Thailand is a country that provides excellent investment opportunities not only for the locals but also for foreigners. Still, foreigners wanting to
Buy Land in Thailand cannot fully enjoy the privilege of buying land since there are certain restrictions imposed on them. Getting to know the law is the best way to avoid making expensive mistakes and at the same time ensure that your property investment is legal.
Foreign Ownership Restrictions
The law of Thailand prohibits foreign nationals from owning lands directly in the country. Thus, through the use of several legal tools, foreigners can still have a say in and make profits from the Thai property investments while observing the ownership regulations.
Legal Pathways to Property Investment
Leasehold Agreements
The most direct way for a foreigner to possess a property in Thailand is through a long-term leasehold agreement (in max 30 years, renewable). Even though the foreigner does not own the land, a long lease can still give him/her the necessary control for both residential and commercial development purposes.
Company Formation
One possibility is to create a Thai corporation with majority local ownership to facilitate the purchase of the property. Nonetheless, this comes with strict business operations as well as legal arrangements to be made in order to be in line with the law.
Buying Property vs Land
Condominium Ownership
An option for foreigners wishing to invest in Thailand is to buy real estate in the form of condominiums, which is considered under the foreign quota (49% of units). This way, foreigners directly own the properties without being limited to lands, thereby making condos the easiest investment option for foreigners.
Due Diligence Requirements
Verification
Always do an in-depth title verification for the land at the Land Department. Different titles types (Chanote, Nor Sor 3, etc.) have different security levels with respect to ownership. It is always good to have competent legal representation for the title searches.
Invest Wisely with Expert Support
Are you willing to take the risks of loss in real estate investments by doing it alone? Then, the Thai property investment opportunities are waiting for you and are near you. Please feel free to consult our skilled property consultants for legal assistance to Buy Property in Thailand.
