The property market in Thailand is just booming as never before. After we have spent 6 years in property for sale in Thailand and we have collected a list of frequently asked questions from all kind of potential investors. Most of the answers are based on real life up to date experiences, keeping the Thai laws in mind, open and honest. We give you the answers and you make your own conclusion concerning your decision to buy property Thailand. Here are the
Can I own a property in Thailand?
Although the law does not allow foreigners to own land in Thailand, they can own the buildings on the land. However, there are exceptions: A foreign company may buy land if it has Board of Investment (BOI) privileges and the land is part of the project (usually manufacturing). Ownership is tied very strictly to the BOI terms and conditions agreed with the company. A new law (Land Code Section 96, 2002) allows a foreigner to buy up to one Rai. Companies and partnerships also fall under the strict laws on land ownership by foreigners. A foreigner can only own up to 49% of a company and this restricts the ownership of land as well. It is often difficult for even a company with 51/49% ownership unless you use an experienced real estate lawyer like CMS Law Associates Co., Ltd. Leasehold: Thai law allows a maximum lease period of 30 years, with the possibility to extend for a further 30+30 years. At the end of each term, both parties must register the renewal with the Land Department and pay government fees, including stamp duty. This gives the lessee “ownership” of the land. The downside is that the Lessor may not wish to renew, or the law may change to your detriment in the future. Any capital you invest into leased property is therefore liable to be lost. In addition, leased land is not easy to trade. Nominee: You can nominate a Thai to own the property for you. Definitely not recommended. Nominee with a mortgage: You can lend the price of the property to a Thai under a legally executed mortgage or loan agreement. There is a small fee payable at the Land Office to register it. The advantage to this is that the nominee cannot sell the property until the mortgage or loan has been repaid in full. Your lawyers should also set up a Last Will & Testament when they set up this type of transaction so that if the foreigner dies first the mortgage or loan is discharged in full and the Thai can inherit the property. If the Thai nominee dies first the foreigner can inherit the land, but must sell it to a Thai within 12 months. Foreigners buying property in Thailand should always write a new will to avoid any future problems for the Executors and Beneficiaries. Freehold: Foreigners can buy and own condominiums Freehold, giving you full ownership rights to buy, sell, trade and bequeath your condominium. However, the law states that foreigners may only own up to 49% of any condominium building. So make sure your lawyer checks this before buying a property. The seller must also provide a document from the Juristic management office stating that the condominium is free from all debts. Company Ownership: A highly recommended way to buy and own property is by setting up a company when buying a house, land, or other property that is not a condominium. An experienced real estate lawyer can help you do this and ensure that you control the property without interference from your nominee Thai partners.