Can Foreigners Buy Property in Thailand?

Thailand is famous for its beautiful beaches, stunning mountains, and vibrant cities. It’s also a top spot for foreigners seeking to buy property.

Can Foreigners Buy Property in Thailand?

by HSHrealty


Thailand has long been known as a popular tourist destination, because of its beautiful beaches, beautiful mountains, and lively cities. At the same time, the country has become a popular destination among foreign nationals looking to purchase property.

Navigating property ownership as a foreigner in Thailand can be complex, but it's definitely possible! Here's a breakdown of the main points:

 

1. Freehold
Foreigners are allowed to own condominiums in Thailand, provided that:

  • The condominium development does not exceed the foreign ownership quota of 49% of the total area of all units in the building.
  • Non-resident foreigners who purchase a condominium in Thailand must present a Source of Funds Declaration to the District Land Office when registering ownership. All funds must be remitted into Thailand as foreign currency, which the receiving bank will exchange the amount into Thai Baht and issue a Foreign Exchange Transaction Form (FET) for amounts greater than USD 50,000 and a Credit Note for lesser amounts. This system is necessary to allow the government to monitor funds flowing into the country.

We always recommend that potential investors aim for a freehold condominium as this is the best tenure for foreigners wishing to own property here. The Condominium Act B.E. 2522 (1979) stipulates that foreigners may have absolute ownership of the freehold condominium, as well as co-ownership of the common property.
 

2. Leasehold
Leasing is an alternative option for foreigners, which involves registering the leasehold rights of a property with the District Land Office. This includes the lease of condominiums and freehold land. Through this process, foreigners can effectively use land with a leasehold tenure and are permitted to own buildings and structures erected on that land. The law requires that the lease term is fixed at a minimum of three years and does not exceed 30 years. Nonetheless, the lease is renewable for a maximum of a further 30 years after it expires. You will also be happy to know that even if the title deed's owner sells the property, the leasehold still stands.
There are no regulations prohibiting foreigners from leasing property. Therefore, leasehold is the most popular type of legal structure for foreigners who wish to own other types of real estate, such as a plot of land with a house or a villa.

 

3. Company Ownership
Purchasing land or houses in Thailand can also be done by way of a company registered in the Kingdom. Setting up a Thai company to purchase land is another method, but it comes with risks. The foreigner can hold up to 49% of the shares, while Thai nationals must hold the remaining 51%, and the company can own the land. Note that this must be done with proper legal and financial advice to ensure compliance with Thai laws.

For more detailed guidance and assistance in purchasing property in Thailand, Feel free to reach out to Home Sweet Home Realty for expert advice and personalized assistance in finding your dream property in Thailand.

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