Log in Register

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *

call-pattaya-house

More FAQ's - Buying property in Thailand

Aren't Foreigners Prohibited from owning land in Thailand?

In what situations is it possible for foreign citizens to purchase land in Thailand?

Can foreigners own buildings even if they don't own the land?

How can a joint venture be created to acquire land or property in Thailand?

How does a limited liability company allow foreigners to own property?

What about long term leases with rights to renewal?

What are the different types of rights to private land?

How do mortgages in Thailand work?

Is owning a condominium subject to the same laws as owning land in Thailand?

How may a foreigner qualify to own a condominium in Thailand?

Can the spouse of a foreigner still own land in Thailand?

Aren't Foreigners Prohibited from owning land in Thailand?

Under the strict application of the existing law, it is officially prohibited for foreigners, including both individuals and juristic entities (e.g., foreign majority-owned companies or partnerships), to own land in Thailand. However, there are exceptions to the prohibition found in the law itself as well as other methods of structuring effective purchase of land and buildings.

The Land Code has been amended to allow foreigners to own land if the following requirements are met: 1) The land is for residential purposes, 2) The land does not exceed one rai, 3) No less than 40 million baht is remitted into Thailand for investment in approved BOI ventures, 4) Foreigners must abide by Ministerial Regulations governing the nature of the business that the foreigner will engage in, the period of time for maintenance of the investment, and the location of the land owned, 5) permission is granted by the Minister of the Interior.

According to section 97 of the Thai Land Law, the definition of a foreigner includes a Thai registered company or partnership in which more than 49% of the capital is owned by foreigners or of which more than half the shareholders or partners are foreign citizens.

So to all intensive purposes foreigners are prohibited from owning freehold land and that is why the three accepted methods of structuring ownership and control have evolved. See our explanation of these methods above.

F.A.Q.

In what situations is it possible for foreign citizens to purchase land in Thailand?

The Board of Investment (BOI) may grant a foreign-owned company permission to own land if the intended use of the land is for an activity promoted by the BOI. Prior to the purchase, the BOI must review the land and the plans for construction and agree that the land is suitable for the promoted activity. After purchase, the land may only be used for that activity and, in the event that the business conducting the activity is dissolved, the land must be sold within one year of that date. An additional benefit of this BOI promotion is that businesses granted the right to own land under these conditions may also be eligible to conduct business activities that would also be generally restricted to foreign individuals and juristic entities.

F.A.Q.

Can foreigners own buildings even if they don't own the land?

Although Thai law prohibits foreigners from owning land in Thailand, foreigners have the right to own buildings (just look closely at condominium purchase and it really falls under this category as no right to freehold ownership of land is included). If foreigners wish to purchase land in Thailand in order to build property, they have 2 options, forming a joint venture limited company with majority Thai ownership and procuring a long term lease with a right of renewal.

F.A.Q.

How can a joint venture be created to acquire land or property in Thailand?

One method foreigners can employ to acquire land or property is by forming joint venture companies with majority Thai ownership but with adequate safeguards to protect the foreigners' minority interests. If a foreigner plans to run a business in Thailand then he may purchase the freehold of the land through his Thai majority limited company. The land will be owned by the Thai Company, not by the individual.

How does a limited liability company allow foreigners to own property?

Purchasing property with a limited liability company has traditionally been the most popular method for foreign investors as the Articles of Association can be varied to allow greater protection for foreign minority shareholders. The regulations vary throughout Thailand, but the Land Office generally requires that Thai nationals own a legitimate majority interest in a company if they wish to purchase land legally. In the light of recent government directives it is more important than ever to take competent professional advice on the implications of structuring land ownership with this method.

 

F.A.Q.

 

What about long term leases with rights to renewal?

 

As a foreigner is not restricted from purchasing buildings or assets, one of the most effective ways to acquire land that a building resides on is to purchase the land on a 30-year leasehold with an option to extend the lease for subsequent 30-year periods. Leases are limited to 30 years, except on land for industrial purposes, which may be established for 50 years. Similarly, lease extensions are capped at three terms of 30 and 50 years respectively before renewal of the lease would be required. Possession of the land leased for an already owned building is protected by the fact that the building rests on the land; ownership of the building is separate from the land and cannot be seized by the lessor once the lease expires. Leases exceeding three years are enforceable for only three years unless they are registered with the Land Department. Therefore, a 30-year lease must be registered with the Land department. In addition, a lease continues to be valid even in the event of the land being sold.

F.A.Q. back to top

What are the different types of rights to private land?

Land can be controlled through the right of possession or through title deed and other documentation. Individuals who actually possess and use land may have the right to possess such land under the Civil and Commercial Code.

The primary form of evidence for ownership of land is a title deed (Chanood or Nor.Sor 4). These title deeds must be registered at the Land Department in the province the land is located.

It should also be noted that a parcel of land may be commonly held by several individuals. A person whose name appears on a Chanood, or Land Title Deed, has all the legal rights to that land, can produce the deed as evidence of ownership to Government officials, can prove the land has clearly defined boundaries, and can engage in legal acts upon that land as allowed by law.

F.A.Q.

How do mortgages in Thailand work?

Land mortgages in Thailand must be made in writing and registered with the Land Department. Mortgages do not include the buildings built on the land after the mortgage date unless they were agreed upon prior to signing the mortgage documents.

Additionally, buildings and other immovable structures may be mortgaged separately and should be registered with the Land Department or local Amphur.

F.A.Q.

Is owning a condominium subject to the same laws as owning land in Thailand?

Sec. 19 of the amended Condominium Act of 1990 allows qualified foreigners to own individual condominium units as long as the total area of foreign-owned units within the entire condominium complex is less than 50 percent of the total area of all units.

F.A.Q.

How may a foreigner qualify to own a condominium in Thailand?

A foreigner or juristic entity can own a condominium in Thailand if the individual has permanent residence status in Thailand, the individual has been permitted to enter Thailand under BOI privileges, the juristic entity is registered in Thailand but classified as "foreign" under the Land Act, the juristic entity has been granted investment privileges by the BOI, or the individual or juristic entity has brought foreign currency into Thailand for the purpose of purchasing a condominium unit.

F.A.Q.

Can the spouse of a foreigner still own land in Thailand?

Until recently, Thai nationals who married foreigners became ineligible to own land in Thailand. The understanding was that once the foreigner and the Thai were married the land became community property and officials believed this was perhaps a too convenient way for foreigners to circumvent the law.

However, under current law a Thai spouse is legally allowed to own land in Thailand. The foreign spouse may be required to sign a letter declaring the property to be the separate property of the Thai spouse, consequently waiving any claim on the property.

To have the opportunity to discuss in more detail any point(s) raised above please contact us to make an appointment for an informal chat or email any queries that you may have.

Source: bluevisionagency.com/simple-overview-of-thailand-property-laws.html