A look at the ownership rights for foreigners owning land in Thailand
Many foreigners don’t understand the laws surrounding the ownership of Thai land
Many people wanting to invest in Thai land for sale as a foreigner can quickly get confused by all of the laws governing the sector. Before you invest any money, it is imperative that you understand the local laws and what the legality of owning land or property is as a foreign national. It is easier than ever to buying land in Thailand as a foreign national.
It is true that there are a number of restrictions in place that we will go through in this article, however realistically, it is just as easy to purchase land in Thailand as it is elsewhere in the world as a non-native. According to figures released by the Board of Investment, Thailand is attracting international investors to its real estate market in record numbers and areas such as Chiang Mai, Bangkok, Pattaya and Hua Hin are thriving.
Long Term Leasehold Agreement
The most favourable option is to take out a long term lease, which can be renewed. Long term leaseholds are very secure and are the most popular option for foreigners wanting to find Thai land for sale. A typical leasehold will last for 30 years, and further leaseholds can then be agreed after this usually in periods of 30 years.
Registering a Company in Thailand
Registering a company in Thailand is another way to purchase Thai land for sale, however it is not as popular as it used to be and the long term leasehold is far more desirable. A foreigner is allowed to set up a Thai company to purchase land or property through, and this is a relatively simple process but even though it is still legal, the Thai Government are encouraging foreigners to stop this process.
Land for Sale Thailand – Exceptions
There are some other options that are far less common as foreign individuals are actually legally permitted to own up to one rai of land for residential purposes. However, this will require the foreigner to acquire approval from the Minister of Interior as well as a 40 million baht investment into the Thai economy – which is in normal cases not a viable option. Foreign companies are not able to own Thai land, unless they have a special privilege due to a substantial investment in Thailand. Land can be inherited by a foreigner from a Thai spouse, however this also has many restrictions making it a less than ideal circumstance.
NOTE: Land inherited by a foreigner also has to be disposed of within 12 months of the acquisition.
Investing in Thai land for sale is a relatively easy process when you take out a long term leasehold agreement, but it is important that you seek professional help from a reliable source to help you with the legalities and to guide you in the best direction for your circumstance.