What You Need to Know Before Buying Property.
Key Information for Foreign Investors
However, purchasing real estate in this country is governed by strict regulations, especially for foreign nationals. The following points summarize the main options available for foreigners to acquire property in Thailand.
1. Condominium Purchase
According to the Condominium Act B.E. 2522 (1979), only 49% of the registered area of a condominium building can be sold to foreign owners, known as the Foreign Quota. The remaining 51% must be owned by Thai nationals. If the foreign quota is fully utilized, foreigners can acquire condominium units in the building only through a long-term lease, which is a popular alternative to direct ownership.
2. House Purchases
Foreign nationals cannot directly own land in Thailand, a key difference compared to condominium purchases. Direct house purchase is therefore only possible if the land is leased for a long-term period. A typical lease of land is set for 30 years with options to extend, allowing for a total lease term of up to 90 years. This form of indirect ownership enables foreigners to reside in the house, but full ownership rights to the land remain with a Thai national.
3. Property Purchase Through a Thai Company
Some buyers may prefer a holding structure that provides more rights and control over the property compared to a leasehold title. In this case, foreigners can establish a Thai company to acquire the property. For the company to be considered a "Thai entity," at least 51% of shares must be owned by Thai nationals. This option offers a higher degree of indirect ownership and control, provided the laws are followed and the Thai shareholders and/or partners are genuine stakeholders.
However, it is important to note that this method falls within a "gray area" of the Thai legal system and is not recommended by the Thai government or land offices. Authorities frequently investigate cases suspected of improper use of "nominee Thai shareholders," who, in practice, act only as nominal investors.