What you need to know before buying a property.

However, buying real estate in this country is subject to strict rules, especially for foreign citizens. The following points summarize the main options for foreigners to acquire real estate in Thailand.

1. Buying a condo
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, which is called the Foreign Quota. The remaining 51% must be owned by Thai citizens. If the foreign quota is exhausted, foreigners can only acquire residential units in the building on a long-term lease basis, which is a popular alternative to outright ownership.

2. Buying a house
Foreign citizens cannot directly own land in Thailand, which is a key difference compared to buying a condo. Therefore, buying a house outright is only possible if the land is leased for a long term. A typical lease is for 30 years with the option to extend for a total lease term of up to 90 years. This form of indirect ownership allows foreigners to live in the house, but full ownership of the land remains with the Thai citizen.

3. Buying property 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 set up a Thai company to acquire the property. In order for the company to be considered a "Thai entity", at least 51% of the shares must be owned by Thai citizens. This option offers a higher degree of indirect ownership and control, as long as the laws are followed, i.e., provided that there are beneficial shareholders and/or Thai partners.

However, it is important to emphasize that this method is in the "gray area" of the Thai legal system and is not recommended by the Thai government or the land authorities. Authorities often intervene when they suspect the misuse of "nominee Thai shareholders," who in practice serve only as shell investors. (Thai authorities can check to see if

Thai shareholders are merely nominal (so-called nominee shareholders). If found, assets can be seized and the company fined or dissolved.)