that your investment is protected over the long term.

• Legal registration.

  • When considering a leasehold, ensure the agreement is clearly drafted and registered at the Land Department.

  • All property transactions must be registered at the Land Department.

  • This step is non-negotiable and ensures that your ownership rights are legally recognised.

• Ownership vs. control.

  • While you won’t own the land, a lease grants you exclusive rights to use the property during the lease term.

Leasehold arrangements are a practical solution for those seeking to own standalone properties like villas.

A usufruct is a legal agreement that grants you the right to use and benefit from a property owned by someone else (usually a Thai national).

While you won’t own the property outright, a usufruct can be valid for your lifetime, providing a secure arrangement for long-term use.

This option is particularly appealing for retirees or those looking for a more flexible ownership model.

Foreigners can own freehold condominiums in Thailand, making this one of the most straightforward property investment options. The Thai Condominium Act allows foreigners to own up to 49% of the total sellable floor area of a condominium project.

Here are the key steps to purchasing a condo:

• Find a reputable developer or seller.

  • Research the developer’s track record to ensure quality and reliability.

  • Visit completed projects to assess construction quality and design.

  • Read online reviews and forums for feedback from previous buyers.

  • Check if the developer has faced any legal issues or project delays.

  • Ensure the developer provides a clear timeline for project completion.

  • Confirm the availability of warranties or after-sales support.

• Confirm foreign ownership quota availability.

  • Check with the condo management to ensure the foreign ownership cap hasn’t been reached.

• Complete the due diligence.

  • Engage a lawyer to verify the property’s title, building permits, and compliance with laws.

• Transfer funds from abroad.

  • All funds used for the purchase must be transferred into Thailand from overseas in foreign currency. This process ensures you receive a Foreign Exchange Transaction Form (FETF), required for ownership registration.

Owning a condo outright provides foreign investors with full ownership rights, including the ability to sell, rent, or pass the property to heirs.

Another option is to establish a Thai limited company to own property. In this arrangement, the company holds the land, and you own the majority of the company shares indirectly.

However, Thai law requires at least 51% of the company’s shares to be held by Thai nationals.

It’s crucial to work with a reputable lawyer if pursuing this route to ensure compliance with all legal requirements.

Using nominee shareholders solely to bypass foreign ownership restrictions is illegal, and any attempt to circumvent the law can result in penalties or the loss of your property rights.

While this method offers greater flexibility, it’s important to consider the following:

• Legal compliance.

  • Ensure your company adheres to Thai corporate laws and maintains transparency.

• Costs and maintenance.

  • Operating a company involves annual fees and compliance requirements, such as submitting financial statements.

• Risks and due diligence.

  • Engage a reputable law firm to structure the ownership legally and ethically.

Foreigners married to Thai nationals can register land in their spouse’s name.

However, the foreigner must sign a declaration stating that the funds used to purchase the land are the Thai spouse’s personal assets. Considerations include:

• Spousal agreements.

  • Secure a legal agreement to define property rights in case of marital disputes.

• Long-term security.

  • Understand that ownership will solely belong to the Thai spouse.