Purchasing property in Thailand is an exciting opportunity, but it comes with unique rules and restrictions that every foreign buyer should understand. Sawasdee Realty helps you navigate the process with clarity and confidence.
1. Can Foreigners Own Property in Thailand?
- Condominiums: Foreigners are allowed to own condominium units freehold (full ownership) as long as the total foreign ownership in the building does not exceed 49% of the total floor area.
- Land: Foreigners generally cannot own land outright in Thailand. Land ownership is reserved for Thai nationals.
- Houses & Villas: A foreigner may legally own the building itself (the structure), but the land beneath it must be leased or held under another legal structure.
2. Legal Alternatives for Foreign Buyers
If you want to own more than just a condo, there are several legal pathways:
- Long-Term Leasehold: Foreigners can lease land from a Thai owner for up to 30 years, with options to renew. This is one of the most common and straightforward solutions.
- Thai Company Ownership: Some foreigners establish a Thai Limited Company in which they hold minority shares, while Thai partners hold the majority. This company can then purchase land. (Note: must be done properly to avoid being seen as a “nominee structure.”)
- Investment Routes: In rare cases, foreigners who invest significant capital into Thailand’s economy may obtain special rights to own land, subject to government approval.
3. Key Legal Considerations
- Due Diligence: Always conduct a title deed check at the Land Department to confirm ownership and verify there are no mortgages, liens, or disputes.
- Contracts: Ensure all agreements are translated into English (or your native language) and reviewed by a qualified lawyer.
- Taxes & Fees: Buyers must budget for transfer fees, stamp duty, and withholding taxes. Typically, these costs range from 2–6% of the property value, depending on the deal structure.
- Inheritance: Foreign heirs can inherit a condo, but land restrictions remain in place.
4. Financing Options
- Foreign Financing: Thai banks rarely grant mortgages to non-residents, but some international banks in Singapore or Hong Kong provide financing for Thai property purchases.
- Cash Purchases: Most foreign property transactions in Thailand are cash-based. Funds must be transferred into Thailand in foreign currency and converted into Thai Baht for the purchase.
- FET Form (Foreign Exchange Transaction Form): For condo purchases, the bank must issue an FET form to confirm the funds came from abroad—this is legally required for registering ownership.
5. Working With Professionals
Navigating Thai real estate law is complex. Always work with:
- A licensed Thai lawyer specializing in property law.
- A trusted real estate agency familiar with foreign transactions (like Sawasdee Realty).
- Reputable accountants or tax advisors if structuring through a company.
6. Why Choose Sawasdee Realty
At Sawasdee Realty, we:
- Guide you through legal pathways for safe ownership.
- Connect you with vetted lawyers and notaries.
- Assist with due diligence, title searches, and FET forms.
- Represent your interests in negotiations with sellers and developers.
Buying property in Thailand as a foreigner is not only possible but rewarding—if you do it the right way.
7. Contact Us
Ready to explore property opportunities in Thailand?
Contact Sawasdee Realty today for personalized advice and property recommendations.
Sawasdee Realty
Email: [email protected]
Phone/WhatsApp: 66 90 523 0926