Owning a property in Thailand mау be a dream for many people, but there are certain restrictions for non-Thai nationals when it comes to property and land ownership. We will outline some of the restrictions and requirements but it is highly recommended that you seek proper legal advice before entering into any property or land purchases in Thailand.
Differences between Leasehold and Freehold property.
Leasehold means that the buyer is leasing the property from the land owner for a pre-determined period of time normally valid up to 30 years. Renewal for a further 30 years is at the discretion of the lease holder (land owner). At the end of each term, both parties must register the renewal with the Land Department and pay government fees, including stamp duty. This gives the lessee "ownership" of the land. The downside is that the lesser may not wish to renew or the law may change to your detriment in the future. Any capital you invest into leased property is therefore liable to be lost. Property owned by the Crown Property Bureau is always Leasehold. Some private property owners may also sell their property with a leasehold title deed.
Freehold foreigners can buy and own freehold condominiums, giving you full ownership rights purchasers, including the right to sell or lease the property and to develop the property within the guidelines under Thai law.
How can a foreigner own a House and Land in Thailand?
A foreigner who invests 40 million baht or more in a Thai Company is eligible to purchase land and a house at the size of maximum 400 square wah maximum total land area.(l square wah = 4 square meters). A foreigner who invests with a Thai registered company can purchase land and house with unlimited size and amount of investment through company registered name.
If the wife of a Foreigner is a Thai national, can she own a house or Land in Thailand?
Prior to 1998, any Thai woman who married a foreigner would lose her right to purchase land in Thailand. She could, however, still retain land that she owned prior to marrying the foreigner. However, the recent (1999) Ministerial regulation now allows Thai national's married to foreigners the right to purchase land, but the Thai spouse must prove that the money used in the purchase of freehold land is legally solely theirs with no foreign claim to it. This is usually achieved by the foreign spouse signing a declaration stating that the funds used for the purchase of property belonged to the Thai spouse prior to the marriage and are beyond his claim.
Buying a Condominium in Thailand
How can a foreigner own a Condominium in Thailand?
A foreigner can own freehold a condominium in Thailand because a condominium's title deed (Chanote) does not have any land registered to or associated with the condominium. The land is owned by a Juristic Persons Group (Association) registered with the Thai Government and made up of a majority of Thai citizens.
A foreigner may also own a condominium with a leasehold agreement. In this case, the property remains in the Thai owner's name, but you sign a 30, 60, or 90 year leasehold agreement, with all the legal obligations and benefits that this offers, including the right to buy, sell, trade and will the lease to heirs. Lawyers can help set up all the correct legal procedures and paperwork needed for this type of purchase. Purchases of condominiums by foreign individuals come under the jurisdiction of CONDOMINIUM ACT (No. 3) B.E. 2542 (1999).
The Condominium Act entitles certain groups of foreigners both individuals and companies to acquire a condominium or apartment units in Thailand provided that the non-Thai ownership in a condominium project does not exceed, in the aggregate, 49% of the total area of all condominium units in the condominium building.
If purchasing from a development the developers will usually offer a choice of two ownership options being "freehold" or "leasehold". If the units being sold have not had their quota of non-Thai ownership met then you should likely be able to acquire a "freehold" interest in the condominium / apartment development. The "freehold" interest only gives you rights to the building and not the land.
IF the units being sold to non-Thais have had their quota of freehold fully subscribed - then the developer is able to offer a lease interest in the condominium / apartment development. The longest duration a lease can be registered in Thailand is 30 years and it can be written into the contract that the lease is a lifetime lease meaning that you would have 2 options to renew at a max term of 30 years each.
The land upon which the condominium / apartments site is located would be owned by each individual with a majority Thai Shareholding and governed by a juristic entity or body corporate set up by an owner's body.
Non-Thais Eligible to Own a Condominium.
Non-Thais who bring foreign currency into Thailand to pay for the purchase of condominium units or withdraw money from a bank account of a non-resident, or withdraw money from a foreign currency account. Any one of the following documents is required:
• Having one or more Foreign Exchange Certificate know as the "Thor Tor 3", evidencing the sale or deposit of foreign currency in an authorized local bank. This form must bear the bank's authorized signature and seal in the authorized bank column. The Thor Tor 3 must specify that the purpose of the remittance of foreign currency be for purchase of a condominium unit or units and must in total equal or exceed the price of the condominium.
• Non-Thais who are permitted to have residence in Thailand under the Immigration Act. The documents required are a passport, residence permit and house registration, or else an alien book.
• Non-Thais who are permitted to enter Thailand under the Investment Promotion Act. The documents required are a passport plus a letter from the Board of Investment of Thailand certifying permission to live in Thailand under the Investment Promotion Act.
