Can foreigners buy real estate in Thailand? A comprehensive guide.

Thailand attracts the hearts of many foreigners not only with its vibrant street food and lively city life. The possibility of permanent residency becomes quite appealing, leading to the question - can foreigners buy property in Thailand? Purchasing property in Thailand as a foreigner can be a challenging task. But don't worry. In this guide, we will provide you with all the information you need to confidently navigate the Thai real estate market.

How does Thailand's property law apply to foreigners?

Before you decide to spend your hard-earned money on a beautiful coastline, it's important to understand Thailand's real estate laws. These rules can prevent you from getting into complicated situations later on. So, can foreigners buy property in Thailand? Yes and no. If you are not a Thai citizen, you cannot buy land in Thailand. The laws are clear and do not allow foreigners to own land in the country. However, there are ways in which you can legally own property in Thailand. This includes:

Buying an apartment. Fortunately, if you want to purchase real estate in Thailand, the law, specifically the Thai Condominium Act of 1979, allows foreigners to buy apartments. Apartments can be found in many locations across the country and in various price ranges, which means that finding one that suits your personal needs and financial capabilities shouldn't be difficult. One thing to keep in mind is that foreigners cannot own more than 49% of all units sold in any building or complex. If you want to buy a used apartment from a Thai citizen, make sure to contact the property management office. They will inform you if there are already too many foreign owners in the building.
Conclusion of a long-term lease. What about owning a beautiful villa or a large property? In this case, your only option is to rent. You can apply for a long-term land lease and build structures on that land. Practically, this means that you can own a villa, townhouse, or any other property on Thai territory without having actual ownership rights to the land. Your lease agreement can last up to 30 years and can be extended twice, allowing you to lease the land for a maximum period of 90 years. However, keep in mind that lease extensions do not always happen easily. The owner or their heirs may deny your request for an extension. To avoid falling into this potential trap, it is important to document every detail and agreement when signing the lease. This can save you from future problems and misunderstandings.

Are there alternatives to buying land in Thailand for foreigners? Yes, there are several alternatives you can consider, but they may be more complicated. These include:

Organizing a Thai company. If you are considering the possibility of purchasing real estate in Thailand, one way to do this is to create a Thai limited liability company. But keep in mind that this option has its rules. First, the ownership of the company must be divided between Thais and foreigners, with Thais owning 51% of the shares. As a foreigner, you will have the right to own up to 49% of the shares. Additionally, your company cannot exist only on paper. To be recognized by law, your company must be an operating business that generates income and includes real Thai investors. Once you properly organize your company, you will be able to use it to purchase land or property in Thailand. Since this process can be complex, it is advisable to hire a Thai lawyer to guide you through it.
Investing through BOI. If you are a foreigner looking to invest or develop a business in Thailand, the Board of Investment (BOI) can offer you certain benefits and permits. One of these privileges may be the ability to purchase residential land for your employees. However, the investment must be beneficial to the Thai economy, for example, invested in assets or bonds. Please note that these benefits do not extend to your generation.

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In other words, your heirs will not be able to inherit property ownership rights.

Obtaining permanent resident status. If you are considering permanent residence in Thailand, it may be a good idea to obtain permanent resident status. This status offers more opportunities. Not only can you live indefinitely in Thailand without the need to extend your stay, but you can also have your name on the house registration document. Additionally, as a permanent resident, you have the option to purchase an apartment without having to make bank transfers from abroad. This status also increases the likelihood of getting approval for mortgage financing.

Marriage to a Thai citizen. Another option is marriage to a Thai citizen. However, even if you get married, owning land won't just fall into your lap. Your Thai partner will need to prove that the money used to purchase the land belonged solely to them. In fact, the property being acquired will be registered in the name of the Thai spouse, even if you (the foreign partner) are the buyer. You are prohibited from co-owning property with your spouse, so it cannot become a joint marital asset. When purchasing property, a declaration from the couple, signed by them, may be required, stating that the money used to buy the property is the exclusive property of the Thai spouse. Additionally, after marrying a non-Thai citizen, the Thai citizen faces restrictions regarding future land acquisitions.

Proceed with caution. It is not advisable to rush into marriage with a Thai citizen solely for the purpose of purchasing land. You should carefully consider all options and potential consequences before making such a serious decision as marrying for the sake of buying land. Every choice has its pros and cons. Therefore, before making a decision, make sure you have thoroughly checked everything and sought professional advice. It is always better to ensure that you are following the rules while in another country.

How to navigate the real estate market in Thailand

The real estate market in Thailand is attractive. However, it's important to understand its specifics before making investment decisions.

Market trends. In recent years, the real estate market in Thailand has been changing dynamically. Despite challenges such as the Covid-19 pandemic, global economic uncertainty, and a slowdown in domestic economic growth, the market continues to move forward. An important trend is the increasing demand for apartments, especially in urban areas where space is valued. This is driven by both local and foreign buyers looking for housing or potential rental income.
Promising regions for investment. When considering real estate investments in Thailand, some regions promise more than others. Bangkok, the heart of the country, is an attractive location. Its status as a commercial center ensures a constant demand for both luxury and affordable housing. Phuket and Samui also attract the attention of investors. Their stunning seaside resorts have become incredibly popular tourist destinations, making them suitable for vacation homes or real estate investments. Additionally, places like Chiang Mai and Pattaya are becoming increasingly popular. Chiang Mai, with its blend of modern amenities and rich heritage, attracts foreigners, while the vibrant atmosphere of the beach resort town of Pattaya appeals to both young people and families.
Searching for real estate in Thailand. If you are planning to buy property in Thailand but currently live abroad, local real estate agents can be a great help. They know the local market and can assist you through the buying process. However, be cautious when choosing an agent. There are no strict regulations in Thailand regarding who can work as a real estate agent. This means that not all agents have the experience and reliability you might expect. To avoid issues, try to find an agent recommended by trusted individuals. Don't hesitate to ask questions or do your own research on the agency. Another good idea is to start your search online. Before arriving in Thailand, you can browse property listings on various Thai real estate websites, such as FazWaz. This is a convenient way to see what is available without leaving your home.