Ä¢¹½ÊÓƵ

Buying Land

If you’re a foreigner looking to purchase land in Thailand, there are some restrictions you need to be aware of. Whether you want to use the land as a retirement home or for your business in Thailand, it’s important to follow these rules to avoid legal complications. With the right legal knowledge and support, there are certain circumstances in which you can purchase land in Thailand while staying compliant with the law.

This page will examine the restrictions pertaining to foreign land ownership in Thailand and outline what options you have for purchasing land in Thailand legally as a foreign citizen.

Foreign Land Ownership Restrictions in Thailand

If you’re not a Thai national, the law prohibits you from buying land outright in Thailand and owning it in your name. This means you cannot hold freehold ownership, which prevents you from selling, renting, or developing the property.

These rules also apply if you’ve inherited the land, and you’ll have a year to dispose of or sell it to a Thai national. Failure to comply will result in the property being auctioned by the Thai Land Department.

However, there are ways to gain ownership rights over Thai land as a foreigner, if not freehold ownership.

How to Buy Land in Thailand as a Foreigner

Thai law makes some exceptions for non-Thai citizens seeking ownership rights over Thai land, provided you’ve met certain requirements. If you want to buy and own land as a foreign national, you have several legal options available for becoming a joint or de facto owner:

Option 1: Setting Up a Thai Company

A Thai Limited Company may purchase land for business purposes. It is important to note that in a Thai Limited Company, company shares must be majority-owned by Thai nationals (51% or more). No more than 49% of the shares can be owned by foreigners.

You also must ensure that you aren’t registering a Thai business solely to bypass foreign land ownership restrictions and that you aren’t using any Thai nominee shareholders. These actions are illegal and can result in fines, imprisonment, deportation, or confiscation of the land.

If the company does not conduct genuine business activities on the land your company buys, the authorities may deduce that you’re trying to circumvent land ownership law, which may result in the shutdown of your company and the penalties mentioned above.

Option 2: Applying for BOI Promotion

If you want to own land but also want to own the majority of your company’s shares, you can apply for Thailand Board of Investment (BOI Thailand) promotion. This incentive program allows companies in certain high-demand industries to permit majority foreign ownership in qualifying industries and authorizes promoted companies to purchase land for both business and residential purposes.

This option provides greater flexibility, but getting a BOI promotion for your business involves a long application process and meeting stringent eligibility requirements.

Option 3: Marrying a Thai Citizen

You can buy land in Thailand if you’re legally married to a Thai citizen spouse. However, this option also comes with several restrictions:

• The land will be owned in your Thai spouse’s name.
• You won’t have sole ownership rights over the land, and you cannot inherit the land or receive it as part of a divorce settlement, regardless of who paid for it. 
• Even if you used your own finances to buy the property, you and your partner must declare that the land was purchased using the Thai spouse’s funds.

As a result, genuine joint ownership is not legally recognized, and it will be considered personal property of the Thai spouse. Because they have full control of the land, your Thai spouse can sell, rent, mortgage, or transfer the land, even without your consent.

If you want to secure an interest in the land, you can opt for an usufruct or a right of superficies, which grants you usage rights or ownership of structures you build on the land. You may also wish to enter into a lease agreement with your spouse if you intend to finance and build a structure on the land, as this agreement will persist even in the event of a divorce.

Long-Term Leases in Thailand: The Easier Option

As a non-Thai citizen, you’re not permitted under Thai law to purchase and own land in your name. However, the law does allow you to lease Thai land for extended periods, giving you controlling rights for the foreseeable future, if not ownership rights. Land leases in Thailand are usually valid for up to 30 years.

This is often the most practical option for acquiring and controlling Thai land compared to purchasing land, as leases are both legally recognized and straightforward to register. Throughout the lease term, you can obtain full interest in it and transfer or even sell it in the same manner as a freehold title. However, renewals are not guaranteed and must be negotiated with the lessor and are at the discretion of the Thai Land Office.

Tips for Buying Land in Thailand

If you’ve met the requirements for purchasing land as a foreigner, whether through a business or marriage, here are some tips on how to secure your property without issues:

Working With a Real Estate Agent

If you want to streamline the task of finding the right type of land for you, consider working with a real estate agent to simplify the process. A qualified agent can help you locate land that matches your preferences and current budget. They also protect your interests by acting as a liaison between you and the landowner to negotiate prices more easily.

