Foreigners Can Acquire Property in Thailand
Have you ever found yourself – after visiting the alluring country of Thailand – wishing you could go back for another unforgettable holiday? We feel you.
If you’ve spent holidays strolling the busy streets of Bangkok and soaking up the sun on beautiful sandy beaches on one of the many islands, you may have considered buying a holiday home in Thailand, while wondering, “But can I buy property in Thailand?”.
The answer is yes. As a foreigner, you can buy property in Thailand.
There Are Several Options for Foreigners to Buy Property in Thailand
Although by law, foreigners aren’t allowed to own land, there are a few simple investment options you can choose from if you’re interested in purchasing a property.
1. 30-Year Leasehold
One of the most common ways for foreigners to own properties is by obtaining a long-term lease, which can be renewed an additional two times.
This is basically an agreement between a Thai landowner who is willing to lease his/her land and a foreigner who is interested in the property. The leasehold agreement can be written with the option to reassign to another individual or entity if the lessee wishes to sell in the future, the ability to sublease, and with the option to purchase should the laws change and allow foreigners to secure title ownership.
Thai Lease Agreements Can Be Made and Renewed for up to 90 Years
Once the document is signed, foreigners can then apply for a construction permit to build their dream home in their own name.
2. Set Up a Thai Limited Company
Another way for foreigners to own a property in Thailand involves setting up a Thai Limited company, through which they can freely purchase properties. However, it’s important to note that foreigners cannot own half or more of the company’s shares. Therefore, at least 51% of the company has to be owned by Thai nationals.
The Thai shareholders can then hand over complete power of attorney to their foreign partner, providing the latter with a great level of security and ownership of the property.
3. Buy an Apartment or Condo
Apartments and Condos Can Be Owned by Foreigners in Thailand
Due to the legal restrictions mentioned above, most foreigners choose to simply buy condos and apartments in Thailand, which can be owned on a foreign freehold basis. A foreigner can purchase an apartment in his/her name as long as at least 51% of the building is owned by Thai citizens. Thus, condo developments tend to have a 49% quota for foreigners.
Whichever of the above options you go for, it’s always a good idea to seek legal advice to fully understand the local laws regarding Thai property acquisition before making a decision. Once you know the ins and outs, you’ll realize how simple it is.