Guide to Buying Property in Thailand as a Foreigner

Thailand is well known around the globe for its idyllic beaches, vibrant culture, and bustling cities. But did you know it is an increasingly popular destination for foreigners looking to acquire property for relocation or as a business investment? As a result, one of the questions on many people’s minds is “Can a foreigner buy property in Thailand?” 

Whether for personal or business purposes, the Thai real estate market offers many unique opportunities for foreign property ownership and rental, as long as you are properly equipped to navigate regulatory intricacies. This guide will provide valuable insights for foreigners buying and leasing property in Thailand.

Can Foreigners Buy Property in Thailand?

Under the Land Code Act, foreigners are prohibited from directly owning land outright. There are rare exceptions such as inheritance or substantial investment under specific government programs. While the act technically allows for ownership through a majority-Thai-owned company, these structures are heavily scrutinized by authorities to prevent the illegal use of nominee shareholders.

However, this doesn’t mean you can’t invest in Thai property. Despite strict regulations in freehold ownership, some other regulations create clear, legal pathways for foreigners. The two most important are the Condominium Act (B.E. 2522, 1979) and the Civil and Commercial Code.

These laws provide the two primary and secure models for foreign property acquisition:

• Condominium Freehold: The Thai Condominium Act allows you to own a condo unit outright in your own name as a foreigner.
• Long-Term Leasehold: The Civil and Commercial Code provides the legal framework for securing long-term leases (up to 30 years) on land and houses.

To answer the question: yes, foreigners can own property in Thailand but it depends on the type of property and applicable regulations. We will explore this in more detail in the next section. 

Understanding Property Ownership Models for Foreigners

A. Condominium Ownership (Freehold)

This is the simplest and most direct way for a foreigner to own property in Thailand. Under the Condominium Act, you can buy and own a condominium unit in your own name with a full freehold title, giving you the same ownership rights as a Thai citizen.

However, there are a few critical requirements to condo ownership for foreigners: 

• Foreign Ownership Quota: Up to 49% of the total sellable area in any condominium building can be foreign-owned in freehold. For example, if the building has 100 units, only up to 49 can be directly owned by foreigners. This means, you need to confirm with the condo developer if the foreign ownership quota has not exceeded before buying. 
• Proof of Funds: Foreign buyers must remit the purchase money into Thailand from abroad in foreign currency. You must demonstrate this transfer (commonly via a Foreign Exchange Transaction Form) to be eligible for title registration.
• Registration: Ownership must be registered with the Thai Land Department before a Chanote (title deed) is issued in your name. 

B. Leasehold Ownership

For properties such as land, villas, or houses, a long-term leasehold is the most common and secure method for foreign control. This is not ownership, but it grants you exclusive rights to the property for a fixed period.

Key points to know about leaseholds:

• Lease Term: A lease can be registered for a maximum of 30 years. It is common to include clauses that allow for renewal, but these are not always automatically guaranteed and depend on the terms of your agreement.
• Lease Registration: To be legally enforceable, any lease agreement for a term longer than three years must be registered with the local Land Department.
• Rights of the Lessee: A properly registered lease gives you the right to use, build on, and even sell or transfer the remaining term of your lease to another party.

If you want to secure property other than condominium units in Thailand, leasehold is the preferred ownership structure. It is more convenient for foreigners who are relocating to Thailand temporarily since rental prices are usually quite competitive in the country. You have the right to build and use land as well as sell or transfer your leased property (only for the remaining term). 

C. Ownership Through Company (For BOI-Promoted Foreign Businesses)

It is possible for a foreign-owned company to own land, but this is a very specific and regulated path. Under Thai Land Code Act, only a majority Thai-owned company can own land without restrictions.

However, a 100% foreign-owned company can be granted the right to own land if it is promoted by the Thailand Board of Investment (BOI). This is not a general loophole for property ownership; it is a privilege granted to companies engaged in specific promoted business activities. The land must be used for the direct purposes of that promoted business, and if the BOI promotion is ever revoked, the land must be sold within one year.

To be eligible as a BOI-promoted company, you must meet certain requirements: 

1. Maintain a minimum paid-up capital of at least THB 50 million (~USD 1.5 million) for the period of property ownership. 
2. The land must be used for direct business operations, offices, or employee accommodation specifically tied to the promoted project.
3. If a BOI promotion is revoked or the company ceases the promoted activity, the company must dispose of the land within one year. Failure to do so authorizes the Land Department to dispose of the property.

If qualified, your company is entitled up to 5 rai (8,000 sqm) for office or operational use and up to 20 rai (32,000 sqm) for employees’ residences, subject to conditions regarding proximity and genuine need of your company. 

Keep in mind that land ownership is under your company and not your shareholders. Any attempt to circumvent property ownership rules by using Thai nominees is strictly illegal and subject to criminal penalties. Only “genuine” Thai businesses under Thai majority ownership and control qualify for unrestricted company landownership.

D. Usufruct, Superficies, and Habitation (Limited Rights)

Under Thai law, foreigners also have “limited real rights” that allow you to use, control or benefit from immovable property. Though it is not equivalent to ownership, you may find these may provide useful protection and access if you need long-term property interests. 

Here is an overview of usufruct, superficies, and habitation rights that may be applicable to your situation: 

1. Usufruct (Sidthikanchaingan)
   1. The right to use and enjoy another person’s immovable property and benefit from (“enjoy the fruits of”) it, similar to the civil law concept of a “life estate.”
   2. Open to both foreigners and Thais typically registered over land or a house owned by a local spouse or partner. 
   3. Not sellable or inheritable. Foreigners generally cannot sublease for terms exceeding three years without document review at the land office.
2. Superficies (Sidthiphiwdin)
   1. The right to own, use, or benefit from a building or structures situated on someone else’s land. It separates the ownership of the land and the building.
   2. Can be set for up to 30 years, for life, or for a specified time if registered with the Land Department.
   3. It grants the right to own (not just use) buildings, which can be disposed of, encumbered, or inherited (if registered for a period and not for life). 
   4. The Thai government recognizes Superficies as a distinct legal right that confers ownership rights over buildings or improvements on that land without transferring land ownership. Both rights may coexist: a land lease plus a right of superficies covering constructions on that leased land
3. Habitation (Sidthiyuasa)
   1. The right to reside rent free in a house owned by someone else.
   2. It can be granted for a specific period (up to 30 years) or for life but is not inheritable (ends upon death of the holder or expiration of a specified term). 
   3. Does not allow the right holder to rent out or profit from the property.
   4. Usually limited to residential structures (not land).

If you are considering buying or leasing property in Thailand to set up a business, Emerhub can help you find a leasehold or freehold property that meets your business requirements. Our team can also assist you in setting up your operations through our company registration service. Contact us via the form below to get in touch with a consultant!

Contact us via the form below to get in touch with our local expert in Thailand!