Hiring a Property Lawyer

While real estate agents specialize in finding the land and someone willing to sell it, a property lawyer is essential in protecting you from scams and legal issues. By retaining the services of a Thai property lawyer, you can safeguard against fraudulent practices and prevent mistakes and misinterpretations from landing you in legal trouble.

Performing a Title Search

With a real estate lawyer by your side, you can verify the title deed of the landowner. Because title searches require examination of official records, they are typically carried out by legal experts. A title search confirms that the seller is the legal owner of the land and is not restricted from putting it up for sale. These actions can also reveal hidden encumbrances on the land, such as mortgages and liens.

If you don’t perform a title search before buying, you could end up paying money to a scammer who never had the right to sell you the land in the first place. The Land Office will not honor this deal, leaving you with neither money nor land.

Conducting Due Diligence

A Thai property attorney will further safeguard your interests by conducting due diligence. This process will determine if the land is free of legal issues by confirming access rights, zoning limitations, and other restrictions. Due diligence ensures that the property matches the seller’s representations, including dimensions, location, access, and usage rights.

Reviewing the Contract

Before purchasing or leasing land, the land owner will draft the contract for you to sign, also known as a Sales and Purchase Agreement (SPA). This SPA does not need to be inspected by Thai authorities to be valid, so theoretically, the seller may insert unfavorable clauses.

There are many known cases in which land sellers tricked foreigners into signing unfair yet technically legal contracts. A property lawyer will review the contract to confirm whether the clauses are fair and legal, and inform you of any penalties or obligations.

Registering Land Ownership

The final step to go through when buying land is to register the title deed at the Thai Land Department, so it’s in your (and your company’s/spouse’s) name. A property lawyer can assist with this by handling the registration process on your behalf and submitting all required items on your behalf.

Putting Land into a Thai Will

If you have freehold ownership rights over a parcel of land (or in certain circumstances, leasehold rights), you can include it in a Thai will to be inherited by your next of kin. Without a valid will, the property will pass to statutory heirs under Thai succession law. It’s important to retain the services of a Thai lawyer to draft a will to ensure the document is legally binding.

While your next of kin cannot inherit the land in their name if they are a non-Thai citizen, they will be entitled to the sale proceeds when the land is sold by the Thai government. Leasehold rights, however, can be inherited by foreign nationals.

Professional Assistance in Purchasing Thai Land

Even if you satisfy the conditions, buying land as a foreigner is risky, complicated, and can make you vulnerable to legal issues if you are unfamiliar with Thai property law. For the easiest and safest way of purchasing land in Thailand, reach out to Siam Ä¢¹½ÊÓƵ for professional guidance.

As a full-service law firm with over 20 years in operation, our property lawyers have the expertise and knowledge to help you find the land you need and meet the requirements for buying. Our lawyers conduct title searches, due diligence, and contract reviews to protect you from fraud and legal disputes, to ensure the terms are fair, and to make sure there are no red flags. If buying land isn’t possible, we will also offer guidance on alternatives, such as entering into a long-term land lease.

Contact Siam Ä¢¹½ÊÓƵ and book a consultation with our property team today to acquire Thai land with legal certainty and reduced risk.

Buying Land in Thailand FAQ

Can You Build a House on Thai Land?

Yes, you can build a house, villa, or another type of building on land that you’ve leased or purchased. To do this, you’ll first need to obtain a valid construction permit from the local authorities.

Can a House Built on Thai Land be Owned in Your Name?

Yes. If you construct a house on Thai land, even one you’ve leased, you’ll gain ownership rights over the property. Leasing land and constructing a house on it is a common way for foreigners to easily own a house or villa. You will need to register the ownership of the property at the Thai Land Office.

The structure will remain an asset owned wholly by you, and you can sell or bequeath it as you see fit.

How is Land Measured in Thailand?

Thailand measures land using traditional units rather than the metric system. Unlike other countries, which typically measure in square meters or feet, Thailand uses a unit of measurement called the rai. Use our online conversion calculator to convert rai into square meters.