How to buy land as a foreigner
Thailand is a country that does not basically permit a foreigner to buy any land in Thailand. However, there are some means and alternatives a foreigner can resort to if one plans to buy land in Thailand.
One of the means for a foreigner to buy land in Thailand is to buy the land in the name of a Thai company. This means that the company should be a company where about 51% of the shares of the company are Thai, and 49%, foreign. Foreigners having some investment in Thailand are also permitted to buy land in Thailand. They have to have invested at least 40 million Baht for not less than 5 years for investments other than ownership or real estate. With this investment, the foreigner can buy a maximum of one rai (1,600 square meters) of land for residential purposes. However, it is better to get some permission from the Ministry of Interiors before buying the land.
The Thai property law was amended in 1999 where Thais having foreign spouses can legally own land in Thailand. However, the property has to be registered under the name of the Thai, and the foreigner has to sign a declaration declaring that the funds of the real estate investment come from the Thai spouse. With this, the foreigner is waived right of ownership over the land.
Another option foreigners have for acquiring land in Thailand is leasing. The Thai property law permits a maximum leasing of 30 years, with renewal if agreed upon by the leaser and lessee. This proves to be the best means for a foreigner to acquire land as it is the least complicated. However, land leases of more than 3 years have to be registered at the Land Department.
Foreigners can also opt for structural ownership where their company or Thai spouse can allot a Right of Superficies which lies in favor of the foreigner. With this, the foreigner can own all the constructions that are found on the land. With this, the foreigner is registered as the owner of the house, but not the land. This Right of Superficies stays in force for 30 years, and can be renewed for another 30 years. However, this is not done automatically.
Whatever the means one adopts to buy land, it is better to conduct a title search as there are various levels of title deeds. Verify with the Land Department on the type of deed the land has, and its legality. With this, you will learn more about the land and its obligations. And with the real estate boom in Thailand, there are many counterfeit title deeds being issued; it is only with a title search can you avoid any complications when buying real estate.
One of the means for a foreigner to buy land in Thailand is to buy the land in the name of a Thai company. This means that the company should be a company where about 51% of the shares of the company are Thai, and 49%, foreign. Foreigners having some investment in Thailand are also permitted to buy land in Thailand. They have to have invested at least 40 million Baht for not less than 5 years for investments other than ownership or real estate. With this investment, the foreigner can buy a maximum of one rai (1,600 square meters) of land for residential purposes. However, it is better to get some permission from the Ministry of Interiors before buying the land.
The Thai property law was amended in 1999 where Thais having foreign spouses can legally own land in Thailand. However, the property has to be registered under the name of the Thai, and the foreigner has to sign a declaration declaring that the funds of the real estate investment come from the Thai spouse. With this, the foreigner is waived right of ownership over the land.
Another option foreigners have for acquiring land in Thailand is leasing. The Thai property law permits a maximum leasing of 30 years, with renewal if agreed upon by the leaser and lessee. This proves to be the best means for a foreigner to acquire land as it is the least complicated. However, land leases of more than 3 years have to be registered at the Land Department.
Foreigners can also opt for structural ownership where their company or Thai spouse can allot a Right of Superficies which lies in favor of the foreigner. With this, the foreigner can own all the constructions that are found on the land. With this, the foreigner is registered as the owner of the house, but not the land. This Right of Superficies stays in force for 30 years, and can be renewed for another 30 years. However, this is not done automatically.
Whatever the means one adopts to buy land, it is better to conduct a title search as there are various levels of title deeds. Verify with the Land Department on the type of deed the land has, and its legality. With this, you will learn more about the land and its obligations. And with the real estate boom in Thailand, there are many counterfeit title deeds being issued; it is only with a title search can you avoid any complications when buying real estate.
posted by JP | 8:07 AM
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