As the number of tourists that visit Thailand is growing substantially each year, more and more people are starting to want to invest in property in Thailand.
This often can be very difficult as Thai law prohibits foreigners from owning land in Thailand.
This is because land ownership in Thailand is governed by the Land Code Act and under Thai land laws only Thai nationals are allowed to own land or have a confirmed right of possession of the land.
With that being said although it is more difficult to buy property in Thailand, there are ways in which you can be able to own property in Thailand.
In this blog, I will tell you about some of the main ways in which you can own property as a foreigner in Thailand.
A freehold condominium is where you own the plot of land and any structure on that land such as a house or townhouse.
This means that you are responsible for the care and upkeep of the entire house, including the exterior walls and roof, as well as the lawn, garden, driveway and garage.
You might be wondering how this can be done in Thailand with the laws they have, this works as Under Thai law, up to 49% of the area of any condominium can be owned by a foreigner.
Providing that the 51% Thai ownership of a condominium is maintained, a condominium can be fully and legally titled in the name of a foreigner which means permanent ownership of the condominium.
Buying Through A Company
An option you may want to consider when looking to purchase property in Thailand is to set up your own Thai Company to own the land on your behalf.
This works as there is no Thai law that prohibits a Thai company from purchasing a condominium in Thailand even if the company has foreign ownership.
In order for this to be done correctly, the company must be run as a legitimate business. This means that the company must generate revenue and have proper Thai shareholders within it.
Moreover, the shareholders of the company must be legitimate investors. A foreigner may not own more than 49% of the shares of the company.
A leasehold means that you have a lease from the freeholder (sometimes called the landlord) to use the home for a number of years. The leases are usually long term that ranges from 40-99 years.
However, as a foreigner in Thailand, you are restricted to a lease that cannot be longer than 30 years. The foreigner is given exclusive access to the property for the full duration of the lease.
This means that the lease can use the property to reside in or as a rental property for the duration of the lease.
Each lease must be registered at a local Land Office. Another thing to be aware of is that some respected developers can ensure that at the end of a 30-year lease, that another 30-year lease starts after it.
Own The Building But Lease The Land
You could also consider owning the actual building but you could lease the land from a freeholder.
You are able to take out a 30-year lease on the land, build a house on that land so you can live in it or rent it for this period.
Using a respected and experienced lawyer can help ensure that the lease is automatically renewed at the end of the first 30 years.
As a whole, there are many ways in which you are able to get property in Thailand as a foreigner but I have only listed the ways in which you are most protected from being ripped off.
You must also be vigilant to ensure that you stick to the Thai laws as you could be liable to face 2 years in a Thai prison which most definitely isn’t pleasant at all.