| Question: Can a foreigner own a freehold | | | | land may be commonly held by several individuals. |
| condominium in Thailand? | | | | A person whose name appears on a Chanote, or |
| Answer: Buying a Condominium in Thailand is | | | | Land Title Deed, has all the legal rights to that |
| perhaps the simplest and easiest option available | | | | land, can produce the deed as evidence of |
| to foreigners who want to own property. The | | | | ownership to Government officials, can prove the |
| only restriction on purchasing a Condominium in | | | | land has clearly defined boundaries, and can |
| Thailand is that the percentage of livable space | | | | engage in legal acts upon that land as allowed by |
| sold to foreigners cannot exceed 49% of the | | | | law. |
| total space available in the complex and that the | | | | Question: My wife is a Thai National, can she own |
| funds used to buy the condominium have been | | | | land? |
| remitted from abroad and recorded as such by a | | | | Answer: Yes, since 1999! Before 1998, any Thai |
| Thai Bank on a Foreign Exchange Transaction | | | | who married a foreigner would lose their right to |
| Form (Tor Tor 3). The owner of each | | | | purchase land in Thailand. They could, however, |
| Condominium unit is issued with a title deed | | | | still retain land owned prior to marrying the |
| (Chanote) clearly showing the foreigner as the | | | | foreigner. The Ministerial regulation from 1999 now |
| legal owner of the unit. | | | | allows Thai nationals married to foreigners the |
| Question: What are the requirements for a foreign | | | | right to purchase land. The Thai spouse must |
| individual or organization to purchase a | | | | prove that the money used for the purchase of |
| condominium in Thailand? | | | | freehold land is legally and solely theirs with no |
| Answer: In order for a foreigner to purchase a | | | | foreign claim to it. Normally this is done by the |
| condominium one of the following requirements | | | | foreign spouse signing a declaration stating that |
| must be met: | | | | the funds used for the purchase of property |
| 1: A foreigner has permanent residence in Thailand | | | | belonged to the Thai spouse prior to the marriage |
| in accordance with Thai Immigration Law. | | | | and are beyond his claim. |
| 2: A foreigner is allowed into or resides in Thailand | | | | |
| in accordance with Thai Investment Promotion | | | | Question: I am married to a Thai. We would like |
| Law. | | | | to build a house on land given to us by my wife's |
| 3: A foreign legal entity is in accordance with the | | | | mother. What is the best way to secure my |
| Announcement of the Foreign Business Act BE | | | | investment (I am paying to build the house) in |
| 2542 (AD 1999), and has been granted an | | | | case of breakup. |
| Investment Promotion Certificate in accordance | | | | Answer: Signing a long term lease with your wife |
| with the Investment Promotion law. | | | | and registering that lease at the Land Office is the |
| 4: A foreigner or foreign legal entity who brings | | | | most secure way of protecting your investment. |
| foreign currency into Thailand, or brings in Baht | | | | If you have a child they may own the |
| currency from the account of a person residing | | | | improvements in their name. We suggest you |
| abroad, or uses foreign currency from their | | | | contact a lawyer who can advise you in more |
| deposit account. This requirement is normally met | | | | detail. |
| by the presentation of a Tor Tor 3 form which is | | | | Question: Can foreigners own buildings even if |
| provided by the bank receiving an incoming | | | | they don't own the land? |
| remittance from abroad. | | | | Answer: YES. Although Thai law prohibits |
| Question: Are foreigners allowed to own land in | | | | foreigners from owning land in Thailand, foreigners |
| Thailand? | | | | have the right to own buildings. A common |
| Answer: Under strict application of the existing law | | | | structure is for the foreigner to enter into a |
| it is officially prohibited for foreigners (including | | | | long-term lease for the land from a Thai company |
| both individuals and companies), to own land in | | | | or individual, and to build the home which the |
| Thailand. However, there are exceptions to the | | | | foreigner owns. |
| prohibition found in the law itself. There are also | | | | Question: Can I buy property in Thailand while out |
| other methods of arranging for the purchase of | | | | of the country? |
| land in Thailand. | | | | Answer: Yes. A person wishing to buy property, |
