Foreigners enjoy the same property rights as Thai residents under the Thailand Civil and Commercial Code. However, land ownership for foreigners in Thailand is not possible under the Land Code Act B.E. 2497 (1954). Land ownership for foreigners in Thailand is not normally possible for all types of freehold real estate, land, or house. But, it never means that a foreigner can never own land in Thailand. However, whenever you are going to purchase land in Thailand, never forget to go for the Title Deed Search.
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Foreign ownership under a treaty
Land ownership for foreigners in Thailand is possible under the Thailand Land Code Act if a treaty allows it. However, the last treaty enabling foreigners to own land in Thailand expired in 1970.
Practically, anyone who violates the Thailand Land Code Act faces a fine of not more than 20,000 baht. He/she can also face a sentence of not more than two years in prison or both. This is according to Section 111 of the Land Code Act.
'Foreigners may acquire land by virtue of the provisions of a treaty giving them the right to own immovable assets and subject to the requirements of this Code,' says Section 86 of the Land Code Act.
Exemptions for foreign land ownership
Under section 96 of the Land Code Amendment Act (1999), foreigners can own up to 1 rai (1600 square meters) of land. Moreover, this is possible for residential purposes through the Board of Investment. Additionally, it requires a 40 million baht investment in Thailand in assets or government bonds beneficial to the Thai economy.
Sometimes, it is subject to severe criteria limited to specific locations, and the permission of the Minister of the Interior. Actually, even your investment of an additional 40 million baht in the Thai economy is not a practical alternative. Furthermore, because this ownership is not transferable through inheritance, it is applicable throughout the lifetime of the foreigner.
Foreign companies
Foreign companies, including Amity Treaty (US) firms or any other foreign juristic organization, cannot own land. These businesses may own a minority part in a Thai firm. But, they may not use nominee shareholding structures to create a Thai company for property ownership.
Special advantages and exemptions for land ownership are possible for foreign firms with significant investments that help the Thai economy for the length of their business in Thailand under:
- Investment Promotion Act (Section 27)
- Industrial Estate Authority of Thailand Act (Section 44)
- Petroleum Act (Section 65)
Foreigners inheriting land
Again, a foreigner married to a Thai national may inherit land as a statutory heir with the approval of the Minister of Interior under section 93 of the Land Code Act, but this section must be read in conjunction with section 86 of the Land Code Act (i.e. in relation to foreign ownership granted under a treaty), so it does not apply to foreigners inheriting land from a Thai spouse. They may inherit the land, but they are unable to register ownership and must dispose of it within one year of purchase (Land Code Act).
Foreign controlled Thai companies
It was normal practice for foreigners to register a Thai business and possess land under a Thai company structure up to May 2006. This approach has been less widespread since the land office recommendations were implemented in May 2006, followed by the business registration restrictions and proposed modifications to the Foreign Business Act. Recent Thai government discussions about toughening up on this structure with new laws and regulations have led to the conclusion that a Thai company structure is not a viable or secure vehicle for establishing a long-term foreign controlling stake in Thai real estate.
Expats in Thailand can get practical legal help from professional lawyers on the most prevalent legal issues. Over the Internet, Konrad Legal delivers broad Thai legal information and tools in English. The information in Konrad Legal is intended to be used as general Thai legal information only, and should not be used to replace particular legal counsel for specific situations. We recommend that you set aside some time for our session if you want more thorough advice. For more information, please contact us at [email protected].
