Thailand is one of the best tropical paradises in Asia and draws tourists from all over the world to its stunning beaches, lively history, and delectable cuisine. International tourists and expats frequently fall in love with the nation’s breathtaking landscapes, affordable standard of living, and, of course, the warm residents. Some visitors find their stay to be so enjoyable that they even think about buying a second home or retirement residence in Thailand. But, the question that haunts their thoughts is – “can foreigners buy Property in Thailand?”
Thailand’s reasonably priced real estate makes it even more alluring for expats and foreigners looking to invest. There are restrictions on foreigners to own property in Thailand. However, there are still options for them to invest in real estate. Therefore, here are a few ways for foreigners to invest in Thai real estate.
- Leasehold Agreement
- Thai Limited Company
- Condominium Ownership
- Quota System
- Usufruct Agreement
- BVI Company
- BOI Promotion
- Final Words
Leasehold Agreement
Although foreigners cannot own land, they can lease it for up to 30 years. Most developers and real estate agents offer a leasehold agreement. This gives the investor full rights to use the land and property for the agreed duration. You can discuss the renewal options and plan for the lease in the agreement. One advantage of this agreement is that the investor can sell or transfer their leasehold rights to another party. This gives them the opportunity to make a profit.
Thai Limited Company
Foreigners can establish a Thai limited company with majority ownership held by Thai nationals. This method enables the company to own property, including land in Thailand. A shareholder agreement must be in place and up to date. Henceforth, hire a Thai attorney to help with the legalities of the ownership transfer.
Condominium Ownership
Buying a condominium in Thailand is one of the most popular ways to invest in real estate. Foreigners can purchase up to 49% of the total area of the condominium building. Condominium ownership is a straightforward process, and a foreigner can lease or sell the property at any time.
Quota System
The Thai government permits foreigners to own a percentage of a property in a condo building up to 49% of the total area. When foreigners have purchased 49% of the units, this “quota” restricts further foreign ownership. Buyers can purchase the entire condominium building if the property has no mortgages and is owned freehold by a company.
Usufruct Agreement
Foreigners who have married a Thai national can enter into a usufruct agreement with their spouse. This agreement grants the foreign spouse the right to use and enjoy the property throughout their lifetime without giving ownership. This method is particularly advantageous because the property can be passed onto the spouse or the children after the death of the foreign spouse.
BVI Company
Some foreigners set up a company registered in the British Virgin Islands (BVI) to hold the property. The BVI company owns the property, and the foreigner owns the shares of the company. This method can help bypass some of the restrictions on foreign ownership, but it requires legal and tax expertise.
BOI Promotion
The Board of Investment (BOI) offers incentives for foreign investors to invest in Thailand, including the ability to own land and property for business purposes. This requires a minimum investment of THB 10 million (approx $330,000) and approval from the BOI.
Wrapping Up
Hopefully, by now, you have the answer to your question that “can foreigners buy property in Thailand?”. However, it is important for foreigners to consult with a knowledgeable lawyer in Thailand to understand the legal, tax, and investment implications of buying property in Thailand.
In conclusion, investing in Thai real estate is an excellent option for foreigners who dream of owning a second residence. With the nation’s beautiful landscape, great food, and friendly folks, it’s no surprise that the nation is a hotspot for tourists and retirees. Before making any investments, it’s crucial to seek professional advice and speak with a Thai attorney to guarantee that you meet all legalities.
