Thailand's delicious cuisine, cost-effective lifestyle, and delightful climate have made it a sought-after destination for visitors and positioned it as an attractive investment hub.
A notable demographic contributing to this allure is the influx of Chinese tourists, with a significant 31% holding long-term residency visas for Thailand.
As Thailand beckons investors, the question arises: Can foreigners purchase or invest in a property in Thailand?
The answer is YES! Foreigners are indeed welcome to purchase property in Thailand.
There are 3 types of properties that foreigners can purchase or invest in Thailand. These include the following:
3 Types of Properties Foreigners Can Buy in Thailand
1. Condominium or apartment units
When foreigners buy a condo unit, they can have their name registered on the title deeds, known as Chanote, which grants them a unique form of freehold title known as Condominium Freehold.
According to the Condominium Act B.E 1979 and its amendments, condos need to ensure:
- The condominium must be registered with the Land Department.
- 49% of the condo's registrable area can be sold to foreign buyers "Foreign Quota"; Thai nationals or Thai entities must own another 51%.
- Once the Foreign Quota is filled, foreign buyers can only get units in the building on a leasehold basis.
2. Leasehold house, villa or condominium with a long-term rental contract
Purchasing the land on a leasehold basis is another option to own land in Thailand.
Foreigners can enter into a lease agreement with the landowner for both land and buildings.
- The maximum lease term is typically 30 years, with an option to renew for two additional periods (a total of 90-year lease).
- Leasehold rights are registered on the Chanote.
- No additional and ongoing paperwork.
3. Property in the name of a Thai company
You can legally buy land in Thailand if you own a Thai company. The land will belong to the company, and as a part of the company, you have control of the ownership of the land.
However, there are some important notes you must be aware of:
- Most of the shareholders in the Thai company must be Thai nationals.
- The corporate structure must comply with Thai law, and foreigners should know they may only have full control over the company if they are majority shareholders.
It would be best for you to go through with a lawyer to be legally guided on the company's legal structure.
However, before embarking on the journey of real estate ownership, there are crucial considerations that prospective investors should be well-informed about.
3 Things you should know before you buy a property in Thailand
- Foreigners can't own land in Thailand.
- When a foreigner buys a property, you can only own the house, not the land.
- Foreigners can own condominiums or apartment units.
