by siamisreal Thailand is a highly desirable destination for foreign investors and expatriates looking to buy property. However, Thai property laws impose significant restrictions on foreigners owning land and houses. Despite these limitations, there are several legal avenues through which non-Thai nationals can acquire property in Thailand. This article explores the various methods available to foreigners seeking to own a private house or land in Thailand.
Legal Restrictions on Foreign Property Ownership in Thailand
Thai law prohibits foreigners from directly owning land. The Land Code Act of Thailand states that only Thai nationals and Thai-registered companies (with majority Thai ownership) can own freehold land. However, foreigners can legally own buildings and structures, including houses, but not the land beneath them. This means that while a foreigner may purchase and own a house, they need a legal framework to control or lease the land on which it stands.
Ways for Foreigners to Acquire a Private House in Thailand
- Long-Term Land Lease
One of the most common and legally secure ways for a foreigner to acquire a private house in Thailand is through a long-term lease. Under Thai law, land can be leased for up to 30 years, with the possibility of renewal for additional 30-year terms. Some key points to consider:
A land lease must be registered with the Land Department if it exceeds three years.
The leaseholder has the legal right to build and own a house on the leased land.
Lease agreements can sometimes include clauses for renewal, though future extensions depend on Thai legal enforcement at the time.
- Owning a House Without Owning the Land
A foreigner can buy a house in Thailand without purchasing the land by leasing a plot and registering ownership of the house separately. This method allows the foreigner to legally own the house structure while leasing the land it sits on.
- Purchasing Land Through a Thai Limited Company
Some foreigners set up a Thai limited company to purchase land legally. Thai law requires that:
A Thai company must have at least 51% Thai ownership, meaning Thai nationals must hold the majority of shares.
The foreigner can own up to 49% of the company.
The company must be a genuine business entity, operating legally and following Thai corporate regulations.
While this method has been used by many foreign investors, it is under increased scrutiny by Thai authorities to prevent illegal nominee structures. Any company formed for the sole purpose of holding land may be challenged.
- Thai Spouse Ownership (for Foreigners Married to Thai Citizens)
Foreigners married to Thai nationals can have property registered in their spouse’s name. However, the non-Thai spouse must sign a legal declaration stating that they have no rights over the land. This means that in case of a divorce, the foreigner may have no legal claim over the property.
- Investing Under the Thailand Elite Visa Program
The Thailand Elite Visa offers long-term residency for wealthy foreign investors. While this program does not grant direct land ownership, it provides extended stay privileges and exclusive access to real estate opportunities, making it easier to manage property investments.
- Board of Investment (BOI) Approval for Land Ownership
Under Section 96 of the Land Code Act, foreigners who invest at least 40 million THB (approximately $1.1 million USD) in Thailand can apply for permission to purchase up to 1 rai (1,600 square meters) of land for residential purposes. However, this investment must contribute to Thailand’s economy in approved sectors, such as government bonds, real estate projects, or business investments.
Buying Condominiums as an Alternative
While purchasing a private house involves legal complexities, foreigners can directly own condominiums under the Condominium Act. Foreigners can own up to 49% of the total unit space in a condominium project on a freehold basis, making it a more straightforward property investment option in Thailand.
Conclusion
Although Thai law prohibits foreigners from directly owning land, there are several legal methods for acquiring a private house in Thailand. The most common options include long-term land leases, forming a Thai company, purchasing property through a Thai spouse, or investing under special programs like the BOI scheme. While these methods provide ways to acquire property legally, it’s crucial to seek professional legal advice before making any real estate investment in Thailand.
