For Thailand Property in general foreigners are allowed to own houses and buildings in Thailand, but the purchase of Land is limited to natural or juristic persons of Thai nationality.
Depending on the kind of Property and the personal situation of the buyer, there are several solutions to handle this obstacle. In the following are the two most common cases:
Purchase of a Condominium
The Thai government already did a so called “condominium act” to offer an easy way for foreigners to own properties in Thailand directly as a freehold. The condominium act is based on the situation that a condo unit will be sold without a specific ownership on the land plot. Other requirements are:
1. The condominium building has to have a condominium license.
2. Only 49% of the total sqm of the building can be sold as a foreign quota to foreign buyers.
3. The foreign buyer has to show that his funds are brought into the country with the purpose to buy the condo.
If the offered condo unit is within the foreign quota and all the necessary documents are ready, the purchasing process is straight forward and can be done in one day at the responsible land office.
Purchase of a House
For Foreigners who are not in a relation with a person of Thai nationality, there are mainly the options to:
a. Buy a house and lease the land on a long term base (3x 30 years)
b. Register a Thai company, which can own the land and lease it from the company
a. To buy the house and lease the land is the best solution for foreigners who just like to buy a property for their own use. If the lease is properly registered in the land title, the lease is as save as a purchase.
b. If a Foreigner would like to purchase several properties or would like to run an active business in Thailand, he should register a Thai Company which is usually a Ltd. As a juristic person, a Thai company is able to own properties in Thailand. A Thai company has to have a min of 51% Thai shareholders, which is not a safety issue, because the foreigner is able to run the company as the only director with the exclusive rights for any relevant activities in the company. If properly set up, a Thai company is a save and legal way to handle, maintain and own properties.
Even if the process to secure a Thailand Property as a foreigner is not very complicated in theory, it is strongly advised to use the assistance of a qualified Real Estate Broker or Lawyer to avoid any future problems.
Siam Property, copyright 2012