Foreigner Buying Property in Thailand?

If you’re a foreigner or a “farang” and are considering buying a house in Thailand you should first be aware that under Thai law you are not allowed to buy land. There are however some loopholes that do allow foreigners to own parts of buildings, or entire buildings.

If you are a foreigner, you are only allowed to buy buildings that are distinctive from land, such as Thai condos or apartment buildings, but only 49% of the shares can be under your name. The other 51% must belong to a Thai.

How to Purchase a Condo as a Foreigner/Farang

Get a letter of Guarantee:
If you wish to purchase a condo in Thailand you must request a letter of guarantee from the condo’s juristic person who is responsible for determining the percentage of foreign ownership. When ownership is transferred, this letter must be submitted to the Land Department.

Have the Cash and Complete Your Foreign Exchange Transaction Form:
To buy a condo in Thailand, you will need to have 100% of the funds from overseas in foreign currency. You will also need to obtain and complete a Foreign Exchange Transaction Form (FETF) from a bank of Thailand. Keep in mind that you can only obtain a FETF for amounts over USD 20,000. Be open and honest in your letter and make sure that you include all the information about the name of the condo and the unit number to avoid any possible complications.

Long-Term Leaseholds

The typical length of time that land can be leased is for a time span of up to 30 years, which the lease holder can renew two more times, providing a total of 90 years on the land lease. But remember, that the property that is built on the land must be considered completely separate from the land.

Limited Liability Company

If you are set on buying land in Thailand, one possible loophole for foreigners is to start and own a Thai company in which you manage and are in control. As foreigners can own only 49% of the shares in a Thai company, to obtain control over the entire land plot you must have your lawyer arrange the rest of the shares to be held by a Thai juristic person who would then sign over control of their shares to you. This means that you control the ownership of the land but the land is still technically owned by the company. Please note though that the use of nominee Thai shareholders is prohibited under the Foreign Business Act (1999) and the Thai government does indeed investigate the source of money used to start foreign companies in Thailand.

Thai’s Married to Foreigners Buying Property

One interesting thing to note about land ownership is that the rules have become less strict over the past two decades. Before 1998, a Thai woman would lose the rights purchasing land in Thailand if she married a foreigner. The only way she could own land was if she had already purchased it prior to her marriage. Today, the government allows Thai women to purchase land even if they have already married a foreigner, however it is her responsibility to prove that the money she used to buy the property was her own and has no foreign claim to it. To have a Thai spouse purchase land for you, you will need to transfer funds to the Thai and sign a declaration saying that the money used to purchase the property belonged to the Thai before the marriage existed.

Get Yourself a Good Lawyer

Clearly, buying land, or even property in Thailand is a complicated matter for foreigners. It’s not advisable to break any rules or laws while making real estate transactions as that can get you deported from the country indefinitely, which surely is an unwanted outcome for someone looking to live there. Look into the best lawyers for Thailand property laws before you even begin the process as it can save you a lot of time and headache.

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