| The Land Code has been amended to allow | | | | including a foreigner, may purchase a property |
| foreigners to own land if all of the following | | | | without being present at the time of registration |
| requirements are met: | | | | of ownership at the Land Department. This shall |
| 1. The land is for residential purposes. | | | | be done by appointing, by a power of attorney, a |
| 2. The land does not exceed one rai (1 rai is | | | | lawyer or some other person to act on your |
| approximately 0.4 acre). | | | | behalf. |
| 3. No less than 40 million baht is remitted into | | | | Leases & Rentals |
| Thailand for investment. | | | | Question: Can a foreigner enter into a long-term |
| 4. Foreigners abide by Ministerial Regulations | | | | lease for land? |
| governing the nature of the business that the | | | | Answer: Because of the barriers in place to the |
| foreigner will engage in, the period of time for | | | | purchase of land by foreigners, one of the most |
| maintenance of the investment, and the location | | | | effective ways to acquire land that a building |
| of the land owned. | | | | resides on is to "purchase" the land on a 30-year |
| 5. Permission is granted by the Board of | | | | leasehold with an option to extend the lease for |
| Investment (BOI). According to section 97 of the | | | | subsequent 30-year periods. Leases are limited to |
| Thai Land Law, the definition of a foreigner | | | | 30 years, except on land for industrial purposes or |
| includes a Thai registered company or partnership | | | | commercial leases, which may be established for |
| in which more than 49% of the capital is owned | | | | 50 years. Similarly, lease extensions are capped at |
| by foreigners or of which more than half the | | | | 30 and 50 years respectively. Possession of the |
| shareholders or partners are foreign citizens. This | | | | land leased for an already owned building is |
| does not happen often. | | | | protected by the fact that the building rests on |
| Question: Can a foreigner acquire land or property | | | | the land; ownership of the building is separate |
| in Thailand through a Limited Company? | | | | from the land and cannot be seized by the lessor |
| Answer: Yes, one method foreigners can employ | | | | once the lease expires. Leases exceeding three |
| to acquire land or property is by forming joint | | | | years are enforceable for only three years unless |
| venture companies with majority Thai ownership | | | | they are registered with the Land Department. |
| but with adequate safeguards to protect the | | | | Therefore, a 3-year or longer lease must be |
| foreigners' minority interest. If a foreigner plans to | | | | registered with the Land department. In addition, a |
| run a business in Thailand then he may purchase | | | | lease continues to be valid even in the event the |
| the land freehold through his Thai majority limited | | | | property on the land is sold. |
| company. The land will be owned by the Thai | | | | Question: Are condominium long-term leases |
| Company, not by the individual. It is important | | | | available? |
| that the non Thai minority shareholder should not | | | | Answer: Yes. Condominiums may be leased to |
| own more than 38%, as any foreign shareholding | | | | foreigners for periods of up to 30 years and may |
| structure greater than this is normally investigated | | | | have options to renew. This structure is becoming |
| by the Land department. | | | | more popular for foreigners who want to "own" a |
| Question: What are the different types of rights | | | | condominium in a building which exceeds the |
| to private land? | | | | foreign ownership quota. It is also a viable |
| Answer: Land can be controlled through the right | | | | structure for elderly or others who want to enjoy |
| of possession or through title deeds and other | | | | a property for several years but do not want to |
| documentation. Individuals who actually possess | | | | purchase a property. Leases of greater than 3 |
| and use land may have the right to possess such | | | | years are required to be registered with the Land |
| land under the Civil and Commercial Code. The | | | | Department. |
| primary form of evidence for ownership of land is | | | | Question: Can a foreigner legally rent out property |
| a title deed (Chanote or Nor Sor 4). These title | | | | in Thailand? |
| deeds must be registered at the Land | | | | Answer: Yes. A foreign-owned property may be |
| Department in the province in which the land is | | | | leased out to another third party. Rental revenue |
| located. It should also be noted that a parcel of | | | | is subject to a 12.5% tax on the annual income. |