As a foreigner, purchasing property in Thailand is possible, although you must abide by certain rules and regulations.
Foreigners cannot purchase land directly; however, they can lease it long-term or purchase a condo with full title deed rights.
Foreigners can also form Thai companies for purchasing property, although this option should generally be avoided.
Land
Foreigners in Thailand find it challenging to purchase land that contains structures (building, house, condo) on which a building or house resides. With only limited exceptions allowing foreign ownership of land – typically those requiring substantial investments and meeting stringent criteria. To do this they typically must obtain a permit from the Ministry of Interior under Section 96 bis of the Land Code Act for 30 years with an option for renewal.
Foreigners interested in purchasing property indirectly may use a Thai limited company to do so indirectly. Although this requires considerable work in setting up the company with all necessary documents and fulfilling all requirements – including proving shareholders’ incomes and capital deposits – this method allows indirect purchase of land property while offering some level of stability; additionally, leasehold ownership allows foreigners access to real estate owned by this limited company; unfortunately this method does not comply with local law regarding division of personal properties between married spouses upon divorce.
Condominiums
Condominiums are one of the most sought-after real estate investments in Thailand, especially among tourists and offer great rental returns. Condos also make a safe bet for investors who do not wish to own land since leasehold titles may be secured instead.
Before purchasing a condo in Thailand, it’s essential to conduct proper due diligence. Be sure to research both the developer and contract of sale before making your decision. It may be worthwhile consulting a Thai lawyer who can guide you through this process more smoothly.
As part of protecting local buyers from competition with international investors, it is also vital that foreign ownership does not exceed 49%. Furthermore, to meet Condominium Act Section 19 requirements you must transfer purchase price for condominium purchase in foreign currency before having it converted by a licensed financial institution in Thailand into Thai currency before registering your ownership with the land office.
Houses
Foreigners purchasing homes in Thailand may face challenges that differ from other countries. An agent is invaluable when searching for properties to meet budgetary and requirement needs.
Although foreigners cannot legally own land in Thailand, there are legal mechanisms available that enable them to own property here. One such legal route is through leasehold agreements that offer long-term property rights (up to 30 years with provisions for renewals).
Foreign investors looking to acquire land property in Thailand through a private limited company also have another way to do so – through setting up a limited liability company with real shareholders and Thai partners, providing indirect ownership. Unfortunately, due to its lengthy and complex procedures as well as significant minimum investments necessary, most foreigners opt for purchasing condos instead.
Commercial Property
Thailand offers investors an incredible opportunity to capitalise on its vibrant economy through commercial property ownership. The type of investment property chosen will depend on individual needs; many opt for apartments and condos near popular tourist spots in order to maximize exposure.
Foreigners may own condo units directly, with up to 49% foreign ownership being permissible in any given building. This has made condos an appealing investment option for foreign investors.
However, foreigners cannot own land directly. One way around this restriction is forming a company to own the land; however, majority of its shares must be held by Thai nationals.
Before signing any real estate contract, any foreign buyer should ideally consult a specialist real estate lawyer. He or she can ensure the agreement is legal while also investigating the developer and speaking to previous owners to assess quality construction work.