Were you searching for “Can Foreigners Own Land in Thailand?”
Then you have landed on the correct page!
This article aims to explain to you all the processes by which you can own land in Thailand as a foreigner. But before that, let us share a recent announcement from the Thai Cabinet that is giving open rights to foreigners to own land in Thailand.
The Announcement enabling Foreigners to Own Land in Thailand
Anucha Burapachaisri, a government spokesperson, announced the new policy following the weekly meeting of ministers on October 25, 2022. It will let qualified foreigners to possess up to one rai (0.4 acres) of land for residential use. The program aims to attract top professionals, high-net-worth individuals, and retirees. But, only housing sites in Bangkok and Pattaya, a beach city approximately two hours’ drive from the capital, will be eligible for ownership.
Bonds issued by the Thai government, the Bank of Thailand, and state-owned companies offer additional investment choices, as are fixed-income instruments whose principal and interest are backed by the Finance Ministry. According to Auncha, certain property trust funds and real estate mutual funds also qualify as part of the 40 million baht benchmark.
The reason behind the Announcement
Thailand made a significant advancement towards allowing foreigners to purchase land for residential use as the nation attempts to attract more rich foreign investors in an effort to strengthen its economy. Foreigners can only now own property in the form of intricate long-term leasing arrangements or condominium units.
Moreover, Thailand is in competition with other countries to attract retirees, wealthy individuals, and so-called digital nomads. In September, the government began taking applications for a new visa scheme that will permit qualified foreigners to stay for up to 10 years while also providing a variety of advantages.
Who Are Eligible to Own Land in Thailand?
According to the Cabinet, individuals must invest at least 40 million baht ($1.04 million), which includes the cost of the property, for a minimum of three years in order to be eligible to own residential land.
Other Ways by Which Foreigners Can Own Land in Thailand
Condominium Ownership in Thailand
Foreigners can own condominium units in Thailand, as long as the foreign ownership in the building does not exceed 49% of the total floor area. This means that condominiums are a common and relatively straightforward option for foreigners looking to own property in Thailand.
Leasehold Agreement in Thailand
Foreigners can also enter into a lease agreement with the landowner for a maximum term of 30 years. This agreement can be renewed twice, allowing for a total lease period of up to 90 years. It’s essential to have a well-drafted lease agreement to protect your rights and interests.
Thai Company Ownership
Foreigners can set up a Thai company and purchase land under the company’s name. However, it’s important to note that the company must comply with the Foreign Business Act, and the majority of the shareholders must be Thai nationals. Setting up a company solely for the purpose of owning land is generally discouraged, as it may be seen as an attempt to circumvent the restrictions on land ownership.
Board of Investment (BOI) Promotion
Foreigners who invest in certain promoted industries under the BOI may be eligible to own land for the purpose of their business operations. The eligibility criteria and requirements for BOI promotion can be complex, and it’s advisable to seek professional advice.
It’s crucial to emphasize that land ownership laws in Thailand can be subject to change, and the above information might not reflect the most recent regulations. Therefore, it’s essential to consult with a lawyer or contact the relevant authorities, such as the Land Department in Thailand, to get accurate and up-to-date information before making any decisions regarding land ownership in the country.
For complete guidance and assistance in the process of acquiring land or property in Thailand, consult us! We can help you with title deed searches in Thailand, drafting of lease and/or sale agreement, renting contracts, and advice on all types of real estate tax matters.
Simply email us your requirement at [email protected] and our team will get back to you within one Thai working day.
