You can certainly buy land in Thailand, but it is not straightforward when it comes to foreigners, so if this is your plan, you really must consult a good, competent Thai property lawyer, so that you don’t make any costly mistakes. This article will guide you to make the right decision of buying land in Thailand!
Ways of Purchasing Property in Thailand
Land Lease
The Thailand lease laws permit foreigners a lease period of a maximum of 30 years with the chance of renewing the lease for a further period of 30 years, and to enjoy exclusive rights over the property, by taking a lease from the land owner. Buying Thai real estate under a leasehold interest has become a preferred way for foreigners for acquiring property rights in the land.
Thai Company Ownership
Under Thai laws, a Thailand-registered company with majority Thai ownership can buy land in the Kingdom. Many foreigners have acquired real estate rights by acting as minority shareholders in a Thai majority company. However, in recent years, the Thailand Land Department has become stricter in investigating limited companies for the use of the “nominee” Thai shareholders, who do not possess a legitimate interest in the company owning the land. Nevertheless, it is still possible for a non-Thai shareholder to secure his investment in a Thai limited company through legal means.
Thai Spouse
A Thai spouse of a foreigner can buy land in Thailand in his or (usually) her own name. However, the laws require the married couple to sign declarations at the Land Department stating that the funds used are the separate property of the Thai spouse, which would give the Thai spouse a virtually uncontestable right to the property in the event of divorce, as it would be almost impossible for the non-Thai spouse to prove that the land was marital property.
This form of property ownership is very strongly not recommended and reinforces the need for a Thai prenuptial agreement to protect the non-Thai spouse.
Investment
Thai real estate law allows foreigners to buy and own a limited amount of land based on an investment of 40 million baht for five consecutive years, provided that the land is used for residential purposes.
Contact us before buying land in Thailand as we can help you with title deed search in Thailand. Additionally, our legal professionals can guide you throughout the process. Email us at [email protected] and our team will get back to you within one Thai working day.
