Despite the fact that Thai Property Laws prevent foreigners to buy land in Thailand, there are options.
Support of Thai Firm
In Thailand, a foreigner may own land in the name of a Thai firm. In this case, at least 51 per cent of shares are Thai and 49 per cent can be foreign. This is possible through a Thai Limited Company or a Thai Partnership Firm. The Thai Limited Company is the most popular type of company registered in Thailand. To support a work permit application, a company must have a capital of two million baht for each work permit.
Approval of Board of Investment (BOI)
For this, a foreigner must be able to invest at least one million Baht in Thailand for an unspecified period of time. On this, he/she can get BOI permission to purchase up to 20 Rai of land for employees’ residential use. However, the company’s officers and directors have an entitlement of up to 10 Rai.
Moreover, while owning up to 10 or 20 Rai may be acceptable, it depends on the size of the firm and its activities. Approval will ultimately be up to the Board of Investment’s judgement. This land must also be in the same area as the Company’s current location.
The Board of Investment may also grant the applying firm authorization to own land if it is used for BOI stimulus activity. However, the land must be less than 5 rai in size, of foreign company ownership, and related to the BOI activity. Please keep in mind that any such grant requires clearance from the Ministry of the Interior.
Married to a Thai National
The Thai property law amendment of 1999 allows a foreigner with a Thai spouse to own land in Thailand legitimately. Nonetheless, the land must be registered in the Thai national’s name at the land office. The foreigner must also sign a declaration. This is to declare that the funds in the land acquisition were from the Thai National’s finances, not the foreigner’s.
Through Lease of Property
One way for a foreigner to obtain land is to lease it. In essence, the foreigner leases the property or house from the Thai landowner. Under Thai property law, a lease can last for up to 30 years. However, it has the option to renew if the lessor agrees. Renewal periods, on the other hand, are not effective in contracts and are almost certainly unenforceable. This is the simplest way for a foreigner to acquire a right of use of land. To be legally enforceable, a land lease that lasts longer than three years must have the Land Department registration.
Structured Ownership
A firm or a foreigner’s Thai spouse may issue a Right of Superficies in the foreigner’s favour. This allows him to individually own all structures on the land. A foreign individual can register as the owner of a house without owning the land if they employ this option. The Right of Superficies is valid for a 30-year period and renewable for another 30-year period (but not automatically). However, while superficies may be recorded, the Land Officer at each Land Office has the final say.
Conducting a Title Search is an important stage in the process of purchasing land. Because there are multiple degrees of land title deeds, always check with the Land Department to see what kind of title deed you’re looking at and whether it’s legitimate. This step will provide you with more information about the land. It will inform you as to whether it is subject to any obligations and whether it is a freehold title or not. Moreover, it is strongly advised that you contact a lawyer or solicitor to provide you with such information from the land department. However, a copy of the title deed must be present before any such title deed search.
The Bottomline
Thailand’s great beaches, lovely people, and culinary pleasures are very attractive. Their charm can make you think to buy land in Thailand call it your own small piece of tropical paradise after a wonderful holiday there. In general, foreigners do not have permission to purchase land in Thailand directly. Simply put, Thai law prohibits foreigners to buy land in Thailand in their own name. However, there is a potential exception that has yet to be tested in practice.
Most essential, engage the legal services of genuine lawyers in Thailand for property acquisition. This is mandatory to defend your rights and ensure that your own tropical paradise becomes a reality soon. You can communicate with them at [email protected]
