Legalities of buying property in Thailand
Foreigners who are accustomed to the property ownership systems in Europe, America or Australia may initially find Thai Property Law a little confusing. However, with a little research things will soon become clearer.
It also is recommended that you seek independent legal advice should you be considering a property purchase in Thailand.
The Thai law relating to property has always allowed and encouraged foreigners to buy property in Thailand but, in principal, foreigners cannot buy land.
You should be wary of suggestions that there are ways of ‘getting around the law’. In the past, a number of loopholes were commonly taken advantage of, but recent political changes have ensured that the law is now being properly upheld.
There is now stricter interpretation of the rules regarding ownership of property through a company. If a foreigner is going to operate a business in Thailand then he may purchase the freehold of the land through his Thai limited company. Be aware that the land will be owned by the Thai Company, not by the individual. The company must be a legitimate enterprise and properly set up under Thai law. A qualified lawyer will be able to advise the most suitable structure for the company.
Condominium purchases tend to be more straightforward than house purchases. A foreigner may buy the freehold as long as total foreign ownership does not exceed 49% of the whole building.
There are a number of other ways to purchase freehold in Thailand. The most common available to foreigners is to lease the land for 30 years. This is well defined under the law and although you don’t own the land, you are permitted to own the structure built upon it.
