Thai law
What You Need to Know
When buying property in Thailand as a foreigner, it’s important to understand the local property laws and regulations. Here’s a quick breakdown of the key principles:
Freehold Ownership for Foreigners — Condos Only
Foreigners can own condominiums in Thailand on a freehold basis, but there are important restrictions. According to Thai law, foreigners can own up to 49% of the total floor space of a condominium building. This means that the remaining 51% must be owned by Thai nationals. If you’re looking to purchase a condo, we can help ensure that you find units within this ownership limit.
Leasehold Ownership
While foreigners are restricted from owning land in Thailand, they can still enjoy long-term ownership through a leasehold agreement. This typically involves leasing land for up to 30 years, with the possibility of renewing the lease for additional periods (often 30 years). This arrangement allows foreigners to live and operate on the land, but it’s important to have the leasehold agreement structured properly to protect your investment.
No Foreign Ownership of Land
In Thailand, foreigners cannot directly own land. However, there are legal ways to invest in land, such as through a Thai-registered company or by partnering with a Thai national, though these options require careful consideration of local laws and regulations. We guide you through these complex options to ensure that any investment you make complies with Thai law and protects your interests.
Why the Condo purchase law exists
Why the 49% Foreign Ownership Rule Exists for Condominiums
The 49% foreign ownership rule in Thai condominiums is part of a broader set of regulations designed to balance foreign investment with local ownership in the property market. Here’s why the law exists:
1. Protecting Local Ownership and Interests
The 51% local ownership requirement ensures that Thai citizens maintain control over the property market and that foreigners do not dominate property ownership in the country. It’s a safeguard to preserve local participation in the market and ensure that Thai nationals have opportunities to own property and real estate developments.
2. Encouraging Foreign Investment with Limits
While the law prevents foreign nationals from owning land in Thailand, it allows foreigners to own property in the form of condominiums, which is seen as a way to encourage foreign investment in the local economy. The 49% limit ensures that foreigners can contribute to the market while maintaining a stable, local-driven real estate environment.
3. Promoting Sustainable Development
This ownership balance helps to maintain a healthy real estate market where the supply and demand are not overly influenced by foreign speculation. It ensures that property developments are sustainable in the long term and that foreign investment benefits the Thai economy without overwhelming the market.
4. Flexibility in Condo Purchases
Because the law applies to the building as a whole, foreigners can purchase individual condo units within a development, as long as the 49% foreign ownership cap hasn’t been reached. This system gives flexibility to foreign buyers while maintaining a balance of local ownership.