Land Purchase

FAQ

Can a foreigner buy land or purchase property in Thailand ?

Thai law, in general, prohibits non-Thai citizens from buying land or purchasing property in Thailand . However, there are various exceptions to the law, as well as methods for foreigners who want to buy land or purchase property to acquire rights to land and property in Thailand legally.

What are the options available for buying land or property in Thailand ?

For a foreigner wishing to buy land or purchase property in Thailand , there are mainly four options worth exploring. These include using investment, leasing, owning a company and marrying a Thai spouse.

Investing/BOI : With significant investment of funds, foreigners may be allowed to own a limited amount of land under Thai property law. Some foreign companies seek and obtain the approval of the Board of Investment (BOI) to purchase land for a limited period. This option, however, is not available to the vast majority of non-Thai nationals seeking to obtain a second home, retirement home or investment in Thailand because of the legal restrictions involved. As a result, other options must be examined.

Leasing : Thai property law allows a foreigner to lease land for a maximum of 30 years, with lease renewal options of 30 years. Many foreigners choose this method to secure land or property ownership. In comparison to setting up a company, land leasing is easier and requires less maintenance. (More information on land leasing in Thailand can be found here)

Owning a company : A foreigner may use a Thailand-registered company to obtain property rights or land interest in Thailand . This "Thai" company must be at least 51% owned by Thai shareholders, while the remaining 49% or less may be held by foreigners. (Some law firms are still using the old law and recommending 39% foreign ownership.)

Marrying a Thai spouse : A recent revision of Thai law has provided the opportunity for a Thai with a foreign spouse to buy land or property in Thailand . Prior to registering the land parcel at the Land Department, the couple may be asked to sign declarations, declaring that the funds for the property came solely from the Thai spouse. This may, in effect, result in the non-Thai spouse waiving his/her rights on the land or property. Such declarations may become problematic in a divorce case as the non-Thai spouse may have difficulties proving that the land was marital property. To prepare for such an event, a skillfully-drafted prenuptial agreement may be useful.

JWS Consulting Company Limited

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