What are the different ways of buying or owning land or property in Thailand? - Investment/BOI: Thai property law may allow foreigners to own a limited amount of land based on investment of 40 million baht or more, provided that the land is used for residential purposes. Additionally, foreign companies may be able to purchase land for a limited period if they have the approval from the Board of Investment (BOI). However, these methods are not convenient or satisfactory for most people interested in acquiring property in Thailand.
- Thai property law allows a 30-year maximum lease period, with the possibility of renewing the lease for another 30 years. This type of lease has become a favorite used by foreigners to own or buy land. We will work with you to draft the land and property lease, ensuring that it fully protects you and your land and property rights. One advantage of a lease is that it is fairly user-friendly and easier to maintain than forming a company.
- A Thailand-registered company may either be 'Thai' or 'foreign'. To be a 'Thai' company, more than 50% of the company must be owned by Thai shareholders (The remaining shares may be held by foreigners). This 'Thai' company may then legally purchase land or buy property in Thailand.
Can I have a Thai national buy land or purchase property in his name and have this person execute an agreement that the land is held for my benefit? This is a risky approach because it is technically illegal for a Thai national to act as a nominee of a foreigner to buy land or purchase property. Therefore, the agreement may be illegal and as a result, unenforceable.
What if I have a Thai Spouse? A Thai spouse of a foreigner may be allowed to buy land or property in Thailand in his or her own name. However the married couple may be asked to sign declarations at the Land Department to state that the property belongs to the Thai spouse, prior to registration. This may have the effect of waiving any claim on the land or property by the non-Thai spouse. This may become problematic in a divorce case as it may be difficult for the non-Thai spouse to prove that the land was marital property. In this case, a skillfully drafted prenuptial agreement may come in handy to minimize the risk to the non-Thai spouse.
How does a limited liability company allow foreigners to buy property? Buying property with a limited liability company is one of the most popular methods for foreign investors. This is because the Articles of Association can be written to allow greater protection for foreign minority shareholders. Thailand law generally requires that Thai nationals own a majority interest in a company if they wish to purchase land legally.
I am an American and I have heard that I can be a 100-per-cent owner of a company in Thailand under the Amity Treaty. Am I able to buy land or purchase property with this Amity Treaty company then? No, an Amity Treaty company allows Americans to own a majority share in a Thai company and transact many, but not all, types of businesses. It does not confer the right to buy or purchase land in Thailand.
How do land mortgages work in Thailand? Land mortgages in Thailand must be made in writing and registered with the Land Department of Thailand. Mortgages do not include the buildings built on the land after the mortgage date unless they were agreed upon before the mortgage documents were signed. In addition, buildings and other immovable structures may be mortgaged separately and should be registered with the Land Department or local Amphur (province).
If you are buying land on a province outside of Bangkok, you should hire a Bangkok based lawyer as they are more likely to be able to handle all your legal needs.
