CAN FOREIGNERS OWN LAND IN THAILAND?
Foreigners are not allowed by Thai law to own land. There are a few exceptions if one invests millions of dollars in Thailand, and if a foreigner has become a Thai national, but these solutions are reserved to a minority of people and are not dealt with herein. However, there are a few routes for foreigners to acquire possession and to achieve control over landed property, including freehold ownership over a house built on a land, but not freehold ownership over that land. There are 4 types of contracts that should come into consideration for holding land: leasehold, company formation, usufruct, and mortgage or loan. Leasehold (1), usually for 30 years (2) and with optional extension; Formation of a Thai limited company (3) (with less than 50% of shares hold by foreigners), which is a legal entity separate from its shareholders and directors, and the company owns the assets, e.g. land; Usufruct (4), usually for lifetime (5). These types of contract can be used (alone or some of them
In one word – no, however there are other ways to legally secure land and build a house. Ask a competent attorney about this. Can I lease the land or house and is it registered? Yes you can secure a 30 year lease. Any lease over 3 years must be registered at the amphur and there is a fee payable of 1.5% for registration and stamp duty. Can I register a usufruct and how long is it valid for? Yes usufructs are common in Thailand and are usually valid for 30 years.See more on Usufructs in Thailand. What are the transfer costs of property in Thailand? It would be 2% transfer and 1% withholding tax with 0.5% stamp duty. There are also other considerations such a capital gains tax and business tax if the property was owned for less than 5 years. See the property transfer calculator and property transfer taxes What type of land types are there? There are two types. The one is possessory and the other is ownership. Consult a property attorney in Thailand as you could end up with costly litigat
Foreigners are not allowed to own land. Long-Term Leaseholds for Phuket Property Thailand property investors often use a pre-registered, 30 year lease to secure property. The longest a single lease can be registered in Thailand is 30 years, but you can pre-register 3 consecutive 30 year leases at once, which essentially provides a 90 year lease. Normally there is a provision written into the leasehold agreement that allows you to register another 30 year lease once the previous lease has expired. In effect, this provides a lease in perpetuity. Some developers pass the freehold to the individual lessees once the entire development is sold out. Lessees then own an equal share in the freeholds so that they, in effect, become their own landlords. Special Rules for Condominiums Thailand has a “Freehold Condominium” law that makes it easier for foreigners to own a condominium. Under this law, 49% of the condominium development may be sold outright to foreigners and Thai owners hold the remai
There are ways that foreigners can legally secure the right to use land and build a house. There are two preferred ways to “own” land in Thailand: • Buy the land in the name of a Thai person – usually a partner or a trusted friend – then lease it back for 30 years with an option to extend; • Set up a Thai company in which you can own up to 49% of the shares and buy and own land through the company For more information on which method is the better and safer option, please talk to your lawyer for this advice. Land Types and Titles There are many different types of land titles in Thailand, the majority of which do not allow for the legal right to build on that land.
The direct answer, unfortunately, is no, but there are ways foreigners can legally secure the right to use land and build or buy a house. There are two preferred ways for foreigners to own land in Thailand. Buy the land in the name of a Thai person, usually your mate or someone you think you can trust, then lease it back for 30 years with an option to extend. Some developers already offer house sales using their own 30 year lease options. Start a Thai company in which you can own up to 49% of the shares and buy and own land through the company.
