Property Ownership in Thailand
By promoting high standards of living and benefiting from its constant dynamism, Thailand today attracts more and more foreigners seeking for investing in the real estate market. Here below, find practical information related to the real estate market in Thailand.
- Buying a condo
- Buying a land
- Lease and Freehold
- Practical information
1) Buying a condo
In Thailand, foreigners are permitted to acquire a condominium under their name and own the property for an unlimited time.
However, they must respect 3 conditions:
- Purchase a condo in a residence offering the full ownership of the property.
- Ensure that foreigners can purchase any condominium project up to 49% of the total space of all units in that condominium
- Transfer 100% of the amount of the purchase price from an overseas source into Thailand
More information about the Buying process of a condo
2) Buying a land
In most case*, Foreign persons are not permitted to own land. They cannot purchase land under their name. However, foreigners are allowed to own the property built on the land and lease the land for a period of 30 years renewable.
*Foreigners may own up to one rai of land (0.4 acres) for residential purposes if granted permission by Minister of Ministry of Interior and must remit a total of at least THB 40 million into Thailand over a minimum period of five years in specific businesses or activities.
3) Leasehold vs Freehold
- Full property ownership
- Full rights are granted to the owner
- Provision of the total enjoyment of the property
- Ability to rent or sell the property Leasehold
Foreigners are allowed to purchase leasehold interests in land. For a residential purpose, the maximum lease term is 30 years with the possibility to renew.
Long term leases are registered at the land department.
4) Practical information
Deal with legal departments
For long term leases, it is highly recommended to deal with legal departments:
- Real estate agencies
- Respectable owners, experts of the Thai real estate market
Ensure to register the lease agreement at the Land Department
The lease agreement must:
- Envisage an extension clause*
- Anticipate possible changes in the legislation **
- Mention the conditions of assignment and inheritance
*The owner commits to renew the lease at the due date
**If laws change, this approach gives you access to the full ownership of your property. Conditions must be specified in the contract.
In the event of long term lease (over a period of 3 years), it is mandatory to register the lease agreement at the Land Department. It must be written in Thai. Therefore, you must check that the contract has been previously translated in English and respect all the terms stipulated.