Thailand has their own laws regarding foreign real estate ownership and the main aspect is that foreigners are prohibited from owning land. This law was passed in the 1920s to prevent Japanese investors from buying up large tracts of land in Bangkok, although there are a few exceptions. If, for example, you are prepared to invest 40 million baht, you can own up to 1 rai of land for residential purposes. Talk to a Thai lawyer for further information on the restrictions with land ownership, then you can make an informed decision.
Condominium ownership
A foreigner can purchase condo units, provided that foreign ownership does not exceed 49% and many expats go down this road. One luxury development is The River by Raimon Land, which sits on the banks of the Chao Phraya River and if you would like to buy a unit, be quick as they are very much sought after due to the premium location. You will have to produce evidence that the funds came from outside of Thailand and the real estate agent would help you with the paperwork.
Land lease
This is the most popular way to build your dream home; lease the land for 30 years with a further option of another 30 years, which allows you to build. Any structure on leased land can be legally owned by a foreigner, they just cannot own the land the house sits on. Always have an English-speaking lawyer look at any lease before you sign it. Leasing land is not cheap, you would probably pay the same as a freehold purchase. Is home ownership out of reach? Click here to find out.
Setting up a limited company
Registering a limited company allows you to buy land and real estate in the company name, but be aware that if a limited company has been set up solely for the purpose of real estate acquisition, the Thai government has the right to seize the assets of said company. Simply put, the company must be a trading entity that pays tax, then you have nothing to worry about.
Hire an English-speaking Thai lawyer
Regardless of which avenue you pursue, you should enlist the services of an experienced English-speaking Thai lawyer to ensure that all is above board. Most retirees do not require a huge living space, and a 2-bedroom condo by the sea is more than enough. All luxury condo developments have a private swimming pool, a weight training room and many other amenities.
Renting property
Many expats are unsure as to how long they will stay in Thailand, therefore, they prefer to rent rather than buy. Renting is pretty straightforward, check the rental agreement and walk around with the landlord when you move in to check the condition of the property, inside and out.
We hope that this article helps you to gain a better understanding of the real estate laws in Thailand.
