Ownership Options for Foreigners in Thailand

Ownership Options for Foreigners in Thailand

Foreigners are not allowed to own land in Thailand under Thai law, meaning a foreigner’s name cannot appear on the title deed for a house or land plot. However, foreigners can own a condominium in their own name through freehold ownership.

Foreign Ownership of a Condominium in Thailand

Foreigners can legally own condominium units in Thailand with freehold foreign ownership, provided that no more than 49% of the building's sellable space is owned by foreigners. To qualify for this, the foreigner must transfer the purchase funds into Thailand in a foreign currency. The receiving bank will issue a document required for registration at the land department.

When purchasing a house or land, foreigners typically have three legal options:

1. Purchasing through a Thai Limited Company
2. 30-Year Leasehold Agreement
3. Registering the Property in a Thai Spouse or Family Member’s Name

1. Purchasing Through a Thai Limited Company

One common method for foreign property ownership in Thailand is purchasing through a Thai limited company. In this case, the foreigner can hold 49% directorship shares, giving them full control over the property. Thai law requires that at least 51% of the company’s shares be held by a minimum of 1 Thai national. The exact structure may vary, so seeking legal advice is essential.

This ownership method allows foreign shareholders to include their shares in a "last will and testament," ensuring their heirs inherit them.

2. 30-Year Leasehold Agreement

Foreigners may opt for a 30-year lease, the maximum lease period allowed by Thai law. While it is possible to extend the lease for an additional 30 years, there are complexities involved, such as registration costs and stamp duty. Furthermore, selling the property or subleasing during the lease period requires the lessor's consent, and only the remaining years of the lease can be sold.

A major drawback is that a lease agreement cannot be included in a "last will and testament." If the lessee passes away, the lease ends, and the lessor regains full ownership.

3. Registering in a Thai Spouse or Family Member’s Name

Foreigners with a Thai spouse or family member can transfer ownership to them. In such cases, the Thai national has full ownership rights. If the property is purchased by a Thai spouse, they must prove that the funds used were solely theirs, either through bank statements or a declaration from the foreign spouse, relinquishing any future claim to the property.

Any further questions can be answered by one of our experienced agents here at Cornerstone Real Estate. You can get in touch via email info@cornerstone.co.th or call us on +66 38 411 250